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HomeMy WebLinkAbout07783ORDINANCE NO. 7783 AN ORDINANCE APPROVING A COOPERATION AGREEMENT BETWEEN THE CITY OF PUEBLO AND THE URBAN RENEWAL AUTHORITY OF PUEBLO, COLORADO RELATING TO THE NORTH PUEBLO URBAN RENEWAL PROJECT AND AUTHORIZING THE PRESIDENT OF THE CITY COUNCIL TO EXECUTE SAME BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1 The Cooperation Agreement dated April 14, 2008 between the City of Pueblo and the Urban Renewal Authority of Pueblo, Colorado relating to the North Pueblo Urban Renewal Project, 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 Cooperation Agreement in the name of the City and the City Clerk is directed to affix the seal of the City thereto and attest same. SECTION 2 This Ordinance shall become effective upon final passage and approval. INTRODUCED April 14, 2008 PASSED AND APPROVED: April 28, 2008 0 K 77 83 D �I D l 1 �J ED Background Paper for Proposed ORDINANCE AGENDA ITEM # lt3 DATE: April 14, 2008 DEPARTMENT: Law Department TITLE AN ORDINANCE APPROVING A COOPERATION AGREEMENT BETWEEN THE CITY OF PUEBLO AND THE URBAN RENEWAL AUTHORITY OF PUEBLO, COLORADO RELATING TO THE NORTH PUEBLO URBAN RENEWAL PROJECT AND AUTHORIZING THE PRESIDENT OF THE CITY COUNCIL TO EXECUTE SAME ISSUE Should City Council approve the Cooperation Agreement? RECOMMENDATION Approve the Cooperation Agreement. BACKGROUND The City Council approved the North Pueblo Urban Renewal Plan for an area comprising 640 acres in the north central portion of the City on both sides of Interstate 25. The Cooperation Agreement provides that all incremental property tax revenue less the Authority's administration expenses will be pledged for the design and construction of the Dillon /Eden split diamond interchange and flyover. FINANCIAL IMPACT The Authority has estimated the cumulative total incremental property tax revenue over 25 years will be $43 million. COOPERATION AGREEMENT North Pueblo Urban Renewal Project THIS COOPERATION AGREEMENT (the Agreement), is made and entered into as of Ap n ( i 1!J 2008, by and between the CITY OF PUEBLO, a Colorado municipal corporation (the City) and the URBAN RENEWAL AUTHORITY OF PUEBLO, COLORADO, a body corporate and politic of the State of Colorado (the Authority). The City and the Authority are sometimes referred to herein collectively as the Parties and individually as a Party. RECITALS A. On November 13, 2006, pursuant to Ordinance No. 7533, the City Council of the City approved the North Pueblo Urban Renewal Plan (the Plan). B. The priority of the Plan and its principal urban renewal project is the construction of the Dillon Drive Extension, which may consist of the Dillon/Eden split diamond interchange and flyover or such other configuration and facilities as may be approved by the Colorado Department of Transportation, to be located within the Plan Area, to allow increased traffic and access to properties within the Plan Area via Interstate 25 (the Project). C. The Project is being carried out under contract with the Colorado Department of Transportation in cooperation between the City and the Authority in furtherance of the Colorado Urban Renewal Law (the Act) and the Plan. D. The Plan provides for financing the activities and undertakings of the Authority in connection with carrying out the Project by means of property tax allocation or tax increment financing (Property Tax TIF) in accordance with Section 31 -25- 107(9) of the Act. NOW, THEREFORE, in consideration of the foregoing and the mutual covenants contained herein, the Parties agree as follows: Section 1. Cooperation Regarding the Project The Parties shall cooperate to take any and all reasonable steps necessary to finance, design, construct, modify, acquire property for, obtain all permits and approvals required for the Project, including, without limitation, compliance with the procedures established the Colorado Department of Transportation in Procedural Directive 1601.1 and other applicable requirements (the Project Work). a. The Parties will cooperate to explore and apply for all reasonable financial aid and assistance available for the Project Work. The City will prepare and submit to the Authority each year a budget for the Project Work to be undertaken in the coming year. The Authority shall have the right to review and make recommendations to the City with respect to 1 of the budget and coordination of the Project Work with proposed redevelopment activities in the Plan Area. In. The City will enter into a contract with the Colorado Department of Transportation relating to the design and construction of the Project (the CDOT Contract). Project work will be performed in conformance with the CDOT Contract. The City shall make reports and meet with representatives of the Authority at such times as may be reasonably requested by the Authority to report on the progress of the Project Work. Section 2. Reimbursement of Costs The Parties will cooperate to establish a procedure for documenting, certifying, and presenting for payment the actual reasonable costs incurred by the City for the Project Work. The Authority shall have the right to review and approve all requests for payment which approval shall not be unreasonably delayed, withheld or conditioned. The Authority shall promptly pay all approved invoices from the revenue in the Special Fund described in Section 3. Section 3. Special Fund In accordance with Section 31- 25- 107(9)(a)(II) of the Act, the Authority shall establish a special fund (the Special Fund) and deposit therein all Property Tax TIF revenue from the Plan Area upon receipt from the Treasurer of Pueblo County, except for such amounts as the Authority may reasonably require for cost of collection and ongoing Plan administrative costs (the Authority Expense) (the Pledged Revenue). a. It is the intention of the parties that all Pledged Revenue except Authority Expenses shall be used and expended for the Project. Therefore, the Authority shall not enter into any agreement or transaction that impairs the rights of the City to receive the Pledged Revenue; provided, however, if, in the opinion of a financial advisor qualified in municipal bond financing and mutually agreeable to the Parties, sufficient Property Tax Increment revenue is being produced, or is projected to be produced, to adequately protect the obligation of the Authority to provide the Pledged Revenue necessary to finance the Project for as long as that obligation exists, the Parties may agree on reasonable terms to permit the Authority to issue additional debt as may be necessary or desirable to carry out other activities and undertakings pursuant to the Act and the Plan. b. Partial funding for the Project Work has been received in the form of a Federal Highway Administration (HFWA) SAFTEA- LU.grant from a Federal Highway Appropriation Bill in the amount of $5,349,000. As a condition of receiving the grant monies, the City must provide matching funds equaling 20% of the grant total (20% X $5,349,000 = $1,069,800) (the Matching Funds). Notwithstanding Section 2. above, Authority will reimburse City from the Special Fund for all Matching Funds advanced by the City when sufficient monies are available in the Special Fund. Such reimbursement shall be made by Authority upon receipt from the City's Director of Finance of a statement certifying that the City has advanced such Matching Funds, the amount of the Matching Funds, and description thereof. 2of5 C. The Authority will keep, or cause to be kept, proper and current books and accounts in which complete and accurate entries shall be made of the amount of Property Tax TIF revenue received by the Authority, and the amounts deposited into and paid out from the Special Fund. All books, records and reports in the possession of the Authority relating to the foregoing shall at all reasonable times be open to inspection by such accountants or other agents as the City may from time to time designate. Section 4. Delays Any delays in or failure of performance by any Party of its obligations under this Agreement shall be excused if such delays or failure are a result of acts of God, fires, floods, strikes, labor disputes, accidents, regulations or order of civil or military authorities, shortages of labor or materials, or other causes, similar or dissimilar, which are beyond the control of such Party. Section 5. Default Time is of the essence, subject to Section 4 above. If any payment or any other material condition, obligation, or duty is not timely made, tendered, or performed by either Party, then either Party may exercise any and all rights available at law or in equity, including damages, but such damages shall be limited to the actual amount that such Party is entitled to receive or retain under this Agreement. No special or punitive damages shall be payable hereunder. Section 6. Obligations Subject to Charter and Constitution The covenants, duties and actions required of the parties under this Agreement shall be subject to and performed in accordance with the provisions and procedures required and permitted by the City Charter, the Act, any other applicable provision of law and the Colorado Constitution. Section 7. Captions The captions of the Sections are set forth only for the convenience and reference of the Parties and are not intended in any way to define, limit, or describe the scope or intent of this Agreement. Section 8. Additional Documents or Action The Parties agree to execute any additional documents or take any additional action that is necessary to carry out this Agreement. Section 9. Integration and Amendment This Agreement represents the entire agreement between the Parties with respect to the subject matter and there are no oral or collateral agreements or understandings with respect to the subject matter. This Agreement may be amended only by an instrument in writing signed by the Parties Section 10. Waiver of Breach A waiver by any Party to this Agreement of the breach of any term or provision of this Agreement shall not operate or be construed as a waiver of any subsequent breach by either Party. 3 of 5 Section 11. Governing Law This Agreement shall be governed by the laws of the State of Colorado. Section 12. Execution in Counterparts This Agreement may be executed in several counterparts, each of which shall be deemed an original and all of which shall constitute but one and the same instrument. Section 13. Third -party Beneficiaries This Agreement is intended to describe the rights and responsibilities only as to the Parties hereto. This Agreement is not intended and shall not be deemed to confer any rights on any person or entity not named as a Party hereto. Section 14. Minor Changes The Parties executing this Agreement are authorized to make non - substantive corrections to this Agreement and attached exhibits, if any, as the PartieE mutually consider necessary. Section 15. Good Faith of Parties In the performance of this Agreement or in considering any requested approval, acceptance, or extension of time, the Parties agree that each will act in good faith and will not act unreasonably, arbitrarily, capriciously, or unreasonably withhold, condition, or delay any approval, acceptance, or extension of time required or requested pursuant to this Agreement. Section 16. Parties Not Partners Notwithstanding any language in this Agreement or any other agreement, representation, or warranty to the contrary, the Parties shall not be deemed to be partners or joint venturers, and neither Party shall be responsible for any debt or liability of the other Party or any other party. 4of5 IN WITNESS WHEREOF, this Agreement is executed by the Parties hereto in their respective names as of the date first above written. ATTEST PUEBLO, A MUNICIPAL CORPORATION President of the City Council a : 5 of 5 THE URBAN RENEWAL AUTHORITY OF