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ORDINANCE NO. 1944
AN ORDINANCE APPROVING A MANAGEMENT AGREEMENT
BETWEEN THE CITY OF PUEBLO, A MUNICIPAL
CORPORATION AND PUEBLO MOTORSPORTS, INC.
RELATING TO A RECREATIONAL MOTORSPORTS FACILITY
AND AUTHORIZING THE PRESIDENT OF THE CITY
COUNCIL TO EXECUTE SAME.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PUEBLO,
COLORADO, THAT:
SECTION 1.
The Management Agreement dated November 25, 1974 between
Pueblo Motorsports Inc. and Pueblo, a Municipal Corporation relating
to a recreational motorsports facility to be developed on a portion
of the "Honor Farm" property, having been approved as to form by
the City Attorney is hereby approved.
SECTION 2.
The President of the City Council is hereby authorized and
directed to execute said Agreement for and on behalf of the City
and the City Clerk is directed to attest same and affix the Seal
of the City thereto.
ATTEST:
ity 1
INTRODUCED NoyeMbgr 11 , 1974
By RTrHARD N_ ANGLUND
Councilman
APPROVED:
President of the Council
MANAGEMENT AGREEMENT
This Management Agreement made and entered into this
i�S i day of November, 1974, by and between the City of Pueblo,
State of Colorado, a Municipal Corporation ( "the City ") and
Pueblo Motorsports Inc., a non - profit Colorado Corporation,
Pueblo, Colorado ( "PMI "), WITNESSETH THAT,
WHEREAS, the City holds a lease from the State of
Colorado for certain real property located in Pueblo County,
Colorado, and
WHEREAS, the City is desirous of developing a portion
of the land as a recreational motorsports facility, and
WHEREAS, PMI is an organization having knowledge of
motorsports facilities and expertise in the operation of such
facilities,
NOW THEREFORE, for and in consideration of the mutual
covenants hereinafter provided the City and PMI hereby enter
into a Management Agreement for the development, operation and
maintenance of a recreational motorsports facility on that pro-
perty particularly described as:
All of Section 16, the East 1/2 of the Northeast
1/4 and the East 300 feet of the Northwest 1/4
of the Northeast 1/4 of Section 20, and the
Northwest 1/4 of Section 21, Township 20 South,
Range 65 West, Pueblo County, Colorado ( "premises "),
subject to existing rights of way, easements and
rights of parties under any lease with the State
of Colorado.
I. MANAGEMENT AGREEMENT SUBJECT TO TERMS OF SUPERIOR LEASE.
This Management Agreement and all the terms, covenants,
and conditions herein and use of the premises are in all respects
subject and subordinate to the Lease between the City as Lessee
and the State of Colorado as Lessor, dated June 24, 1974, said
Lease between the City and State of Colorado including the pro-
course of this Management Agreement and all taxes and assess-
ments levied against the premises, improvements, furniture and
equipment thereon.
V. CONTROL AND MAINTENANCE.
Section 5.1. Possession. The City covenants that in-
sofar as it is able it will put PMI into exclusive control and
possession of the premises and PMI shall have the quiet enjoy-
ment of the premises so long as there is compliance with the
covenants herein. PMI warrants it is a Colorado non - profit
corporation and has been duly authorized to execute this Agree-
ment and is empowered to perform same. PMI shall perform all
acts and execute all documents required to file for federal and
state tax exempt status.
Section 5.2. Waste and Obeying Laws. PMI shall not
conduct any undue waste on the premises and shall comply with
all valid laws, ordinances and regulations affecting its use of
the above - described premises and activity conducted thereon.
PMI agrees to indemnify and save harmless, the City from all
claims for and penalties incurred by any act or omission of PMI
in violation thereof.
Section 5.3. Insurance. PMI agrees to provide at
its expense, insurance for the premises and all activities con-
ducted thereon, including insurance for all motorsports events.
The terms, provisions and amounts of which liability and hazard
and extended coverage insurance shall be approved by the City
Attorney and name the City as a co- insured, as its interest may
appear. PMI shall furnish copies of all policies for such in-
surance to City.
Section 5.4. Liability for Injury or Damage. PMI
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Section 5.7. PMI agrees it will not allow liens or
encumbrances to be placed on the premises or improvements by its
acts or as a result of its operation on the premises.
Section 5.8. Operation. The scheduling of motor-
sports events and the conduct and operation of such events, in-
eluding frequency of events and type of events shall be the
responsibility of PMI and within its discretion.
VI. DEVELOPMENT.
Section 6.1. Development funds. The City agrees to
furnish the sum of ONE HUNDRED TWENTY -FIVE THOUSAND DOLLARS AND
NO CENTS ($125,000.00), for the development on the premises of
a recreational motorsports facilities in accordance with the
Master Plan referred to herein.
Section 6.2. Master Plan. Any and all funds provided
by the City or generated by operations on the premises shall be
expended in accordance with a Master Plan for the development
and operation of the motorsports facilities. The Master Plan
shall be submitted to and approved by the City Manager of the
City and any changes in the Master Plan shall be subject to the
approval of the City Manager.
Section 6.3. Expenditures to be Approved by Director
of Parks and Recreation. All expenditures on the development
and physical improvements of the recreational motorsports
facility, of monies furnished by the City or generated by
operations on the premises, shall be first approved by the
Director of Parks and Recreation of the City. All such ex-
penditures shall be in accordance with the Master Plan, however,
necessary expenditures may be authorized for engineering data
and other prerequisites for the development of the Master Plan.
B
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Section 6.8. No building or other improvement of a
permanent nature, whether or not included in the Master Plan,
shall be constructed or placed upon the premises until after
PMI shall have first given written notice to the City describing
the proposed building or other improvements and its location
on the premises at least one hundred (100) days prior to the
commencement of construction of such building or improvement.
Any structures or improvements of a permanent nature shall re-
ceive the prior approval of the Director of Parks and Recreation.
VII. APPLICATION OF ORDINANCES.
All improvements on the premises shall be made and
constructed in accordance with ordinances of the City, however,
the City ordinances and regulations as to streets and roads
shall not apply to PMI's development of the premises. Control
of fugitive dust from roadways and activities conducted on the
premises shall be the sole responsibility of PMI.
VIII. NOISE EMISSIONS.
PMI agrees to take reasonable measures for the abate-
ment of excess noise emissions. The City shall furnish the
consultative services of the Department of Parks and Recreation
for the purpose of utilization of vegetation to reduce excess
noise emissions.
IX. ASSIGNMENT.
There shall be no assignment of this Management
Agreement in whole or in part by either party without the prior
written approval of the non - assigning party.
X. NOTICE.
Any notice required under this Lease shall be in
I
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perty which is the subject of this Management Agreement.
II. TERM OF THE MANAGEMENT AGREEMENT.
PMI shall have and hold the premises without limitation
or interruption commencing at 12:00 o'clock noon on the lst day
of December, A.D. 1974 and terminating at 12:00 o'clock noon on
the 1st day of July, A.D. 1994.
III. TERMINATION AND DEFAULT.
Section 3.1. Termination. This Management Agreement
may be terminated by mutual consent or by either party giving
written notice to the non - terminating party one (1) year prior
to the desired termination date.
Section 3.2. Default. If either party be in default
hereunder, the non - defaulting party may give written notice
specifying the default to the defaulting party. If the defaulting
party shall not correct such default within thirty (30) days
after receipt of said notice or if said default cannot be
corrected within said thirty day period and the defaulting party
shall fail to commence action to correct said default within
said thirty day period and thereafter diligently pursue such
corrective action, the non - defaulting party may upon an addi-
tional ten (10) days notice terminate this Agreement and except
for accrued rights and liabilities hereunder upon termination
each party shall be relieved from all duty and obligation here-
under.
IV. UTILITIES.
PMI agrees to pay for the extension of all utility
service to the premises and any and all utility bills (including
electricity, water, telephone and heat) it may incur during the
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shall be in exclusive control and possession of the premises
as provided herein, and the City shall not, in any event what-
soever, be liable for any injury or damage to any property or
to any person happening on the premises, nor for any injury or
damage to the premises, nor to any property of PMI, resulting
from the use and operation of the premises by PMI. As to the
City, PMI agrees to assume risk of all injuries, including
death resulting therefrom, to persons, and damage to and de-
struction of property including loss of use thereof resulting
directly or indirectly, wholly or in part, from the wrongful
or negligent prosecution or omission of any work undertaken by
PMI on the above - described premises and the use thereof by
others under PMI's supervision and control caused by or for
which PMI may otherwise be held responsible, and to indemnify
and save harmless the City, or the employees or agents thereof
from and against any and all such liability arising therefrom
except through negligence of the City or its Agents and em-
ployees.
Section 5.5. Access. PMI shall permit the City or
its authorized agent to enter the premises at all reasonable
hours for the purpose of inspection. The City will allow
PMI reasonable access to the premises across other City pro-
perty or property under its control if necessary. The City
shall retain the right to cross the described premises if
necessary in order to have access to other properties of the
City or properties which the City controls.
Section 5.6. Surrender and Hold -over period. PMI
agrees it will peaceably surrender the premises and all improve-
ments at the termination of this Management Agreement unless
prior to termination PMI and the City otherwise agree in writing.
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Section 6.4. Accounting. PMI shall furnish to the
City Manager on or before the first day of November of each
year, during the term of this Management Agreement, an annual
budget of proposed expenditures for the operation and develop-
ment of the motorsports facility for the next calendar year.
PMI shall also furnish an annual audit for the preceding years'
development and operation of the motorsports facility on Novem-
ber 1 of each year and a quarterly operating statement on the
first day of February, June, August and November of each year.
Section 6.5. Motorsports. The term "motorsports"
as used herein includes speed or endurance events involving
motor or other vehicles, but is not limited to drag- racing,
motorcycle racing, stock -car racing, sports -car racing, and go-
cart racing. Such events shall be open to the general public
for the payment of a reasonable admission charge or participa-
tion fee and shall be sanctioned by an appropriate sanctioning
body where applicable.
Section 6.6. It is agreed that at the termination of
the Management Agreement all improvements and equipment purchased
with monies furnished by the City or generated from motorsports
events conducted on the premises shall be and remain the pro-
perty of the City.
Section 6.7. Property contributed by PMI. It is
agreed that any equipment which PMI owns at the time motorsports
events begin on the premises and which PMI places in use on the
premises will become the property of the City. Provided, how-
ever, that such equipment shall be evaluated at its then fair
market value and PMI compensated therefore if the Management
Agreement is terminated within a period of five (5) years from
the date hereof.
writing and personally delivered or sent postage prepaid in
the U. S. Mail registered or certified, return receipt requested,
to: If to the City, City Manager, City of Pueblo, 1 City Hall
Place, Pueblo, Colorado 81003. If to PMI, Pueblo Motorsports
Inc., 3140 Skyview, Pueblo, Colorado 81008, or to any other
address subsequently designated by the parties.
XI. RELATIONSHIP.
Nothing herein contained shall be construed to make
PMI an agent or employee of the City. The relationship be-
tween PMI and the City is hereby declared to be that of an
independent contractor to the City.
XII. BINDING EFFECT.
This Management Agreement shall be binding upon
the parties, their successors, and approved transferees and
assigns and shall be governed by the laws of the State of
Colorado where applicable.
IN WITNESS WHEREOF, the City and PMI have caused this
Agreement to be duly approved and executed as of the date first
written above.
PUEBLO, a Municipal Corporation
By
President, City - Council of Pueblo
ATTEST:
i y; T?�k f4 Pueblo, Colorado
PUEBLO MOTORSPORTS INC.
By
Ben Crossno, President
ATTEST:
V- 01441%FM
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