HomeMy WebLinkAbout10435ORDINANCE NO. 10435
AN EMERGENCY ORDINANCE ESTABLISHING PROJECT NO.
CI2318 – LAND PURCHASE TO EXPAND HARP PROJECT AND
TRANSFERRING ONE MILLION TWO HUNDRED THOUSAND
THREE HUNDRED THIRTEEN DOLLARS ($1,200,313.00) AND
RELATED CLOSING COSTS FROM THE UNAPPROPRIATED
FUND BALANCE OF THE GENERAL FUND TO PROJECT NO.
CI2318 FOR PURPOSES OF PURCHASING APPROXIMATELY
2.06 ACRES OF IMPROVED LAND LATED AT 175 S. SANTA FE
AVENUE AND 131 S. MECHANIC STREET, PUEBLO, CO 81003
FOR THE EXPANSION OF THE HISTORIC ARKANSAS RIVER
PROJECT
BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1.
Project Number CI-2318 – Land Purchase to Expand HARP Project is hereby established.
SECTION 2.
Funds in the amount of $1,200,313.00 and related closing expenses are hereby authorized
to be transferred from the unappropriated Fund Balance of the General Fund into Project No. CI-
2318.
SECTION 3.
The officers and staff of the City are authorized to perform any and all acts consistent with
this Ordinance to implement the policies and procedures described herein.
SECTION 4.
Savings Clause: Failure to approve this Ordinance on an emergency basis will further delay the
long-awaited closing (scheduled for April 11, 2023) of the real estate transactions which are
necessary for the expansion of the Historic Arkansas River Project (“HARP”). In addition, the City
has begun the process of subdividing the Property and the City’s subdivision application is pending
before the City’s Planning and Zoning Commission. The immediate enactment of this Ordinance is
necessary in order to preserve and protect the health, safety and welfare of the residents of the City.
Pursuant to Sec. 3-20 of the City Charter, 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 March 27, 2023.
Final adoption of Ordinance by City Council on April 10, 2023 .
President of City Council
Action by the Mayor:
☒ Approved on April 12, 2023 .
□ 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 # S2
Background Paper for Proposed
Ordinance
COUNCIL MEETING DATE: April 10, 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: AN EMERGENCY ORDINANCE ESTABLISHING PROJECT NO. CI2318
– LAND PURCHASE TO EXPAND HARP PROJECT AND
TRANSFERRING ONE MILLION TWO HUNDRED THOUSAND THREE
HUNDRED THIRTEEN DOLLARS ($1,200,313.00) AND RELATED
CLOSING COSTS FROM THE UNAPPROPRIATED FUND BALANCE
OF THE GENERAL FUND TO PROJECT NO. CI2318 FOR PURPOSES
OF PURCHASING APPROXIMATELY 2.06 ACRES OF IMPROVED
LAND LATED AT 175 S. SANTA FE AVENUE AND 131 S. MECHANIC
STREET, PUEBLO, CO 81003 FOR THE EXPANSION OF THE
HISTORIC ARKANSAS RIVER PROJECT
SUMMARY:
This Ordinance establishes Project No. CI-2318 and authorizes the transfer of
$1,200,313.00 and related closing expenses from the unappropriated Fund Balance of
the General Fund to said project for purposes of purchasing improved land for the
expansion of the Historic Arkansas River Project (“HARP”).
PREVIOUS COUNCIL ACTION:
On January 11, 2021, by Ordinance No. 9866, City Council approved the acquisition of
175 S. Santa Fe Avenue and 131 S. Mechanic Street, by purchase or condemnation,
for purposes of expanding HARP. The City subsequently sent the owner of said
properties a formal notice of its intent to acquire the properties by eminent domain.
On May 17, 2021, by Ordinance No. 9927, City Council approved and authorized the
Mayor to sign the following two (2) agreements with Ferguson Enterprises, LLC, a
Virginia limited liability company (“Ferguson”):
Contract for the City to purchase approximately 2.06 acres of improved land
located at 175 S. Santa Fe Avenue, Pueblo, CO 81003 (Parcel No. 05-364-26-
004) and 131 S. Mechanic Street, Pueblo, CO 81003 (Parcel No. 05-364-25-
003) (the “Property”); and
A Lease Agreement for the City to lease back a portion of the Property to
Ferguson.
Both the contract to buy and sell the Property and the lease were signed by Ferguson
on May 27, 2021.
BACKGROUND:
Acquisition of the Property is necessary for the expansion of HARP. Schematic designs
for HARP expansion to the east, extending the channel to Santa Fe Avenue have been
completed. Additional parking spaces are also needed near the HARP Riverwalk to
accommodate the thousands of local residents and tourists who use and enjoy the river
walk each year. The HARP channel extension to Santa Fe Avenue and the construction
of an adjacent parking lot (“HARP Expansion Project”) require private land
acquisition. The land necessary for the HARP Expansion Project has a fair market
value of $1,120,000.00, according to an appraisal obtained by the City from John M.
Anderson, Certified General Appraiser.
On September 14, 2014, the Pueblo Urban Renewal Authority (“PURA”) leased 209 S.
Santa Fe Avenue, Pueblo, CO 81003 (Parcel No. 53-642-6005) which is adjacent to the
Property, to Ferguson. The lease was recorded in the records of the Pueblo County
Clerk and Recorder on September 18, 2014 at Reception No. 1985225. PURA
subsequently quitclaimed 209 S. Santa Fe Ave. to the City by a Quit Claim Deed dated
June 28, 2021 which was recorded in the records of the Pueblo County Clerk and
Recorder on July 6, 2021 at Reception No. 2233654. The May 10, 2021 buy/sell
contract between the City and Ferguson also required Ferguson to assign to the City,
by quit claim deed, all of Ferguson’s right, title and interest in 209 S. Santa Fe Ave.
including, but not limited to, those conferred by the 09/14/14 lease.
Ferguson was reluctant to sell 175 S. Santa Fe Ave. (Parcel No. 05-364-26-004) and
131 S. Mechanic St. (Parcel No. 05-364-25-003) to the City and to quit claim 209 S.
Santa Fe Ave. (Parcel No. 53-642-6005). In addition to receiving $1,120,000.00,
Ferguson requested that the City pay its relocation expenses of $1,100,000.00. In order
to avoid condemnation and the payment of relocation expenses, the City and Ferguson
negotiated a compromise in which the City agreed to pay an additional $80,000.00 to
purchase 175 S. Santa Fe Ave. and 131 S. Mechanic St. and to have Ferguson assign
its lease rights to 209 S. Santa Fe Ave.
The Closing Date for the purchase transactions was scheduled for October 7, 2021.
Although Ferguson would be paid $1.2 million at closing, Ferguson requested that the
closing date be continued. Numerous subsequent attempts by the City to reschedule
the closing date were rebuffed by Ferguson. On March 7, 2023, the City notified
Ferguson that if the closing did not occur within 30 days, the City would begin
condemnation proceedings. In an email to the City, on March 8, 2023, Ferguson stated
that it delayed the closing “because our relocation space was not yet ready and
construction projects have been taking much longer than usual due to supply chain
issues, etc.” Ferguson has now agreed to an April 11, 2023 Closing Date.
FINANCIAL IMPLICATIONS:
Funds in the amount of $1,200,313.00 and related closing expenses shall be
transferred from the unappropriated fund balance of the general fund into Project No.
CI-2318.
BOARD/COMMISSION RECOMMENDATION:
Not applicable to this Ordinance.
STAKEHOLDER PROCESS:
Not applicable to this Ordinance.
ALTERNATIVES:
City Council could choose not to fund the purchase of the parcels needed for the HARP
expansion.
RECOMMENDATION:
Approval of this Ordinance
ATTACHMENTS:
None