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HomeMy WebLinkAbout11032* City Clerk's Office Item # R2 Background Paper for Proposed Ordinance COUNCIL MEETING DATE: September 8, 2025 TO: President Mark Aliff and Members of City Council CC: Mayor Heather Graham VIA: Marisa Stoller, City Clerk FROM: Jeff Shaw, PEDCO Carla Sikes, City Attorney SUBJECT: AN ORDINANCE (1) APPROVING AND AUTHORIZING THE MAYOR TO EXECUTE AN EMPLOYMENT AGREEMENT BETWEEN THE CITY OF PUEBLO, A COLORADO MUNICIPAL CORPORATION, AND TRUSSWORKS OPERATIONS, LLC, A DELAWARE LIMITED LIABILITY COMPANY, RELATING TO A JOB CREATING CAPITAL IMPROVEMENT PROJECT AND (2) APPROVING AND AUTHORIZING THE MAYOR TO EXECUTE A CONTRACT TO BUY AND SELL REAL ESTATE AND CORRESPONDING SPECIAL WARRANTY DEED BETWEEN THE CITY OF PUEBLO, A COLORADO MUNICIPAL CORPORATION, AND TRUSSWORKS OPERATIONS, LLC, A DELAWARE LIMITED LIABILITY COMPANY, RELATING TO A PARCEL OF IMPROVED LAND LOCATED IN THE AIRPORT INDUSTRIAL PARK AND (3) APPROVING TRANSFERRING ONE MILLION FOUR HUNDRED SIXTY-TWO THOUSAND DOLLARS ($1,462,000) FROM THE 1992-2026 SALES AND USE TAX CAPITAL IMPROVEMENT COMPLIANCE WITH SAID EMPLOYMENT AGREEMENT SUMMARY: Attached is an Ordinance approving and authorizing the Mayor to sign the following agreements: Employment Agreement between the City of Pueblo and Trussworks Operations, Contract to Buy and Sell Real Estate between the City of Pueblo and Trussworks Operations, LLC, a Delaware limited liability company; Special Warranty Deed transferring 33850 United Ave., Pueblo, CO to Trussworks PREVIOUS COUNCIL ACTION: Not applicable to this Ordinance. BACKGROUND: Trussworks is a manufacturing company based in Texas, which makes roof trusses, floor tresses, and wall panels to support residential and multifamily builders in multiple states. They are looking to expand their operations into the Mountain West states to support their growth. To facilitate their growth, Trussworks seeks to purchase the property located at 33850 The Property provides access to rail and space for Trussworks to expand its manufacturing facility. The Property currently has an older building situated on the site which can be used temporarily by Trussworks until it can complete the construction of a new manufacturing facility. Trussworks intends to invest at least $6,000,000 in fixed assets on the Property. In addition, Trussworks plans to employee, on or after the Employee Commitment Date of August 1, 2028, a minimum of 65 full-time employees for not less than thirty-five (35) hours per week with an average annual salary for full-time employees of not less than $54,300 plus benefits. Section 14-4- City Council may authorize the expenditure of monies from the 1992-2026 Sales and Use Tax Capital Impro- of land and construction of so-called shell buildings or the acquisition, remodeling and renovation of existing buildings for the purpose of making such buildings available for applicants or potential applicants who meet the standards and criteria of this Chapter. FINANCIAL IMPLICATIONS: With respect to the Real Property Conveyance Agreement, the City has agreed to transfer $1.1 Million dollars from the Half-Cent Tax Fund to Trussworks for the purchase of the Property. Thereafter the remaining funds will be disbursed as follows:$330,000 upon proof that Trussworks has invested at least $6M in fixed assets in the Facility; and Up to $32,000 to reimburse Trussworks for employee training at $800 per job. Any moneys not disbursed at the expiration of the Employment Agreement shall revert back to the City. BOARD/COMMISSION RECOMMENDATION: Not applicable to this Ordinance. STAKEHOLDER PROCESS: Not applicable to this Ordinance. ALTERNATIVES: If this Ordinance is not approved, Trussworks will not locate its new facility in Pueblo, CO. RECOMMENDATION: The Pueblo Economic Development Corporation recommends approval of this Ordinance. ATTACHMENTS: 1. Employment Agreement 2. Contract to Buy Real Property 3. Exhibit 1 -- Special Warranty Deed 4. Exhibit 2 - Employment Agreement 5. Exhibit 3 -- Deed of Trust ORDINANCE NO.11032 AN ORDINANCE (1) APPROVING AND AUTHORIZING THE MAYOR TO EXECUTE AN EMPLOYMENT AGREEMENT BETWEEN THE CITY OF PUEBLO, A COLORADO MUNICIPAL CORPORATION, AND TRUSSWORKS OPERATIONS, LLC, A DELAWARE LIMITED LIABILITY COMPANY, RELATING TO A JOB CREATING CAPITAL IMPROVEMENT PROJECT AND (2) APPROVING AND AUTHORIZING THE MAYOR TO EXECUTE A CONTRACT TO BUY AND SELL REAL ESTATE AND CORRESPONDING SPECIAL WARRANTY DEED BETWEEN THE CITY OF PUEBLO, A COLORADO MUNICIPAL CORPORATION, AND TRUSSWORKS OPERATIONS, LLC, A DELAWARE LIMITED LIABILITY COMPANY, RELATING TO A PARCEL OF IMPROVED LAND LOCATED IN THE AIRPORT INDUSTRIAL PARK AND (3) APPROVING TRANSFERRING ONE MILLION FOUR HUNDRED SIXTY-TWO THOUSAND DOLLARS ($1,462,000) FROM THE 1992-2026 SALES AND USE TAX CAPITAL IMPROVEMENT PROJECTS FUND FOR THE SAID EMPLOYMENT AGREEMENT BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. The City Council finds and determines that the expenditure of $1,462,000 for the purchase of the property located at 33850 United Ave., Pueblo, CO in the Pueblo Industrial Park and for a job creating capital improvement project with Trussworks Operations, LLC, a Delaware limited and Employment Agreement is for a public purpose and in furtherance of a municipal function and will create employment opportunities justifying the expenditure of public funds. The City Council further finds the incentives granted to the Trussworks hereby meet the standards established by Section 14-4-85 of the Pueblo Municipal Code. SECTION 2. The following agreements, all dated September 8, 2025, copies of which are attached hereto and are incorporated herein by this reference, having been approved as to form by the City Attorney, are hereby approved: Employment Agreement between the City of Pueblo and Trussworks Operations, LLC, a Contract to Buy and Sell Real Estate between the City of Pueblo and Trussworks Operations, LLC, a Delaware limited liability company; Special Warranty Deed; and Deed of Trust The Mayor is authorized to execute and deliver said agreements in the name of the City and the City Clerk is authorized to fix the seal of the City thereto and attest same. The Mayor is further authorized to execute and deliver a Special Warranty Deed and related documents at closing, transferring 33850 United Ave., Pueblo, CO to Trussworks. SECTION 3. Funds in the aggregate amount of $1,462,000 are hereby authorized to be transferred, expended and made available out of the 1992-2026 Sales and Use Tax Capital Improvement Projects Fund for the sole purpose of the job creating capital improvement project authorized herein and in the manner described in the attached Contract to Buy and Sell Real Estate and Employment Agreement. The funds hereby authorized to be transferred and expended shall be as specified in the attached Employment Agreement. SECTION 4. The officers and staff of the City are authorized to perform any and all acts consistent with this Ordinance and the attached agreements which are necessary or appropriate to implement the transactions described therein. SECTION 5. 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 August 25, 2025. Final adoption of Ordinance by City Council on September 8, 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