HomeMy WebLinkAbout05437ORDINANCE NO. 5437
AN ORDINANCE APPROVING AN AGREEMENT BETWEEN
PUEBLO, A MUNICIPAL CORPORATIO14 AND PUEBLO
DEVELOPMENT FOUNDATION, INC. RELATING TO THE
CONSTRUCTION OF A FACILITY TO BE LEASED TO
1CDONNELL DOUGLAS CORPORATION AND APPROPRIAT-
ING "1O FROM THE SAL11 AND USE TAX CAPI'T'AL
IMPROVEMENT FUND FOR THE CONSTRUCTION THEREOF
WHEREAS, the City of Pueblo has in recent years suffered a
decline in the number of available employment opportunities for
its citizens and a corresponding increase in unemployment, and
WHEREAS, there exists in the City of Pueblo abnormal unem-
ployment and a depressed economy which imposes inequitable living
conditions upon the unemployed and places a public burden upon the
City and its citizens, and
11HEREAS, the prevention and elimination of unemployment and
the social and economic evils associated therewith are public
purposes and matters of local and municipal concerns that justify
the expenditure of public funds, and
WHEREAS, McDonnell Douglas Corporation has committed to lease
a 118,710 square foot manufacturing facility ( "Facility ") to be
constructed by Pueblo Development Foundation, Inc. at Pueblo
Memorial Airport, and
WHEREAS, Pueblo Development Foundation, Inc. has agreed to
construct the Facility to be leased to McDonnell Douglas
Corporation for an amount not to exceed $3,459,500 and has
obtained from local banks a loan commitment for the permanent
financing for such Facility after its construction, and
tIHEREAS, Pueblo Development Foundation, Inc. in order to con-
struct such Facility needs the sum of $2,500,000, and
I'lEREAS, the City, subject to and upon the terms and
conditions set forth in the Agreement dated October 26, 1987
attached hereto and incorporated herein, is willing to advance to
Pueblo Development Foundation, Inc. the sum of $2,500,000 out of
the Sales and Use Tax Capital Improvement Fund for the construc-
tion of the facility, and
G7JEREAS, the construction
thereof by McDonnell Douglas
economy of the City and create
people of Pueblo; NOW THEREFORE,
of such Facility and the lease
Corporation will stimulate the
employment opportunities for the
BE I'T ORDAINIED BY THE CITY COUNCIL OF PUEBLO, COLORADO, that:
SECTION 1
The City Council does hereby find and determine:
1. There exists in the City of Pueblo abnormal unemployment
and a depressed economy which imposes inequitable living condi-
tions upon the unemployed and places a public burden upon the City
and its citizens.
2. The prevention and elimination of unemployment and the
social and economic evils associated therewith are public purposes
and matters of local and municipal concern that justify the
expenditure of public funds.
3. The appropriation of $2,500,000 out of the Sales and Use
Tax Improvement Fund for the purpose of constructing the Facility
to be leased by McDonnell Douglas Corporation is a ;permitted
expenditure of moneys from such Fund, will provide employment
opportunities for relief of unemployment and serve a direct and
public purpose for which public funds may be expended, is in the
best interest of the City and its citizens, and will promote the
public healt�, safety, commerce, prosperity, and general welfare
of the City and its citizens.
SECTION 2
The Agreement dated October 26, 1987 between Pueblo, a
funicipal Corporation and Pueblo Development Foundation, Inc.
relating to the construction of a facility to be leased to
McDonnell Douglas Corporation, a copy of which is annexed hereto
and incorporated herein, is hereby approved. The President of the
City Council is authorized to execute and deliver the Agreement
and Warranty Deed attached thereto for and on behalf of the City
Eva
I
and the City Clergy: is authorized to affix the seal of the City
thereto and attest same.
SECTION yl.
The sum of $2,500,000 in the Sales and Use Tax Capital
Improvement Fund is hereby appropriated and shall be expended for
the specific purpose of constructing at the Pueblo Hemorial
Airport an approximately 118,710 square manufacturing facility to
be leased by Pueblo Development Foundation, Inc. to McDonnell
Douglas Corporation.
tt
Except to the extent inconsistent with this Ordinance, all
actions heretofore taken by the City or any of its officers or
employees toward the appropriation herein made and other actions
herein authorized are hereby confirmed, approved and ratified.
A'
gr('TTC)'7 rK
This Ordinance shall become effective upon final passage.
INTRODUC'D: October 26, 1987
A'T'TEST :
41 4AIA . A1'
Ci Clerk
TJ 23.40
By PAUL JONES
Councilman
APPROV�'
Pre dent of the City Counc 1
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ACRFF.P1FNT
THIS ACREEMEN�IT entered into this 26th day of October, 1937
between Pueblo, a flunicipal Corporation (herein "City ") and Pueblo
Development Foundation, Inc., a Colorado nonprofit corporation
(herein "PDF ") , WITNFSSETTI,
,, 11 , 11T'EAS, PDF has proposed a plan for the reuse and develop-
ment of a portion of the Pueblo Memorial Airport Industrial Park
described in Exhibit "A" attached hereto and incorporated herein
(herein "Property ") for industrial use by McDonnell Douglas
Corporation (herein " "), and
WHEREAS, MDC has committed to lease a 113,700 square foot
manufacturing facility (herein "Facility ") to be constructed on
the Property by PDF, and
WHEREAS, PDF has entered into a contract with Pueblo
Community Contractors ( "Contractor ") to construct the Facility for
a guaranteed maximum cost of $3,453,000 including overhead and
profit (herein "Contract ") which Contract describes the Facility
and Scone of Iork and requires the Facility to be constructed in
compliance therewith and in conformity with the Drawings and
Specifications prepared by Burns & McDonnell Engineers (herein
"Architect ") (the Contract, Scope of Work, and Drawings and
Specifications are herein collectively referred to as "Contract
Documents "), and
WHEREAS, PDF has obtained a $3,500,000 loan commitment for
the permanent fiancing of the Facility and needs the sum of
$2,500,000 to construct the Facility, and
WHEREAS, City is willing to advance the sum of $2,500,000 for
the construction of the Facility subject to and upon the terms and
conditions hereinafter contained;
INOW, THEREFORE, in consideration of the foregoing and mutual
promises herein contained, City and PDF agree as follows:
1. PDF shall, for a construction and design cost of
$3,459,500, construct or cause to be constructed the approximately
118,700 square foot Facility on the Property in accordance and in
compliance with the requirements, terms and provisions of the
Contract Documents and the Lease between PDF and MDC substantially
in the form and content of the Lease enclosed with the commitment
of MDC dated October. 6, 1937 with such modifications thereto as
MDC and PDC May mutually agree upon (herein "Lease "). PDF and MDC
shall execute the Lease and deliver an executed copy thereof to
City.
2. PDF shall enter into a binding loan commitment with
Colorado ^?ational Bank- Pueblo as agent for itself and other local
banks for a permanent loan in an amount not less than $3,459,500
(herein " Permanent Loan "). PDF shall cause the Permanent Loan to
be closed no later than the date of substantial completion of the
Facility and pay or cause the proceeds thereof to be paid and
disbursed in the following order:
(a) First, to the City, an amount equal to the total
amount of all funds advanced by City under paragraph 3 hereof plus
interest at the rate of 6% per annum from the date of each advance
until paid.
(b) Second, to the Contractor, an amount equal to the
then unpaid balance of the guaranteed maximum cost, profit and
overhead.
(c) Third, to the City, an amount equal to the total
sum of all funds advanced by the City under Agreement dated
December 22, 1987 between City and PDF for the construction of
t1DC's 61,750 square foot facility, or the balance of the Permanant
Loan proceeds, whichever is less.
3. PDF represents and agrees that it has available and will
spend at least $600,000 for the design and construction of the
Facility. After PDF has spent its available funds in an amount
not less than $600,000 for the design and construction of the
Facility, and, if PDF is not in default hereunder, City will make
periodic advancements, not to exceed $2,500,000, to PDF or at
PDF's written direction to the Contractor within 15 days after
receipt by City's Director of Finance of written application for
payment in substantially the form of AIA Document 6702 certified
by the Contractor, the Architect, and an officer of PDF. PDF
agrees to pay to City upon demand but no later than six (6) months
from date hereof all moneys advanced by City hereunder with
interest thereon at the rate of six (6) percent per annum.
4. PDF acknowledges and agrees that under Agreement dated
December 22, 1986 between PDF and City, City advanced the sum of
$1,626,965 for the construction of 1 1 1DC's first facility at Pueblo
tlemorial Airport Industrial Park which PDF has leased to M DC, PDF
shall repay the full sum of $1,626,965 to City. Upon City's
delivery of the Warranty Deed to PDF as provided in paragraph 5
hereof, PDF will execute and deliver to City a deed of trust on
the property described in Exhibit A, a demand promissory note, and
assignment of rents in form and content acceptable to the City
Attorney evidencing and securing the repayment of such funds
advanced by City. PDF shall pay to City immediately after receipt
all rents and other payments paid to PDF by M DC under both Leases
with PDF less expenses incurred by PDF in performance of the
Leases with "1DC (other than those for the design and construction
of the Facilities) and payments due under PDF's Permanent Loan.
PDF will annually submit to City an accounting for all rent and
other payments received from M DC.
5. Contemporaneously with the closing of the Permanent
Loan, City will execute and deliver to PDF the Warranty Deed
attached hereto as Exhibit A. PDF shall not use, lease, encumber,
assign, or otherwise transfer title to the property described in
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the Warranty Deed or any part thereof except in furtherance of and
in compliance with the terms and provisions of its Leases with H D'C
and, as to Parcel B, except as security for the Permanent Loan.
6. clothing herein contained nor the relationship of PDF to
City, which relationship is specifically declared to be that of an
independent contractor shall make or he construed to make PDF or
any of PDF's agents, contractors, or employees, the agents,
contractors or employees of the City. PDF shall be solely and
entirely responsible for its acts and the acts of its agents,
em- ployees and contractors.
7. No action or failure to act by either PDF or City shall
constitute a waiver of any right or duty afforded either of them
under this Agreement, nor shall any such action or failure to act
constitute an approval of or acquiescence in any breach hereunder,
except as may be specifically agreed in writing. Neither the
receipt by City of any written application for payment under
paragraph 3 hereof nor the advancement and payment of funds by
City thereunder shall constitute an acceptance or approval by the
City of the certifications made thereunder or a waiver by the City
of any default or noncompliance by PDF, its agents, contractors,
or employees.
8. This Agreement shall not be assigned or transferred, in
whole or in part by PDF without the prior written consent of the
City. Any such attempted assignment or transfer without the
consent of the City shall be void and unenforceable.
9. The Agreement dated December 22, 1986 between PDF and
City is hereby terminated and each party released from all
obligations thereunder.
10. This Agreement shall be binding upon and inure to the
benefit of PDF and City, and their respective successors and
air) roved assigns.
Executed at Pueblo, Colorado the day and year first above
written.
[S E A L] PUEBLO, A MUNICIPAL CORPORATION S A
ATTEST: By
C y Clerk President of the City Council
[S E A L]
PUEBLO DEVELOPMENT FOUNDATION, INC.
ATTEST
Secretary .�Presi'dent
TJ 23.41 -3-
WARRANTY DEED
THIS DEED, made this day of
19
by and between Pueblo Development Foundation, Inc., a Colorado
Nonprofit Corporation, existing under the laws of the State of
Colorado (herein "Company ") and The City of Pueblo, a !4unicipal
Corporation (herein "City "),
W I T [d E S S E T H:
That City for and in consideration of the sum of $10.00 and
other good and valuable consideration to City in hand paid by the
Company, the receipt whereof is hereby confessed and acknowledged,
has granted, bargained, sold and conveyed, and by these presents
does grant, bargain, sell, convey and confirm unto the Company,
its successors and assigns forever, all the real property situate,
lying and being at Pueblo Memorial Airport, County of Pueblo,
State of Colorado, more particularly described in Exhibits "A" and
"B" attached hereto and incorporated herein (herein "Property "),
with all its appurtenances, and warrant the title to the same,
subject to restrictions, reservations, rights of way, and
easements of record, of the Pueblo County records, and easements
for all existing sanitary and storm sewer, water, electrical
power, and natural gas lines located on or crossing the Property,
and to the following covenants, conditions, and restrictions which
are and shall be construed to be covenants running with the land
described herein and binding upon the Company, its successors and
assigns and inuring to the benefit of City, its successors and
assigns.
Exhibit A
1. City reserves unto itself and its successors and
assigns, for use and benefit of the public, a right of flight for
the passage of aircraft in the airspace above the surface of the
Property, together with the right to cause in the airspace above
the surface of the Property such noise as may be inherent in the
operation of any aircraft now known or hereafter used for naviga-
tion of or flight in said airspace, and for use of the airspace
above the surface of the Property for landing on, taking off from,
or operation on or over the Pueblo Pemorial Airport.
2. Company expressly agrees for itself, its successors and
assigns to restrict the height of structures, objects of natural
growth and other obstructions on the Property, to a height of not
more than 4690 feet above the mean sea level unless written
approval for a greater height shall be obtained by Company from
the Federal Aviation Administration.
3. Company expressly agrees for itself, its successors and
assigns, that it will prevent any use of the Property which would
interfere with landing or taking off of aircraft at the Pueblo
Memorial Airport, or otherwise constitute an airport hazard. In
the event this covenant is breached, City reserves the right to
enter upon the Property and at the expense of the Company to
remove the offending structure or object and to cut the offending
growth.
4. The Property and its use are further subject to the
following Restrictive Covenants:
(a) The Property may be used only for manufacturing
facilities and incidental office and warehouse uses. The Property
shall not be used for smelting or elating operations, or for the
storage or processing of putrescible materials, or for any purpose
IWM
or business which constitutes a nuisance, or which exceeds the
state air pollution control standards for the facility. Gasoline
or diesel fuel used in connection with the business conducted on
the Property but not for sale at retail or wholesale may be stored
on the Property in an environmentally sound manner.
(b) Outdoor storage shall not be permitted except for
storage of equipment used at the facility. Parking areas for
vehicles and roads on the Property shall be paved.
(c) The Property shall not be subdivided and no
building or structure over 70 feet in height shall be installed or
constructed on the Property unless written approval for a greater
height shall be obtained from the Federal Aviation Administration.
(d) No structure or building shall be constructed or
installed nearer than 75 feet of the right -of -way line of United
Avenue or 25 feet of side or rear streets. There must be
installed and maintained a minimum 25 -foot strip of living
landscaded ground adjacent to United Avenue and adjacent to other
abutting streets. lllinimurn side yards set -backs shall be 25 feet.
(e) The Property owner shall at all times keep and
maintain the Property and all buildings, landscaping and
improvements located thereon in a good, clean, safe and orderly
condition free of rubbish, debris and trash.
(f) Before commencing the construction, installation or
alteration of any building, structure, parking facility, outdoor
sign, or other permanent improvement, or landscaping of the
_Property, the Property owner shall submit to and have approved by
the City in writing the site plans and plans and specifications
therefor. City's approval will not be unreasonably withheld. In
the event the City or its designated representatives shall fail to
approve or disapprove such plans and specifications within thirty
(30) days after they have been submitted to the City, such
approval will not be required and this covenant will be deemed to
have been complied with. All buildings, improvements and
activities on the Property shall be constructed and conducted in
compliance with all applicable federal, state and local law,
regulations, and codes.
(g) [taste water discharged from the Property into
City's sanitary sewer system and Company's use thereof are limited
by and subject to City's sewer user, industrial cost recovery,
high strength surcharge, and pretreatment ordinances, rules and
regulations applicable to City's sanitary sewer system at Pueblo
Memorial Airport, now in effect or hereafter adopted or amended.
Only domestic waste water will be discharged from the Property
into City's sanitary sewer sytem.
(h) City reserves the right to waive all or any part of
these Restrictive Covenants.
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5. At the request of City, Company shall meet and in good
faith confer with City concerning the annexation of the Property
to the City when the Pueblo Memorial Airport, or any part thereof,
including without limitation, the Property, becomes eligible for
annexation.
6. Invalidation of any one of the foregoing covenants,
conditions, restrictions or reservations by judgment or court
order or otherwise shall in no wise affect any of the other of
said covenants, reservations, restrictions or conditions which
shall remain in full force and effect.
7. City shall have the right to enforce the restrictions,
covenants and conditions hereof by injunction or other lawful
procedure and to recover damages, costs, expenses, including
reasonable attorney fees, resulting from any violation thereof or
arising out of their enforcement.
PUEBLO DEVELOPMENT FOUNDATION,
INC.
[S E A L]
ATTEST: By
President
Secretary
[S E A L]
ATTEST:
City Clerk
CITY OF PUEBLO, A MUNICIPAL
CORPORATION
By
President of the City Council
MIC
COUNTY OF PUEBLO )
) ss.
STATE OF COLORADO )
The foregoing instrument was acknowledged before me in Pueblo
County, Colorado this day of , 19 by
as President and
as Secretary of Pueblo Development Foundation,
Inc., a Colorado Nonprofit Corporation.
Witness my hand and official seal.
�Iy commission expires:
[S E A L]
COUNTY OF PUEBLO )
) ss.
STATE OF COLORADO )
Notary Public
The foregoing instrument was acknowledged before me in Pueblo
County, Colorado this day of , 19 by
Michael Occhiato as President of the City Council and Marian D.
Mead as City Clerk of the City of Pueblo, a Municipal Corporation.
Witness my hand and official seal.
My commission expires:
[S E A Lj
Notary Public
TJ 23.42 -
SUBDIVISION EXEMPTION NO. 86 -9
A parcel of land located in the County of Pueblo, State of Colorado, to -wit:
A parcel of land located in the El of the SWJ and the Wj of the SEI of
Section 30, Township 20 South, Range 63 Hest of the 6th Principal Meridian,
said parcel being more particularly described as follows;
Beginning at a point from which the NM corner of said Section 30 bears
N 37 11' 29" M (Bearings based on the north line of said Section 30 to
bear N 89° 59' 27" E), a distance of 4029.00 feet; thence along the arc of
a curve to the left whose center bears N 13° 08' 26" E. having a central
angle of 16' 54' 58" and a radius of 290.00 feet, a distance of 85.62
feet; thence N 86° 13' 28" E. a distance of 228.44 feet; thence
S 01° 33' 08' E. a distance of 784.06 feet; thence S 88° 25' 20" W, a
distance of 313.07 feet; thence N O1° 33' Or M, a distance of 784.60 feet
to the Point of Beginning.
Said parcel contains SAG acres, ■ore or less.
This is to certify that this description was prepared under my direct
supervision.
PARCEL 8
A parcel of land located in the County of Pueblo, State of Colorado,
to -wit:
A parcel of land located in the VI of the SEI of Section 30, Township
20 South, Range 63 Nest of the 6th Principal Meridian, said parcel being
more particularly described as follows;
Beginning at a point from which the NW corner of said Section 30 bears
N 40 38 43" W (bearings based on the north line of said Section 30
to bear N 89° 59' 27" E), a distance of 4219.41 feet; thence
N 86 13' 28" E, a distance of 309.02 feet; thence S 01' 33' 08" E, a
distance of 795.91 feet; thence S 88' 25. 20" W, a distance of 308.79
feet; thence N O1' 33' 08" W, a distance of 784.06 feet to the Point
of Beginning.
Said parcel contains S.60 acres, more or less.
This is to certify that this description was prepared under my
direct supervision. •
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