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HomeMy WebLinkAbout09764RESOLUTION NO. 9764 A RESOLUTION APPROVING AN AGREEMENT BETWEEN THE CITY OF PUEBLO, A MUNICIPAL CORPORATION, AND PUEBLO DEVELOPMENT FOUNDATION, A COLORADO NONPROFIT CORPORATION RELATING TO THE PURCHASE OF LOT 34, PUEBLO MEMORIAL AIRPORT INDUSTRIAL PARK, PUEBLO COUNTY, COLORADO, AUTHORIZING THE PRESIDENT OF THE CITY COUNCIL TO EXECUTE SAME, AND TRANSFERRING $760,000 FROM THE 1992 -2006 SALES AND USE TAX CAPITAL IMPROVEMENT PROJECTS FUND FOR THE PURCHASE OF THE PROPERTY AND RELATED EXPENSES BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1 The City Council finds and determines that the expenditure of $760,000 for the purchase of Lot 34, Pueblo Memorial Airport Industrial Park and improvements thereon (the "Property") and related expenses for subsequent lease to a company approved by City Council in conjunction with a job creating capital improvement project meets and complies with the criteria and standards established by Ordinance No. 6381. SECTION 2. The Agreement between the City of Pueblo, a municipal corporation, and Pueblo Development Foundation dated as of January 13, 2003 relating to the purchase of the Property, a copy of which is attached hereto, having been approved as to form by the City Attorney, is hereby approved. The President of the City Council is authorized to execute and deliver the Agreement in the name of the City. SECTION 3 Funds in an amount not to exceed $760,000.00 are hereby transferred from the 1992 -2006 Sales and Use Tax Capital Improvement Projects Fund and authorized to be expended for the purchase of the Property described in the attached Purchase and Sale Agreement and expenses associated with such purchase and subsequent lease thereof. SECTION 4 This Resolution shall become effective upon final passage. INTRODUCED January 13, 2003 BY AI Gurule Councilperson APPROVED: President of City Council ATTEST: ` I,1 • k bao • #97Co Background Paper for Proposed RESOLUTION AGENDA ITEM # ( (DB DATE: January 13, 2003 DEPARTMENT: Law Department TITLE A RESOLUTION APPROVING AN AGREEMENT BETWEEN THE CITY OF PUEBLO, A MUNICIPAL CORPORATION, AND PUEBLO DEVELOPMENT FOUNDATION, A COLORADO NONPROFIT CORPORATION RELATING TO THE PURCHASE OF LOT 34, PUEBLO MEMORIAL AIRPORT INDUSTRIAL PARK, PUEBLO COUNTY, COLORADO, AUTHORIZING THE PRESIDENT OF THE CITY COUNCIL TO EXECUTE SAME, AND TRANSFERRING $760,000 FROM THE 1992 -2006 SALES AND USE TAX CAPITAL IMPROVEMENT PROJECTS FUND FOR THE PURCHASE OF THE PROPERTY AND RELATED EXPENSES ISSUE Should the City Council approve the agreement between the City and Pueblo Development Foundation ( "PDF ") for the purchase of property at the Pueblo Memorial Airport Industrial Park? RECOMMENDATION See Background BACKGROUND An Agreement between the City and PDF is presented to City Council for approval relating to the acquisition of 310 Keeler Parkway, Pueblo, Colorado consisting of two buildings having approximately 28,878 square feet and approximately 4.41 acres of land for a purchase price of $700,000 and $60,000 for related expenses including $50,000 for potential repairs and modifications to the building. The property is currently available for purchase and may be used by a company approved by City Council to locate its business at Pueblo Memorial Airport Industrial Park. The financial details of the transaction were negotiated and approved by PEDCO. PEDCO recommends that the City Council approve the purchase of the property by PDF for subsequent lease to a Company to be approved by the City Council. FINANCIAL IMPACT City will transfer from the one -half cent sales tax fund $760,000 for the purchase of the property by PDF and related expenses. AGREEMENT THIS AGREEMENT entered into as of January 13, 2003 between Pueblo, a Municipal Corporation ( "City") and Pueblo Development Foundation, a Colorado Nonprofit Corporation ( "Foundation "), WITNESSETH WHEREAS, the buildings consisting of approximately 28,878 square feet and approximately 4.41 acres of land commonly known as 310 Keeler Parkway, Pueblo, Colorado, legally described as Lot 34, Pueblo Memorial Airport Industrial Park, Pueblo County, Colorado (the "Property") is available for purchase for subsequent lease in conjunction with a job creating capital improvement project; and WHEREAS, City is willing to advance funds to Foundation to purchase the Property upon the terms and conditions herein set forth. NOW, THEREFORE, in consideration of the foregoing and mutual covenants contained herein, City and Foundation agree as follows: 1. Foundation will purchase the Property for a purchase price of $700,000 pursuant to a Purchase and Sale Agreement between Hyd -Mech Pueblo, Inc. and Foundation approved as to form by the City Attorney. As soon as possible after the purchase of the Property by Foundation, Foundation will enter into a lease with a company approved by City Council ( "Approved Company ") to locate its business at the Pueblo Memorial Airport Industrial Park ( "Lease "). The Lease shall be approved as to form by the City Attorney and shall be a "triple net" lease for a term of ten (10) years at a monthly rent of $7,772 a month with rent credit for the cost of improvements made to the Property by the Approved Company. All rent and other payments received by Foundation under the Lease shall be held in trust by Foundation for the benefit of the City and, immediately after receipt thereof, Foundation shall deliver and pay the rent to City less five (5) percent thereof to be retained by Foundation as reimbursement to Foundation for its expenses incurred in participating in this transaction and as Lessor under the Lease. Until commencement date of the Lease, Foundation will insure at City's cost, the Property against loss or other casualty for its full replacement value. The proceeds of such insurance shall be paid solely to the City. If required under the Lease or as a condition precedent to leasing the Property, Foundation may make minor repairs or modifications to the Property at City's expense, provided such repairs and modifications do not exceed the sum of $50,000.00. 2. Foundation shall not use, encumber, lease, sell, assign or otherwise transfer the Property except for the purpose of leasing the Property to an Approved Company. 3. Foundation shall perform all covenants and conditions on the part of the Lessor to be performed under the Lease, and shall enforce all covenants and conditions on the part of the Lessee to be performed under the Lease. Foundation shall given written notice to City of any of Lessee's defaults under the Lease. Foundation's obligation under this Agreement shall be secured by a first deed of trust on the Property and Foundation shall execute and deliver to City its deed of trust in form and content approved by the City Attorney. 4. If Foundation defaults in the performance of any covenant or provision of this Agreement or Lease, Foundation shall within ten (10) days after written demand by City, convey title to the Property to City free of liens and encumbrances except liens and encumbrances existing at the time Foundation acquired title to the Property and Foundation's deed of trust securing the performance of this Agreement, and assign the Lease to the City. 5. If any provision of this Agreement is declared by a court of competent jurisdiction to be invalid or unenforceable, such determination shall not affect the other provisions of this Agreement which shall remain in full force and effect. 6. The provisions of this Agreement are and will be for the benefit of City and Foundation only and not for the benefit of any third party, and accordingly, no third party shall have any right or remedy hereunder or the right to enforce any provision of the Agreement. 7. This Agreement shall be binding up and inure to the benefit of the City and Foundation and their respective successors and assigns, provided Foundation may not assign this Agreement or any of its rights hereunder without the prior written consent of City. Executed at Pueblo, Colorado, the day and year first above written. Pueblo, a Municipal Pueblo Development Foundation By By President of the City Council Presi ent City Jerk Approved as to form: Attest: Secretary City Attorne -/ .. F:\ FILES \CITY\AIRPORThDAMAI -I\AGMT -P -1 WPD -� CITY OF PUEBLO 503 N. MAIN STREET, SUITE 203 PUEBLO, COLORADO B1003 DEPARTMENT OF LAW MEMORANDUM TO: Gina Dutcher, City Clerk FROM: Thomas J. Florczak, City Attorney DATE: August 23, 2010 TELEPHONE: (719)562-3899 FAX NO. (719)544 -1007 RE: Original Warranty Deed for Lot 34, Pueblo Memorial Airport Industrial Park Subdivision Enclosed herewith is the original warranty deed to the City for Lot 34, Pueblo Memorial Airport Industrial Park Subdivision. Please retain this with your records of city property ownership. R e s TJF /ki Enclosure 1822549 WD 10/26/2009 11:27:22 AM Pa 1 of 1 R 6.00 D 0.00 T 6.00 Gilbert Ortiz Clerk /Recorder, Pueblo County, Cc ®III P, FRI1 11 W°A IN M1 IN IRL IM h 11111 WARRANTY DEED THIS DEED, dated October 14, 2009 between Pueblo :Development Foundation, a nonprofit X corporation duly organized and existing under and by virtue of the laws of the State of Colorado grantor,and Pueblo, a municipal 32 corporation duly organized and existing under and by virtue of the laws of the State of Colorado , grantee; whose legal address is 1 City Hall Place, Pueblo, Colorado, 81003 WITNESS, that the grantor, for and inconsideration of the sum of Ten Dollars and Other Good and Valuable Consideration.. 1Rm the receipt and sufficiency of which is hereby acknowledged, has granted, bargained, sold and conveyed, and by these presents does grant, bargain, sell, convey, and confirm unto the grantee, its successors and assigns forever, all the real property, together with improvements, if any, situate, lying and being in the *County of Pueblo and State of Colorado, described as follows: Lot 34, Pueblo Memorial Airport Industrial Park Subdivision Documentary Fee: None,.consideration less than $500 also known by street and number as: 310 Keeler Parkway, Pueblo, Colorado, 81001 assessor's schedule or parcel number: TOGETHER with all and singular the hereditaments and appurtenances thereunto belonging, or in anywise appertaining, the reversion and reversions, remainder and remainders, rents, issues and profits thereof, and all the estate, right, title, interest, claim and demand whatsoever of the grantor, either in law or equity, of, in and to the above bargained premises, with the hereditaments and appurtenances; TO HAVE AND TO HOLD the said premises above bargained and described, with the appurtenances, unto the grantee, its successors and assigns forever. The grantor, for itself, its successors and assigns, does covenant, grant, bargain and agree to and with the grantee, its successors and assigns, that at the time of the ensealing and delivery of these presents, it is well seized of the premises above conveyed, has good, sure, perfect, absolute and indefeasible estate of inheritance, in law, in fee simple, and has good right, full power and lawful authority to grant, bargain, sell and convey the same in manner and form as aforesaid, and that the same are free and clear from all former and other n a ins es, liens, taxes, assesspnents „encumbrances and restrictiops of whatever kind qr nature soever, except easeme ig its�or way, restrictions, reservations, conditions and covenants of record, but,subjectto the .Deed of Trust dated January 13, 2003 from Grantor to the Public Trustee of Pueblo County for the use of G antee re e ruy% g under Reception No. 1483548 w e grantor sh a I r ,,W N bb ND the above bargained premises in the quiet and peaceable possession of the grantee, its successors and assigns, against all and every person or persons lawfully claiming or to claim the whole or any part thereof. IN WITNESS WHEREOF, the grantor has caused its corporate name to be hereunto subscribed by its President, and its corporate seal to be hereunto affixed, attested by its Secretary, the day and year first above written. Atte NEAL ) secretary STATE OF COLORADO County of Pueblo The foregoing instrumgnt was acknowledged before me this by s �'rt L Root d � 4f � and Y A, Fonda of j J !i'►� ,.._. 1f imDe Oer fuser "City and ". ;,.." Name and Address of Person Creating Newly Created Legal Description (§ 38- 35- 106.5, C.R.S.) Foundation PUEBLO DEVELOPMENT FOUNDATION ) ss. day of October 2009 , as President as Secretary a corporation. Witness my hand and official seal. My commission expires: 2/14/2011 Notary Public Na 767. Rev. 3 -98 WARRANTY DEED (Corporation to Corporation) a Bradford Publishing, 1743 Wazee St., Denver, CO 80202 — 303 - 292 -2500 — www.bradfordpublishing.com — 12 -99