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Home My WebLink About10161ORDINANCE NO. 10161 AN ORDINANCE APPROVING AND AUTHORIZING THE MAYOR TO EXECUTE AMENDMENT NO. 3 TO THE COOPERATION AGREEMENT BETWEEN THE CITY OF PUEBLO, A COLORADO MUNICIPAL CORPORATION AND THE PUEBLO URBAN RENEWAL AUTHORITY RELATING TO THE ST. CHARLES INDUSTRIAL PARK URBAN RENEWAL AREA BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. Amendment No. 3 to the Cooperation Agreement between the City of Pueblo, a Colorado Municipal Corporation (“City”) and the Pueblo Urban Renewal Authority, a body corporate and politic of the State of Colorado (“PURA”) relating to the St. Charles Industrial Park Urban Renewal Area, dated April 25, 2022, 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 No. 3 for and on behalf of the City and the City Clerk is authorized to affix the seal of the City thereto and attest the same. SECTION 3. The officers and staff of the City authorized to perform any and all acts consistent with this Ordinance and the attached Amendment No. 3, to implement the policies and procedures described therein. SECTION 4. 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 April 11, 2022 . Final adoption of Ordinance by City Council on April 25, 2022 . President of City Council Action by the Mayor: ☒ Approved on April 27, 2022 . □ 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-6 Background Paper for Proposed Ordinance COUNCIL MEETING DATE: April 11, 2022 TO: President Heather Graham and Members of City Council CC: Mayor Nicholas A. Gradisar VIA: Marisa Stoller, City Clerk FROM: Jerry M. Pacheco, Pueblo Urban Renewal Authority Executive Director SUBJECT: AN ORDINANCE APPROVING AND AUTHORIZING THE MAYOR TO EXECUTE AMENDMENT NO. 3 TO THE COOPERATION AGREEMENT BETWEEN THE CITY OF PUEBLO, A COLORADO MUNICIPAL CORPORATION AND THE PUEBLO URBAN RENEWAL AUTHORITY RELATING TO THE ST. CHARLES INDUSTRIAL PARK URBAN RENEWAL AREA SUMMARY: The attached Ordinance approves Amendment No. 3 to the Cooperation Agreement between the Pueblo Urban Renewal Authority (“PURA”) and the City relating to the St. Charles Industrial Park Urban Renewal Project Area. The third amendment to the Cooperation Agreement authorizes PURA to distribute excess proceeds in the Special Fund, collected in the St. Charles Industrial Park Urban Renewal Project Area, to public bodies levying ad valorem property taxes in said area. PREVIOUS COUNCIL ACTION: The Urban Renewal Plan for the St. Charles Industrial Park Urban Renewal Project (“Plan”) was approved by City Council on December 21, 2008. PURA and the City entered into a Cooperation Agreement on June 8, 2009 regarding the financing of certain eligible public improvements. Amendment No. 1 to the Cooperation Agreement was entered into by PURA and the City on October 23, 2010. The purpose of the first amendment to the Cooperation Agreement was to, among other things, provide for reimbursement to the Pueblo Board of Waterworks (“Pueblo Water”) for eligible public improvements made by Pueblo Water in order to provide water service to Vestas. Amendment No. 2 to the Cooperation Agreement was entered into by PURA and the City on November 27, 2017. The purpose of the second amendment to the Cooperation Agreement was to provide for additional reimbursement to Pueblo Water for additional costs of eligible public improvements incurred in providing water service to the Vestas Towers America, Inc. manufacturing plant. BACKGROUND: In the administration of terms and obligations of the St. Charles Industrial Park Urban Renewal Project Area, PURA has determined that excess proceeds will be collected in the Special Fund over and above its fiscal obligations. This Amendment No. 3 will provide a procedure to distribute excess proceeds collected in the Special Fund to Pueblo County, School Districts 60 and 70, Library District, Southeastern Water Conservancy District and Lower Arkansas Valley Water Conservancy District. PURA will continue to reimburse the City the City’s portion of the collected TIF revenue, consistent with the June 8, 2009 Cooperation Agreement. FINANCIAL IMPLICATIONS: None. PURA will continue to reimburse the City the City’s portion of the collected TIF revenue. BOARD/COMMISSION RECOMMENDATION: On April 12, 2022, the Pueblo Urban Renewal Authority Board of Commissioners will vote on this Amendment No. 3 of the Cooperation Agreement. STAKEHOLDER PROCESS: Not applicable to this Ordinance. ALTERNATIVES: If this Ordinance is not approved there will be no procedure to distribute excess proceeds collected in the special fund to taxing entities. RECOMMENDATION: Approval of the Ordinance. Attachments: Proposed Ordinance Proposed Amendment No. 3 to the Saint Charles Industrial Park Urban Renewal Project Area Cooperation Agreement. AMENDMENT NO. 3 COOPERATION AGREEMENT Saint Charles Industrial Park Urban Renewal Project 1.0 PARTIES. The parties to this amendment ("Amendment No. 3") are the CITY OF PUEBLO, a Colorado municipal corporation (the "City") and the PUEBLO URBAN RENEWAL AUTHORITY,a body corporate and politic of the State of Colorado(the"Authority").The City and the Authority are sometimes referred to herein collectively as the "Parties" and individually as a "Party' 2.0 RECITALS. The recitals to this Agreement are incorporated herein by this reference as though fully set forth in the body of this Agreement. 2.1 The Urban Renewal Plan. The Authority is carrying out the Urban Renewal Plan for the Saint Charles Industrial Park Urban Renewal Project (the "Plan'"), which was approved by the City Council of the City on December 21, 2008. 2.2. Cooperation Agreement. To facilitate the orderly development and execution of the Plan,the Parties entered into a Cooperation Agreement dated as of June 8, 2009, which agreement, as amended to date and as further amended by this Amendment No. 3 is collectively called the "Cooperation Agreement" in this Agreement. 3.0 TERMS AND CONDITIONS. In consideration of the mutual covenants and promises of the Parties contained herein, and other valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Parties agree as follows. 4.0 SECTION 6.01. Section 6.01d of the Cooperation Agreement is modified to state that the distribution of funds remaining in the Special Fund payable to any taxing body under the terms and conditions described in Section 6.01d may be made pursuant to agreement between any such taxing body and the Authority. 5.0 SECTION 6.03. Section 6.03 of the Cooperation Agreement is amended to read as follows: Except for the obligations listed in Section 6.01,the Authority agrees that it will not issue any other debt or obligation payable from Property Tax TIF;provided,however,the Parties are aware that the Owner may commit to construct additional public and private improvements("Phase 2")comparable in size and scope to those now constructed or under construction in the Urban Renewal Area. The Parties agree that should the Owner commit to undertake Phase 2, the Parties will give favorable consideration to such additional and further reimbursement for additional public improvements as they may deem reasonable and necessary to facilitate the construction of Phase 2 or other development or redevelopment consistent with the sound needs of the municipality and the goals of the Act and Plan ("Additional Project Debt"). The Parties agree to consult with the County Commissioners of Pueblo County prior to agreement by the Authority to incur any financial obligations in excess of those listed in Sections 6.01a, b, and c. 6.0 EFFECT OF AMENDMENT. Except as modified by this Amendment No. 3, the Cooperation Agreement will remain in full force and effect and inure to the benefit of and binding upon the Parties. Except as expressly modified,any obligations remaining to be performed under the Cooperation Agreement by either Party,are not waived or excused in any manner,but shall be fully performed in accordance with the terms and conditions of the Agreement as it existed prior to this Amendment No. 3. IN WITNESS WHEREOF,the City and Authority have caused this Amendment No. 3 to be executed as of April 25, 2022. PUEBLO, A MUNICIPAL CORPORATION ATTEST: 11. By: �,, .i le ( Clerk Mayor THE URBAN RENEWAL AUTHORITY OF PUEBLO, CO e • DO ATTEST: By: �� ':e* etary C ocw e Commissioners 2