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HomeMy WebLinkAbout09944ORDINANCE NO. 9944 AN ORDINANCE APPROVING AN AGREEMENT TO BUY AND SELL REAL ESTATE BETWEEN THE CITY OF PUEBLO, A COLORADO MUNICIPAL CORPORATION, AND CORTEZ CONSTRUCTION CO., A COLORADO CORPORATION, RELATING TO RFP 19-039R, SALE OF PROPERTY AT 1723 EDEN AVENUE, PUEBLO, COLORADO, AND AUTHORIZING THE MAYOR TO EXECUTE SAME BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. The Contract to Buy and Sell Real Estate (“Agreement”) dated May 25, 2021, between the City of Pueblo, a Municipal Corporation, and Cortez Construction Co., a Colorado Corporation, a copy of which is attached hereto and is incorporated herein by this reference, having been approved as to form by the City Attorney, is hereby approved. SECTION 2. The Mayor is authorized to execute and deliver the Agreement in the name of the City and the City Clerk is authorized to fix the seal of the City thereto and attest same. The Mayor is further authorized to execute and deliver the accompanying Special Warranty Deed and related documents at closing, transferring the property owned by the City to Cortez Construction Co., in the manner described in the Agreement. SECTION 3. Proceeds from the sale are to be deposited in the following accounts: (i) Five Hundred and Twenty-Nine Dollars ($555.00) is to be deposited in account number 101-14001-53001 for reimbursement of title insurance costs related to the sale; and (ii) the balance of Seven Thousand Nine-Hundred and Seventy-One Dollars ($7,945.00) shall be deposited in Account No. 254- 14000-56901. SECTION 4. The officers and staff of the City are authorized to perform any and all acts consistent with this Ordinance and the attached Agreement appropriate to implement the transactions described therein. SECTION 5. This Ordinance shall become effective on the date of final action by the Mayor and City Council. Action by City Council: Introduced and initial adoption of Ordinance by City Council on May 24, 2021 . Final adoption of Ordinance by City Council on June 14, 2021 . President of City Council Action by the Mayor: ☒ Approved on June 15, 2021 . □ Disapproved on based on the following objections: _ Mayor Action by City Council After Disapproval by the Mayor: □ Council did not act to override the Mayor's veto. □ Ordinance re-adopted on a vote of , on □ Council action on _______ failed to override the Mayor’s veto. President of City Council ATTEST City Clerk City Clerk’s Office Item # R-1 Background Paper for Proposed Ordinance COUNCIL MEETING DATE: May 24, 2021 TO: President Lawrence W. Atencio and Members of City Council CC: Nicholas A. Gradisar, Mayor VIA: Marisa Stoller, City Clerk FROM: Bryan Gallagher, Director, Housing and Citizen Services SUBJECT: AN ORDINANCE APPROVING AN AGREEMENT TO BUY AND SELL REAL ESTATE BETWEEN THE CITY OF PUEBLO, A COLORADO MUNICIPAL CORPORATION, AND CORTEZ CONSTRUCTION CO., A COLORADO CORPORATION, RELATING TO RFP 19-039R, SALE OF PROPERTY AT 1723 EDEN AVENUE, PUEBLO, COLORADO, AND AUTHORIZING THE MAYOR TO EXECUTE SAME SUMMARY: Attached is an Ordinance approving, and authorizing the Mayor to sign, an agreement for the City to sell a parcel of unimproved land located at 1723 Eden Avenue in the Corkish – Sackman - Littell Addition No. 2 (the “Property”) to Cortez Construction Co. for Eight Thousand Five Hundred Dollars ($8,500.00). PREVIOUS COUNCIL ACTION: Not applicable to this Ordinance. BACKGROUND: The property was donated to the City in 2013 after demolition of the property by the City in 2011. The City’s Purchasing Department issued RFP 19-039R for the sale of unimproved land located at 1723 Eden Avenue, Pueblo, Colorado 81005, more specifically designated as: Parcel No. 1510126011, 1723 Eden Avenue, Pueblo, Colorado 81005, whose legal address is: Lot 11, Block 9, Corkish – Sackman - Littell Addition No. 2. One bid, submitted by Cortez Construction, was received. FINANCIAL IMPLICATIONS: The City will receive $8,500.00. Closing costs will be paid by the City. The City will pay the title insurance premium of $555.00. Proceeds of the sale will reimburse the Department of Housing & Citizen Services, Professional Services account 101-14001-53001, for the cost of the title insurance ($555.00), the balance ($7,945.00) is to be retained in the 254-14000-56901 Account. BOARD/COMMISSION RECOMMENDATION: Not applicable to this Ordinance. STAKEHOLDER PROCESS: Not applicable to this Ordinance. ALTERNATIVES: City Council may decide not to sell the Property. RECOMMENDATION: Approval of this Ordinance. Attachments: Proposed Ordinance and proposed Contract to Buy and Sell Real Estate CONTRACT TO BUY AND SELL REAL ESTATE THIS CONTRACT ("Agreement") is made the a-3 day of 021, between the City of Pueblo,a Colorado municipal corporation(hereinafter called the"Seller'), Cortez Construction Co.,a Colorado Corporation(hereinafter called the"Purchaser"). 1. Property Defined. The Seller agrees to sell and convey to the Purchaser, and the Purchaser agrees to purchase from the Seller, all that certain plat, piece, and improved parcel of land having the following legal description("Property"): Lot Size: 5000 sf Parcel: 1510126011 Neighborhood: 130(Jones&Morrison) Tax District: 60B Legal Description: Lot 11,Block 9,Corkish—Sackman-Littell Addition No.2 All in the County of Pueblo, State of Colorado. The Property shall be conveyed by Special Warranty Deed ("Deed") the form of which, marked as Appendix 1,is attached hereto and incorporated herein by reference.The Property shall be conveyed subject to and subordinate to all easements, reservations, restrictions, covenants, limitations, rights-of-way and conditions of record and zoning and subdivision regulations and resolutions of the City of Pueblo and the Permitted Exceptions (as hereinafter defined),which shall be listed as exceptions in the Special Warranty Deed, subject to satisfaction of the conditions listed in this Agreement. 2. Purchase Price. Seller and Purchaser agree that the total purchase price shall be Eight Thousand Five Hundred Dollars (U.S. $8,500.00), to be paid as provided in, and subject to, Paragraph 3 below(the"Purchase Price"). 3. Payment of Purchase Price. The Purchase Price for the Property shall be payable at Closing in cash or certified funds. 4. Real Property Taxes. General real property taxes and assessments for tax year 2021, if any, shall be prorated and paid at Closing to the Purchaser on the basis of the 2020 tax year. 5. Title Commitment and Policy. Within ten(10)days of the date hereof and, in any event, at least twenty(20) days prior to the Closing Date, Seller shall order and obtain, and deliver to Purchaser, at Seller's expense,a current commitment for extended coverage title insurance in the amount of the Purchase Price,together with legible copies of all documents listed as exceptions therein, and a current certificate of taxes due with respect to the Property, from a title company selected by Seller, and reasonably acceptable to Purchaser, authorized to issue title insurance in the state of Colorado (the "Title Company"), on the current standard form of extended ALTA Owners Policy(collectively,the"Title Commitment"). The Title Company shall promptly provide copies of any amendments or modifications of the Title Commitment to Purchaser. Purchaser shall have the right to review the Title Commitment and the title documents and notify Seller in writing of any title objections to the title exceptions set forth in the Title Commitment. Seller shall have five(5)days from receipt of notice of such objections within which to eliminate or modify (or agree in writing to so eliminate or modify) any such unacceptable exceptions to the reasonable satisfaction of Purchaser,but Seller shall have no obligation whatsoever to so eliminate or modify any such unacceptable exceptions. In the event that Seller is unable or unwilling to eliminate or modify (or agree in writing to so eliminate or modify) such unacceptable exceptions to the reasonable satisfaction of Purchaser on or before the expiration of said five(5) day period, Seller shall notify Purchaser in writing of such fact within said five (5) day period or be deemed to have so notified Purchaser with respect to all such unacceptable exceptions not theretofore cured upon the fifth (5th) day of said period. In such event, Purchaser shall, prior to the Closing Date either (i) waive such objections and accept title to the Property subject to title exceptions set forth in the Title Commitment(the"Permitted Exceptions"), or(ii) terminate this Agreement by written notice to Seller, whereupon this Agreement shall automatically be terminated and of no further force and effect, except as otherwise expressly set forth herein. At Closing or as soon as reasonably practicable after Closing, the Title Company shall issue and deliver to Purchaser the owner's title insurance policy referred to above (the "Title Policy"), issued by the Title Company insuring Purchaser's title to the Property consistent with the Title Commitment subject only to taxes and assessments for the year of Closing and subsequent years, subject to and subordinate to all easements, reservations, restrictions, covenants,.limitations, rights-of-way and conditions of record and zoning and subdivision regulations and resolutions of the City of Pueblo and the Permitted Exceptions.At Closing,Seller shall pay the premium for the Title Policy. Purchaser may obtain such other endorsements to the Title Policy as Purchaser desires, at the expense of Purchaser. Seller shall provide such affidavits or certificates,and pay such expenses,as may be required by the Title Company to remove all liens, including, without limitation, mechanics' or materialmen's liens,as exceptions to the Title Policy. 6. Closing Time and Place. Closing of the transaction contemplated hereby ("Closing") shall be held at the offices of Land Title Guarantee Company ("LTGC"), 503 N. Main Street, Suite 2, Pueblo, CO 81003,at a date and time as agreed by Seller and Purchaser. 7. Closing Costs. The Purchaser shall be responsible for all closing costs. 8. Broker. Purchaser and Seller represent and warrant to the other that no broker or finder has been engaged by such Party in connection with this transaction. To the extent allowed by law, Seller agrees to indemnify,defend and hold Purchaser harmless from and against any and all claims,loss,liability,costs and expenses (including reasonable attorneys' fees), resulting from any claims that may be made against Purchaser by any broker or other person claiming a commission, fee or other compensation by reason of the transaction contemplated hereby if the same shall arise by,through or on account of Seller. Purchaser agrees to indemnify, defend and hold Seller harmless from and against any and all claims, loss, liability, costs and expenses (including reasonable attorneys' fees), resulting from any claims that may be made against Seller by any broker or other person claiming a commission, fee or other compensation by reason of the transaction contemplated hereby if the same shall arise by,through or on account of Purchaser. 9. Disclaimers. Except as expressly set forth in this agreement, it is understood and agreed that Seller is not making and has not at any time made any warranties or representations of any kind or character, expressed or implied, with respect to the property, including, but not limited to, any warranties or representations as to habitability, merchantability, fitness for a particular purpose,title(other than Seller's special warranty of title to be set forth in the Special Warranty Deed), zoning,tax consequences, physical or environmental condition (including, but not limited to, hazardous materials contamination), utilities, operating history or projections, valuations, governmental approvals, the compliance of the property with governmental laws,or any other matter or thing regarding the property. Purchaser acknowledges and agrees that, except as expressly set forth in this Agreement and the Special Warranty of Title to be set forth in the Special Warranty Deed, upon closing Seller shall sell and convey to Purchaser and Purchaser shall accept the property"as is,where is,with all faults." Purchaser and Seller agree that the provisions of this paragraph 9 shall survive the closing of the transaction contemplated by this Agreement and the recording of the Special Warranty Deed hereunder. 10. In addition to Paragraph 9 hereof, Seller and Purchaser agree that the provisions of this Agreement shall survive Closing and the recording of the Special Warranty Deed. 11. All understandings and agreements heretofore had between the parties hereto are merged into this Agreement, which alone fully and completely expresses their agreement, and this Agreement is entered into after full investigation,neither party relying upon any statement or representation not embodied in this Agreement and made by the other. 12. This Agreement may not be changed or terminated orally. 13. The provisions in this Agreement are to apply to and bind, and inure to the benefit of, the heirs, executors, administrators, successors,and assigns of the respective parties. 14. If any provision of this Agreement is determined by a court of competent jurisdiction to be invalid or unenforceable, the remainder of this Agreement shall nonetheless remain in full force and effect. 15. Applicable Law. This agreement shall in all respects be governed by, and construed in accordance with,the laws of the State of Colorado. Seller and Purchaser hereby irrevocably submit to the personal and subject matter jurisdiction of the District Court, Pueblo County, State of Colorado in any action or proceeding arising out of or relating to this agreement and hereby irrevocably agree that all claims in respect of such action or proceeding shall be heard and determined in the District Court of Pueblo County, State of Colorado. Purchaser and Seller agree that the provisions of this Paragraph 15 shall survive the closing of the transaction contemplated by this agreement and the recording of the Special Warranty Deed hereunder. To the full extent permitted by law, Purchaser and Seller hereby waive their rights to a trial by jury. 16. The provisions of this Agreement and of the documents to be executed and delivered at Closing are and will be for the benefit of Seller and Purchaser, and their respective heirs, executors, administrators, successors and assigns only and are not for the benefit of any third party, and accordingly, no third party shall have the right to enforce the provisions of this Agreement or of the documents to be executed and delivered at Closing. 17. The following schedules or exhibits attached hereto shall be deemed to be an integral part of this Agreement: Appendix 1 —Special Warranty Deed 18. The section headings appearing in this Agreement are for convenience of reference only and are not intended,to any extent and for any purpose,to limit or define the text of any section or any subsection hereof. 19. Liability of Seller. In no event shall Seller, its officers, agents or employees be liable to Purchaser for damages, including without limitation, compensatory, punitive, indirect, special or consequential damages, resulting from or arising out of or related to this Agreement or the performance or breach thereof by Seller or the failure or delay of Seller in the performance of any covenant or provision under this Agreement on its part to be performed. In consideration of Seller entering into this Agreement, Purchaser hereby waives and discharges Seller, its officers, agents and employees from all claims for any and all such damages. No breach, default, delay or failure of Seller under this Agreement shall be or be construed to be a waiver, discharge or release of Purchaser's obligation to pay the Purchase Price under Section 3 hereof. In the event of a breach of this Agreement by the Seller, Purchaser's sole and exclusive remedy shall be to bring an equitable action for specific performance in the District Court of Pueblo County, Colorado. Such violations may be restrained or such obligations enforced by injunction at the instance and request of Purchaser without the showing of any special damages or an inadequate remedy at law. 20. Counterparts. This Agreement may be executed in any number of counterparts, and each such counterpart shall be deemed for all purposes to be an original, and all such counterparts shall together constitute but one and the same original. 21. The parties acknowledge that the parties and their counsel have reviewed and revised this Agreement and that the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Agreement or any exhibits or amendments hereto. 22. The failure to enforce any provision of this Agreement shall not operate as a waiver of any preceding or future breach of any such provision or any other provision hereof. 23. Neither party shall record this Agreement or any short form memorandum of this Agreement. 24. The City's Request for Proposals for the sale of the Property and Purchaser's Proposal in response thereto are incorporated into this Agreement,as if set forth verbatim. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] Executed at Pueblo,Colorado,the day and year first above written. SELLER: CITY OF PUEBLO,CO A MUNICIPAL CORPORATION44 =`°'Goi\ By: wI `\ '� :. \ Nicholas A.Gr Isar n � Y//E . Mayor . 14 ATTESTED BY: CITY ERK ��$�'°x PURCHASER:�� dm, &efs& STATE OF COLORADO ) ) ss. COUNTY OF PUEBLO ) (I4/lc.The foTe.goivg ins inent wjas acknowledged before me this day o , 021 by AA / j fl-4 ,as Purchaser. Witness my hand and official/air a) My commission expires: `6 [ SEAL] / Notary Public MICHAELA CATALINO NOTARY PUBLIC STATE OF COLORADO NOTARY ID 20034020106 My Commission Expires August 7,2023 APPENDIX 1 SPECIAL WARRANTY DEED • THIS DEED, made this I S day ofJ(04-4e , 2021, between the City of Pueblo, a Colorado municipal corporation, whose address is 1 City Hall Place, Pueblo, Colorado 81003(hereinafter referred to as"Grantor"),and Cortez Construction Co.,a Colorado Corporation, whose address is 1015 Fir Street, Pueblo, Colorado 81001 (hereinafter referred to as"Grantee"): WITNESSESTH, that the Grantor, for and in consideration of the sum of Eight Thousand Five Hundred Dollars (U.S. $8,500.00) and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, has granted, bargained, sold and conveyed,and by these presents does grant, bargain, sell, convey, and confirm, unto the Grantee, its heirs,successors and assigns forever, all the real property,together with improvements, if any, described in Exhibit A,attached hereto and incorporated herein by this reference, for all purposes, together with all and singular the rights, benefits,privileges,easements,tenements, hereditaments and appurtenances thereto belonging,or in anywise appertaining,and the reversion and reversions, remainder and remainders, rents, issues and profits thereof, and all the estate, right, title, interest, claim and demand whatsoever of the Grantor, either in law or equity, of, in and to the above bargained premises,with the hereditaments and appurtenances. This conveyance is of the surface estate only and no mineral rights are conveyed by this instrument. This conveyance is made subject to and subordinate to all easements,reservations, restrictions,covenants, limitations,rights-of-way and conditions of record. This conveyance is also made subject to and subordinate to those encumbrances and exceptions (the "Permitted Exceptions") set forth on Exhibit B attached hereto and incorporated herein and made a part hereof for all purposes. TO HAVE AND TO HOLD the said premises, subject to the exceptions and conditions, above bargained and described, with the appurtenances, unto the Grantee, its heirs, successors and assigns forever. The Grantor, for itself, its successors and assigns does covenant and agree that it shall and will WARRANT AND FOREVER DEFEND the above-bargained premises in the quiet and peaceable possession of the Grantee, its heirs, successors and assigns, against all and every person or persons claiming the whole or any part thereof,by,through or under the Grantor. (Signature Page Follows) Land tie c !r! COwa._,n. IN WITNESS WHEREOF, this Special Warranty Deed is executed by Grantor to be effective the day and year first above written. GRANTOR: City of Pueblo a Colorado municipal corporation By: .���a Name:Nicholas A.Gra ar Title: Mayor STATE OF COLORADO) ) SS. COUNTY OF PUEBLO ) The foregoing instrument was acknowledged before me on this 1 Jday of( 202 I, by Nicholas A. Gradisar as Mayor of the City of Pueblo, a Colorado municipal corporation. Witness my official hand and seal. My Commission Expires: JQN 5, 2D2Lj ao) At all ti ALYSSA PARGA Notary Pu lc NOTARY PUBLIC = ..a. STATE OF COLORADO NOTARY ID 20094022062 MY COMMISSION EXPIRES NOVEMBER 5,2024 EXHIBIT A LEGAL DESCRIPTION Lot Size: 5000 sf Parcel: 1510126011 Neighborhood: 130(Jones and Morrison) Tax District: 60B Legal Description: Lot I I, Block 9,Corkish—Sackman-Litten Addition No.2 More generally known as unimproved land located at 1723 Eden Avenue, Pueblo, Colorado 81005,all in the County of Pueblo, State of Colorado. EXHIBIT B PERMITTED EXCEPTIONS ALTA COMMITMENT Old Republic National Title Insurance Company Schedule B,Part II (Exceptions) Order Number:PB35054987 This commitment does not republish any covenants,condition,restriction,or limitation contained in any document referred to in this commitment to the extent that the specific covenant,conditions,restriction,or limitation violates state or federal law based on race,color,religion,sex,sexual orientation,gender identity,handicap,familial status,or national origin. 1. Any facts, rights, interests, or claims thereof, not shown by the Public Records but that could be ascertained by an inspection of the Land or that may be asserted by persons in possession of the Land. 2.Easements,liens or encumbrances,or claims thereof,not shown by the Public Records. 3.Any encroachment,encumbrance,violation,variation,or adverse circumstance affecting the Title that would be disclosed by an accurate and complete land survey of the Land and not shown by the Public Records. 4.Any lien,or right to a lien, for services,labor or material heretofore or hereafter furnished,imposed by law and not shown by the Public Records. 5.Defects,liens,encumbrances,adverse claims or other matters,if any,created,first appearing in the public records or attaching subsequent to the effective date hereof but prior to the date of the proposed insured acquires of record for value the estate or interest or mortgage thereon covered by this Commitment. 6.(a)Taxes or assessments that are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the Public Records; (b) proceedings by a public agency that may result in taxes or assessments,or notices of such proceedings,whether or not shown by the records of such agency or by the Public Records. 7.(a)Unpatented mining claims;(b)reservations or exceptions in patents or in Acts authorizing the issuance thereof;(c) water rights,claims or title to water. 8. EASEMENTS, CONDITIONS, COVENANTS, RESTRICTIONS, RESERVATIONS AND NOTES ON THE PLAT OF CORKISH-SACKMAN-LITTELL ADDITION NO. 2 TO THE CITY OF PUEBLO RECORDED JUNE 22, 1953 UNDER RECEPTION NO.939641. 9.RESTRICTIVE COVENANTS,WHICH DO NOT CONTAIN A FORFEITURE OR REVERTER CLAUSE,BUT OMITTING ANY COVENANTS OR RESTRICTIONS, IF ANY, BASED UPON RACE, COLOR, RELIGION, SEX, SEXUAL ORIENTATION,FAMILIAL STATUS,MARITAL STATUS,DISABILITY,HANDICAP,NATIONAL ORIGIN,ANCESTRY, OR SOURCE OF INCOME,AS SET FORTH IN APPLICABLE STATE OR FEDERAL LAWS,EXCEPT TO THE EXTENT THAT SAID COVENANT OR RESTRICTION IS PERMITTED BY APPLICABLE LAW,AS CONTAINED IN INSTRUMENT RECORDED OCTOBER 26,1953,IN BOOK 1212 AT PAGE 577. 10.ANY TAX,LIEN,FEE,OR ASSESSMENT BY REASON OF INCLUSION OF SUBJECT PROPERTY IN THE LOWER ARKANSAS VALLEY WATER CONSERVANCY DISTRICT, AS EVIDENCED BY INSTRUMENT RECORDED DECEMBER 13,2002,UNDER RECEPTION NO.1474320 AND AS AMENDED IN INSTRUMENT RECORDED JANUARY 4,2010 UNDER RECEPTION NO. 1829179. 11.ANY TAX,LIEN,FEE,OR ASSESSMENT BY REASON OF INCLUSION OF SUBJECT PROPERTY IN THE PUEBLO CONSERVANCY DISTRICT, AS EVIDENCED BY INSTRUMENT RECORDED AUGUST 1, 2007, UNDER RECEPTION NO. 1736292, ORDER APPROVING AN ASSESSMENT OF THE PUEBLO CONSERVANCY DISTRICT RECORDED SEPTEMBER 25, 2007, UNDER RECEPTION NO. 1743058, AND ORDER FOR APPOINTMENT OF COMMISSIONERS TO SERVE AS BOARD OF APPRAISERS RECORDED ON OCTOBER 9, 2012, UNDER RECEPTION NO. 1921465 AND ORDER ON EXPANSION OF DISTRICT BOUNDARY RECORDED FEBRUARY 15,2013,UNDER RECEPTION NO.1934215. 12.THE EFFECT OF PUEBLO CONSERVANCY DISTRICT MAP,RECORDED DECEMBER 11,2009,UNDER RECEPTION NO.1829096.