HomeMy WebLinkAbout10274
ORDINANCE NO. 10274
AN ORDINANCE APPROVING AND AUTHORIZING THE
MAYOR TO SIGN A GRANT AGREEMENT BETWEEN THE
CITY OF PUEBLO, A COLORADO MUNICIPAL
CORPORATION AND FUEL AND IRON COMMERCIAL, LLC, A
COLORADO LIMITED LIABILITY COMPANY, AS
AUTHORIZED BY SECTION 603 OF THE AMERICAN
RESCUE PLAN ACT AND U.S. TREASURY FINAL RULE 31
CFR 35.6 AND AUTHORIZING THE PAYMENT OF TWO
HUNDRED NINETY-FOUR THOUSAND ONE HUNDRED
TWENTY-ONE AND 51/100 DOLLARS ($294,121.51) FROM
PROJECT NO. CI-2113 - AMERICAN RESCUE PLAN ACT,
FOR PURPOSES THEREOF
RECITALS
The following recitals are incorporated in and made a part of this Ordinance.
WHEREAS, on March 11, 2021, President Biden signed the U.S. Senate-amended
H.R. 1319 (P.L. 117-2) known as the American Rescue Plan Act (hereinafter “ARPA”); and
WHEREAS, on May 10, 2021, the U.S. Treasury issued the Interim Final Rule to
implement ARPA in Title 31, Part 35 of the Code of Federal Regulations (“CFR”); and
WHEREAS, on January 6, 2022, the U.S. Treasury issued, with an effective date of
April 1, 2022, the Final Rule to implement ARPA in Title 31, Part 35 of the Code of Federal
Regulations (“CFR”); and
WHEREAS, under the Final Rule, recipients may use Coronavirus Local Fiscal
Recovery Funds (“CLFRF”) to respond to the COVID-19 public health emergency and the
negative economic consequences resulting therefrom; and
WHEREAS, under ARPA Section 603 (c)(1)(A) and (3) and the Final Rule 31 CFR
35.6(b)(7) recipients may use CLFR Funds to award grants to nonprofit organizations that are
responding to the negative economic impacts of the COVID-19 public health emergency;
NOW, THEREFORE,
BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO that:
SECTION 1.
The Grant Agreement (“Agreement”) dated September 26, 2022, between the City of
Pueblo, a Colorado municipal corporation and Fuel and Iron Commercial, LLC, a Colorado
limited liability company (“Fuel & Iron”), 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 Agreement for and on behalf of the
City and the City Clerk is authorized to affix the seal of the City thereto and attest same.
SECTION 3.
Funds in the amount of $294,121.51 are hereby authorized to be paid from Project
No. CI-2113 – American Rescue Plan Act, for purposes of to reimbursing Fuel & Iron for the
cost of acquiring restaurant fixtures and equipment for the Fuel & Iron Food Hall located at
400 S. Union Ave., Pueblo, CO 81003, as described in the attached Agreement.
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 to implement the policies and procedures
described herein.
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 September 12, 2022 .
Final adoption of Ordinance by City Council on September 26, 2022 .
President of City Council
Action by the Mayor:
☒ Approved on September 28, 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-4
Background Paper for Proposed
Ordinance
COUNCIL MEETING DATE: September 12, 2022
TO: President Heather Graham and Members of City Council
VIA: Marisa Stoller, City Clerk
CC: Mayor Nicholas A. Gradisar
FROM: Daniel C. Kogovsek, City Attorney
SUBJECT: AN ORDINANCE APPROVING AND AUTHORIZING THE MAYOR TO SIGN A
GRANT AGREEMENT BETWEEN THE CITY OF PUEBLO, A COLORADO
MUNICIPAL CORPORATION AND FUEL AND IRON COMMERCIAL, LLC, A
COLORADO LIMITED LIABILITY COMPANY, AS AUTHORIZED BY SECTION
603 OF THE AMERICAN RESCUE PLAN ACT AND U.S. TREASURY FINAL
RULE 31 CFR 35.6 AND AUTHORIZING THE PAYMENT OF TWO HUNDRED
NINETY-FOUR THOUSAND ONE HUNDRED TWENTY-ONE AND 51/100
DOLLARS ($294,121.51) FROM PROJECT NO. CI-2113 - AMERICAN RESCUE
PLAN ACT, FOR PURPOSES THEREOF
SUMMARY:
This Ordinance approves and authorizes the Mayor to sign a Grant Agreement with Fuel and Iron
Commercial LLC, a Colorado limited liability company (“Fuel & Iron”) to reimburse Fuel & Iron for
the cost of acquiring restaurant fixtures and equipment for the Fuel & Iron Food Hall located
at 400 S. Union Ave., Pueblo, CO 81003 (hereinafter “Project”) as authorized by Section 603 of
the American Rescue Plan Act and U.S. Treasury Final Rule 31 CFR 35.6. Funds for the project, in
the amount of $294,121.51 will be paid out of Project No. CI-2113, the American Rescue Plan Act.
PREVIOUS COUNCIL ACTION:
By Ordinance No. 9931, approved on May 17, 2021, the City Council established Project No. CI-
2113 and budgeted and appropriated up to $36.7 million in funds which were expected to be
distributed to the City from the American Recovery Plan Act (“ARPA”) for covered costs and
eligible expenses to be incurred during the period which began on March 3, 2021 until December
31, 2024 (to be expended by December 31, 2026).
BACKGROUND:
The redevelopment of the Holmes Hardware Block will consist of the Fuel & Iron Food Hall on the
first floor and 28 affordable housing units on the second and third floors of the previously
abandoned and vacant building located at 400 S. Main Street in downtown Pueblo. The larger
project site will have roughly a half acre devoted to an urban farm, ample parking for both the food
hall customers and apartment residents, and roughly a half-acre dedicated to additional housing
in Phase II of the project.
Fuel & Iron will serve as an incubator for the next generation of great Pueblo restaurants. The five
restaurant spaces within the food hall will be occupied by independent local chefs and
restauranteurs. During this time, the up-and-coming culinarians will receive business planning
and financing guidance, in addition to help with site selection and lease negotiation for their own
brick and mortar locations within Pueblo.
After the restauranteurs are successful in opening up their own stand-alone brick and mortar
locations, their space in the food hall will be given to other restauranteurs, and the cycle will be
repeated, affording these entrepreneurial chefs opportunities they would not have otherwise had
and at the same time invigorating the Pueblo restaurant scene as a whole.
The upper floors of the Holmes Hardware block, in conjunction with Phase II of the site
redevelopment, will bring much needed housing into Downtown Pueblo, and will help activate
Pueblo’s downtown during a much greater portion of the week. The aim of the project is to be
catalytic, encouraging more commercial and residential development downtown and further
encouraging Pueblo’s growth in a way that honors local residents and businesses to live, work,
and play downtown.
The Fuel & Iron Project will have a catalytic impact in contributing to the recovery of the hospitality
and tourism industry from the impacts of COVID-19. In addition to its impact on small business
creation for restauranteurs as described above, the project will create 57 FTE positions in the
hospitality industry, helping to make up for some of the job losses due to the pandemic.
Furthermore, the Fuel & Iron food hall will help rebuild Pueblo's tourism industry because it will be
a can’t miss amenity for tourists and out of town visitors. Its location strategically bookends Union
Avenue, with downtown’s other main tourist attraction - the Pueblo Riverwalk. As locals and
tourists alike move between the food hall and the Riverwalk, the increased traffic along Union
Ave. will create greater opportunities for the intervening businesses. By adding another amenity
downtown, locals will be encouraged to make more trips downtown, and tourists will have enough
amenities to remain in Pueblo for longer durations, which will further create economic
opportunities for the rest of downtown Pueblo.
Fuel & Iron is a small business disproportionately impacted by the COVID-19 public health
emergency, operating in a qualified census tract under 31 CFR 35.6.(b) (2) (iii) (B).
Fuel & Iron is engaged in the development, repair and operation of affordable housing and
services or programs to increase long-term housing security under 31 CFR 35.6 (b) (3) (ii) (A) (5).
Fuel & Iron is engaged in the rehabilitation of commercial properties and is eligible for a grant for
start-up costs for a small business under 31 CFR 35.6 (b) (3) (ii) (B) (2).
FINANCIAL IMPLICATIONS:
Fuel and Iron will receive $294,121.51 in ARPA funds from Project No.CI-2113.
BOARD/COMMISSION RECOMMENDATION:
Not applicable to this Ordinance.
STAKEHOLDER PROCESS:
Not applicable to this Ordinance.
ALTERNATIVES:
City Council could decide not to support the Fuel & Iron Food Hall project.
RECOMMENDATION:
Approval of the Ordinance
Attachments:
Proposed Ordinance
Proposed Grant Agreement.
GRANT AGREEMENT
THIS GRANT AGREEMENT ("Agreement") is made and entered into this
26th day of September, 2022, (hereinafter "Effective Date") by and between the
City of Pueblo, a Colorado municipal corporation, hereinafter referred to as the
"City" and Fuel and Iron Commercial, LLC, a Colorado limited liability company,
hereinafter referred to as the "Grantee" or "Fuel & Iron." City and Grantee/Fuel &
Iron are sometimes each referred to as a "Party" and collectively "Parties."
RECITALS
The following recitals are incorporated in and made a part of this
Agreement.
WHEREAS, on March 11, 2021, President Biden signed the U.S. Senate-
amended H.R. 1319 (P.L. 117-2) known as the American Rescue Plan Act
(hereinafter"ARPA"); and
WHEREAS, on May 10, 2021, the U.S. Treasury issued the Interim Final
Rule to implement ARPA in Title 31, Part 35 of the Code of Federal Regulations
("CFR"); and
WHEREAS, by Ordinance No. 9931, approved on May 17, 2021, the City
Council established Project No. C12113 and budgeted and appropriated up to
$36.7 million in funds which were expected to be distributed to the City from ARPA
for covered costs and eligible expenses to be incurred during the period which
began on March 3, 2021 until December 31, 2024 (to be expended by December
31, 2026); and
WHEREAS, on January 6, 2022,the U.S. Treasury issued,with an effective
date of April 1, 2022, the Final Rule to implement ARPA in Title 31, Part 35 of the
Code of Federal Regulations ("CFR"); and
WHEREAS, under the Final Rule, recipients may use Coronavirus Local
Fiscal Recovery Funds ("CLFRF") to respond to the COVID-19 public health
emergency and the negative economic consequences resulting therefrom; and
WHEREAS, Grantee has requested that the City use CLRF funds to
reimburse Grantee for the cost of acquiring restaurant fixtures and equipment for
the Fuel & Iron Food Hall located at 400 S. Union Ave., Pueblo, CO 81003
(hereinafter"Project"); and
WHEREAS, the City desires to disburse funds from Project No. C12113 to
the Grantee for the aforesaid purposes; and
WHEREAS, Grantee has represented to the City that it is duly qualified,
eligible and willing to undertake the Project in accordance with the terms and
conditions of this Agreement.
1
NOW, THEREFORE, in consideration of the foregoing recitals and the
terms and conditions set forth herein and other good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged by the Parties, the
Parties hereto mutually agree as follows:
1. FACTUAL BASIS FOR THE GRANT AWARD
(a) The redevelopment of the Holmes Hardware Block will consist of the
Fuel & Iron Food Hall on the first floor and 28 affordable housing units on the
second and third floors of the heretofore abandoned and vacant building located
at 400 S. Union Avenue in downtown Pueblo. The larger project site will have
roughly an acre devoted to an urban farm, ample parking for both the food hall
customers and apartment residents, and roughly a half-acre dedicated to
additional housing in Phase II of the project.
(b) Fuel & Iron will serve as an incubator for the next generation of great
Pueblo restaurants. The five restaurant spaces within the food hall will be occupied
by independent local chefs and restauranteurs. During this time, the up-and-
coming culinarians will receive business planning and financing guidance, in
addition to help with site selection and lease negotiation for their own brick and
mortar locations within Pueblo.
(c) After the restauranteurs are successful in opening up their own
stand-alone brick and mortar locations, their space in the food hall will be given to
another restauranteur, and the cycle will be repeated, affording these
entrepreneurial chefs opportunities they would not have otherwise had and at the
same time invigorating the Pueblo restaurant scene as a whole.
(d) The upper floors of the Holmes Hardware block, in conjunction with
Phase II of the site redevelopment, will bring much needed housing into Downtown
Pueblo, and will help activate Pueblo's downtown during a much greater portion of
the week. The aim of the project is to be catalytic, encouraging more commercial
and residential development downtown and further encouraging Pueblo's growth
in a way that honors local residents and businesses to live, work, and play
downtown.
(e) The Fuel & Iron Project will have a catalytic impact in contributing
to the recovery of the hospitality and tourism industry from the impacts of COVID-
19. In addition to its impact on small business creation for restauranteurs as
described above, the project will create 57 FTE positions in the hospitality industry,
helping to make up for some of the job losses due to the pandemic.
(f) Furthermore, the Fuel & Iron Food Hall will help rebuild Pueblo's
tourism industry because it will be a can't miss amenity for tourists and out of town
visitors. Its location strategically bookends Union Avenue with downtown's other
main tourist attraction - the Pueblo Riverwalk. As locals and tourists alike move
between the food hall and the Riverwalk, the increased traffic along Union Ave. will
create greater opportunities for the intervening businesses. By adding another
amenity downtown, locals will be encouraged to make more trips downtown, and
tourists will have enough amenities to remain in Pueblo for longer durations, which
2
will further create economic opportunities for the rest of downtown Pueblo.
(g) Grantee is a small business disproportionately impacted by the
COVID-19 public health emergency, operating in a qualified census tract under 31
CFR 35.6.(b) (2) (iii) (B).
(h) Grantee is engaged in the development, repair and operation
of affordable housing and services or programs to increase long-term housing
security under 31 CFR 35.6 (b) (3) (ii) (A) (5).
(i) Grantee is engaged in the rehabilitation of commercial properties
and is eligible for a grant for start-up costs for a small business under 31 CFR 35.6
(b) (3) (ii) (B) (2).
2. RESPONSIBILITIES OF GRANTEE
Prior to receiving ARPA funds under this Agreement, Grantee is required to provide the City with
the following information and documentation:
1. Federal SAM Unique Entity ID;
2. State Sales Tax License;
3. Certificate of Good Standing from the Office of the Secretary of State.
Grantee shall apply for a City Sales Tax License within ten (10) days of receiving a Certificate of
Occupancy for the Fuel & Iron Food Hall.
3. PAYMENTS TO GRANTEE
(a) The aggregate of all payments made hereunder shall not exceed Two Hundred
Ninety-Four Thousand One Hundred Twenty-One and 51/100 Dollars (U.S.
$294,121.51). The grant funds shall not be distributed in a lump sum. Grantee shall
provide the City with invoices for the restaurant fixtures and equipment purchased
by Grantee for use in the Fuel & Iron Food Hall.
(b) Upon expiration of the term of this Agreement or upon any prior termination,
Grantee shall transfer to City any funds provided hereunder which are on hand at
the time of expiration or termination.
4. TERM OF PROJECT AND AGREEMENT
(a) The term of the Project shall be from Effective Date set forth above to December
31, 2024 unless sooner terminated as herein provided.
(b) The term of this Agreement shall be from the Effective Date set forth above to
December 31, 2024 unless sooner terminated as herein provided.
5. TERMINATION OF AGREEMENT
3
(a) For Cause: This Agreement may be terminated by City for cause, including any
nonperformance by the Grantee, upon ten (10) days written notice to Grantee
including a statement of the reasons therefore, and after an opportunity for a
hearing has been afforded. If a hearing is requested, it shall be held before the
City's Mayor whose decision shall be final. The determination of the City as to the
cause of termination and the appropriateness thereof shall be final and binding
upon both City and Grantee. Cause for termination shall include any material
failure by Grantee to comply with any term of this Agreement.
(b) For Convenience: This Agreement may be terminated by City for convenience
upon ten (10) days written notice to Grantee, which decision shall not be subject
to appeal.
(c) Post Expiration and Termination Procedures: Upon expiration or in the event of a
prior termination, all remaining and unspent grant funds, shall immediately become
the sole and separate property of the City and the Grantee shall perform all acts
and execute all instruments necessary to transfer and assign such funds to the
City.
6. ASSIGNABILITY
This Agreement shall not be assigned or transferred by the Grantee without the prior written
consent of the City. Any assignment or attempted assignment made in violation of this provision
shall, at City's election, be deemed void and of no effect whatsoever.
7. ENTIRE AGREEMENT; AMENDMENTS
The provisions set forth in this Agreement constitute the entire and complete agreement of the
Parties hereto and supersede all prior written and oral agreements, understandings or
representations related thereto. No amendment or modification of this Agreement, and no waiver
of any provisions of this Agreement shall be binding unless made in writing and executed by the
duly authorized officers of both the Grantee and City.
8. GOVERNMENT IMMUNITY.
The City does not waive or intend to waive, by any provisions of this Agreement, the monetary
limitations or any other rights, immunities and protections provided by the Colorado Governmental
Immunity Act § 24-10-101 to 120, C.R.S., or otherwise available under applicable law.
9. NO THIRD-PARTY BENEFICIARIES.
It is expressly understood and agreed that enforcement of the terms and conditions of this
Agreement and all rights of action relating to such enforcement shall be strictly reserved to the
Parties and nothing contained in this Agreement shall give or allow any such claim or right of
action by any other third party. It is the express intention of the Parties that any person other than
the Parties receiving services or benefits under the Agreement shall be deemed an incidental
beneficiary only.
10. LITIGATION, VENUE AND WAIVER OF TRIAL BY JURY.
4
In the event of any litigation arising under this Agreement, the court shall award to the prevailing
Party its costs and reasonable attorney fees. Exclusive venue for any such litigation shall be
Pueblo County, Colorado. All such litigation shall be filed in the District Court, County of Pueblo,
State of Colorado, and each Party submits to the personal and subject matter jurisdiction of such
District Court. To the fullest extent permitted by law, the Parties hereby waive their right to a trial
by jury.
11. SEVERABILITY.
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.
12. RULES OF CONSTRUCTION.
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.
13. WAIVER.
The waiver or failure to enforce any provision of this Agreement shall not operate as a waiver of
any future breach of any such provision or any other provision hereof.
14. NO MONETARY DAMAGES AGAINST CITY.
In consideration of City entering into the Agreement, Grantee waives and discharges City, its
officers, agents and employees from any and all claims for any monetary damages whether such
claims arise under tort, contract, statutory or any other law.
15. COUNTERPARTS.
This Agreement may be executed in two(2)or more 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.
16. SIGNATURES.
The persons signing this Agreement on behalf of Grantee represent and warrant that such
persons and Grantee have the requisite power and authority to enter, execute and deliver this
Agreement and that this Agreement is a valid and legally binding obligation of Grantee
enforceable against Grantee in accordance with its terms.
IN WITNESS, WHEREOF, the Grantee and the City have executed this Agreement as of
the date first above written and under the laws of the State of Colorado.
5
ATTEST: CITY OF PUEBLO
A COLORADO MUNICIPAL CORPORATION
By �
City Clerk icholas A Gradisar, ayor
[S E A L]
Grantee:
FUEL AND IRON COMMERCIAL, LLC
a Colorado limited liability company
ATTEST:
By By A744b
Signature Signature re
Name Name 7"l.inf'r�
Title Title AJ'k ri ZCd Re fftS V
6