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HomeMy WebLinkAbout14739RESOLUTION NO. 14739 A RESOLUTION APPROVING AN AMENDMENT TO THE RESTATED ANNEXATION AGREEMENT FOR THE AREA COMMONLY KNOWN AS THE NORTH VISTA ANNEXATION DESCRIBED AS LAND NORTH OF VISION HILLS PARKWAY AND WEST OF TROY AVENUE, AS APPROVED BY RESOLUTION NO. 13916 WHEREAS, pursuant to Resolution No. 13916 of the Pueblo City Council a Restated Annexation Agreement dated March 12, 2018, and recorded with the Pueblo County Clerk and Recorder on March 29, 2018, at Reception No. 2100918 (“Annexation Agreement”) was entered into by and between the City of Pueblo, a Colorado Municipal Corporation, (the “City”), and BLH Properties, LLC, a Colorado Limited Liability Company, Pete Urenda a/k/a Albert Pete Urenda, and Home Town Finance Co., a/k/a The Hometown Finance Co., a Colorado Corporation, collectively referred to as “Petitioners” as owners of the real property described of the Annexation Agreement; and, WHEREAS, Pueblo Heights LLC, a Colorado Limited Liability Company (“Pueblo Heights”) consented to and approved the Annexation Agreement and is the successor- in-title to Petitioners’ interest in the Property which remains subject to the Annexation Agreement; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. The Amendment to the Restated Annexation Agreement, a copy of which is attached hereto, having been approved as to form by the City Attorney, is hereby approved. SECTION 2. The Mayor is hereby authorized to execute said Amendment to the North Vista Restated Annexation Agreement on behalf of Pueblo, a Colorado Municipal Corporation, and the City Clerk shall affix the seal of the City thereto and attest to the same. SECTION 3. The officers and staff of the City are authorized to perform any and all acts consistent with the intent of the Resolution to effectuate the policies and procedures described herein. SECTION 4. This Resolution shall become effective immediately upon Petitioner executing an agreement approving the amendment to the Restated Annexation Agreement set forth in Section 1 and ratifying and confirming the Amendment to the Annexation Agreement which will thereafter be recorded by the City Clerk in the records of the Pueblo County Clerk and Recorder. BY: Ed Brown MEMBER OF CITY COUNCIL APPROVED: PRESIDENT OF CITY COUNCIL ATTESTED BY: CITY CLERK City Clerk’s Office Item # M-2 BACKGROUND PAPER FOR PROPOSED RESOLUTION COUNCIL MEETING DATE: October 25, 2021 TO: President Lawrence W. Atencio and Members of City Council CC: Nicholas A. Gradisar, Mayor VIA: Marisa Stoller, City Clerk FROM: Scott Hobson, Acting Director of Planning and Community Development SUBJECT: A RESOLUTION APPROVING AN AMENDMENT TO THE RESTATED ANNEXATION AGREEMENT FOR THE AREA COMMONLY KNOWN AS THE NORTH VISTA ANNEXATION DESCRIBED AS LAND NORTH OF VISION HILLS PARKWAY AND WEST OF TROY AVENUE, AS APPROVED BY RESOLUTION NO. 13916 SUMMARY: The Resolution approves an amendment to the Restated North Vista Annexation Agreement that was adopted by Resolution No. 13916 on March 12, 2018. The proposed amendments pertain to a reduction in the number of building permits issued prior to the Petitioner’s completion of certain wastewater improvements, increasing the Transportation Impact Fee collected by the City on each residential building permit, and amending the off-site transportation improvements required to be constructed by the Petitioner and the transportation improvements that will be constructed by the City through the funds received from Transportation Impact Fee. PREVIOUS COUNCIL ACTION: On April 13, 2009, by Ordinance No. 7996, City Council approved an annexation and an annexation agreement for the North Vista area containing 1172.09 acres. On March 12, 2018, by Resolution No. 13916, City Council approved a Restated Annexation Agreement for the North Vista Annexation. BACKGROUND: This Resolution approves an amendment to the Restated Annexation Agreement (“Agreement”) between the City of Pueblo, a municipal corporation and Pueblo Heights LLC, a Colorado Limited Liability Company (“Pueblo Heights”) related to the North Vista Annexation. The amended agreement provides for the following changes: 1. The ownership of the property has transferred from BLH Properties, LLC, a Colorado Limited Liability Company, Pete Urenda a/k/a Albert Pete Urenda and Hometown Finance Co., a/k/a The Hometown Finance Co., a Colorado Corporation to Pueblo Heights LLC, a Colorado limited liability company following the date of approval of the Restated Annexation Agreement was approved in 2018. Pueblo Heights consented to and approved the Annexation Agreement and is the successor-in-title to Petitioners’ interest in the Property which remains subject to the Annexation Agreement. 2. Off-site sanitary sewer mains will not be required to be constructed for the three hundred (300) lots that can be serviced by the existing City wastewater system. The current Restated Agreement allows for up to 750 lots which is more residential homes than the existing City wastewater system can support. 3. Article II, Section 4 – Transportation Plan is amended to identify that the traffic improvements funded by one or more traffic impact fees will be constructed and installed by both the Petitioner and/or the City as identified in Exhibit C of the agreement. 4. Article IV – Public Facilities is amended to limit the Petitioner’s expense for construction and installation of certain off-site improvements to those off-site improvements that are specifically identified in Exhibit C of the agreement. 5. Exhibit C-1, Section 1 – Trails and Section 2 c. – Parks are amended to allow for a metropolitan district to design, construct, and maintain trails and parks less than ten (10) acres throughout the Property instead of a homeowner’s association. The homeowner’s association responsibilities have been transferred to the North Vista Metropolitan Districts 1-5. 6. Exhibit C-1, Section 2 b. – Parks is amended to allow for Developed Park Sites of 10 acres or more that are not accepted (or until they are accepted) by the City to be owned and maintained by the North Vista Metropolitan Districts 1-5. 7. Exhibit C-1, Section 5 – Construction of Offsite Sanitary Sewer is amended to reduce the number lots that can be developed and serviced by the existing City wastewater system to 300 lots instead of the 750 lots which is currently allowed in the current Restated Agreement. The 750 lots are more residential homes than the existing City wastewater system can support. 8. Exhibit C-1, Section 6 – Construction of Road Improvements. The current Restated Annexation Agreement requires the Petitioner to design and construct the following off-site improvements: a. Jerry Murphy Road from Vision Hills Parkway to Future Home of Heroes Parkway. b. Home of Heroes Parkway west of their property including any utilities, acceleration and deceleration lanes, bridges and intersection improvements. This includes the Petitioner’s acquisition of right-of-way for a bridge connecting over Fountain Creek and the railroad to Dillon Drive following is issuance of the th 850 residential building permit. In addition, a two-lane bridge structure is th required to be constructed following the issuance of the 1,500 residential building permit. The estimated cost provided by the Petitioner’s transportation engineers for the design and construction of this bridge is $50 million dollars, which the Petitioner does not have the financial capacity to construct solely through the proceeds from this development. The proposed amendment to the Restated Annexation Agreement limits the only off-site roadway improve that is designed and constructed by the Petitioner to the roadway improvements of Jerry Murphy Road from Vision Hills Parkway to Future Home of Heroes Parkway. The Amended Restated Agreement includes a single Transportation Impact Fee (TIF) in the amount of $6,500 for each dwelling unit that is collected at the issuance of a building permit. The TIF fee will be adjusted annually starting in the 2023 calendar year based on most recent Construction Cost Index published by the st Colorado Department of Transportation. The 1 quarter 2022 cost index data will serve as the baseline for future TIF fee adjustments. Currently the Restated Annexation Agreement has two different impact fees ($4,500 and $1,000) in differing amounts ($4,500 and $1,000) that will be combined into one impact fee. The amended agreement stipulates the TIF funds shall be used for the design and construction of roadway and bridge improvements including, but not limited to, roadway and bridge structure, paving, traffic signals, signal interconnect, conduit and flyer, deceleration/ acceleration lanes, curb and gutter, stormwater collection and detention facilities designed as part of a roadway project, median islands, transportation signage, sidewalks, ADA access ramps, bike and pedestrian trails constructed within a transportation project right-of-way. TIF funds are not eligible to be expended or reimbursed for the installation of the public utility lines such as water, wastewater, electric, natural gas, television cable, or other electronic transmission lines, and other non-transportation improvement related expenses. 9. The Amended Restated Agreement is not changed pertaining to the Petitioner’s requirement construct all road improvements within the Property as described in the PUD Development Plan. FINANCIAL IMPLICATIONS: The City will establish a single Transportation Impact Fee escrow account for the acceptance of impact fees in the amount of $6,500 for each dwelling unit that is collected at the issuance of all residential dwelling unit building permits. These funds will be utilized, at the sole discretion of the City, for the design and construction of other off-site roadway and bridge improvements to serve the Property not otherwise identified as Petitioner’s responsibility BOARD/COMMISSION RECOMMENDATION: Not applicable. STAKEHOLDER PROCESS: A certified mailing has been delivered to all taxing entities as required by Colorado Revised Statutes including the notice of the hearing, annexation petition, annexation plat, and annexation impact report. ALTERNATIVES: If City Council does not approve this Resolution, the current annexation agreement will remain in effect. The current annexation agreement does not provide for the phasing and recuperation of public investment by the property owners in a manner that facilitates the development of the property. RECOMMENDATION: Approval of the Resolution. Attachments: Proposed Resolution Amended Restated Annexation Agreement re: Resolution 14739 Reception 2250175 10/28/20210003.30.227 AMENDMENT TO RESTATED ANNEXATION AGREEMENT Recitals A. Pursuant to Resolution of the Pueblo City Council as set forth in Ordinance No. 13916, a Restated Annexation Agreement dated March 12, 2018, and recorded with the Pueblo County Clerk and Recorder on March 29, 2018, at Reception No. 2100918 ("Annexation Agreement") was entered into by and between the City of Pueblo, a municipal corporation, (the "City"), and BLH Properties, LLC, a Colorado limited liability company, Pete Urenda a/k/a Albert Pete Urenda, and Home Town Finance Co., a/k/a The Hometown Finance Co., a Colorado corporation, collectively referred to as "Petitioners" as owners of the real property described on Ex. A ("Property") of the Annexation Agreement. B. Pueblo Heights LLC, a Colorado limited liability company ("Pueblo Heights") consented to and approved the Annexation Agreement and is the successor-in-title to Petitioners' interest in the Property which remains subject to the Annexation Agreement. C. In accordance with Article VIII, of the Annexation Agreement, the City and Pueblo Heights desire to enter into an amendment to the Annexation Agreement pursuant to the terms and conditions outlined herein ("Amendment"). Amendment NOW THEREFORE, the City and Pueblo Heights agree that the Annexation Agreement is amended as follows: 1. Article II, Section 1 regarding the Development Plan is deleted in its entirety and replaced as follows: 1) Development Plan. The Development Plan shall be prepared in accordance with the requirements of Sections 12-4-5(a)(2) and 12-4-6(a) of the Pueblo Municipal Code. A development plan establishing the anticipated phasing of the development of the Property shall be prepared as part of the Development Plan. Without the requirement of the construction and/or development of off-site sanitary sewer mains, the Petitioner shall be entitled to develop on the Property three hundred (300) lots within the areas crosshatched on Exhibit D-1 attached hereto and made a part hereof to be within the presently developed Wastewater Service Area on the Property, said Lots to be replatted in accordance with Section 12 of the Pueblo Municipal Code. Petitioner will not be required to construct any off-site sanitary sewer and/or water distribution mains with regard to said Property, nor will it be required to construct any off-site roadways leading to said development property, except as otherwise defined and described in Exhibit C. 2250175 x0/28/2021 03:37:27 PM Paga a. R 3 0.0 . 0 ert Oroftiz7 Clerk4/F,'ecc0Qra°er, P'0eb17 43CoJ0nI Co 11111 kirdt I'ow 11471IKKWAIMPI.i151111.4,Fiiilliiii , SI III 2. Article II, Section 4 regarding the Transportation Plan is deleted in its entirety and replaced as follows: 4) Transportation Plan. The Transportation Plan shall be prepared in accordance with the criteria and general outline specified by the City Traffic Engineer and shall be supported by studies and reports prepared by Professional Engineers competent in the field of transportation and registered in the State of Colorado. Associated impacts on City's existing and proposed traffic and roadway systems shall be identified in the Transportation Plan and studies, and those impacts which are reasonably attributable to the development of the Property as determined by the City, in its sole discretion, shall be mitigated through traffic improvements constructed and installed by and at the expense of the Petitioner and/or the City funded by one or more traffic impact fees ( such as, but not limited to, traffic signals, signal interconnect, conduit and flyer, deceleration/acceleration lanes, and median islands). The Transportation Plan shall include a phasing plan or schedule of such traffic improvements. If street improvements through the Property are required to be constructed, the Petitioner will pay the entire cost of such improvements and thereafter be eligible for such cost recovery as may be provided under section 12-4- 12 of the Pueblo Municipal Code or as same may hereafter be amended, but shall not be eligible for any cost recovery from the City. 3. Article IV, regarding Public Facilities is deleted in its entirety and replaced as follows: IV. PUBLIC FACILITIES The Petitioner shall dedicate land and right-of-way for public uses and facilities necessary to serve the Property or required as a result of the development of the Property as determined by the City, in its sole discretion, including, but not limited to, sanitary and storm sewers, drainage ways and facilities, utilities, streets,roadways, trails, travel systems and parks. The Petitioner at their expense shall construct and install all on-site improvements, that are necessary to serve the Property or required as a result of the development of the property as determined by the City, in its sole discretion, including, but not limited to, streets, bridges, street lights, curbs and gutters, sidewalks, trails, traffic control devices, sanitary sewers, storm sewers, drainage and channel improvements and facilities. Petitioner at their expense shall only be required to construct and install certain off-site improvements specifically identified in this Agreement. All such improvements shall meet and comply with applicable City Ordinances in effect at the time of installation of such improvements. 2250175 10/28/2021 03:37 27 PM Page: 3 of 7 P 43.00 D 0.00 7 43.00 Gilbert O�ti� Clerk/R#�corcter Pueblo County Co N,J,1!4r:Il?1, Pi DAN 1JK WU, tl 111 4. Article XV, Section 1 (b) regarding the address for Notice to Petitioners is deleted in its entirety and replaced as follows: (b) if to Petitioner: Pueblo Heights LLC 3819 Broadview Place Castle Rock, CO 80109 5. Exhibit C-1, Section 1 is deleted in its entirety and replaced as follows: 1. Trails. The Petitioner shall design and construct, and cause to be maintained, by themselves or by means of a metropolitan district, trails throughout the Property connecting, in accordance with an approved final subdivision plat, to existing trails within the City of Pueblo, as described in the PUD Development Plan. Trails shall be located in general in accordance with the PUD Development Plan,provided that the final location and alignment within a subdivision shall be determined at the time of subdivision review. 6. Exhibit C-1, Section 2(b) is deleted in its entirety and replaced as follows: b. Developed Park Sites of ten (10) acres or more shall be conveyed by the Petitioner to the City by warranty deed, if the City, in the exercise of its sole discretion, determines that it will accept such Developed Park Site for maintenance and ownership prior to the recording of any final subdivision plat for a development area or portion thereof which contains such Developed Park Site. If the City determines not to accept such Developed Park Site, as provided herein, then such Developed Park Site shall be owned and maintained by the Petitioner or a metropolitan district. 7. Exhibit C-1, Section 2(c) is deleted in its entirety and replaced as follows: c. The Developed Park Sites that are less than ten (10) acres shall be owned and maintained by the Petitioner or a metropolitan district. 8. Exhibit C-1, Section 5 is deleted in its entirety and replaced as follows: 5. Construction of Offsite Sanitary Sewer. The Petitioner shall design and construct, at no cost to the City, within one hundred eighty (180) days after the Three Hundredth(300th) building permit is issued to construct any dwelling unit on the Property, an eighteen inch (18") sanitary sewer main and all related facilities in Jerry Murphy Road from Candytuft Boulevard to the south boundary of the Property. Petitioner must complete construction of the sanitary sewer improvements according to design and construction standards required by the City and the approved Sanitary Master Plan. Petitioner may apply for cost recovery for the off-site sanitary sewer improvements described above, pursuant to Section 16-5-5 of the Pueblo Municipal Code. 2250175 10/28/2021 03:37 27 P11 Pa:J : 40 of 7 R 43.00 0 0 a0 T 43.00 CiUe{rt ORrtt1? Cl s1rkfPe■ccordler Pueblo County. Co`` I IIII 110%lin A�i !i��R1�`ril�i lii �a�t��� i �i 6I 9. Exhibit C-1, Section 6 is deleted in its entirety and replaced as follows: 6. Construction of Road Improvements. a. Transportation Impact Fee to City for Design and Construction of Off-Site Roadway and Bridge Improvements (1) Petitioner and any subsequent owner of all or any part of the Property shall, as a condition of the issuance of a building permit for the construction of any one or more dwelling units within the Property, pay a Transportation Impact Fee of Six Thousand Five Hundred Dollars ($6,500.00) for each dwelling unit to be constructed within the Property ("TIF"). Beginning with the 2023 calendar year, the TIF amount shall be adjusted annually based on the most recent Construction Cost Index published by the Colorado Department of Transportation. The 1st quarter 2022 cost index data will serve as the baseline for future TIF fee adjustments. The TIF shall be paid to the City at the time a building permit is issued for each dwelling unit and shall be deposited in an interest-bearing account identified as the "North Vista Transportation Improvement Account." Petitioner, for itself and its successors and assigns, including all subsequent owners of land within the Property, stipulate and agree that there is an essential nexus between the TIF and the City's legitimate interest in providing for the off-site roadway improvements and that the TIF is roughly proportional both in nature and extent to the impact of the proposed development of the Property. (2) TIF funds shall be used for the design and construction of roadway and bridge improvements including,but not limited to,roadway and bridge structure, paving, traffic signals, signal interconnect, conduit and flyer, deceleration/acceleration lanes, curb and gutter, stormwater collection and detention facilities designed as part of a roadway project, median islands, transportation signage, sidewalks, ADA access ramps, bike and pedestrian trails constructed within a transportation project right-of-way. TIF funds are not eligible to be expended or reimbursed for the installation of the public utility lines such as water, wastewater, electric, natural gas, television cable, or other electronic transmission lines, and other non- transportation improvement related expenses. b. Petitioner Roadway Construction of Jerry Murphy Road from Vision Hills Parkway to Future Home of Heroes Parkway completed by Petitioner 22.50175 10128/2021 03:37:27 PM Page: 5 of 7 R 43.00 D 0.00 T 43.00 Gilbert Ortiz Clerk/Recorder, Pueblo County, Cc tIII KIM1101,1slikiMMILMitiiiii, iI II (1) Within one hundred eighty (180) days after the seven hundred fifty-first (751st) building permit is issued to construct any dwelling unit on the Property, Petitioner shall be responsible to design and construct that portion of Jerry Murphy Road between the intersection of Vision Hills Parkway and Future Home of Heroes Parkway at no cost to the City, as a four lane, median divided,principal arterial roadway section, including acceleration and deceleration lanes, as shown on Exhibit C-2. The alignment, design, and construction plan for the roadway improvements shall be approved in the sole discretion of the Director of Public Works. If any portion of the improvements required in this subparagraph are tributary to the drainage channel located approximately five hundred (500) feet south of the south boundary line of the Property (the "Box Culvert"), Petitioner shall be responsible to increase the size and capacity of the Box Culvert as determined by the final storm drainage study and then prepared at Petitioner's cost in accordance with the Storm Drainage Design Criteria and Drainage Policies for the City, published June 9, 1997, or as same may later be amended (" MANUAL") and be certified by a Professional Engineer competent in the field of surface water drainage engineering and registered in the State of Colorado. (2) If the roadway construction of Jerry Murphy Road from Vision Hills Parkway to Future Home of Heroes Parkway is not completed within the 180-day period, no additional building permits will be approved. (3) The design and construction of Jerry Murphy Road identified in this Section does not qualify to be paid for or reimbursed from the TIF funds. (4) The City will utilize the TIF funds, at its sole discretion, for the design and construction of other off-site roadway and bridge improvements to serve the Property not otherwise identified as Petitioner's responsibility under this subparagraph b. c. Petitioner Construction of Roadway Improvements Within Property. Petitioner shall construct all road improvements within the Property as described in the PUD Development Plan. 10. No Other Amendments. Except as modified by this Amendment, the Restated Annexation Agreement, remains in full force and effect. 11. Effective Date. This Amendment will become effective upon execution of both parties and recording with the Pueblo County Clerk and Recorder. [SIGNATURES BEGIN ON SUBSEQUENT PAGE] 2250175 10i28.'2e21. @337 27 PIS THE CITY OF PUEBLO, Page: 6 of R 43.0@ le @. u T 43.@@ Gibler' Ortiz CJ.a_rklGe;.orde�. Pueblo i,ountvCo a colorado municipal corporation QUI�!r� !4� , ,�� , ' 6', • <40.84.t.i. By: 7( Date: a ez, .2•9 0242/ Mayor, Nicholas A. Gradisar 1 -r= Attest: � `` City k, Marisa Stoller APPROVED AS TO FORM: 'i° City Attorney/Asst. City Attorney' State of Colorado ) ) ss: County of PuebtO ) I attest that the foregoing instrument was acknowledged before me this ),--1 day of DpbY , 2021, by N icanolaS 6r dtvar as MC1ior for the City of Pueblo. Witness my hand mins fficial seal. ALYSSA PARGA NOTARY PUBLIC STATE OF COLORADO NOTARY ID lo2_nez Ci Iry Public MYcorir,,N NEXPhc N, Et LER5 20''t My commission expires AlolVeWlber � .70o21/ 2250175 10/28/2021 03:37:27 PM Page: 7 of 7 R 43.00 D 0.00 T 43.00 Gilbert Ortiz Clerk/Recorder pueblo County. Co X111 tordrt h iii'li' i ,,M,V,1,611/4.11 H/1ii11,4, 1101 PUEBLO HEIGHTS LLC, a Colorado limited liability company, by Jevin Investments, Inc., its manager By: �--�' Date: 1 Title: President State of Colorado ) ) ss. County of RJ LG, ) 11, The foregoing instrument was acknowledged before me this /c day of oc_;(>l3e 2.; ZcZ/ by David Resnick, President of Jevin Investments, Inc., as Manager of Pueblo Heights LLC. Witness my hand and official seal. DANIEL J.ACKERMAN OTARY PUBLIC Notary Public" STATE OF COLORADO NOTARY ID 20174035180 COMMISSION EXPIRES AUG 22,2025 My commission expires /4 e,t.),,-r Z Z,Z.0 ZS