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City Clerk's Office Item # R2
Background Paper for Proposed
Ordinance
COUNCIL MEETING DATE: March 10, 2025
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, AND AUTHORIZING THE MAYOR TO
EXECUTE A CONTRACT TO BUY AND SELL REAL ESTATE BY AND
BETWEEN THE CITY OF PUEBLO, A COLORADO MUNICIPAL
CORPORATION, AND 101 W RIVERWALK, LLC, A COLORADO
LIMITED LIABILITY COMPANY, FOR THE PURCHASE OF PROPERTY
DESCRIBED AS 101 WEST RIVERWALK PLACE, UNIT 2 WITHIN THE
CITY OF PUEBLO
SUMMARY:
Attached for consideration is an Ordinance authorizing the Mayor to execute a Contract
to Buy and Sell Real Estate between the City of Pueblo and 101 W Riverwalk, LLC for
the property.
PREVIOUS COUNCIL ACTION:
None.
BACKGROUND:
Currently, many City departments lack sufficient office space to efficiently conduct daily
operations. As a result, numerous City employees are required to share already
cramped office space or work from home. Purchase of this property will allow the City
to consolidate many City departments into one centralized building with easy public
access. The departments planned to be moved into the new building include Planning
and Zoning, Housing, Human Resources, Civil Service, Finance, Sales Tax, and Law.
The purchase of the Property will put most City departments within a two-block radius of
In September 2024, the City purchased a building at 650 Dittmer Avenue to house
several City departments. Since that time, the City discovered mold in the current Parks
and Recreation offices and has had to relocate Parks and Recreation staff to the Dittmer
building. The Dittmer building is not large enough to accommodate Parks and
Recreation and the other departments needing additional office space. The purchase of
this Property will allow the City to sell or repurpose those stand-alone buildings currently
used by the City departments slated to move into the Property.
In 2023, the Property appraised at approximately $8M. Currently, it was offered to the
City at $7M. Some interior finish will be required to accommodate the needs of the
City. The City and 101 W Riverwalk, LLC have entered into a Letter of Intent to
purchase the Property subject to multiple conditions, including approval of this
Ordinance. If the Contract is approved by City Council, the City will provide the Seller
with a Promissory Note in the amount of $500,000 as earnest money. The $500,000 will
be applied to the purchase price upon closing.
The City intends to finance the purchase of the Property. A separate Ordinance is before
City Council for approval of the financing. Purchase of the Property is contingent on the
approval of this Contract and the financing. If approved by City Council, the purchase of
the Property will close on or before May 1, 2025.
FINANCIAL IMPLICATIONS:
If approved, the City will sign a Promissory Note for Earnest Money in the amount of
$500,000 to be applied to the purchase price upon closing. The Contract to Buy and
Sell Real Estate is contingent upon City Council approving financing for the purchase of
the Property by separate Ordinance. The purchase price of the Property is $7,000,000
and up to another $3,000,000 is being financed for any needed renovations.
BOARD/COMMISSION RECOMMENDATION:
Not applicable to this Ordinance.
STAKEHOLDER PROCESS:
Not applicable to this Ordinance.
ALTERNATIVES:
City Council could decide not to pass the attached Ordinance and thus, not purchase the
Property.
RECOMMENDATION:
Approval of the Ordinance.
ATTACHMENTS:
1. Contract to Buy and Sell Real Estate
2. Promissory Note
ORDINANCE NO. 10914
AN ORDINANCE APPROVING, AND AUTHORIZING THE
MAYOR TO EXECUTE A CONTRACT TO BUY AND SELL REAL
ESTATE BY AND BETWEEN THE CITY OF PUEBLO, A
COLORADO MUNICIPAL CORPORATION, AND 101 W
RIVERWALK, LLC, A COLORADO LIMITED LIABILITY
COMPANY, FOR THE PURCHASE OF PROPERTY DESCRIBED
AS 101 WEST RIVERWALK PLACE, UNIT 2 WITHIN THE CITY
OF PUEBLO
WHEREAS, the offices of several City departments are spread throughout the City; and
WHEREAS, City departments lack sufficient office space to efficiently perform daily
operations requiring employees to share already cramped office space or work remotely; and
WHEREAS, the City desires one location to house the majority of City departments in
the downtown area close to City Hall and easily accessible to the public; and
WHEREAS, the property at 101 West Riverwalk Place, Unit 2 was offered for sale to the
City and the City and owner desire to enter into an agreement to convey ownership of the
property to the City; NOW, THEREFORE;
BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1.
The Contract to Buy and Sell Real Estate ("Contract") and the Earnest Money Promissory
Note ("Promissory Note") between the City of Pueblo, a Municipal Corporation, and 101
Riverwalk, LLC, copies of which are attached hereto, having been approved as to form by the
City Attorney, are hereby approved. The Mayor is hereby authorized to execute said Contract and
Promissory Note for and on behalf of the City of Pueblo and the City Clerk's Office is authorized
to affix the seal of the City thereto and attest same.
SECTION 2.
The officers of the City are authorized to perform any and all acts consistent with this
Resolution to implement the policies and procedures described herein.
SECTION 3.
This Ordinance shall become effective immediately upon the date of final action by the
City Council and the Mayor.
Action by City Council:
Introduced and initial adoption of Ordinance by City Council on February 24, 2025.
Final adoption of Ordinance by City Council on March 10, 2025.
____________________________
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
________________________________
City Clerk