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Home My WebLink About11212*Docusign Envelope ID: 76B74B90-BED3-80F6-8251-29A4CD2475EE ORDINANCE NO. 11212 AN ORDINANCE (1) APPROVING AND AUTHORIZING THE MAYOR TO EXECUTE AN EMPLOYMENT AGREEMENT BETWEEN THE CITY OF PUEBLO, A COLORADO MUNICIPAL CORPORATION AND TRANSPORTATION TECHNOLOGY CENTER, INC., A DELAWARE CORPORATION, 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 BETWEEN THE CITY OF PUEBLO, A COLORADO MUNICIPAL CORPORATION AND TRANSPORTATION TECHNOLOGY CENTER, INC., A DELAWARE CORPORATION, AND RELATED SPECIAL WARRANTY DEED RELATING TO A PARCEL OF IMPROVED LAND LOCATED IN THE PUEBLO MEMORIAL AIRPORT INDUSTRIAL PARK-350 KEELER PARKWAY WHEREAS, the City collects a one -half -percent sales and use tax dedicated to primary - job -creating capital improvement projects within the City and the Pueblo Memorial Airport boundaries, with revenues deposited into the 1992-2031 Sales and Use Tax Capital Improvement Projects Fund (the "Fund"), most recently extended by voter -approved Ordinance No. 11001, effective November 5, 2025; WHEREAS, the criteria, standards, and procedures for appropriation and expenditure of Fund revenues are codified in Chapter 4 of Title XIV of the Pueblo Municipal Code ("PMC"), as amended, including most recently by Ordinance No. 11125, effective February 24, 2026 (the "Criteria"); and WHEREAS, Transportation Technology Center, Inc. ("TTCI") has submitted an application to the City for an economic development incentive in the form of a land acquisition; and WHEREAS, City Council having reviewed TTCI's application finds under PMC § 14-4- 85.3(b)(1) that the project described therein is not speculative and that TTCI has demonstrated its financial ability and experience necessary to complete and operate the project; and WHEREAS, City Council finds that TTCI has a substantial impact on the economic well- being on the City, community and region by attracting visitors from across the country and around the world to Pueblo through its Security and Emergency Response Training Center which serves approximately 2,000 first responders each year who travel to Pueblo and utilize local hotels, restaurants, transportation, and retail services during their stay, and generates an estimated $2.4 million in annual economic activity to the region. And therefore, TTCI qualifies as an Economic Catalyst Project as defined in PMC 14-4-85.1(3.1); and WHEREAS, City Council finds that TTCI provides primary jobs to the community as defined in PMC § 14-4-85.1(7) and retention of the existing two hundred (200) primary jobs at an average annual salary of $92,000 will substantially benefit the public; and WHEREAS, City Council may pursuant to PMC § 14-4-85.5(1) authorize expenditure of monies in the Fund for the acquisition of land or existing buildings for the purpose of making such land or buildings available to applicants that meet the standards and criteria of PMC 14-4- 85.1 et seq. NOW THEREFORE, Docusign Envelope ID: 76B74B90-BED3-80F6-8251-29A4CD2475EE BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that SECTION 1. City Council finds and determines TTCI has a substantial impact on the economic well- being on the City, community and region by attracting visitors from across the country and around the world to Pueblo through its Security and Emergency Response Training Center and generating an estimated $2.4 million in annual economic activity to the region. And therefore, TTCI qualifies as an Economic Catalyst Project as defined in PMC 14-4-85.1(3.1). City Council further finds and determines that TTCI provides primary jobs to the community as defined in PMC § 14-4-85.1(7) and retention of the existing two hundred (200) primary jobs at an average annual salary of $92,000 will substantially benefit the community. For all the reasons stated above and herein, City Council hereby authorizes, pursuant to PMC § 14-4-85.5(1), the transfer of the real property commonly known as 350 Keeler Parkway to TTCI and determines that it meets the standards and criteria of PMC 14-4-85.1 et seq. SECTION 2. The following agreements, all dated June 30, 2026, copies of which are attached hereto and incorporated herein by this reference, having been approved as to form by the City Attorney, are approved: • Employment Agreement between the City of Pueblo and TTCI; • Contract to Buy and Sell Real Estate • Special Warrant Deed • 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 affix the seal of the City thereto and attest same. The Mayor is further authorized to execute and deliver the Special Warranty Deed and related documents at closing transferring 350 Keeler Parkway, Pueblo, Colorado to TTCI. SECTION 3. 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 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 June 08, 2026. Final adoption of Ordinance by City Council on June 22, 2026. DocuSignedby: President of City Council Docusign Envelope ID: 76B74B90-BED3-80F6-8251-29A4CD2475EE Action by the Mayor: E� Approved on 06/24/2026 ❑ 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 action on failed to override the Mayor's veto. President of City Council ATTEST Docusignedby: G 11",je:- City Clerk Docusign Envelope ID: 76B74B90-BED3-80F6-8251-29A4CD2475EE City Clerk's Office Item # S16 ciily of "PUEBLO m;µ ...w aflorado Background Paper for Proposed Ordinance COUNCIL MEETING DATE: June 22, 2026 TO: President Mark Aliff and Members of City Council CC: Mayor Heather Graham VIA: Clyde Bishop, City Clerk FROM: 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 TRANSPORTATION TECHNOLOGY CENTER, INC., A DELAWARE CORPORATION, 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 BETWEEN THE CITY OF PUEBLO, A COLORADO MUNICIPAL CORPORATION AND TRANSPORTATION TECHNOLOGY CENTER, INC., A DELAWARE CORPORATION, AND RELATED SPECIAL WARRANTY DEED RELATING TO A PARCEL OF IMPROVED LAND LOCATED IN THE PUEBLO MEMORIAL AIRPORT INDUSTRIAL PARK — 350 KEELER PARKWAY SUMMARY: Attached is an Ordinance approving and authorizing the Mayor to sign the following agreements: • Employment Agreement between the City of Pueblo and Transportation Technology Center, Inc., a Delaware corporation ("TTCI"); • A Contract to Buy and Sell Real Estate between the City of Pueblo and TTCI; and • Special Warranty Deed for the transfer of real property commonly known as 350 Keeler Parkway, Pueblo, Colorado 81001. PREVIOUS COUNCIL ACTION: On or about May 17, 2021, by Ordinance No. 9926, City Council approved an Employment Agreement with TTCI. Docusign Envelope ID: 76B74B90-BED3-80F6-8251-29A4CD2475EE BACKGROUND: TTCI originated in 1971 as the High Speed Ground Test Center under the U.S. Department of Transportation. Currently, TTCI serves as a central hub for transportation research and development, training, and testing across the entire spectrum of the transportation industry. This encompasses government, education, and commercial entities. On May 10, 2021, the City entered into an Employment Agreement with TTCI by which it agreed to employ 175 employees at an average annual salary of $73,333 plus benefits. TTCI leased two buildings at the Airport Industrial Park: 350 Keeler Parkway and 442 Keeler Parkway. The economic incentive provided by the City was rent abatement for the duration of the leases, which was five years. The leases expire on June 30, 2026. TTCI fulfilled all the requirements of the Employment Agreement. In addition to fulfilling all the requirements of the Employment Agreement, TTCI invested approximately $7,000,000 of its own funds into improvements to the property at 350 Keeler Parkway (the "Property"). These improvements include but are not limited to the following: • Painting completed and new flooring installed throughout the office area • Installation of direct fiber internet to the building • Repairs and enhancements to drainage and gutter system around the entire building • Replacement of the full roof of the office portion of the building • Repairs and partial replacement of the high -bay roof to address active leaks • Replacement of two rooftop RTU's serving the office area due to the others being at the end of their useful life • Installation of two air handling units for the high -bay heating in the south high -bay • Installation of new overhead crane in the east building addition • Installation of new road base and rock added in the north laydown yard and east dock areas to improve drainage and accessibility • Installation of new compressed -air system • Installation of electrical infrastructure upgrades in high -bay In 2020, the Property was valued at $5,500,000. As of today, with the benefit of these improvements, the Property is valued at $10,750,000. TTCI currently employs two hundred (200) employees and hopes to add up to forty (40) new employees at an average annual salary for all employees, old and new, of $92,000 before benefits. The Economic Development Agreement proposed by this Ordinance provides for the transfer of the property located at 350 Keeler Parkway in the Airport Industrial Park to TTCI. TTCI must retain at least 200 employees at the site at an average annual salary Docusign Envelope ID: 76B74B90-BED3-80F6-8251-29A4CD2475EE of $92,000 before benefits for ten (10) years. The Employment Agreement is secured by a Deed of Trust on the Property. Beyond its direct employment and capital investment, MxV Rail drives meaningful economic activity by attracting visitors from across the country and around the world to Pueblo. The Security and Emergency Response Training Center delivers training annually from February through November, serving approximately 2,000 first responders each year who travel to Pueblo and utilize local hotels, restaurants, transportation, and retail services during their stay. This program alone generates an estimated $2.4 million in annual economic activity. In addition, MxV Rail's Annual Research Review brings approximately 300 attendees to the community for multi -day engagements of three to five days, further increasing demand for local hospitality and service industries. Outside of these programs, MxV Rail regularly hosts domestic and international visitors who tour the facility and collaborate with its experts, further supporting local businesses and reinforcing Pueblo's position as a hub for rail innovation, workforce development, and industry investment. The economic incentive contemplated by this Ordinance will retain no less than 200 primary jobs, encourage the creation of up to 40 new primary jobs and promote an economic catalyst project as defined by PMC § 14-4-85.1(3.1). The economic incentive is further supported by the fact that TTCI has already invested approximately $7,000,000 of capital improvements in the property. The Employment Agreement extends for ten (10) years, which is longer than the average employment agreement and will be secured by a Deed of Trust against the real property at 350 Keeler Parkway. FINANCIAL IMPLICATIONS: This Ordinance does not involve the transfer of funds but rather the transfer of real property valued at $10,750,000. BOARD/COMMISSION RECOMMENDATION: Not applicable to this Ordinance. STAKEHOLDER PROCESS: Not applicable to this Ordinance. ALTERNATIVES: If this Ordinance is not approved, TTCI may explore re -locating its transportation technology complex to a new location outside of Pueblo County. RECOMMENDATION: The Pueblo Economic Development Corporation recommends approval of this Ordinance. ATTACHMENTS: 1. Contract to Buy and Sell Real Estate (MxV Rail) 2. Exhibit 1 to Contract to Buy and Sell Real Estate Special Warranty Deed -- 350 Docusign Envelope ID: 76B74B90-BED3-80F6-8251-29A4CD2475EE Keeler Pkwy (City to MxV) 3. Exhibit 2 to Contract to Buy and Sell Real Estate -- MxV Rail Agreement 4. Exhibit 3 to Contract to Buy and Sell Real Estate -- Deed of Trust (MxV Rail)