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Home My WebLink About10915* City Clerk's Office Item # R3 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: Steven Meier, Director of Parks and Recreation SUBJECT: AN ORDINANCE AWARDING AND APPROVING A LEASE AND MANAGEMENT AGREEMENT BETWEEN THE CITY OF PUEBLO, A COLORADO MUNICIPAL CORPORATION, AND THE COLORADO OUTLAW RACING ASSOCIATION, LLC. FOR THE OPERATION, MANAGEMENT, AND PROMOTION OF THE HONOR FARM PARK & OPEN SPACE OVAL TRACK FACILITIES AND AUTHORIZING THE MAYOR TO EXECUTE THE SAME SUMMARY: This Ordinance awards and approves a Lease and Management Agreement between the City of Pueblo and the Colorado Outlaw Racing Association, LLC, for the operation, management, and promotion of motor sports events at the dirt oval track area located within the Honor Farm Park & Open Space. PREVIOUS COUNCIL ACTION: Not applicable to this Ordinance. BACKGROUND: In 2009, the City of Pueblo established the Honor Farm Enterprise responsible for the operation, management, and improvement of the 2,373-acre Honor Farm property. The Honor Farm Enterprise, by City Ordinance, is required to be operated and managed without subsidy from the 2007, included the 29-acre dirt oval track area of the Honor Farm Park & Open Space which was constructed in the late 1980s. Requests for Proposals to maintain and operate the dirt oval track area within the Honor Farm Park & Open Space was advertised in August 2024. The Colorado Outlaw Racing Association, LLC was considered qualified to fulfil the scope of this proposal. The Colorado Outlaw Racing Association, LLC leased, operated, and managed the dirt oval track facility from 2017 until term of agreement ended December 31, 2024. FINANCIAL IMPLICATIONS: In accordance with the specifications as described in the RFP and proposal, the Colorado Outlaw Racing Association agrees to pay to the City the following: Term of the Lease, Management, and Operating Agreement is for five years beginning March 10, 2025, and ending on December 31, 2029. The operator will pay $1,000 per month up to $12,000 for the term of the lease. Prior to the end of the term, both parties may agree to extended for an additional two-year term. In addition to the base rent, the Operator will also provide one dollar ($1.00) per each adult spectator and fifty cents ($.50) per child (ages 3 12) in the general admission grandstand area or other attendees for all events directly hosted or administered by the Operator. Operator will be responsible for paying all utilities, including, but not limited to, electric, gas, sewage, trash, phone, cable, and internet. It is expected that the City will be responsible for various expenses each year, depending upon required repairs to the oval track facility and its infrastructure. The Operator may enter into sponsorship contracts for less than $20,000. Any sponsorship contract over $20,000 or involving the naming or the whole, or any portion of, the leased premises must be approved by the City. BOARD/COMMISSION RECOMMENDATION: The Honor Farm Enterprise Advisory Committee has recommended that this Agreement be approved as submitted. STAKEHOLDER PROCESS: Public discussions during regularly scheduled Honor Farm Enterprise Advisory Committee meetings led to the RFP process for this facility. ALTERNATIVES: If this Ordinance is not approved, the dirt oval track facility will remain closed indefinitely. RECOMMENDATION: Approval of the Ordinance. ATTACHMENTS: 1. EXHIBIT A_Area Map of Leased Premises and Oval Track Facilities for Lease and Management Agreement - Copy 2. EXHIBIT B_Colorado Outlaw Racing Association_RFP 24-099 Proposal - Copy 3. EXHIBIT C_Insurance 4. EXHIBIT D_PERA Questionaire for Lease and Management Agreement - Copy 5. EXHIBIT E_Honor Farm Property Consevation Easement for Lease and Management Agreement 6. Redlined Colorado Outlaw Racing Association Oval Track Agreement ORDINANCE NO. 10915 AN ORDINANCE AWARDING AND APPROVING A LEASE AND MANAGEMENT AGREEMENT BETWEEN THE CITY OF PUEBLO, A COLORADO MUNICIPAL CORPORATION, AND THE COLORADO OUTLAW RACING ASSOCIATION, LLC. FOR THE OPERATION, MANAGEMENT, AND PROMOTION OF THE HONOR FARM PARK & OPEN SPACE OVAL TRACK FACILITIES AND AUTHORIZING THE MAYOR TO EXECUTE THE SAME BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. The Lease and Management Agreement dated March 10, 2025, between the City of Pueblo and the Colorado Outlaw Racing Association, LLC, a copy of which is attached hereto, having been approved as to form by the City Attorney, is hereby approved. SECTION 2. The Purchasing Agent is hereby authorized to execute the said contract on behalf of the City of Pueblo, a Colorado Municipal Corporation, and the City Clerk shall affix the Seal of the City thereto and attest the same. SECTION 3. The officers and staff of the City are directed and authorized to perform any and all acts consistent with the intent of this Ordinance and the attached Agreement to implement the policies and procedures 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 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 _____________ Council ac ____________________________ President of City Council ATTEST ________________________________ City Clerk