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Home My WebLink About10933 City Clerk's Office Item # R6 Background Paper for Proposed Ordinance COUNCIL MEETING DATE: April 28, 2025 TO: President Mark Aliff and Members of City Council CC: Mayor Heather Graham VIA: Marisa Stoller, City Clerk FROM: Andrew Hayes, Public Works Director SUBJECT: AN ORDINANCE APPROVING A DEPOSIT AGREEMENT BETWEEN MAVERIK QOZB 2023, LLC, A UTAH LIMITED LIABILITY COMPANY, AND THE CITY OF PUEBLO, A COLORADO MUNICIPAL CORPORATION, RELATING TO THE INSTALLATION OF PUBLIC IMPROVEMENTS ASSOCIATED WITH THE PROPERTY AT BLOCK 1, LOT 4 LOCATED WITHIN THE SOUTHERN COLORADO MEDICAL CENTER, FILING NO. 1 SUBDIVISION, AND AUTHORIZING THE MAYOR TO EXECUTE SAME SUMMARY: Attached is an Ordinance approving the establishment of a deposit account and approving a Deposit Agreement between MAVERIK QOZB 2023, LLC, a Utah limited liability company, and the City of Pueblo, a Colorado Municipal Corporation, related to the collection of a deposit for the construction of certain required public improvements. The proposed Ordinance also authorizes the Mayor to execute the agreement on behalf of the City of Pueblo. PREVIOUS COUNCIL ACTION: None. BACKGROUND: Maverik purchased the property in October 2024 for the purpose of constructing a convenience store and gas station, fueling canopy, and car wash on the property. The development will contribute to and eventually cause by necessity the installation of a traffic signal and associated intersection improvements to be constructed at the intersection of Parker Boulevard and Spaulding Avenue. FINANCIAL IMPLICATIONS: According to the terms of the Deposit Agreement, the City will waive the prohibition on the issuance of a building permit and certificate of occupancy once the full amount of the deposit is received if the developer is otherwise in compliance with its development obligations. Maverik will deposit its share of the cost of construction of the required and associated intersection improvements and the City will use the deposit to cause the improvements to be constructed once fully warranted. BOARD/COMMISSION RECOMMENDATION: Not applicable to this Ordinance. STAKEHOLDER PROCESS: Not applicable to this Ordinance. ALTERNATIVES: Failing to approve this Ordinance will prevent the City from being able to enter into the Deposit Agreement. RECOMMENDATION: Approval of the Ordinance. ATTACHMENTS: 1. Deposit Agreement 2025 MAVERIK QOZB 2023 LLC partial signed ORDINANCE NO. 10933 AN ORDINANCE APPROVING A DEPOSIT AGREEMENT BETWEEN MAVERIK QOZB 2023, LLC, A UTAH LIMITED LIABILITY COMPANY, AND THE CITY OF PUEBLO, A COLORADO MUNICIPAL CORPORATION, RELATING TO THE INSTALLATION OF PUBLIC IMPROVEMENTS ASSOCIATED WITH THE PROPERTY AT BLOCK 1, LOT 4 LOCATED WITHIN THE SOUTHERN COLORADO MEDICAL CENTER, FILING NO. 1 SUBDIVISION, AND AUTHORIZING THE MAYOR TO EXECUTE SAME BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. The Deposit Agreement ("Agreement") by and between MAVERIK QOZB 2023, LLC., a Utah Limited Liability Company, and the City of Pueblo, a Colorado Municipal Corporation, a copy of which is attached hereto and made a part hereof by reference, after having been approved as to form by the Pueblo City Attorney, is hereby approved. The Mayor is hereby authorized to execute the Agreement for and on behalf of the City Pueblo and the City Clerk 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 Ordinance and the attached Agreement to implement the policies and procedures described herein. SECTION 3. 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 April 14, 2025. Final adoption of Ordinance by City Council on April 28, 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 Docusign Envelope ID: 433DA78F-91DEO-4185-913MAEAK51 F70E1 DEPOSIT AGREEMENT THIS AGREEMENT, made and entered into this 28h day of April, 2025 by and between the CITY OF PUEBLO, a Colorado Municipal Corporation, hereinafter referred to as "City", and MAVERIK QOZB 2023, LLC, a Utah limited liability company, hereinafter referred to as "Maverik". WITNESSETH: WHEREAS, Maverik is the owner and/or developer of Block 1, Lot 4 located within the Southern Colorado Medical Center, Filing No. 1 Subdivision, City of Pueblo, Colorado and legally described as set forth in Exhibit "A" ("Property"), which is attached hereto and incorporated herein; and WHEREAS, Maverik has applied for a building permit to construct a convenience store and gas station, fueling canopy, and car wash on the Property (the "Development"); WHEREAS, the Development will contribute to and eventually cause by necessity the installation of a traffic signal and associated intersection improvements ("Improvements") to be constructed at the intersection of Parker Boulevard and Spaulding Avenue; WHEREAS, Section 4-2-2(g), P.M.C., authorizes the Director of Public Works to condition the issuance of a building permit and certificate of occupancy upon the installation of public improvements required by the proposed construction; WHEREAS, the City has calculated the cost of such Improvement and Developer's proportionate share of such cost in the amount of $45,000 ("Deposit"). The calculation of the costs of the Improvements and Deposit are set forth in Exhibit "B", which is attached hereto and incorporated herein; and WHEREAS, Maverik agrees to establish a Deposit Account with the City to guarantee payment of its proportional share of the Development Costs and satisfy, in part, its development obligations. NOW THEREFORE, in consideration of the foregoing and mutual covenants contained herein, the City and Maverik agree as follows: A -I Docusign Envelope ID: 433DA78F-9DEO-4185-9BC6-AEA9C51 F70E1 Maverik shall deposit the Development Costs in the amount of $45,000 with the City's Director of Finance. Interest, if any, which may accrue on such funds shall be paid to the City as an administrative fee in maintaining and administering this Agreement and such deposit. 2. The Deposit shall be held by the City in an interest or non -interest -bearing deposit account to be established by the Director of Finance who may disburse said funds only as herein provided. The Director of Public Works, upon written notice to the Director of Finance, may at any time withdraw the deposited funds to complete all or any part of said Improvements. 3. Until the Deposit is received by the City, the City may in its sole discretion refuse to issue any building permit or certificate of occupancy for the Development. 4. Upon receipt of the Deposit, Developer's obligations with respect to the Improvements shall be fully and completely satisfied. Nothing herein shall relieve Maverik of its obligation to install other public improvements which may be required under any existing or future building permits for the Property. 5. City and Maverik stipulate, acknowledge and agree that: (a) the Deposit amount of $45,000 is authorized by Section 4-2-2(g), P.M.C., (b) the Deposit is reasonable related to addressing the impacts imposed on the City's road network by the Development, (c) that the amount of the Deposit is roughly proportional to such impacts, and (d) the Deposit complies with all conditions and requirements set forth in Section 29-20-203, C.R.S. 6. The Parties agree to execute any additional documents or take any additional action that may be necessary to carry out this Agreement. 7. This Agreement represents the entire agreement between the Parties and supersedes all prior discussions and written agreements or understandings. This Agreement may be amended only by an instrument in writing signed by the Parties. If any provision of this Agreement is held invalid or unenforceable, no other provision shall be affected by such holding, and all of the remaining provisions of this Agreement shall continue in full force and effect. 8. Each person signing this Agreement on behalf of a party represents and warrants that he or she has the requisite power and authority to enter into, execute, and deliver this Agreement on behalf of such party and that this Agreement is a valid and legally binding obligation of such party enforceable against it in accordance with its terms. A-2 Docusign Envelope ID: 433DA78F-9DEO-4185-9BC6-AEA9C51 F70E1 9. This Agreement shall be governed by the laws of the State of Colorado. Venue for any action arising under this Agreement or for the enforcement of this Agreement shall be in a state court with jurisdiction located in Pueblo County, Colorado. 10. This Agreement and all other documents contemplated hereunder may be executed using electronic signatures with delivery via facsimile transmission, by scanning and transmission of electronic files in Portable Document Format (PDF) or other readily available file format, or by copy transmitted via email, or by other electronic means and in one or more counterparts, each of which shall be: (i) an original, and all of which taken together shall constitute one and the same agreement, (ii) a valid and binding agreement and fully admissible under state and federal law, and (iii) enforceable in accordance with its terms. (SIGNATURE PAGE FOLLOWS) A-3 Docusign Envelope ID: 433DA78F-9DE0-4185-9l3C6-AEA9C51 F70EI Approved as to form. City Attorney CITY OF PUEBLO Stgned b By: Heather Graham, Mayor MAVERIK QOZB 2023, LLC SJ gwd by ........ .. Nicole Mason A4 Docusign Envelope ID: 433DA78F-9DE0-4185-9BC6-AEA9C51F70EI EXHIBIT "A" LEGAL DESCRIPTION Lot 4, Block 1, Southern Colorado Medical Center, First Filing Subdivision Containing 2.3391 acres, more or less. A-5 Docusign Envelope ID: 433DA78F-9DEO-4185-9BC6-AEA9C5lF7OE1 EXHIBIT "B" — ESTIMATE OF MAVERIK COST SHARE FOR IMPROVEMENTS SUBDIVISION NAME: SOUTHERN COLORADO MEDICAL CLINIC, FILING NO. I DEVELOPER: MAVERIK QOZB 2023, LLC INTERSECTION UPGRADES I JOB $500,000 Proposed work may include, but not be limited to, planning, design, and construction of the following: • Traffic Signals • Control Equipment • Mast Arms and Poles • Pedestrian Signals, Buttons, and Poles • Signs, Striping, and Markings • Curb and Gutter • Sidewalk • ADA Curb Ramps • Electrical Service Electrical Wiring • Communications/Low Voltage Wiring • Pavement Repairs Maverik e uitale share of host burden for intersection up grades:, 9% Maverik Deposit amount: $45,000 WE