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HomeMy WebLinkAbout10945 City Clerk's Office Item # R4 Background Paper for Proposed Ordinance COUNCIL MEETING DATE: May 12, 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 AN AMENDMENT TO THE LEASE AND MANAGEMENT AGREEMENT BETWEEN THE CITY OF PUEBLO, A COLORADO MUNICIPAL CORPORATION, AND SOUTH NTERPRISES, LLC FOR THE OPERATION, MANAGEMENT, AND PROMOTION OF CERTAIN FACILITIES AT THE HONOR FARM'S PUEBLO MOTORSPORTS PARK AND AUTHORIZING THE MAYOR TO EXECUTE THE SAME SUMMARY: This Ordinance awards and approves an amendment to the Lease and Management Agreement between the City of Pueblo for the operation, management, and promotion of motor sports events at the Pueblo Motorsports Park located within the Honor Farm Park & Open Space. PREVIOUS COUNCIL ACTION: On March 8, 2021, City Council approved Ordinance No. 9894 which approved a Lease LLC for the operation, management, and promotion of certain premises at Pueblo Motorsports Park. 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 fro Motorsports Park (PMP) contains approximately 233 acres of fenced-in, contained motorsports areas and facilities within the Honor Farm property. On March 8, 2021, City Council approved Ordinance No. 9894 which approved a Lease LLC for the operation, management, and promotion of certain premises at Pueblo Motorsports Park. LC are in the final year of their initial Lease and Management Agreement for the operation, management, and promotion of certain requesting to create a new 25-year lease beginning January 2026. FINANCIAL IMPLICATIONS: rent of $25,000 per year until at least the five-year review. Since all of the rental income will be reinvested back into the park, eliminating it would not affect City expenses in the short term. Enterprises, LLC would significantly enhance their ability to improve the park as they could use their own funds to do so. This change would allow to save for larger projects. To ensure the facility continues to be well- Enterprises, LLC request that the Parks and Recreation Department appoint a city representative to conduct inspections on a biannual basis. This oversight will help confirm that the property is properly cared for while enabling the contractor to focus on meaningful investments in park improvements. The city will maintain the Kubota tractor, sweeper, sprayer, scrubber, and laydown attachment, which are City-owned. LLC will pay for all other utilities, including internet, phone, and waste disposal. maintenance items. The City would cover expenses beyond $1,500. BOARD/COMMISSION RECOMMENDATION: The Honor Farm Enterprise Advisory Committee has recommended that this Agreement be approved as submitted. STAKEHOLDER PROCESS: Not applicable to this Ordinance. ALTERNATIVES: out the remainder of the term per the current agreement. RECOMMENDATION: Approval of the Ordinance. ATTACHMENTS: 1. PMP Management Agreement 2.0 w DanSM edits(3) w-out ex pgs-FINAL 2. Ex A-E_final ORDINANCE NO. 10945 AN ORDINANCE AWARDING AND APPROVING AN AMENDMENT TO THE LEASE AND MANAGEMENT AGREEMENT BETWEEN THE CITY OF PUEBLO, A COLORADO MUNICIPAL CORPORATION, AND SOUTH PRAIRIE ENTERPRISES, LLC FOR THE OPERATION, MANAGEMENT, AND PROMOTION OF CERTAIN FACILITIES AT THE HONOR FARM'S PUEBLO MOTORSPORTS PARK AND AUTHORIZING THE MAYOR TO EXECUTE THE SAME WHEREAS, the City owns certain real property known as the Pueblo Motorsports Park, WHEREAS, the Operator has experience of managing and conducting motor sports events and desires to continue to manage, use, maintain, and operate certain facilities at the Park for the purpose of conducting motor sports events; and WHEREAS, the City is willing to enter into this Agreement to permit the Operator to continue to manage, use, maintain, and operate certain facilities at the Park for the purpose of conducting motor sports events at the Pueblo Motorsports Park in accordance with and subject to the terms and conditions of this Agreement; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. The Lease and Management Agreement dated May 12, 2025, between the City of Pueblo and South Prairie and 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 April 28, 2025. Final adoption of Ordinance by City Council on May 12, 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 ________________________________ Deputy City Clerk