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RESOLUTION NO. 15156
A RESOLUTION APPROVING AN AMENDMENT TO A
LEASE AGREEMENT BETWEEN THE PUEBLO
DEVELOPMENT FOUNDATION, A COLORADO
NONPROFIT CORPORATION AND WESTWIND WOOD
SPECIALTIES, INC., A KANSAS CORPORATION,
RELATING TO LOT 58, PUEBLO MEMORIAL AIRPORT
INDUSTRIAL PARK SUBDIVISION, ALSO KNOWN AS
33654 UNITED AVENUE, PUEBLO, COLORADO 81001
BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that
SECTION 1.
The Amendment to the Lease Agreement (“Amendment”) between the Pueblo
Development Foundation, a Colorado nonprofit corporation and Westwind Wood
Specialties, Inc., a Kansas corporation, relating to Lot 58 located in the Pueblo
Memorial Airport Industrial Park a/k/a 33654 United Avenue, Pueblo, Colorado 81001, a
copy of which is attached hereto, having been approved as to form by the City Attorney,
is hereby approved.
SECTION 2.
The officers and staff of the City are authorized and directed to perform any and
all acts consistent with this Resolution and the attached Amendment which are
necessary or desirable to implement the transactions described therein.
SECTION 3.
This Resolution shall become effective immediately upon final passage.
INTRODUCED February 27, 2023
BY: Dennis Flores
MEMBER OF CITY COUNCIL
APPROVED:
PRESIDENT OF CITY COUNCIL
ATTESTED BY:
DEPUTY CITY CLERK
City Clerk's Office Item # M8
Background Paper for Proposed
Resolution
COUNCIL MEETING DATE: February 27, 2023
TO: President Heather Graham and Members of City Council
CC: Mayor Nicholas A. Gradisar
VIA: Marisa Stoller, City Clerk
FROM: Daniel C. Kogovsek, City Attorney
SUBJECT: A RESOLUTION APPROVING AN AMENDMENT TO A LEASE
AGREEMENT BETWEEN THE PUEBLO DEVELOPMENT
FOUNDATION, A COLORADO NONPROFIT CORPORATION AND
WESTWIND WOOD SPECIALTIES, INC., A KANSAS CORPORATION,
RELATING TO LOT 58, PUEBLO MEMORIAL AIRPORT INDUSTRIAL
PARK SUBDIVISION, ALSO KNOWN AS 33654 UNITED AVENUE,
PUEBLO, COLORADO 81001
SUMMARY:
Attached is a proposed Resolution approving an amendment to a lease agreement
between the Pueblo Development Foundation, a Colorado nonprofit corporation (“PDF”)
and Westwind Wood Specialties, Inc., a Kansas corporation (“Westwind”) relating to Lot
58 located in the Pueblo Memorial Airport Industrial Park a/k/a 33654 United Avenue,
Pueblo, Colorado 81001 (the “Property”).
PREVIOUS COUNCIL ACTION:
On January 14, 2013, by Resolution No. 12576, City Council approved an agreement
between the City and Westwind under which Westwind agreed to locate a
manufacturing facility on the Property, which Westwind would lease from PDF. Under
the Agreement, Westwind agreed to invest not less than $2,000,000 in fixed assets at
the manufacturing facility and to employ not less than 30 full-time employees during its
first year of operations. In exchange, the City agreed to provide, from the one-half cent
sales and use tax job creating capital projects improvement fund (the “413 Fund”), a
rent subsidy to Westwind of $810,000 over the course of Westwind’s ten-year lease of
the Property. Since 2010, the Property has been owned by PDF and PDF agreed to
lease the Property to Westwind, and to remit the rents paid by Westwind to the City,
less 5% which would be retained by PDF in consideration of its management of the
Property
BACKGROUND:
PDF and Westwind have agreed to an Amendment to their Lease Agreement and have
requested the City’s consent and approval to the following terms and conditions:
The term of the amended lease shall be four (4) years commencing on March 1,
2023 and ending four years thereafter on February 28, 2027 unless sooner
terminated as provided in the lease.
Westwind shall pay PDF base rent for the Leased Premises for the full term in
the amount of $612,288, payable in installments of $12,756 per month. Monthly
rent is to be payable in advance, with the first rent payment due on March 1,
2023 and subsequent payments due on the same day each month thereafter.
The monthly rent has been calculated at the rate of $3.00 per square foot per
year.
The City’s agreement with PDF with respect to the Property requires that City Council
consent to and approve any lease agreement between PDF and any tenant of the
Property.
FINANCIAL IMPLICATIONS:
Category Westwind Monthly Rent 5% PDF Fee Reimburse 413 Fund
Current Lease $ 5,462.97 $ 273.15 $ 5,189.82
Proposed Amendment $12,756.00 $ 637.80 $12,118.20
The attached Amendment to the Lease Agreement increases Westwind’s rent from
$5,189.82 to $12,756 per month. This change will result in a more rapid reimbursement
of the 413 Fund
BOARD/COMMISSION RECOMMENDATION:
Not applicable to this Resolution.
STAKEHOLDER PROCESS:
Not applicable to this Resolution.
ALTERNATIVES:
If this Resolution is not approved, Westwind’s monthly rent for the Property will not be
increased and Westwind will remain a “holdover” tenant under the current lease.
RECOMMENDATION:
Approve the Resolution.
ATTACHMENTS:
1. WESTWIND - Amendment to Lease Agreement