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HomeMy WebLinkAbout14606RESOLUTION NO. 14606 A RESOLUTION AUTHORIZING THE CITY OF PUEBLO TO GRANT CONDITIONAL WAIVERS OF FEES RELATING TO WASTEWATER UTILITY TAP AND PLANT INVESTMENT FEES TOTALING A MAXIMUM OF $405,288 FOR THE PUEBLO SPRINGS APARTMENT COMPLEX LOCATED ON THE SOUTHWEST CORNER OF NORTH PUEBLO BOULEVARD AND ST WEST 31 STREET IN THE CITY OF PUEBLO Recitals WHEREAS, the City Council finds and determines that it has been several years since a large-scale apartment complex has been developed in the City of Pueblo; and WHEREAS, the lack of new large-scale apartment complexes in the City has a negative impact on the City’s economic development; and WHEREAS, annexation of the Pueblo Springs Apartments 20-acre complex into the corporate city limits of the City of Pueblo will result in the recovery of sales and use tax revenue associated with the construction of the project and future real property tax revenue in amounts far in excess of Wastewater Utility fees waived by this Resolution; and WHEREAS, the waiver of fees for Wastewater Utility tap and plant investment fees as authorized by this Resolution is for a public purpose and in furtherance of a municipal function and will enhance economic development in the City; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, acting as the governing board of the City’s Wastewater Utility Enterprise, that: SECTION 1. The foregoing recitals are hereby incorporated into this ordinance by reference, as if set forth verbatim. SECTION 2. The City of Pueblo, acting by and through its Wastewater Utility Enterprise, hereby grants a waiver of wastewater utility tap and plant investment fees up to a maximum amount of $405,288.00 to the Pueblo Springs Apartments, according to the following schedule: Development Fee Type Total Units Fee per Unit Amount Waiver Phase Waived Expires Phase 1 Tap Fee 199 $ 704 $ 140,096.00 12/31/22 Phase 1 Plant 199 $ 595 $ 118,405.00 12/31/22 Investment Fee Phase 2 Tap Fee 113 $ 704 $ 79,552.00 12/31/26 Phase 2 Plant 113 $ 595 $ 67,235.00 12/31/26 Investment Fee Total 312 $ 405,288.00 SECTION 3. The waiver of Wastewater Utility fees as provided in this Resolution is conditioned by the requirement that Pueblo Springs Apartments provide the City with satisfactory proof of the following: 1. With respect to Pueblo Springs Apartments 20-acre complex, successful completion of the following milestones: a. Subdivision of the property; b. Rezoning of the property; c. Annexation of the 20-acre parcel into the corporate city limits of the City of Pueblo. 2. Issuance of a Building Permit for construction of the Pueblo Springs Apartments by the Pueblo Regional Building Authority. SECTION 4. Pueblo Springs Apartments shall not begin construction of improvements on its 20-acre property until the satisfaction of the conditions set forth in Section 3 of this Resolution. SECTION 5. This Resolution shall not serve as a precedent for the granting of waivers of Wastewater Utility fees in the future. The decision to grant a waiver of wastewater utility tap and plant investment fees to Pueblo Springs Apartments was based on the particular facts surrounding the Pueblo Springs Apartments development. As was done with Pueblo Springs Apartments, future requests for waivers of Wastewater Utility fees shall be considered on a case-by-case basis. SECTION 6. Resolution No. 14433, dated July 13, 2020, shall be and hereby is rescinded. SECTION 7. The officers of the City are authorized to perform any and all acts consistent with this Resolution to implement the policies and procedures described herein. SECTION 8. This Resolution shall become effective immediately upon final passage. INTRODUCED May 10, 2021 BY: Ed Brown MEMBER OF CITY COUNCIL APPROVED: PRESIDENT OF CITY COUNCIL ATTESTED BY: CITY CLERK City Clerk’s Office Item # M-4 Background Paper for Proposed Resolution COUNCIL MEETING DATE: May 10, 2021 TO: President Lawrence W. Atencio and Members of City Council CC: Mayor Nicholas A. Gradisar VIA: Marisa Stoller, City Clerk FROM: Daniel C. Kogovsek, City Attorney SUBJECT: A RESOLUTION AUTHORIZING THE CITY OF PUEBLO TO GRANT CONDITIONAL WAIVERS OF FEES RELATING TO WASTEWATER UTILITY TAP AND PLANT INVESTMENT FEES TOTALING A MAXIMUM OF $405,288 FOR THE PUEBLO SPRINGS APARTMENTS LOCATED ON THE SOUTHWEST ST CORNER OF NORTH PUEBLO BOULEVARD AND WEST 31 STREET IN THE CITY OF PUEBLO SUMMARY: Attached is a Resolution authorizing the City of Pueblo to grant conditional waivers of fees for wastewater utility tap and plant investment fees totaling up to $405,288.00 requested by the developer of the Pueblo Springs Apartments, located in the southwest corner of North Pueblo st Blvd. and West 31 St. in the City. PREVIOUS COUNCIL ACTION: On July 13, 2020, the City Council, by Resolution No. 14433, granted the developer of Pueblo Springs Apartments conditional waivers of fees for wastewater utility tap and plant investment fees totaling up to $314,400.00. BACKGROUND: It has been several years since a large-scale apartment complex has been developed in the City of Pueblo. The lack of new large-scale apartment complexes in the City has a negative impact on the City’s economic development. Annexation of the Pueblo Springs Apartments 20 acre complex into the corporate city limits of the City of Pueblo will result in the recovery of sales and use tax revenue associated with the construction of the project and future real property tax revenue in amounts far in excess of Wastewater Utility fees waived by this Resolution. The developer of the Pueblo Springs Apartments has revised the size of his proposed project from 242 units to 312 units. In addition, due to the COVID-19 pandemic and the subsequent shortage of building materials, an extension of the waiver of the Wastewater Utility fees has been requested by the developer. Under the attached proposed Resolution, the waiver of the Wastewater Utility fees will require the developer to provide satisfactory proof of the following: 1. With respect to Pueblo Springs Apartments 20-acre complex, successful completion of the following milestones: a. Subdivision of the property; b. Rezoning of the property; c. Annexation of the 20-acre parcel into the corporate city limits of the City of Pueblo. 2. Issuance of a Building Permit for construction of the Pueblo Springs Apartments by the Pueblo Regional Building Authority. FINANCIAL IMPLICATIONS: The Wastewater Utility will not receive tap and plant investment fees for this project as follows: Development Fee Type Total Units Fee per Unit Amount Waiver Phase Waived Expires Phase 1 Tap Fee 199 $ 704 $ 140,096.00 12/31/22 Phase 1 Plant 199 $ 595 $ 118,405.00 12/31/22 Investment Fee Phase 2 Tap Fee 113 $ 704 $ 79,552.00 12/31/26 Phase 2 Plant 113 $ 595 $ 67,235.00 12/31/26 Investment Fee Total 312 $ 405,288.00 BOARD/COMMISSION RECOMMENDATION: Not applicable to this Resolution. STAKEHOLDER PROCESS: Not applicable to this Resolution. ALTERNATIVES: Failure to approve this Resolution will likely significantly delay or make the Pueblo Springs Apartments Project financially unfeasible. RECOMMENDATION: Approve the Resolution. Attachments: Proposed Resolution