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City Clerk's Office Item # M10
Background Paper for Proposed
Resolution
COUNCIL MEETING DATE: June 12, 2023
TO: President Heather Graham and Members of City Council
CC: Mayor Nicholas A. Gradisar
VIA: Marisa Stoller, City Clerk
FROM: Lisa Macchietto, Assistant City Attorney
SUBJECT: A RESOLUTION APPROVING A RELEASE OF DEED OF TRUST
BETWEEN PUEBLO, A COLORADO MUNICIPAL CORPORATION AND
MATRIXX MARKETING, INC., AND AUTHORIZING THE MAYOR TO
EXECUTE SAME
SUMMARY:
This Resolution approves the release of a Deed of Trust lien dated December 4, 1997,
which secured an employment commitment made by Matrixx Marketing, Inc. (“Matrixx”),
in exchange for the transfer of ownership of commercial real property located at 1228
East Orman Avenue, Pueblo, Colorado.
PREVIOUS COUNCIL ACTION:
On October 27, 1997, Council approved Resolution No. 8253 which approved an
Agreement dated December 31, 1995 (the “Agreement”), between the City, Pueblo
Development Foundation (“PDF”), and Matrixx. This Agreement authorized the release
of a prior Deed of Trust lien which secured a promissory note, dated June 22, 1989, in
the original amount of $548,546.54, forgave and discharged any remaining amounts
due under the promissory note, and approved a commitment by Matrixx to increase the
number of employees in its local workforce for a period of five (5) years from the date of
the Agreement.
BACKGROUND:
In the Agreement, Matrixx committed to employ at the Property for a period of five (5)
years from December 31, 1995, 210 full-time employees in addition to the 677 full-time
employees previously employed for a total of 887 full-time employees, and 90 part-time
employees in addition to the 530 part-time employees previously employed at the
Property for a total of 620 part-time employees. In exchange for this commitment,
ownership of the Property was transferred to Matrixx and Matrixx’s enhanced
employment commitment was secured by a Deed of Trust lien on the Property between
City and Matrixx dated December 4, 1997.
Matrixx, and its successor in interest Concentrix Corporation, have satisfied the
employment commitment memorialized in the Agreement. Therefore, a release of the
Deed of Trust lien securing that obligation is appropriate.
FINANCIAL IMPLICATIONS:
None.
BOARD/COMMISSION RECOMMENDATION:
Not applicable to this Resolution.
STAKEHOLDER PROCESS:
Not applicable to this Resolution.
ALTERNATIVES:
Not applicable to this Resolution.
RECOMMENDATION:
Approval of the Resolution.
ATTACHMENTS:
1. Release of Deed of Trust -- Matrixx (final)
RESOLUTION NO. 15266
A RESOLUTION APPROVING A RELEASE OF DEED OF
TRUST BETWEEN PUEBLO, A COLORADO MUNICIPAL
CORPORATION AND MATRIXX MARKETING, INC., AND
AUTHORIZING THE MAYOR TO EXECUTE SAME
WHEREAS, the City previously acquired and then transferred title to the herein
described real property ("Property") to Pueblo Development Foundation ("PDF") for lease to
WATS Marketing of America, Inc. ("WATS"), and
WHEREAS, PDF entered into a lease of the Property with WATS; and
WHEREAS, MATRIXX Marketing, Inc., the successor in interest to WATS, conducted
and operated a business on the Property and committed to employ at the Property for a period
of five years from December 31, 1995, 210 full-time employees in addition to the 677 full-time
employees previously employed for a total of 887 full-time employees, and 90 part-time
employees in addition to the 530 part-time employees previously employed at the Property for a
total of 620 part-time employees ("Employment Commitment"); and
WHEREAS, MATRIXX Marketing, Inc., thereafter undertook a series of corporate name
changes, beginning on October 8, 1998, when it became Convergys Customer Care
Management Group Inc.; until becoming Concentrix CVG Customer Management Group, Inc.
(hereinafter “Concentrix”) on October 25, 2018, as it is known today; and
WHEREAS, in return for the Employment Commitment PDF conveyed title to the
Property to Concentrix and the City canceled PDF's Promissory Note, dated June 22, 1989,
payable to the City in the original principal amount of $548,546.54 and released City's Deed of
Trust lien on the Property, recorded August 28, 1989, which secured payment of PDF's
Promissory Note, in effect transferring the Property to Concentrix free and clear of City's
monetary lien in consideration of Concentrix’s Employment Commitment; and
WHEREAS, Concentrix's Employment Commitment was memorialized in an Agreement
between PDF, City, and Concentrix, dated December 31, 1995 (the "Agreement"), and
approved by Resolution No. 8253, and secured by a Deed of Trust lien on the Property between
City and Concentrix dated December 4, 1997; and
WHEREAS, the Property is described as follows: Lots 1 to 11, inclusive, and Lots 14 to
26, inclusive, Block 54, Town of Bessemer, an addition to the City of Pueblo, together with all
vacated alleys in said Block 54 lying between and adjoining Lots 1 to 11, inclusive, and lots 16
to 26, inclusive, Pueblo County, Colorado; street address: 1228 East Orman Avenue, Pueblo,
Colorado; and
WHEREAS, pursuant to the Agreement Concentrix had a repayment obligation to the
City for any failure to fulfill the Employment Commitment for five (5) years from December 31,
1995; and
WHEREAS, Concentrix’s repayment obligation under the Agreement was deemed to be
a debt, and the performance and payment of any such repayment obligation, and the
Employment Commitment and other obligations under the Agreement, were secured by a Deed
of Trust on the Property dated December 4, 1997, recorded in Book 3076, Page 802, at
Reception number 1201721 of the Pueblo County records ("Deed of Trust"); and
WHEREAS, Concentrix has fully and finally satisfied and fulfilled all of its obligations
under the Agreement, and a release of the City's Deed of Trust lien is appropriate; and
WHEREAS, the Agreement is the “Agreement” specified in the Deed of Trust; NOW,
THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that
SECTION 1.
All of Concentrix's obligations under the Agreement, including without limitation, any
payment obligations and Concentrix’s Employment Commitment, are hereby deemed fully and
finally satisfied. The Agreement is hereby cancelled and discharged.
SECTION 2.
The Mayor is authorized to execute and deliver to the Public Trustee of the County of
Pueblo, Colorado a request for a release of the Deed of Trust.
SECTION 3.
The officers and staff of the City are authorized to perform any and all acts consistent
with the intent of this Resolution to implement the transactions described therein, including
obtaining a bond or the execution and delivery of any document reasonably requested by
Concentrix necessary to effectuate a release of the Deed of Trust, provided that any such
document is pre-approved by the City Attorney.
SECTION 4.
This Resolution shall become effective immediately upon final passage.
INTRODUCED: June 12, 2023
BY: Vicente Martinez Ortega
MEMBER OF CITY COUNCIL
APPROVED: __________________________
PRESIDENT OF CITY COUNCIL
ATTESTED BY: ________________________
CITY CLERK