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HomeMy WebLinkAbout6238RESOLUTION NO. 6238 A RESOLUTION APPROVING AN APPLICATION TO THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FOR URBAN DEVELOPMENT ACTION GRANT FUNDING, AUTHORIZING THE CITY MANAGER TO EXECUTE AND SUBMIT SAME AND TO ACCEPT FUNDING ON BEHALF OF THE CITY OF PUEBLO IF APPROVED, AND DESIGNATING THE CITY MANAGER AS THE CITY'S REPRESENTATIVE TO ACT IN CONNECTION WITH THE APPLICATION. BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, COLORADO, that: Section 1. The Application to the Department of Housing and Urban Development for Urban Development Action Grant funding, a copy of which is attached hereto and made a part hereof by reference, including all the understand- ings and assurances contained therein, is hereby approved and the City Manger of the City of Pueblo be and he hereby is authorized to execute and submit said Application on behalf of the City. The City Manager is hereby designated as the City's representative to act in connection with the Application, to provide such additional information as may be required, and, if the Application is approved, to accept on behalf of the City said Urban Development Action Grant funding. INTRODUCED JULY 25 ,1988 BY MIKE SALARDIM COUNCILMAN APPROVED: ATTEST: RESIDE T F THE COUNCIL 4tv�.4 j A41 Lei, CITY CLER .r 1)"Tpr I -w -as Urban Development Action Grant Submittal for the "PUEBLO CENTER" PROJECT a Mixed Use Hotel, Convention Center and Office Project Submited by the City of Pueblo, Colorado July 29, 1988 TABLE OF CONTENTS PART I: LETTER OF TRANSMITTAL PART II: STANDARD FORM 424 PART III: DESCRIPTION OF PROJECT SEC. A: STATEMENT OF PROBLEMS AND OBJECTIVES SEC. B: PROJECT DESCRIPTION 1. Brief Project Description 2. Preliminary Information UDAG FORM 1 3. Project Description by Transaction UDAG FORM 2A UDAG FORM 2B a. Description of the Proposed Site b. Development Summary i. Developers ii. Sources of Funds and amounts to complete project iii. Consultants iv. Sources and uses of Funds for Projects UDAG Form 3A V. Other Public Financial Assistance UDAG Form 3B C. UDAG Repayment Summary d. Project Schedule SEC. C: STATEMENT OF "BUT FOR" SEC. D: MARKET FEASIBILITY SEC. E: EVIDENCE OF DEVELOPER, PRIVATE INVESTOR, AND OTHER PUBLIC COMMITMENTS 1. Documentation from Developers, Equity Investors, Employers, Major Tenants 2. Evidence of Commitments from Private Lenders 3. Debt Securities (bonds) 4. Evidence of Commitments other Public Sources 5. Loan Application to Private Lenders 6. Financial Statements of Each Private Entity SEC. F: EVIDENCE OF MEETING PROGRAM OBJECTIVES 1. Alleviation of Economic Distress a. Jobs UDAG FORM 4 b. Taxes UDAG FORM 5 PART IV: ASSURANCES PART V: EXHIBITS AND APPENDICES Part I Letter Of Transmittal "PUEBLO CENTER" PROJECT Part II Standard Form 424 "PUEBLO CENTER" PROJECT ' PART I 1 OMB Approval No. 29 -ROQIB .00 FEDERAL ASSISTANCE L APPU- ` a. STATE a• f1i111SER e. OTHER CANT'S �N CJ4 N/A .00 APPU. ID ES L TYPE ❑ I'REANUGTION a OAT[ L OATE Year ,tong ay ACTION ® APPLICATION CATION MOWA sl 1988 07 Z� n� ASSIGNED 19 f Wart op. ❑ mannCATION OF INTENT (OPQ L C17" ❑ KPONT OF FEDMLL ACTION Blank L LEGAL APPLICANT /RECIPIENT L FEDERAL EMPLOYER IDENTIFICATION NO. a Ay MoRuss City of Pueblo, Colorado 84- 6000615W h. aquiatwo Ualt e. Sbad/P•O• Not One City Hall Place PRO. a INM 1 4 • 14121 1 L Gb Pueblo a Caws1lr : Pueblo GRAM L TITLE Colorado s )OrDad.: 81003 (Fronk Urban Development Federal Action Grant L Gestalt Farkas (Name Catalor) ` d! telephone No.) ; 7. TITLE AND DESCRIPTION OF APPLICANTS PROJECT L TYPE OF APPLICANT /RECIPIENT DOWNTOWN PUEBLO HOTEL /CONVENTION CENTER: A w H- 4orwwity Action Agency The project is composed of a mixed use Hotel, Fft hwu' N Nrthm 141WA .enal lastrtrtka FWoosTr Convention, and Office complex designed and Dowel R -OWsr (Specify): D constructed as an intergrated project for purpose F - ieNSl Did" of architectural, construction, and usage S-Saanal Pe"We District Enter 6ppropriou later 1 7771 E compatibility. The location under concern in thi 9. TYPE OF ASSISTANCE project encompasses an area of approximately A-Smie G""f 04 mo r eics , Continuted on page 2, Note 1, Section IV c4st -sw@ nnw•mr oval E-oa« E P rint. ~(s/ M 1D. AREA OF PROJECT IMPACT Wames of cities. eoaotice. 1L ESTIMATED NUM- IL TYPE Of APPLICATION slat". Ste.) BER OF PERSONS BENEFITING A-Nsw G.Rafsion E- &I Rmlat+« City and County of Pueblo, Colorado 106,000 B'vel..d+u Enter appropriate letter IJ M PROPOSED FLAMING 14. CONGRESSIONAL DISTRICTS OF: IL TYPE OF CHANGE (For its or Ile) "stress, Dolls" F -Olher (SpseNy): Tr-0SVam Dallas a. FEDERAL $ N .00 a. AFFLICANT L PROJECT L APPLICANT v eta 3rd of Colorado 3rd of Colorad o -Ile so, D., N/A L STATE N ,00 lie PROJECT START 17. PROJECT E- Otaedlatisa _ DATE Yar!'g+� fur 19.89 U4 01 DURATION M"9 Enter appro- ter:sb Ltto(s! d. LOCAL ti 00 e. OTHER qj r✓ 00 IL ESTIMATED DATE TO You► men" fay BE ( AGENCY 19. EXISTING FEDERAL IDENTIFICATION NUMBER f. TvTAt i -2 .00 ► 1988 07 29 2L FEDERAL AGENCY TO RECEIVE REQUEST (Name. City, Smils. Sit oak) 2L REMARKS ADDED Dept. of Housing and Urban Development, Washington, D.C. 20410 Y" O N• 2L a. To IM hmt of lag knowledge and hdid. L H toisind by Otsi Cimoler A45 this 40imil o ace arhmRbd, te"rs"e to is. No ra• � Mh In Yis prwapylcetioi /sWiation an 810"bo n Slams. fa aysrelowle slowmaboams aM all nsMn an Gambol: open THE Vat and mrnct, the dwrnteet has hq N/A APPLICANT dry sotaerind y the rereralag heft M CERTIFIES the Opplited and the aset!itlnt will awry (1) ❑ ❑ THAT 0. with the stbebN aawranem N be amid- OD ❑ ❑ sane Is approad. 0) ❑ ❑ ZL a. TYPED NAPE AND TITLE L SIGNATURE t DATE SIGNED CERTIFYING Lew Quigley You w r ont by RE►RE• City Manag y g 19 88 07 26 SENTATTVE 24. AGENCY NAME 26. ARPLICA- Tow a"" day RECEIVED 19 2L ORGANIZATIONAL UNIT 27. ADMINISTRATIVE OFFICE 2B. FEDERAL APPLICATION IDENTIFICATION 2L ADDRESS SL FEDERAL GRANT IDENTIFICATION 23. ACTION TAKEN O a NUMED 0 L REJECTED p a RETURRED FOR ti AMENDMENT 0 d. DEFERRED C) a WTMORAWN SL FUNDING Year mes'" day 1541. Your moo" gar i 19 Yaw seen" day SL FEDERAL AGENCY t A-95 ACTION 424 -101 a. FEDERAL I S .00 S3. ACTION DATE ► 19 1 DA' L APPLICANT 00 35. CONTACT FOR ADDITIONAL INFOPAA. SL TION (Name and &ski somber) I rw e. STATE .00 d. LO"JLL .00 e. OTHER AO I. TOTAL S .00 •. in tahins above action, my p wAnb remind Imp dearinig one Sao. dtkred. If ststicY rosao w is doo nadw ynriaiaaa of KK 1. CUB Cuwlar A43, It has bas or Is b+nas ands. 37. REMARKS ADDED Q Y« L FEDERAL AGENCY A.SS OMCIAL (Name and sawphow eve.) STANDARD FORM 424 PADS I (10 -76) Pvnwiied M "A. Pader•l AlasaC-54=8 GYroslar y4-F lWT= ff-49MANS (P& r n /woma W proW lbw wuwbw /rm Soodeme 1,11 or Ul. {l appUmbV) Note 1 - Section I -7 (Continued) 6.5 acres in the downtown Pueblo area. The major components are as follows: 1. Hotel to consist of 200 rooms and would contain approximately 130,000 square feet of floor area. 2. Convention center to contain approximately 34,000 square feet of floor area. 3. Two office complexes, each to consist of approximately 30,000 square feet of floor area. Note 2 - Section I -13 ITEM: 13 a. UDAG b. Tax Increment Bonds c. N/A d. N/A e. Other- Private Investment $4,000,000 5,000,000 -0- -0- 14,500,000 $ 23,500,000 STANOiMW FO M1 4K PME 2 (10-M Part III Description of Project "PUEBLO CENTER" PROJECT A. STATEMENT OF PROBLEMS AND OBJECTIVES The City of Pueblo is located approximately 110 miles south of Denver and according to the 1980 census, is the fifth largest city in the state. The estimated 1985 population of Pueblo was 101,510, the 1960 population was 91,181. Pueblo's average unemployment rate for the year 1986 was 12.0%. The percent of persons with income below the poverty level according to the 1980 census stood at 14.3%. As of July, 1988, the number of families who received assistance from the Pueblo County Social Services Department numbered 1600. Pueblo County is second only to Denver in the number of welfare recipients. Based on these figures entry -level jobs are needed in Pueblo. The Downtown Pueblo Hotel /Convention Center and Office Project will be located in the core of the downtown area. Over the years the downtown area has experienced a decline similar to the decline which has occurred in many other cities. Retail outlets migrated to the peripheral areas, medical offices began to relocate near major hospitals, wholesaling and warehousing uses dispersed throughout the urban area, and the downtown area became less attractive as a residential center. There is an urgent need for renewed economic and social reinvestment in Downtown Pueblo. In response to these and other factor, the City of Pueblo has undertaken plans, including the designation of the proposed project site as a slum /blight area under the Colorado Urban Renewal Law. In addition, the city has created the Urban Renewal Authority to undertake renewal and revitalization activities directly intended to increase the tax base of the entire community and implement the goals and policies of the adopted Pueblo Regional Comprehensive Development Plan. The Downtown Pueblo Hotel /Convention Center and Office Project will create approximately 220 permanent jobs for the Hotel, convention and restaurant facilities. Additionally, 200 jobs will be created in the Office Project. It is expected that the largest percentage of the permanent jobs at the Hotel will be filled by low- and moderate- income persons due to the nature of the jobs being entry -level positions. A total of 150 of the 200 jobs are expected to be of this nature. To assure these jobs will be filled with low- and moderate - income persons, the City will use the services of the Pueblo County Job Training Administration, which administers the Joint Training Partnership Act programs. This agency has income qualification criteria, at least as restrictive as the CDBG definition of "low and moderate - income person." To assure local minority businesses and contractors in the procurement process, the City of Pueblo will follow affirmative steps such as including such businesses on solicitation lists, acquiring prime contractors to ensure subcontractors take affirmative action steps to include affirmative language in all bid documents and monitor the same as required by federal law. B. PROJECT DESCRIPTION B.1 BRIEF PROJECT DESCRIPTION The Pueblo Center Project is a mixed -use development combining an approximate 130,000 sq. ft. 200 -room hotel, 34,000 sq. ft. convention center, and two office buildings of 60,000 sq. ft. total on 8 acres of land at the intersection of First and Santa Fe in Pueblo, Colorado. The project is located in the center of the Pueblo Urban Renewal Area, and will be the focal point for the rejuvenation of the Pueblo Central Business District. The Project has been undertaken to meet the hotel room, convention meeting space, and office market needs in the Pueblo market. The project will also serve to prevent the spread and development of blight, will stimulate economic development, promote private commercial development and reinvestment in a strategic area, and will provide permanent jobs for persons of lower income. On August 25, 1986, the Pueblo Urban Renewal Authority (PURA) and the City of Pueblo entered into a cooperation agreement whereby the PURA agreed to purchase the project site consisting of approximately 8 acres and, as agent for the City, to finance and construct a convention center and its required parking area within the project area. The PURA has further issued bonds sufficient to finance the project and has entered into an agreement with Ross Investment Group - Pueblo, LTD., a Colorado limited partnership to build the private improvements consisting of a hotel and two office buildings. The City Council adopted the Amended Urban Renewal Plan for the project site on August 25, 1986. The plan encompasses an area of approximately 8 acres in the downtown portion of the City. Pursuant to the Downtown Pueblo Amended Urban Renewal Plan, the City has acquired title to the property in the proposed project area and has demolished and cleared buildings that formerly occupied the property, with the exception of three abandoned buildings which have yet to be demolished. Consequently, all of the project area is vacant, undeveloped land which the PURA intends to expend public funds to aid in the completion of the redevelopment. The colored site plans on the following two pages represent the preliminary layout of the 8 acres of land, and the final layouts are in process now. Please note on the second graphic the strong pedestrian orientation. This project will become the hub of pedestrian activity in downtown Pueblo, anchoring the Sangre De Cristo Arts Center, City Hall, the Union Avenue Historic District, the Ice Arena, and Main Street. The goal of the plan is to be the start of the rejuvenation of the Pueblo Central Business District while meeting local market needs. The following is a brief description of project activities set out by the proposed project: Property Acquisition - The real property to be encompassed includes the 8 acres currently owned by the City, which will be transferred to the PURA pursuant to the above mentioned cooperation agreement. The City has vacated certain streets and all alleys abutting the project site that are required for the project. Property Management Properties - Purchased by the PURA and may be temporarily managed and operated by the PURA until such time as these properties are conveyed or dedicated for uses for the project. Relocation Plan - Pursuant to its authority under the urban Renewal Law and its own previously adopted relocation plan, the PURA and the City have assisted in the relocation of businesses and persons from the proposed site to new sites. Relocation activities have been complete. Buildina Demolition. Clearance and Site Preparation - The City has complete demolition and removal of all but three structures that it has determined, necessary for the redevelopment of the Proposed site. Except for the remaining structures, the PURA will not undertake any further demolition or clearance, but may be involved in further site preparation activities. Zoning and Subdivision - If required, the PURA, in cooperation with the City will cause the real property within the project area to be re -zoned and subdivided for the development of the project in compliance with the overall project plans. PURA has committed to this re- zoning if required as part of the Disposition and Development Agreement contract. Public Improvements and Public Facilities - The PURA in cooperation with the City will provide for the extension of utilities to the property lines of parcels to be sold for private redevelopment. The PURA will also construct public facilities necessary to carry out the project to include a convention center containing approximately 34,000 sq. ft. and a related parking structure or lot of appropriate size, as well as landscaping and adjacent street and right -of -way improvements. The parties involved in this project are: 1) Applicant - The City of Pueblo Mr. Ken Hunter - President of the City Council Mr. Lewis Quigley - City Manager Mr. Tony Berumen - Director of Community Development 2) Developers - Pueblo Center Hotel Associates; Gaelic Management (or assignee) - General Partner Mr. J. Lynn Bock - President Ross Investment Group, Inc. (or assignee) - General Partner Mr. Richard G. McClintock - President •a ; t xr s � s 1 L a s �P 4O4 7 v � r 01 M l a • o� y �� '6•, a s+•C J o 0 �rF a� i W 6 Y W N i M1 � O L � � E o °o C O � i I ¢ s W 3 CL A HM••r r, r ININANrI nrrl rlr rr nN � —.L -- ' � (�� ANr rr llr IIIIAr nMr llW n. '. 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YliNll .•Y •. rrrrrNtalNr••rri rr rll ,,t �( / �.L� PUEBLO CENTER ^; Llrrl• rNU1,1.Nall•rIINI 1, L__._.,NNnNr,... IINI� INl Ilf 11 NIAN VYINI ti B.2 PRELIMINARY INFORMATION Yes No (a) Have citizen participation hearing been held? X First public hearing took place July 11, 1988 Second public hearing took place July 25, 1988 (b) Is the environmental level of clearance finding complete? X Date of Clearance Finding July 26, 1988 (c) Does the project require an Environmental Impact Statement? X (d) Is an environmental review complete? X Date Necessary notices, including intent and explanation notices to do work in a floodplain, will be published if application is accepted. No historic properties are involved - MOA with State Historic Society to be followed. (e) Is the project in a designated flood hazard area? X Section 108 Fountain Floodcreek Project has begun and will, on completion, eliminate flood hazard to area. (f) Will historic properties be affected? X (g) Will the proposed project result in the relocation of industrial or commercial facilities from one jurisdiction to another? X (h) Does the applicant have any unresolved issues arising from civil rights compliance reviews or previous CDBG conditions relating to fair housing issues, citizen participation allegations, lawsuits, or other allegations against the proposed or any other federally assisted project (or funding) administered by the applicant? X See attached letter from City Attorney's office. (i) Will the project for which the assistance is requested directly cause the displacement of individuals, families, businesses or farms? X The site is cleared and all businesses have vacated. Therefore UDAG Form 1 is not applicable. UDAG FORM 1 RELOCATION EFFECTS Low and Moderate Other Income Total Income Categories Minority Non - Minority Minority Non - Minority Minority Non - Minority 1. Displaced Families N/A N/A N/A N/A N/A N/A 2. Unrelated Individuals Displaced N/A N/A N/A N/A N/A N/A 3. Farms Lost N/A N/A N/A N/A N/A N/A 4. Businesses Displaced N/A N/A N/A N/A N/A N/A 5. Jobs Lost From Businesses in Line 4 N/A N/A N/A N/A N/A N/A D ED City of Pueblo THOMAS E. JAGGER City Attorney 127 West, First National Bank Bldg. MEMORANDUM PUEBLO, COLORADO 81003 TO: Tony Berumen, Director of Housing and Community Services FROM: John G. Scorgie, Assistant City Attorney DATE: July 14, 1988 RE: Information Regarding Lawsuits For UDAG Application The City of Pueblo, like any other city of comparable size, is continually involved in lawsuits, most of which deal with personal injury claims or contract disputes. However, the only lawsuit I am aware of which involves civil rights or fair housing issues, currently pending against the City of Pueblo is Kachel v. City of Pueblo Case No. 88 -C -743, in the United States District Court for the District of Colorado. As you are aware, the plaintiff in this case claims sex discrimination by the City of Pueblo because of her failure to obtain the appointment as City of Pueblo Housing Director. The matters mentioned in my June 1, 1983 memo which was attached to your request have long since been resolved. Both Tim Boies and Rick Lancendorfer were hired on as City of Pueblo police officers on October 3, 1983 and remain so employed today. If HUD requires any further information or documentation on these matters, please let me know. JUL 14 988 O' HOUSING 'x OOMMUNI-'! DEVELOPME14T PUEBLO HLOCK _ —`� 1 St Street ` z ST CO f a �1 ICI j • i i �ar 1 C —ST. R ;1 J a. ti� fi r ♦ .', IAlla NaaGN.Y � Nr4� N I«• r, 11 w 11..Yn fl w . NrNr. N 1«• , Nrry. ,•. alra N w rwlr.l arr.rlr r w r w cN; N I.rN•. /111 r NNNwY arrl.rr r . wl r r GNI r /1rY•, rsry r ar rrr Nw r • wwr r W ww«r. r w Iv. aI.N. w. Ir,. aI�M r ...ri Ir�.wI N�1•• �.�.arnw.n r,«+ NIY rA r• .•Ylrl.q rrrr .. 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Nr.r• M.x•tY n1. «r MMrrl • rNw N Na.Y M. rr• N.r/I• N II.Y U. rN. N. M- •rlra., • r•Inr. N In.N M r . /r�w w a.NN r r u la War. ». / M�••I r w a..r...l w N••rl; rb. N.rr,' -lla., w w N.N •r, gwrNrl Mw M• r r W t« la, •.N«xr ,r.Y Irl ,Nw• .Wr ,Y. N . 4 r • rrr N.r M a.wN N, r rwr N °w, ve r w N..IN w.. r W ar•a »: NrN. N.r N Ni., r..rr r w M •rY•INI Nr W Mrr r. • r•IwNr N )ll.,l 4 r Nn M, CrNf. NI •rw. NwvV wren r.wwrl aM r crr. N w w r n wrra•. NYIw:.' «: � «Iw.^� w ;« « arNri NYYI r N rr ry .r. r rota• wNN w tilwrw ON«I .Nrr«rn• Yr t«r fNN Lr•.V••. r+ll rrW.Nn w son za 1! 11!0 1.", . -I € # -' -IF: 2'..;l in! I tp I i I I z Jill . i 1 1­1 1 1 � i - IPA = 1 f Bit] t J im r 4.91 (r O CL .19 ;,j i la d�Q UDAG FORM 2A ALLEVIATION OF PHYSICAL DISTRESS RESIDENTIAL TRANSACTIONS OR COMPONENTS INFRASTRUCTURE FOR RESIDENTIAL PROJECTS WHERE APPLICABLE Linear Feet Linear Feet of Capacity Added (Units Served) of New Pipe Pipe Replaced A. Water N/A N/A N/A B. Sewer N/A N/A N/A C. Sanitary N/A N/A N/A (A) (B) (C) (D) New Construction Rehabilitation Demolished Historic Single Multi- Single Multi- Family Family Family Family (%Substandard) Restoration Number of Units N/A N/A N/A N/A N/A N/A Number of Occumpants Before Project Completed N/A N/A N/A N/A N/A N/A Number of Occumpants After Project Completed N/A N/A N/A N/A N/A N/A INFRASTRUCTURE FOR RESIDENTIAL PROJECTS WHERE APPLICABLE Linear Feet Linear Feet of Capacity Added (Units Served) of New Pipe Pipe Replaced A. Water N/A N/A N/A B. Sewer N/A N/A N/A C. Sanitary N/A N/A N/A UDAG FORM 2B ALLEVIATION OF PHYSICAL DISTRESS COMMERCIAL /INDUSTRIAL PROJECTS New Rehabilitation Historic Restoration Construction Number of Buildings 4 Total Square Footage 200,000 N/A N/A N/A N/A INFRASTRUCTURE FOR COMMERCIAL /INDUSTRIAL PROJECTS Linear Feet Linear Feet of Capacity Added of New Pipe Pipe Replaced A. Water N/A N/A N/A B. Sewer N/A N/A N/A C. Sanitary N/A N/A N/A B.3 PROJECT DESCRIPTION BY TRANSACTION This project is one transaction for purposes of the UDAG. See UDAG Form 2A See UDAG Form 2B a. Description of the proposed site. i. Location and physical characteristics - The Project site is located at the intersection of First Street and Santa Fe Avenue in the southern Central Business District of Pueblo. The property, which consists of 8 acres in two parcels (the hotel /convention center parcel of 5.123 acres and the office parcel of 2.768 acres) is bounded by First Street, Santa Fe Avenue, Mechanic Street, Richmond Avenue, and Union Avenue. Central Main Street bisects the two pieces of land. Please see the following aerial for location of the project and the following survey for parcel size and layout. Physically the site slopes from Northwest to Southeast, changing grade of approximately 8 feet across the site. All of the office parcel (Parcel A) and some of the hotel parcel (Parcel B) are clear of any buildings as the Urban Renewal Authority has removed them in anticipation of this project. The remaining buildings on Parcel B are all dilapidated and are scheduled to be demolished by the Urban Renewal Authority. Utilities are in the surrounding streets, and these are currently in good condition and carry sufficient capacity to service the contemplated development. ii. Acreage - Parcel A; the office parcel is 2.768 acres and is planned to include 2 office buildings, each 30,000 square feet in size. This land is owned by the Urban Renewal Authority andis committed by the Disposition and Development Agreement contract (DDA) to be sold to the developer. The north 63,000 square feet will be sold to the developer during the week of August 1, 1988 for construction of the first office building, for which commitments are within this application. The first and second floors of this building will be occupied by the Centel Corporation which has signed a 20 year lease. The remainder of Parcel A will be sold to the developer on the time line presented in the DDA. The Urban Renewal Authority and the City of Pueblo own from Hobson Avenue north to First Street, on Parcel B, and are in the process of acquiring the balance of the land. The Authority is committed by the DDA contract to assemble the property and to sell it to the developer prior to development of the hotel according to the schedule of performance. iii. Aggregate cost of the acreage and information verifying cost The City of Pueblo, by resolution, acquired the project site by acquisition and relocation at a total cost of $1.779.058 Parcels I through 5 of the proposed project site are already owned by the City of Pueblo and will be transferred to the PURA under an appropriate cooperation agreement. (See Appendix * *). iv. Cost per square foot or acre of property, and comparable land costs in local vicinity of transaction Cost per square foot of some sections of proposed project site ranged from as low as $3.88 to $26.52. Comparable land cost in the vicinity range from $1.16 to $20.26 per square foot. See tables attached to Appendix * *. V. Proof of present ownership and public or private developer's control of site: The City of Pueblo, by resolution, has authorized the purchase of the parcels. Resolutions are available in the office of the City Clerk. (See Appendix * *). vi. Zoning of the site; is it appropriate for intended uses? Is re- zoning required? What is the status? The majority of the land withing the project area is zoned B -4, the highest business use designation for retail use. Existing zoning in the project area generalkly permits the land uses contianed for the Hotel /Convention Center. (See Map 10 attached to Appendix * *). vii. If the transaction involves the rehabilitation of historic structures, briefly describe how structures will be restored or adapted to new uses. The City has completed demolition and removal of all but one structure that it has determined necessary for the redevelopment. Except for the remainign structure, the City of Pueblo will not undertake any further demolition clearance orsite preparation activities. See attached letter to Colorado State Historical Preservation Officer. (See Appendix * *). Worksheet for Part III Section 83 a. (3) -(6) Hotel /Convention Center Project Site Information Street Land Use Current legal Acquisition Square Cost R M!UtlGn Est',Tiated Address Classification 'coning Descrip. Costs Paid Footage Square To Acquisition Pu cha wd by City 'Hap 14 Block Foot Acquire most ------------------------------------------------------- 1`11 S. Santa Fe Industrial I -2 ------------------------------------------------------------------ 'lock 57 106 W. First Industrial I -2 Block 57 135,000 12672 10.65 5243/5322 1:4 W. first Industrial B -4 Block 57 41,000 10560 3.88 5595 116 'W, First Industrial B -4 Block 57 70 2640 26.52 5672 1.8 W. First Commercial B -4 Block 57 125 10560 11.84 5187 120 W. First Commercial B -4 Block 57 0 8250 0.00 5557 236 -246 W. First Commercial F -4 Block 57 80,000 5220 15.33 5518 240 -246 W. First Commercial /Res. B -4 Block 57 49 4040 12.25 5261 161 Central Main Industriil B -4 Block 59 35 8250 4.24 5230/5326 '63 Central Main Residential B -4 Block 59 31,000 4138 7.49 5463 165 -169 Central Main Vacant Lots 9-4 Block 59 Still There 11467 0.00 N/A 46 101 Central Main Commercial I -2 Block 60 Still There 3500 0.00 N/A 3 175 -191 Central Main lidustrail 9-4 Block 59 358.000 3570 102.29 5242 At{#►s 4665 ' - Saota -f-e Railroad Vacant B -4/I -2 319 y 302 -306' N. !anion Commercial B -4 74,500 5176 110 -112 N. Mechanic Industrial I -2 Block I Still there 4356 0.00 N/A 8 114 -120 N. Mechanic Industrial I -2 Block 1 Still there 2963 0.00 N/A 5 312 -314 N. Union Commercial B -4 Block 59 70.000 5337 318 N. Union Commercial B -4 Block 59 35,000 5UV5132 316 N. Union Commercial B -4 Block 59 35,000 5364 308 % Union Commercial B -4 Block 59 35,000 5364 320 % Union Commercial B -4 Block 59 35 5364 32/324 N. Union Commercial B -4 Block 59 55.500 4829 310 N. Union Commercial 9-4 Block 59 24,800 4669/5326 326 N. !anion Commercial B -4 Block 59 55,000 5661 152 -158 Hobson Av Industrial 1/2 115 5557 ------------------------------------------------------------------------------------------------------------------------- $1,779,05B 641395 Fart III Section B3 a. (4) Table o+ Comparable Land Costs In Project Area Comparative Deed Date Raw Land Sale Parcel Zone Location Price Price Size Sq.Ft. -------------------------------------------------------------------------- 1st & Albany 8/16/84 $5.30 $225,000 42453 I -3 60;. 403 w. 7th 2/8/84 $4.34 $25,000 5760 _ B -4 + 515 N Gra d 1/22/86 $5.21 $62,500 11996 B -4 �- 330 W St. 8/31/87 :1.16 $83,500 71983 I -3 500 W. 3rd 4/11/89 $1.63 $8,600 5276 1/2 (� 604 w. 8TH 3/11/88 $1.52 68,000 5263 I -2 701 -709 n. Main 6/1/87 $5.68 :60,000 10563 B -4 403 W. 7th 6/11/87 $4.29 :24,700 5758 B -4 100 S. Main 1213/86 $1.17 $166,905 142654 I -2 SOURCE: PUEBLO COUNTY ASSESSOR'S OFFICE 1 J � PJ- a ,4 S r � - T-3 b. Development Summary i. Developers: The development group "Pueblo Center Hotel Associates" is a joint venture of Gaelic Management, Inc., (or assignee) and the Ross Investment Group, Inc., (or assignee). The Gaelic /Ross team will be jointly responsible for development of the hotel /convention center project, and Ross will be responsible for the office development. Gaelic Management, Inc. is a full service management /development company for hotel /motels and restaurants. The corporate office in Wichita, Kansas has 12 officers and employees and is responsible for overseeing .approximately 550 employees in company owned /managed properties and field operations. Comparable hotel project developments undertaken by Gaelic Management, Inc. include two Embassy Suite hotels of 444 rooms in Denver, Colorado and a 234 -suite Embassy Suite hotel under development in Seattle, Washington. In addition, Gaelic Management, Inc. has development and management interests in several restaurant chains, namely Amarillo Grill (mesquite -style steakhouse), a 6- restaurant chain in England recently sold, Restaurants Les Pres (french style restaurants as franchisee with license rights in England and the U.S.) and a license agreement for development of Le Peep restaurants in Florida. Other business interests which Gaelic Management, Inc. and /or Dan Carney (sole owner of Gaelic Management, Inc.) are involved include COMCOA (traded over - the - counter and a franchisee of Rent -A- Center stores in Florida) and ownership interest as franchisee of various Pizza Hut stores. The contact person is: J. Lynn Bock President Gaelic Management, Inc. 2024 N. Woodlawn #402 Wichita, Kansas 67208 (316) 683 -5150 The Ross Investment Group, Inc. is the development arm of the Frederick Ross Company, a 100 -year old commercial real estate firm. The company's expertise in public - private partnerships is unparalleled in the region, having redeveloped 200 acres of property in four Denver Urban renewal projects with over 2,000,000 square feet of construction underway or completed. Ross has successfully been involved in the urban renewal projects in the cities of Arvada, Edgewater, Englewood, and Wheat Ridge, and they bring their public - private expertise to Pueblo. A recent quote from the Arvada Urban Renewal Authority Executive Director, "The Arvada Urban Renewal authority could not have selected a more qualified partner with this public /private development. Ross' expertise in this field is vast and their performance is a true testimonial to the character of their redevelopment group. AURA is looking forward to working with the Ross Group in other areas of our project," shows Ross is a leader in this field. The contact person is: Rus Hackstaff Director of Public - Private Partnerships Ross Investment Group 707 17th Street, Suite 2100 Denver, Colorado 80202 (303) 892 -1111 ii. Sources of Funds and Amounts to complete project Debt Financing Refer to Schedule of Estimated Cash Flow from Operations after Debt Service and Before Income Taxes UDAG Amount Requested $4,000,000 Other Public Funds $9,950,000 of Tax Increment Bonds have been sold by the Pueblo Urban Renewal Authority, of which $5,000,000 is committed for use for land acquisition, land write -down, demolition and clearance, construction of the convention center (core, shell, and F,F &E), and all of its related site work and parking area, construction of road improvements and expansion or extension of utility lines if required. The balance of the funds are held as reserve accounts, interest accounts, and issuance costs. Other Funds N/A Pocket of Poverty N/A Consultants On behalf of Pueblo Center Hotel Associates a. Mr. Robert Nicholson c/o Pueblo Partnership 3195 Union Street Pueblo, Colorado Expertise: UDAG and CDBG funding and administration; responsible for the Union Avenue Historic District project in Pueblo. Mr. Don E. Anderson c/o Davis Mudd & Chemical Kress Energy Center 300 E. Douglas Wichita, Kansas 67202 Expertise: UDAG and administration; of Wichita Development. CDBG funding and recently retired as City Director of Economic iv. Sources and uses of funds for projects See UDAG Form 3A and Explanatory Notes V. Other public Financial Assistance Summary See UDAG Form 3B UDAG FORM 3A PUEBLO CENTER HOTEL, CONFERENCE CENTER AND OFFICE BUILDINGS PUEBLO,COLORADO SOURCES AND USES OF FUNDS FOR PROJECTS ---------------- - - - - -- LINE ITEM ACTIVITY a. LAND ACQUISITION b. RELOCATION OF PERSONS AND BUSINESSES c. CLEARANCE AND DEMOLITION d. OFF -SITE IMPROVEMENTS e. ON -SITE IMPROVEMENTS f. BUILDING, EQUIPMENT, AND FURNISHINGS g. PARKING FACILITIES h. CAPITAL EQUIPMENT (inf) i. NON - CAPITAL EQUIPMENT (inf) j. PROFESSIONAL FEES 350000 4000000 69500 COST SUB -TOTAL UDAG PRIVATE FUND FUNDS 500000 200000 4000000 5900000 k. INTERIM COSTS CONSTRUCTION PERIOD INTEREST REAL ESTATE TAXES 1100000 START -UP COSTS 500000 PRE - OPENING COSTS 350000 1. CONTINGENCY 500000 m. COST SUB -TOTAL 0 2450000 n. ADMINISTRATION (DEVELOPER'S EXPENSES & OVERHEAD) 1000000 o. WORKING CAPITAL 10000 p. SUB -TOTAL HOTEL /CONVENTION CENTER COSTS 4000000 10500000 q. ADDITIONAL FUNDING FOR OFFICE PROJECTS 4000000 OTHER FUNDS - CITY OF PUEBLOFOTAL I111Ifr 500000 500000 400000 400000 200000 3500000 13400000 600000 600000 350000 5000000 15950000 1100000 500000 350000 500000 - 0 2450000 1000000 10000 5000000 19500000 4000000 TOTAL PROJECT COSTS 4000000 14500000 5000000 23500000 xssaaxs sxsssxxs xxxxxxx sssssass m M q Z O W t, 4• d O " N a+ .. C a M to W L v N N •+ O O U 'p d C •CC � d w ui v CC O L O LS O H O W L U U r M - w W 7 � C O M M 7 U. O Q Z^ y� 4 oe a C W X 41 N a ` a+ Co ( M •F i L O 0 0 C o �) L C o � L >. 0 00 4 1 �+ L O d c LU r- a W u E M C IO Im OL 4 C a O CL a u< 1- u u PUEBLO CENTER HO-TEL PUEBLO, COLORADO 9CHBOULE OF ESTIMATED CASH FLOW FROM OPERATIONS BEFORE DEBT SEEVICR AND INCOME TAXES (EIPRRSSED IN THOUSANDS OF CURRENT DOLLARS) UNDISTRIBUTED OPERATING EXPENSES: ADMINISTRATIVE AND GENERAL 1990 13.9% 1991 1119% 1992 11.5% 1993 11.5% 1994 11.5% MANAGEMENT FEE AMOUNT RATIO AMOUNT RATIO AMOUNT RATIO AMOUNT RATIO AMOUNT RATIO REVENUFS: --------------------------------------------------..-..-..-.-.......----.----------------- 12.0% 296 912% 341 9.2% 363 912% 386 9.2% ROOMS 2455 32.3% 2955 91.7% 3413 9117% 3628 9117% 3861 91.7% FOOD ! 6RVFRAGE,NET LEASE 6I 2.3% 89 2.8% 102 2.8% 109 218% 116 2.8% OTHER 142 5.4% 177 5.5% 205 515% 218 515% 232 5.5% TOTAL 2659 100.0% 3221 10010% 3720 100.0% 3955 100.0% 4209 10010% DEPARTMENTAL COSTS AND EXPENSES: ............... . ROOMS 540 2013% 6Z1 19.3% 700 18.8% 744 1818% 79Z 18.8% OTHER 71 2.7% 89 2.8% loz 2.8% 109 2.8% 116 2.8% FIXED CHARGES: 611 23.0% 709 22.0% 802 21.6% 853 21.6% 907 21.6% GROSS OPERATING INCOME 2047 ------------------------------------------------------------------------------------ 77.0% 2512 78.0% Z918 78.4% 3102 78.4% • ..... ......... 3301 78.4;1 - - - - -- UNDISTRIBUTED OPERATING EXPENSES: ADMINISTRATIVE AND GENERAL 368 13.9% 384 1119% 427 11.5% 454 11.5% 483 11.5% MANAGEMENT FEE 123 4.6% 148 4.6% 171 4.6% 181 4.6% 193 416% MARKETING 319 12.0% 296 912% 341 9.2% 363 912% 386 9.2% ENERGY COSTS 135 511% 160 610% 184 510% 196 5.0% 209 5.0% PROPERTY OPERATION AND MAINT. 104 3.9% 124 3.9% 143 3.9% 152 3.9% 162 3.9% FRANCHISE FEE 98 3.7% 118 3.7% 137 317% 145 3.7% 154 317% TOTAL ................................................................... 1148 ------------------------------------------------------------------------------------------ 43.2% 1229 38.2% 1403 37.7% 1491 •-- ••------- 37.7% ...... 1587 - - - -- 37.7% CASH FLOW FROM OPERATIONS BEFORE FIXED CHARGES,DEBT SERVICE AND INCOME TAXES 900 33.8% 1282 39.8% 1515 40.7% 1611 4017% 1714 40.7% FIXED CHARGES: ------- - - - - -- PROPERTY TAXES 123 4.6% 140 4.4% 162 4.4% 172 4.4% 183 4.4% INSURANCE 98 3.7% 111 3.4% 128 3.4% 136 3.4% 145 3.4% RESERVE FOR REPLACEMENT 25 ------------------------------------------------------------------------------------------ 0.9% 59 118% 102 2.89 109 E18% 116 2.8% TOTAL 245 912% 310 916% 392 1016% 417 1016% 444 1016% ;ASH FLOW FROM OPERATIONS BEFORE DEBT SERVICE AND INCOME TARES 654 24.6% 972 30.2% 1123 301% 1194 30.2% 1270 30.2% STATISTICS: ROOMS zoo PERCENTAGE OCCUPANCY 57 64 69 70 71 AVERAGE ROOM RATE 59 63.25 67.75 71 74.5 PUEBLO CENTER HOTEL PUEBLO, COLORADO SCHEDULE OF ESTIMATED CAS14 FLOW FROM OPERATIONS BEFORB DEBT SERVICE AND INCOME TAIRS SUPPORTING DETAIL USE ESTIMATED ANNUAL -- • - - - - -- IDR AVG ROOM RATE ROUNDED ...... ............ TO CONSTANT CURRENT NEAREST !iAR ENDING (1997) INFLATED QTR OF A )ECEMBBR 31, DOLLARS DOLLARS DOLLAR 1989 --------------- 151.00 N/A - - -- 1990 151.00 159.04 159.00 1991 152,00 163.21 163.25 1992 153.00 167.64 167.75 1993 153 -00 171.03 171.00 1994 153.00 174.58 174.50 1995 178.31 178.15 1996 182.22 182.25 1997 186.33 186.25 ICCUPANCY 1998 190.65 190.75 •- - - -• =- 1999 195,18 195.25 PROPOSED HOTEL 100M SUPPLY TOTAL DEMAND ------------------ ----------------- ------------ - - - - -- PE!lE- % % MARKET TRATION FAR ROOMS INCREASE ----------------------------------------------- ANNUAL INCREASE OCCUPANCYor,CUPANCY % 1986 1085 220400 56% .............. 1987 1085 228114 315 58% 1988 1085 236098 3.6 60% 1989 1085 244361 3.5 62% 1990 1285 18,4% 280283 14.7 60% 57X 95% 1991 1285 294016 4.9 63% 64% 102% 1992 1985 307541 4.6 66% 69% 105% 1993 1285 317690 3.3 68% 709 103% 1994 1285 328174 3.3 70% 71X 102% PUEBLO CENTER HOTEL PUEBLO, COLORADO SCHEDULE OF ESTIMATED CASH FLOW FROM OPERATIONS AFTER DEBT SERVICE AND BEFORE INCOME TAPES (EYPRESSED IN THOUSANDS OF CURRENT DOLLARS) CASH FLOW FROM OPERATIONS BEFORE DEBT SERVICE AND INCOME TAXES DEBT SRRVICR RRQUIREMENTS(SES NOTE A.): PRIVATE DEBT - 11.5% CONSTANT REIMBURSED FROM START -UP COSTS AND CONTINGENCY FUNDS IN DEVELOPMENT BUDGET LAND DEBT - 8% CONSTANT PARABLE ONLY OUT OF EXISTING CASH FLOW(SRE NOTR B) AVAILABLE FOR UDAG TO REPAY UDAG NET CASH FLOW AFTER DEBT SERVICE AND BEFORE INCOME TAXES 1990 1 1991 1 1992 1 1993 1 1994 1 1995 1 1996 1 1997 1 1998 1 1999 NOTE A: DEBT IS TO BE FINANCED FROM A PRIVATE LENDER IN THE FORK OF A 110 MILLION LONG -TERM FIRST MORTGAGE LOAN PROJECTED AT A RATE OP 1l% WITH A TERM OF 30 YEARS, FOR STATUS REFER TO SECTION E,2,EVIDRNCE OF COMMITMENT FROM PRIVATE LENDERS, NOTE 8: LAND DEBT I8 IN THE AMOUNT OF 1500,000 TO FINANCE THE ACQU18TION OF LAND FROM THE CITY OF PUEBLO, THIS SHALL 8E SECURED BY A JUNIOR MORTGAGE. C. UDAG Repayment Summary Amount of Action Grant to be repaid: $ 4.000.000 Term: 40 year term with principal repayment estimated to commence in 5th year based on projected net cash flow. Interest Rate 5%, payable from available net cash flow, accrued otherwise Participation in Residuals None Describe the Administration of Repayment Process To be administered by the Pueblo Urban Renewal Authority to allow recycling of the dollars into the central business district redevelopment program. d. Prolect Schedule Project for the Hotel /Convention Center Start Complete Site Acquisition April 1989 April 1989 Private Construction April 1989 October 1990 Public Construction April 1989 October 1990 New Permanent Jobs October 1990 October 1990 (April 1989 for construction - related jobs) The office project site acquisition will be complete in August 1988 with construction to begin immediately thereafter. New permanent jobs will be available in the building in April 1989. C. STATEMENT OF "BUT FOR" This "Pueblo Center" project had its beginnings in the early 1980's when the City of Pueblo saw the need to reverse the rapid decline in their central business district, and formed the Pueblo Urban Renewal Authority and adopted their Urban Renewal Plan. The goals of the plan (amended January 28, 1988) are to: 1) prevent the spread and development of blight 2) stimulate economic development and reinvestment in a strategic area of the region 3) complete the redevelopment of the urban renewal area in accordance with the plan by the provision of public improvements, including but not limited to, parking facilities and a convention center 4) eliminate deteriorated or deteriorating structures and other conditions of blight in the Pueblo Downtown 5) increase the tax base of the entire community 6) further develop the tourist and convention industry of Pueblo 7) implement the goals and policies of the adopted Pueblo Regional Comprehensive Development Plan. As a distressed area, which is within the limits of a Federal Enterprise Zone, the market for hotel rooms, meeting space, and office space in Pueblo is rate sensitive. The rates people or tenants pay for hotel rooms, convention and meeting space and office space is held down due to difficult market conditions, and the rates required to support new construction costs are in excess of current market rates. In an effort to support new construction in the Central Business District, the City of Pueblo, through the Urban Renewal Authority, has $9,950,000 in Tax Increment Bonds sold for this project, of which $5,000,000 is available for construction of certain components as discussed elsewhere in this application. These TIB funds were not contemplated to be used for reducing the construction cost of the hotel. Therefore, "but for" the UDAG funds of $4,000,000 to reduce the debt service load on the hotel and thus reduce the room rates to more competitive levels, this hotel /convention center project will not be constructed. "But for" the combination of the $4,000,000 UDAG, $5,000,000 Tax Increment fund from the city, leaving $14,500,000 private investment this project will not be able to charge market rates which are competitive, and the developer would not maintain required project performance levels. D. MARKET FEASIBILITY The feasibility of this project is documented in three separate reports attached as part of the appendix. In summary: Hotel Feasibility Report - Laventhol and Horwath - October 1987. "The proposed hotel will have several competitive advantages including the following: the hotel's proximity to Interstate Highway 25 (I -25); its planned facilities, which will be the finest in the city; its price /value relationship, which will be competitive in the market; and the demand available from attendees at the proposed adjacent conference center. As a result, we (Laventhol and Horwath) believe the proposed lodging property can achieve a strong competitive position in the market area." Convention Center Feasibility Report - Laventhol & Horwath - October 1987. "For various local, state and regional associations as well as corporate meeting planners, the following facilities are recommended: approximately 15,000 gross square feet of columnless general session and exhibit space, divisible into three separate meeting rooms; approximately 5,000 square feet of first -class meeting space comprised of six to eight meeting and breakout rooms ranging in size from 250 square feet to 1,500 square feet; approximately 2,500 square feel of office and common -area space for the center's administrative staff; approximately 2,500 square feet of office and common -area space for one of Pueblo's promotional organizations such and the Pueblo Convention and Visitors Council; a full- service commercial kitchen of approximately 3,000 square feet capable of providing food service to the meeting and conference center as well as to the restaurant and lounge of the proposed 200 -unit hotel; and an additional 6,400 square feet of common -area space for foyers, hallways, lounges, and restrooms. The total size for the meeting /conference center will be approximately 34,000 square feet. The facility should be designed in a manner that offers efficient circulation flow within the center. Many of the conventions that will use the center will require a large meeting room and several smaller meeting or breakout rooms. Therefore, the proper design and flexibility of the center is very important. In addition, we (Laventhol and Horwath) also recommend the proposed meeting /conference center be designed to allow for future expansion, should demand warrant. Office Feasibility Report - Ross Consulting Group - July 1987. The CBD office market has a low vacancy (8%) and represents 83% of the total Pueblo office supply (397,100 SF). Competitive building services are average to below average, with pent -up demand for new, higher quality space existing. Primary office demand segments include legal, financial, medical and government services. Having primarily localized institutions, office demand in downtown Pueblo is expected to remain constant, with increases in demand attributable to office service companies servicing the Memorial Industrial Park growth. Office space demand will primarily be concentrated in the downtown area. The lack of new space and the lack of structures capable of efficient operation following renovation will result in construction of several smaller multi- tenant office building through 1992. Demand through 1989 is primarily driven by tenants relocating to higher image, improved service buildings, with new office demand derived from expansion of the local economy also occurring to a lesser degree. Total office space absorption is estimated at 12,000 square feet annually. Currently market gross rent rates are between $8.50 to $10.50 per rentable square foot. Although a tenant price survey was not performed, gross rents in the $11.00 -12.00 range are believed reasonable and acceptable for a new office building offering first class tenant services. E. EVIDENCE OF DEVELOPER, PRIVATE INVESTOR. AND OTHER PUBLIC COMMITMENTS E.1. Documentation from Developers. Eaulte Investors. Employers, Major Tenan Letter from Gaelic Letter from Ross Letter from Centel Letter from Quality Suites? Letter from Radisson Suites? See Guidelines E.2. Evidence of Committments from Private Lenders Hotel Financing Commitment - Gaelic Hotel letter of Intent Office Financing Committment - Ross Critical E.3. Debt Securities Letter from Boettcher Tax Increment Bond Information EA Evidence of Commitment from Other Public Sources Not applicable unless TIF Bonds are discussed here E.6. Financial Statements of Each Private Entity Dan Carney Richard McClintock Jack Box Ross? F. Evidence of Meeting Program Objectives F1. Alleviation of Economic Distress a. Jobs. One of the primary goals of this project is to create jobs for minority and low- and moderate - income persons. The hotel and restaurant is estimated to create approximately 150 jobs in varying areas for persons of entry levels, and the expansion of office tenants will create new entry level positions as well. As this project will be the dynamic force behind redevelopment in the surrounding area, demands for restaurants, specialty shops and office expansion will provide expanded employment opportunities. Please refer to UDAG Form 4 for jobs anticipated at the "Pueblo Center" project. b. Taxes. As well, this project will generate substantial new property, sales, use, and lodging taxes for the City of Pueblo. Please refer to UDAG Form 5 for the taxes anticipated to be generated at the "Pueblo Center" Project. Show: 1 employee per $10,000 of UDAG Need to support at least 400 people, include: Conference Center employees Office Building employees Specialty Shops Restaurants ULAG FORM 4 b: PLWANbNT JUb C IJAAFACTEkISTICS 3u Enter the % and number of NET X)b (line -5 from previous page) which will tall in each of the categories described below. 6. NET JCBS (line 5) projected to be filled by CEM eligible people: " $ jobs 7. WT JOBS (line 5) projected to pay less than bG% of the Si SA median incase: $ j obs b. NET JUsS (line 5) projected to be entry level positions, open to low and moderate income persons, but paying over 6U$ of the &% median income: $ J aus 9. NET JUsS (line 5) projected to be filled by minority people: _ g jobs lv. SSA Mnority % of population in the 19bo Census: % 11. Net Jobs to be provided by companies which would have gone out of business, but for the Action Grant. (Signea statements to that estect may oe requireo from ompany officers.) jobs C. CONSTRUCTICN JOB PROJECTION HUD keeps track of the number of construction joos ULAG projects generate since they help alleviate distress. Me form below estimates construction jobs to Le createe by Action Grant projects. 12. 'total estimated construction cost of Action Grant project (tram UTAG L-rJ%M 3a, lines c + d + e + f + 9): $ 13. % of construction cost attributable to labor: % Source (check one bm ) Contractor's estimate f7 developer's estimate 1 local industry statistic / other (explain) national industry standards 14. Labor cast of construction (line 12 x line 13): $ 15. Average annual construction salary ana fringe benefits: $ Source (check one box) /—/ aeveloper's estimate Contractor's estimate / outer (explain) L/ local innustry statistics lb. Projectea total Construction Jabs. b. Saxes - Using the following instructions work with your jurisdiction s 'lax As:ses:ment (or Finance and Fevenue) Otfice to Complete UOAG FGFiM 5. You will need to refer to the completed UTAG FUMI 4 and information on tax abatement, tenancy, square footage by use and projected sales in the project. UDAG M10i 5-1ax Revenues —seeks an estimate of the net increase in tax revenues that the applicant jurisdiction will realize from the proposed UTAG project. Applicants may elect to use alternate methods for estimat- ing changes in real property tax revenues or other tax revenues, provided that the estimating method and calculations are shown and explained. Section 1 of the form —Real property faxes— determines the taxes that will oe paid on the project when it is campleted. If the UD4G project only involves capital equipment acquisition, enter "WA" in Items la, b, c, d, and f and "0" in item le. Otherwise, complete these items and enter "N/A" in Item ig. Item la is the market value of the project upon completion, estimated by a s tanoard tax appraisal procedure. Fbr multiphase projects, show tte estimated value of the project upon completion of the final phase. State the estimate in current dollars. Cne reasonaule estimate of market value is the sum of land value and estimated construction cost. Item lb is the fractional tax assessment rate. This rate can be obtained ran tax assessor's off ice. Item lc is the product of Items la and lb. Item ld is the nominal tax rate for the ULAG project use. Include only that portion of the rate for taxes that will accrue to the local jurisdiction and its school board. Exclude that portion of the rate that will accrue to special districts or other levels of government. She tax assessor can supply information on nominal tax rates. In a multiple use project, sane jurisdic- tions may have different tax rates or assessment rates for different uses.. In these cases, the calculations in Items la through le should be run separately for each group of uses that is at a different rate. Item le is the product of lc x Id. Item if is the average tax abatement that will oe received by the project over the next 20 years. If no tax abatement will be offered, enter "0 ". otherwise sum the amount of tax reduction that the tax abatement schedule prescribes for each of the first 20 years after project commencement. Livide the sum by 2U, and enter the resulting quotient. Include the tax abatement schedule in the application narrative. I , tem ly . Explain method of calculation and duration of payment for PILOT if less than 20 years. 31 Item lh is the amount of project- related special assessment and special cis riot tax revenue that is expected to be generated in the first full year after project completion. Count only revenue that the applicant jurisdiction will receive. 32 ' Item li is the amount of real property tax that the ULAG project parcels generate as- presently developed. If the parcels currently generate no tax revenues, e.g. because they are held by a government or non- profit organization, enter (0). The amount of the current tax bill for each project parcel can be ootained tram the tax assessor. Item 12 is the total of Items le - if + 1g + lh - li. Section 2 of the form —Other Z -determines the likely changes in other tarevenues that will result from the UTAG project. Include only taxis levied by the applicant jurisdiction and taxes returned to the applicant jurisdication (e.g., by the state) by a legally mandated tormula If the state legislature decides annually on the amount or income or sales tax to return to the applicant jurisdiction, rather than using a legaiiy fixed percentage, do not count these tax revenues. Sxclude all Federal taxes. Items 2a throu n 2c seek the sales tax impacts of ttie project. Include �y the riruc" taxes in sales tax. It no sales tax is levied by or returned cy tormula to the applicant jurisdiction, enter "WA" in Item 2c. If an alternate calculation method is used, do not include sales tax changes to new /increased expencitures by employees and businesses or from sources other than businesses moving to or from or retained on the LLAG project site. It= is tt* sales tax generated by new businesses located in the L project. Exclude businesses moving to the site fron another site within the applicant jurisdiction. Item 2b is the change in sales tax generated by businesses moving to or fran project site. be sure to precede the entry with a " +" sign it sales tax will increase or a " -" sign if it will decrease. If any busi- ness will relocate within the applicant jurisdiction but off the project site and will not suffer a loss in sales due to its move, do not consider this business when computing sales tax changes. Similarly, do not consider any business moving to the project site from elsewhere in the applicant jurisdiction and not experiencing an increase in sales tax revenues. Item 2c is the sum of Items 2a + 2b . Item 2d is the business income tax impact of the UDAG project. If no business income tax is levied by or returned by formula to the appli- cant jurisdiction, enter "WA" in Item 2d. be sure to slow the method and calculations used to estimate income taxes. Include income taxes of new businesses, plus the increase in income taxes of business moving to or expanding at the site, less the loss in income taxes for ousinesses currently on the site that will discontinue or relocate outside the applicant jurisdiction. 33 Item 2e is the average net change in personal property taxes that the app iicant -jurisdiction will realize in the first 2u years of the proj- ect's life. Include personal property taxes on new businesses at the site, and on businesses locating at the site fran outside the applicant jurisdiction, and the increase in taxes for businesses expanding currently on the site. Personal property tax is reduced Each year as the property is depreciated. Zfie tax on a given type of property has a life cycle that starts with Purchase and continues beyond the end of the deprecia- tion period to obsolescence ono replacement. Ideally, one should compute the average annual personal property tax across the property's life cycle for each type of property, then sum across the different types. Zhis method is oLirdensome, therefore many local revenue departments ana tax assessment off ices use rules of thumb to estimate likely personal property tax receipts trcm a project. Please show anv explain your estimating metk=s and computations. State estimates in current collars, ignoring inflation effects. Item 2f is the net change in hotel inventory, business franchise and mercan- ae that the applicant jurisdiction will realize once the UL1AG project is built. Use current tax rates in making this estimate. Include taxes on newly created businesses and businesses moving into the applicant jurisdiction, plus increase in taxes due to business expansion, less taxes lost due to the discontinuance or departure from the jurisdiction of businesses currently locates on the UGAG project site. Item 2g is the place to show any other type of tax revenues that the UL-AG project will generate for the applicant jurisdiction. Show the nature and anount of each taut. Exclude fees for service sucn as license or permit fees that cover the costs of inspection. Item 2n is the sum of Items 2c, 2d, 2e, 2f , 2g. Section is the total of Items lj and 2h. 34 UrAG ELM 5 Tax Wenues Instructions: 'ibis tone obtains the net increase in tax revenues that the applicant jurisdiction expects to receive due to the proposed ULAG project. It counts only taxes levied by or returned by a set formula to the applicant. In" this form, com- plete all items that are applicable to the proposed project. Cln a separate page, include a narrative description of the basic assumptions and techniques used in calculating these iiqures. If an item is not applicable to the proposed project insert "WA ". Fet er to the preceding Instruction Sheets if further guidance is needed. Section 1 Real Property Taxes a. Estimatea tax appraisal of project's marxet value upon completion b. Fractional tax assessment rate C. Assessed value of project upon completion (a x d) d. Nominal tax rate of the local jurisdiction and its school board for the ULAG project use, excluding portion of tax rate allocated to ial districts or jurisdictions other than applicant e. Estimated real property tax revenues to de paid to applicant before any tax abatement (c x d) f. it tax abatements are applied, estimate the average annual amount abated over 2U years according to abatement schedule (count for years with no abatement) g. Payment in lieu of taxes (pilot) Amount* S Iz S /S10GG or assesses value S $ NIa $ _ N IA *base Inf ormation on fiscal. it rovement on an estimate of circumstances in the first year after completion of the last phase of the UMAG project. Amount t,. Fxpectea revenues from special assessments N S ana special tax districts that will result Iran this project i. lax bill in current year for project parcel(s) S Q as presently developed 35 j . WTAL: Uw)ge in property tax revenues S paia to local goverment (e - f + g + h - i ) Section 1 tither 'taxes: Changes in other tax revenues levied by or returned ey formula to applicant 3urisdiction as a result of this UDAG project. Lxclude all Federa taxes a. Sales tax generates by new businesses $ and levied cy or returned by formula to applicant jurisdiction b. Charge in sales tax generated by 5 businesses moving to or tram ULAG project site or expanaing at the site; indicate " +" or "= c. N&t Qznges in sales tax levied $ by or returned L)y tormula to applicant jurisdiction (&+L) a. Net c wVt due to LIDAG project in $ business income taxes levied by or returned oY formula to applicant j urisaiction e. Average net change in personal $ property taxes (over a 20 year period) levied by or returned by tormuia to applicant jurisdiction f. Net change in hotel inventory, $ business franchise and mercantile taxes levied by or returned by formula to applicant jurisdiction 3b g. Cliange in other taxes, exclud' tees for service (e.g. permit tees) Nature of flax h. Total other taxes (2c + 2d + 2e + 2f + 2g) S 5 Section 3 TClIAL: ' Net cnange in tax revenues of applicant jurisdiction due to LTrAG Project (lj + 2h) 'ICMU: S c:ertif ication I hereby certify that this form accurately reflects the lixely tiscal =P&ct of the proposed project. Chief flax Assessor or Chief Fiscal Lif icer Part IV Assurances "PUEBLO CENTER" PROJECT 3% PA d IV ASSUMI C:ES The applicant hereby assures and certifies that: 1. Prior to submission of its application, it has met the citizen participation requirements of Section 570.454(a) and has made the-impact analysis required by Section 570.454(b). 2. The private development would not occur unless the public funding on which the development is based becanes available, in the opinion of the chief executive otf icer . 3. �ir,e action grant funds will not substitute for local public funds which are available for the project described in the action grant application. 4. It possesses legal authority to apply for the grant and to execute the proposed Program. 5. Its governing body has duly adopted or passed as an ptf icial act, a resolution, motion or similar action authorizing the filing of the application, including all understandings and assurances contained therein, and directing and authoriz- ing the person identified as the official representative of the applicant to act in connection with the application and to provide such additional information as may de required. 6. Its chief executive off icer or other off icer of the applicant approved by HL-)L: (A) Consents to assume the status of a responsible Federal otf icial for environmental review, decision making and action pursuant to the National Environmental Policy Act of 1969, and the other authorities listed in 24 CFR 58.1(a)(3) insofar as the provisions of such Act or other authorities apply to this part; (h) Is authorized and consents on behalf of the applicant and himselt/ herself to accept the jurisdiction of the Federal courts for the purpose of enforcement of his /her responsibilities as such otticial. 7. It will ca ply with the requirements for historic preservation iaentit ication and review set forth in Section 11:6 of the National historic Preservation Act of 1566 (16 U.S.C. 470), Executive Order 11553, and the Archeological and historic Preservation Act of 1574 (16 U.S.C. 465a, et seq.), regulations of the Advisory Council on Historic Preservation at 36 CFR 801, and any other regulations promulgated pursuant to Section 121 of the housing and Conmunity Development Act of 1974, as amended. b. It has identities all properties, if any, which are included on the National Register of historic Places and which as determined by the applicant, will tie affected by the project; it has identified all other properties, if any, wnich will be affected by the project and which, as determined by the appli- cant, may meet the criteria established by the Secretary of Interior for inclusion in tre Register, together with the documentation relating to the inclusion of such properties on the Register; and it has determined the effect as determined by the applicant, of the project on the identified properties. 9. It will comply with: (A) Title VI of the cavil Rights Act of 1964 (Pub. L.86-352), and implementing regulations issued at (24 CFR Part 1) , which provides that no person in the United States shall on the grounds of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be otherwise subjected to discrimination under any program or activity for which the applicant receives Federal financial assistance and will immediately take measures necessary to effectuate this assurance. (B) Title VIII of the Civil Rights Act of 1968 (Pub. L. 90 -284), as amended, administering all programs and activities relat- ing to housing and community development in a manner to affirmatively further fair housing; and will take action to affirmatively further fair housing. (C) Section 109 of the Housing and Community Development Act at 1974, as amended; and the regulations issued pursuant thereto (24 UR 570.601), which provide that no person in the United States shall, on the grounds of race, color, national origin, or sex, be excluded from participation in, be denied the benefits of , or be subjected to discrim- ination under, any program or activity funned in whole or in part with funds provided under 24 CFR Part 576. (D) Section 3 of the housing and Urban Development Act of 196b, as amended, and implementing regulations at 24 CFR Part 135, requiring that to the greatest extent feasible, opportunities for training and employment be given to lower - income residents of the project area and contracts for work in connection with the project be awarded to eligible business concerns which are located in, or owred in substantial part by, persons residing in the area of the project. 38 . r : "' � (E) Executive Order 11246, as amended by Executive orders 11375 and 12.086 and implementing regulations issued at 41 CFR Chapter 6U, which provides that no person shall oe discriminated against on the oasis of race, color, religion, sex, or national origin in all phases of employment during the performance of E'ederal or teoeraliy assisted construction contracts. (F) Executive Order 11063, and implementing regulations at 24 CFR Part 107, on equal opportunity in housing and non-discrimina- tion on the sale or rental of housing built with Federal assistance. 39 (G) Section 504 of the Rehabilitation Act of 1973, as amended, (Pub. L. 93 -112) and implementing regulations when published for effect. Section 504 provides that no qualified handicapped person shall, on the basis of handicap, oe excluded from participation in, be denied the benefits of, or otherwise be subjected to discrimina- tion under any program or activity which receives or benefits from Federal financial assistance. (H) Zhe Age Discrimination Act et 1975, as amended, (Pub. L. 54 -135) and implementing regulations (when published for effect); (I) The relocation requirements of Title II ana the aoquisition requirements of Title III of the Uniform Relocation Assistance and F-al Property Acquisition Policies Act of 1970, implementing regulations at 24 CFR Part 42, and the special provisions of Section 570.457 concerning the relocation of residential tenants not covered by the Uniform Act; (J) She labor standards requirements as set forth in Section 570.605 and hUD regulations issued to implement such requirements; (R) The flood insurance purchase requirements of Section IU2(a) of the Flood Disaster Protection Act of 1973, (Pub. L. 93 -234); (L) She regulations, policies, guidelines and requirements of mz Circular Nos. A -102, Revised and A -87 as trRy relate to the acceptance and use of Federal funds under this Part; (M) All requirements imposed by HUM concerning special requirements of law, program requirements and other administrative requirements approved in accordance with OMB Circular No. A -102, Revised. i r 61 1u. It will establish safeguards to prohibit employees a purpose that is or gives the appearance of being • , private gain for themselves or others, particularly tamily, business, or other ties. 40 from using positions for motivated by a desire for those with whom they have 11. It will comply with the provisions of the hatch Act whicn limits the political activity of employees. 12. It will give hUD and the Comptroller General through any authorized representa- tives, access to and the right to examine all records, books, papers, or documents related to the grant. 13. It will insure that the facilities under its ownership, lease, or supervision which shall be utilized in the accomplishment of the program are not listed on the Environmental Protection Agency's ( EPA) list of Violating Facilities and that it will notify hLM of the receipt of any ccnmunication from the Director of EPA Ctfice of Federal Activities indicating that a facility to be used in the project is under consideration for listing by the EPA. 14. It will not, in carrying out the project, discriminate against any employee because of race, color, religion, sex, handicap, or national origin. It will take affirmative action to insure that applicants for employment are employed, and that employees are treated during employment, without regard to their race, color, religion, sex, handicap, or national origin. Such action shall include, but not be limited to, the following: Employment, upgrading, demotion or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The applicant shall post in conspicuous places, available to employees and applicants for employment, notices to be provided by hLJD setting forth the provisions of this non -dis- crimination clause. the applicant will in all solicitations or advertise- ments for employees placed by or on behalf of the applicant state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, handicap or national origin. The applicant will incorporate the foregoing requirements of this paragraph in all of its contracts for project work, except contracts for standard commercial supplies or raw materials or contracts covered under 24 CFR Part 570 subsection (c)(14)(ix)(E), and will require all of its contracts for such work to incorporate such requirements in all subcontracts for work done with funds provided under 24 CFR Part 570. 15. It certifies that it has not knowingly and willfully made or used a document or writing containing any false, fictitious, or fraudulent statement or entry. 18 U.S.C. 1001 provides that whoever does so within the jurisdiction of any department or agency of the United States shall be fined not more than $10, 00u or imprisoned for not more than five years, or both. Signature Date Title *Note: A separate set of Assurances for Indians Tribes will be issued in the near f utur= Part V Exhibits and Appendices "PUEBLO CENTER" PROJECT Us AP tip, '` ._� ►J �. wa a 144 W lit lip r a �r, � ' }6v ► l �E 4 t �\ !;. l a.Ill. + � f 0' / 1