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Home My WebLink About10538ORDINANCE NO. 10538 AN ORDINANCE APPROVING A DEPOSIT AGREEMENT BETWEEN PIONEER WEST HOMES, LLC., A COLORADO LIMITED LIABILITY COMPANY, AND THE CITY OF PUEBLO, A COLORADO MUNICIPAL CORPORATION, RELATING TO THE COLLECTION OF A DEPOSIT FOR THE INSTALLATION OF PUBLIC IMPROVEMENTS ASSOCIATED WITH THE PROPERTY AT 55 ABERDEEN BLUFF, AUTHORIZING EXECUTION OF SAID AGREEMENT BY THE MAYOR, AND PROVIDING PROCEDURES FOR RETURN OF THE DEPOSIT AND PREVIOUSLY COLLECTED LOT FEES AFTER INSTALLATION AND ACCEPTANCE OF THE REQUIRED PUBLIC IMPROVEMENTS IS COMPLETED BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. The Deposit Agreement ("Agreement") by and between Pioneer West Homes, LLC., a Colorado Limited Liability Company, and the City of Pueblo, a Colorado Municipal Corporation, a copy of which is attached hereto and made a part hereof by reference, after having been approved as to form by the Pueblo City Attorney, is hereby approved. The Mayor is hereby authorized to execute the Agreement for and on behalf of the City Pueblo and the City Clerk is authorized to affix the seal of the City thereto and attest same. SECTION 2. Upon the installation of the required public improvements specified in Exhibit "B" of the Agreement, and the City's acceptance thereof, Pioneer West Homes, LLC., may submit a written request to the Director of Public Works for the refund of previously-collected lot fees currently held in Deposit Account No. D6704 - Aberdeen Bluffs Lot Fees, in an amount not to exceed $16,310.00. The Director of Public Works shall review, endorse, and forward the request to the Director of Finance, who shall be authorized to refund the lot fees after receipt of the endorsed request from the Director of Public Works. The refund of the lot fees as described within this Section 2 is separate from and in addition to the refund of any other deposits collected pursuant to the Agreement approved in Section 1 of this Ordinance. The total amount of lot fees and deposits that may be refunded to Pioneer West Homes, LLC., shall not exceed $75,000.00. SECTION 3. The officers 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 4. 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 August 14, 2023. Final adoption of Ordinance by City Council on August 28, 2023. ____________________________ President of City Council Action by the Mayor: ☒ Approved on August 31, 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 # S6 Background Paper for Proposed Ordinance COUNCIL MEETING DATE: August 28, 2023 TO: President Heather Graham and Members of City Council CC: Mayor Nicholas A. Gradisar VIA: Marisa Stoller, City Clerk FROM: Andrew Hayes, Public Works Director SUBJECT: AN ORDINANCE APPROVING A DEPOSIT AGREEMENT BETWEEN PIONEER WEST HOMES, LLC., A COLORADO LIMITED LIABILITY COMPANY, AND THE CITY OF PUEBLO, A COLORADO MUNICIPAL CORPORATION, RELATING TO THE COLLECTION OF A DEPOSIT FOR THE INSTALLATION OF PUBLIC IMPROVEMENTS ASSOCIATED WITH THE PROPERTY AT 55 ABERDEEN BLUFF, AUTHORIZING EXECUTION OF SAID AGREEMENT BY THE MAYOR, AND PROVIDING PROCEDURES FOR RETURN OF THE DEPOSIT AND PREVIOUSLY COLLECTED LOT FEES AFTER INSTALLATION AND ACCEPTANCE OF THE REQUIRED PUBLIC IMPROVEMENTS IS COMPLETED SUMMARY: Attached is an Ordinance approving the establishment of a deposit account and approving a Deposit Agreement between Pioneer West Homes, LLC., and the City of Pueblo related to the collection of a deposit and the disposition of previously-collected lot fees within the Aberdeen Bluffs Subdivision for the construction of certain required public improvements. The proposed Ordinance also authorizes the Mayor to execute the agreement on behalf of the City of Pueblo. PREVIOUS COUNCIL ACTION: None. BACKGROUND: The original developer of the Aberdeen Bluffs subdivision began constructing in 1998. That developer built several homes, but was ultimately unable to complete the construction of all required improvements within the subdivision and sold its ownership interest in the property to several new property owners, including Pioneer West Homes, LLC. Between 2017 and 2020, Pioneer West Homes constructed and sold several homes to individual homebuyers. Because there were remaining unfinished public improvements within the subdivision, the developer agreed to pay a per-lot fee that would be used for the purpose of constructing those remaining public improvements. The payment of these fees was based on a verbal agreement that was never subsequently codified in writing or approved by Ordinance. In total, Pioneer West deposited lot fees in a total amount of $16,310.00 between 2017 and 2019. As construction in the subdivision was progressing, a rain event caused flooding behind some of the homes on Aberdeen Bluff. A post-storm investigation determined that a required drainage pan that conveyed stormwater from several of those properties had not been installed, leading to the observed drainage issues. At that time, the City issued notice to property owners that no additional building permits or certificates of occupancy would be issued within the subdivision until the required drainage improvements were installed. When the City of Pueblo gave this notice, the home located at 55 Aberdeen Bluff was already under construction. Pioneer West Homes completed construction on the house in 2020, but has been unable to obtain a CO since the required stormwater improvements were not constructed. Within the past year, Pioneer West Homes has received approval for the design of a storm drainage channel that will serve the affected properties and mitigate the flooding issues observed in previous rain storms. The cost to design and install those improvements was estimated by the City at $75,000.00. Pioneer West has identified a buyer and has requested the issuance of a Certificate of Occupancy for the property at 55 Aberdeen Bluff. Pioneer West has agreed to deposit a total of $75,000.00 (including the previously-collected lot fees) as a guarantee that the required improvements will be constructed in exchange for the City allowing the issuance of the CO for the property to facilitate the sale of the property. FINANCIAL IMPLICATIONS According to the terms of the proposed Ordinance and Deposit Agreement, the City will waive the prohibition on the issuance of a certificate of occupancy once the full amount of the deposit is received. Pioneer West will construct the required drainage improvements and, upon acceptance by the City, the City will refund the deposit and the previously-collected lot fees (in Deposit Account No. D6704) in a total amount not to exceed $75,000.00. BOARD/COMMISSION RECOMMENDATION: Not applicable to this Ordinance. STAKEHOLDER PROCESS: Not applicable to this Ordinance. ALTERNATIVES: Failing to approve this Ordinance will prevent the City from being able to enter into the Deposit Agreement and to refund Pioneer West's deposit and previously-collected lot fees once the required public improvements are installed. RECOMMENDATION: Approval of the Ordinance. ATTACHMENTS: 1. Deposit Agreement - Aberdeen Bluff Sub (Pioneer West) - 230801 (final)