HomeMy WebLinkAbout10825ORDINANCE NO. 10825
AN ORDINANCE APPROVING AN AGREEMENT AMENDING
EMPLOYMENT AGREEMENT DATED OCTOBER 9, 2018
BETWEEN KEY STRUCTURES, LLC, A COLORADO LIMITED
LIABILITY COMPANY AND THE CITY OF PUEBLO, A
COLORADO MUNICIPAL CORPORATION, ACCEPTING AN
IRREVOCABLE LETTER OF CREDIT FROM FIRSTBANK ON
BEHALF OF KEY STRUCTURES, LLC IN THE AMOUNT OF
$1,225,414.71, AND APPROVING A SUBORDINATION
AGREEMENT BY AND BETWEEN KEY STRUCTURES, LLC, A
COLORADO LIMITED LIABILITY COMPANY, ABODA PUEBLO,
LLC, A COLORADO LIMITED LIABILITY COMPANY, THE CITY
OF PUEBLO, A COLORADO MUNICIPAL CORPORATION, AND
THE COLORADO HOUSING AND FINANCE AUTHORITY
(CHFA)
WHEREAS, the City of Pueblo, a Colorado Municipal Corporation entered into an
Employment Agreement with Key Structures, LLC, a Colorado limited liability company on
October 9, 2018; and
WHEREAS, the City desires to amend the Employment Agreement; NOW,
THEREFORE,
BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1.
The Agreement Amending Employment Agreement, by and among Aboda Pueblo LLC,
a Colorado limited liability company, Biltwise Structures, LLC, a Delaware limited liability
company, Aboda Design, Inc., a Delaware corporation, Pueblo Modular, LLC, a Colorado limited
liability company, Key Structures, LLC, a Colorado limited liability company, and the City of
Pueblo, Colorado, a Colorado Municipal Corporation, a copy of which is attached hereto, having
been approved as to form by the City Attorney, is hereby approved.
SECTION 2.
The President of City Council is authorized to execute and deliver the Agreement
Amending Employment Agreement and Subordination Agreement in the name of the City and
the City Clerk is authorized to affix the seal of the City thereto and attest same.
SECTION 3.
The officers and staff of the City are authorized to perform any and all acts consistent
with this Ordinance and the attached Agreement Amending Employment Agreement which are
necessary or desirable to implement the transactions described therein.
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 October 15, 2024.
Final adoption of Ordinance by City Council on October 28, 2024.
____________________________
President of City Council
Action by the Mayor:
Approved on _______________.
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 _____________
____________________________
President of City Council
ATTEST
________________________________
Deputy City Clerk
City Clerk's Office Item # R7
Background Paper for Proposed
Ordinance
COUNCIL MEETING DATE: October 28, 2024
TO: President Mark Aliff and Members of City Council
CC: Mayor Heather Graham
VIA: Marisa Stoller, City Clerk
FROM: Carla Sikes, City Attorney
SUBJECT: AN ORDINANCE APPROVING AN AGREEMENT AMENDING
EMPLOYMENT AGREEMENT DATED OCTOBER 9, 2018 BETWEEN
KEY STRUCTURES, LLC, A COLORADO LIMITED LIABILITY
COMPANY AND THE CITY OF PUEBLO, A COLORADO MUNICIPAL
CORPORATION, ACCEPTING AN IRREVOCABLE LETTER OF CREDIT
FROM FIRSTBANK ON BEHALF OF KEY STRUCTURES, LLC IN THE
AMOUNT OF $1,225,414.71, AND APPROVING A SUBORDINATION
AGREEMENT BY AND BETWEEN KEY STRUCTURES, LLC, A
COLORADO LIMITED LIABILITY COMPANY, ABODA PUEBLO, LLC, A
COLORADO LIMITED LIABILITY COMPANY, THE CITY OF PUEBLO, A
COLORADO MUNICIPAL CORPORATION, AND THE COLORADO
HOUSING AND FINANCE AUTHORITY (CHFA)
SUMMARY:
Attached is an Ordinance approving an Agreement Amending Employment Agreement
between the City of Pueblo and Key Structures, LLC, accepting a Letter of Credit in the
amount of $1,225,414.71, and approving a Subordination Agreement by and between
Key Structures, LLC, Aboda Pueblo, LLC, the City of Pueblo, and the Colorado Housing
and Finance Authority.
PREVIOUS COUNCIL ACTION:
On October 9, 2018, by Resolution No. 14059, the City Council approved the
Employment Agreement between the City of Pueblo, a Colorado Municipal Corporation
and Key Structures, LLC relating to a job creating capital improvement project.
BACKGROUND:
On October 9, 2018, City Council approved an Employment Agreement with Key
Structures, LLC. Pursuant to the Employment Agreement, Key Structures, LLC
committed to (1) invest approximately $7,000,000 in fixed assets in a manufacturing
facility located withi
full-time employees until October 2028. The Employment Agreement is secured with a
Deed of Trust against Lots 54 and 55 of the Pueblo Memorial Airport Industrial Park
Subdivision, commonly known as 319 Lockheed Street, Pueblo, Colorado 81001 (the
Key Structures desires to transfer its manufacturing business in Pueblo and the
Property to Aboda Pueblo, LLC. Aboda Pueblo, LLC has secured a loan from the
Property. CHFA will secure the loan with the Property and requires the subordination of
Key Structures, LLC has offered a Letter of
The Agreement Amending Employment Agreement adds Aboda Pueblo, LLC as a party
to the Employment Agreement making it jointly and severally liable for any default of the
Employment Agreement. The City will retain its Deed of Trust on the Property albeit in
The City will have, in addition to the Deed of
Trust, the Letter of Credit to secure the Employment Agreement. Should Key
Structures, LLC or Aboda Pueblo, LLC default on the Employment Agreement, the City
can draw against the Letter of Credit for all amounts due and owing.
FINANCIAL IMPLICATIONS:
None.
BOARD/COMMISSION RECOMMENDATION:
Not applicable to this Ordinance.
STAKEHOLDER PROCESS:
Not applicable to this Ordinance.
ALTERNATIVES:
the business and Property.
RECOMMENDATION:
Approve the Ordinance.
ATTACHMENTS:
1. Employment Agreement dated October 9, 2018
2. Agreement Amending Employment Agreement
3. Subordination Agreement
4. Irrevocable Letter of Credit