HomeMy WebLinkAbout10520ORDINANCE NO. 10520
AN ORDINANCE (1) APPROVING AND AUTHORIZING THE
MAYOR TO EXECUTE AN EMPLOYMENT AGREEMENT
BETWEEN THE CITY OF PUEBLO, A COLORADO MUNICIPAL
CORPORATION, AND FOMCORE, A MICHIGAN LIMITED
LIABILITY COMPANY, RELATING TO A JOB CREATING
CAPITAL IMPROVEMENT PROJECT AND (2) APPROVING AND
AUTHORIZING THE MAYOR TO EXECUTE A REAL PROPERTY
CONVEYANCE AGREEMENT AND RELATED QUITCLAIM
DEED BETWEEN THE CITY OF PUEBLO, A COLORADO
MUNICIPAL CORPORATION, AND THE PUEBLO
DEVELOPMENT FOUNDATION, A COLORADO NONPROFIT
CORPORATION, RELATING TO A PARCEL OF IMPROVED
LAND LOCATED IN THE PUEBLO MINNEQUA INDUSTRIAL
PARK AND (3) TRANSFERRING SIX MILLION FIVE HUNDRED
THOUSAND DOLLARS ($6,500,000) FROM THE 1992-2026
SALES AND USE TAX CAPITAL IMPROVEMENT PROJECTS
FUND FOR THE PURPOSE OF SAID CONVEYANCE
AGREEMENT AND (4) TRANSFERRING ONE MILLION SEVEN
HUNDRED AND FORTY THOUSAND DOLLARS ($1,740,000)
FROM THE 1992-2026 SALES AND USE TAX CAPITAL
IMPROVEMENT PROJECTS FUND FOR THE PURPOSE OF
THE CITY OF PUEBLO’S COMPLIANCE WITH SAID
EMPLOYMENT AGREEMENT
BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1.
The City Council finds and determines that (1) the expenditure of up $6,500,000
improvements of the building located at 200 Greenhorn Dr., Pueblo, for the job creating capital
improvement project by the Pueblo Development Foundation, a Colorado nonprofit corporation
(“PDF”) described in the attached Real Property Conveyance Agreement, meets and complies
with the criteria and standards established by Section 14-4-85.5 of the Pueblo Municipal Code
and will create employment opportunities justifying the expenditure of public funds; and (2) the
expenditure of $1,740,000 for a job creating capital improvement project with Fomcore LLC a
Michigan limited liability company (“Fomcorp”) described in the attached Employment
Agreement is for a public purpose and in furtherance of a municipal function and will create
employment opportunities justifying the expenditure of public funds. The City Council further
finds the incentives granted to the Formcorp hereby meet the standards established by Section
14-4-85 of the Pueblo Municipal Code.
SECTION 2.
The following agreements, all dated August 14, 2023, copies of which are attached hereto
and are incorporated herein by this reference, having been approved as to form by the City
Attorney, are hereby approved:
Employment Agreement between the City of Pueblo and Fomrcorp;
Real Property Conveyance Agreement between the City of Pueblo and the Pueblo
Development Foundation (“PDF”) and with respect to the transfer of 200 Greenhorn Dr,
Pueblo, CO 81003 to PDF to be leased by PDF to Fomcorp;
The Mayor is authorized to execute and deliver said agreements in the name of the City and the
City Clerk is authorized to fix the seal of the City thereto and attest same. The Mayor is further
authorized to execute and deliver a Special Warranty Deed and related documents at closing,
transferring 200 Greenhorn Dr, Pueblo, CO 81003 to PDF.
SECTION 3.
Funds in the aggregate amount of $6,500,000 are hereby authorized to be transferred,
expended and made available out of the 1992-2026 Sales and Use Tax Capital Improvement
Projects Fund for the sole purpose of the job creating capital improvement project authorized
herein and in the manner described in the attached Real Property Conveyance Agreement. The
funds hereby authorized to be transferred and expended shall be released, disbursed and paid
by the City’s Director of Finance as specified in the attached Real Property Conveyance
Agreement.
SECTION 4.
Funds in the aggregate amount of $1,740,000 are hereby authorized to be transferred,
expended and made available out of the 1992-2026 Sales and Use Tax Capital Improvement
Projects Fund for the sole purpose of the job creating capital improvement project authorized
herein and in the manner described in the attached Employment Agreement. The funds hereby
authorized to be transferred and expended shall be released, disbursed and paid by the City’s
Director of Finance as specified in the attached Employment Agreement.
SECTION 5.
The officers and staff of the City are authorized to perform any and all acts consistent
with this Ordinance and the attached agreements which are necessary or appropriate to
implement the transactions described therein.
SECTION 6.
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 July 24, 2023.
Final adoption of Ordinance by City Council on August14, 2023.
____________________________
President of City Council
Action by the Mayor:
☒ Approved on August 17, 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 # R1
Background Paper for Proposed
Ordinance
COUNCIL MEETING DATE: August 14, 2023
TO: President Heather Graham and Members of City Council
CC: Mayor Nicholas A. Gradisar
VIA: Marisa Stoller, City Clerk
FROM: Nicholas Gradisar, Mayor
SUBJECT: AN ORDINANCE (1) APPROVING AND AUTHORIZING THE MAYOR
TO EXECUTE AN EMPLOYMENT AGREEMENT BETWEEN THE CITY
OF PUEBLO, A COLORADO MUNICIPAL CORPORATION, AND
FOMCORE, A MICHIGAN LIMITED LIABILITY COMPANY, RELATING
TO A JOB CREATING CAPITAL IMPROVEMENT PROJECT AND (2)
APPROVING AND AUTHORIZING THE MAYOR TO EXECUTE A REAL
PROPERTY CONVEYANCE AGREEMENT AND RELATED QUITCLAIM
DEED BETWEEN THE CITY OF PUEBLO, A COLORADO MUNICIPAL
CORPORATION, AND THE PUEBLO DEVELOPMENT FOUNDATION, A
COLORADO NONPROFIT CORPORATION, RELATING TO A PARCEL
OF IMPROVED LAND LOCATED IN THE PUEBLO MINNEQUA
INDUSTRIAL PARK AND (3) TRANSFERRING SIX MILLION FIVE
HUNDRED THOUSAND DOLLARS ($6,500,000) FROM THE 1992-2026
SALES AND USE TAX CAPITAL IMPROVEMENT PROJECTS FUND
FOR THE PURPOSE OF SAID CONVEYANCE AGREEMENT AND (4)
TRANSFERRING ONE MILLION SEVEN HUNDRED AND FORTY
THOUSAND DOLLARS ($1,740,000) FROM THE 1992-2026 SALES
AND USE TAX CAPITAL IMPROVEMENT PROJECTS FUND FOR THE
PURPOSE OF THE CITY OF PUEBLO’S COMPLIANCE WITH SAID
EMPLOYMENT AGREEMENT
SUMMARY:
Attached is an Ordinance approving and authorizing the Mayor to sign the following
agreements:
Employment Agreement between the City of Pueblo and Fomcore LLC, a
Michigan limited liability company (“Fomcorp”);
Real Property Conveyance Agreement between the City of Pueblo and the
Pueblo Development Foundation (“PDF”) for the transfer of 200 Greenhorn
Dr, Pueblo, CO 81003 to PDF to be leased by PDF to Fomcorp;
Special Warranty Deed transferring 200 Greenhorn Dr., Pueblo, CO 81003
to PDF
PREVIOUS COUNCIL ACTION:
Ordinance No. 9712 (June 8, 2020) approved an agreement wherein the facility located
at 200 Greenhorn Dr., Pueblo, CO 81008 was previously constructed by PDF as a shell
building and transferred to the City of Pueblo following construction.
BACKGROUND:
Fomcorp is a Michigan company specializing in the manufacturing of foam furniture for
nd
educational and healthcare facilities. Fomcorp has a need to open a 2 manufacturing
facility in the United States regionally located to serve the western portion of the United
States. Fomcorp plans to lease the facility located at 200 Greenhorn Dr., Pueblo, CO
81004. Fomcorp plans to employee a minimum of 87 full time employees for not less
than thirty-five (35) hours per week with an average annual salary for full-time
employees of not less than $41,000 plus benefits. Fomcorp will receive a rent
abatement in an amount not to exceed One Million Seven Hundred Forty Thousand
Dollars ($1,740,000).
The facility located at 200 Greenhorn Dr., Pueblo, CO 81008 was previously
constructed by PDF as a shell building. The facility was transferred to the City of
Pueblo following construction. In order to lease the facility, certain improvements need
to be completed. It is estimated that an addition $6.5 Million dollars is necessary to
complete the improvements. This is in addition to the previously allocated dollars for
the construction of the building.
With respect to such construction and related Real Property Conveyance Agreement
with Pueblo Development Foundation (“PDF”), PDF was formed in 1964 as a Colorado
nonprofit corporation to promote economic development within the City of Pueblo and
the areas surrounding the City. For more than fifty years, PDF has helped start up
businesses and assisted existing businesses in relocating to Pueblo County and
thereby has acquired expertise in economic development.
Section 14-4-85.5 of the Pueblo Municipal Code (“Criteria Ordinance”) provides that the
City Council may authorize the expenditure of monies from the 1992-2026 Sales and
Use Tax Capital Improvement Projects Fund (“Half-Cent Tax Fund”) for the acquisition
of land and construction of so-called shell buildings or the acquisition, remodeling and
renovation of existing buildings for the purpose of making such buildings available for
applicants or potential applicants who meet the standards and criteria of this Chapter.
FINANCIAL IMPLICATIONS:
With respect to the Real Property Conveyance Agreement, the City has agreed to transfer up
to $6.5 million dollars from the Half-Cent Tax Fund to PDF for the construction improvements
needed for the purpose of making the building available and in order to lease to Fomcorp
based upon plans and specifications already prepared by Nakai & Associates for the work
contemplated by this Agreement.
With respect to the Employment Agreement, City funds will be made available out of the 1992-2026
Sales and Use Tax Capital Improvement Projects Fund for rent abatements to Fomcorp as follows:
Dates Location Maximum Abatement of
Rents
March 1, 2024 to June 30, 200 Greenhorn Dr. No rent
2024
July 1, 2024 to March 31, 200 Greenhorn Dr. $ 1,740,000
2031
Total $ 1,740,000
BOARD/COMMISSION RECOMMENDATION:
Not applicable to this Ordinance.
STAKEHOLDER PROCESS:
Not applicable to this Ordinance.
ALTERNATIVES:
If this Ordinance is not approved, Fomcorp will not locate its new facility to Pueblo, CO.
RECOMMENDATION:
The Pueblo Economic Development Corporation recommends approval of this
Ordinance.
ATTACHMENTS:
1. Conveyance Agreement between City and PDF
2. Lease between Fomcorp and PDF
3. PDF Deed of Trust -200 Greenhorn Dr
4. Special Warranty Deed - City to PDF 200 Greenhorn
5. Redlined Background Paper - As Amended by CA Office
6. Redlined Ordinance - As amended by CA Office