Loading...
HomeMy WebLinkAbout11259Docusign Envelope ID: 4B6D8F68-8D8F-8D3E-8228-D17BCB858F9B ORDINANCE NO. 11259 AN ORDINANCE APPROVING A CONTRIBUTION AGREEMENT BETWEEN THE CITY OF PUEBLO, A COLORADO MUNICIPAL CORPORATION, AND MARTINEZ PROPERTY HOLDINGS, INC., A NEW MEXICO CORPORATION, AND AUTHORIZING THE MAYOR TO EXECUTE SAME BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that SECTION 1 The Contribution Agreement (the "Agreement") between the City of Pueblo, a Colorado Municipal Corporation, and Martinez Property Holdings, Inc., a copy of which is attached hereto, having been approved as to form by the City Attorney, is hereby approved. The Mayor is authorized to execute and deliver said Agreement in the name of the City and the City Clerk is authorized to affix the seal of the City thereto and attest same. SECTION 2. In the event the City becomes obligated to pay interest to the developer under the Contribution Agreement, such interest shall be paid from the City's Public Works Operating Budget. SECTION 3. The officers and staff of the City are authorized and directed to perform any and all acts consistent with this Ordinance and the attached Agreement which are necessary or desirable 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 August 24, 2026. Final adoption of Ordinance by City Council on September 14, 2026. DocuSignedby: President of City Council Docusign Envelope ID: 4B6D8F68-8D8F-8D3E-8228-D17BCB858F9B Action by the Mayor: Q Approved on ❑ Disapproved on 09/15/2026 based on the following objections: 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 Mayor ❑ Council action on failed to override the Mayor's veto. President of City Council ATTEST 1.Docusigned by: F9f Ae +4 City Clerk Docusign Envelope ID: 4B6D8F68-8D8F-8D3E-8228-D17BCB858F9B City Clerk's Office Item # R4 COUNCIL MEETING DATE: September 14, 2026 TO: President Mark Aliff and Members of City Council CC: Mayor Heather Graham VIA: Clyde Bishop, City Clerk FROM: Andrew Hayes, Public Works Director SUBJECT: AN ORDINANCE APPROVING A CONTRIBUTION AGREEMENT BETWEEN THE CITY OF PUEBLO, A COLORADO MUNICIPAL CORPORATION, AND MARTINEZ PROPERTY HOLDINGS, INC., A NEW MEXICO CORPORATION, AND AUTHORIZING THE MAYOR TO EXECUTE SAME SUMMARY: This Ordinance approves a Contribution Agreement between the City of Pueblo and Martinez Property Holdings, Inc., related to a developer contribution to a public improvements project located on Pueblo Boulevard (State Highway 45) generally between Acero Avenue and Mirror Avenue. PREVIOUS COUNCIL ACTION: City Council passed Ordinance No. 11109 on January 12, 2026, approving a CDOT Access Permit Agreement between the City and Martinez Property Holdings, Inc., which established the developer's obligations for installing public improvements to mitigate impacts associated with its planned development projects. BACKGROUND: During its Work Session meeting on July 20, 2026, Council directed staff to bring forward ordinances that would be required for Council to authorize and fund a construction project to install public improvements along Pueblo Boulevard (State Highway 45) between Acero Avenue and Mirror Avenue. This project would provide traffic improvements including a new traffic signal, raised concrete medians, curb and gutter, signs, roadway striping and markings, drainage, and other related work supporting development along this section of Pueblo Boulevard. This Ordinance approves a Contribution Agreement between the City of Pueblo and Martinez Property Holdings, Inc., approving the developer's contribution toward the installation of public improvements supporting Martinez Property Holdings' development Docusign Envelope ID: 4B6D8F68-8D8F-8D3E-8228-D17BCB858F9B projects along the north side of Pueblo Boulevard (State Highway 45), generally between Acero Avenue and Mirror Avenue. Martinez Property Holdings is one of several landowners located along that section of Pueblo Boulevard that contribute to added traffic demands along State Highway 45. Martinez Property Holdings' cost share for constructing the required public improvements has been determined to be $250,000.00. Additional contributions from other developers totaling $51,893.00 have already been received from other development projects in the area which will also be applied to the project. The remaining project funding is proposed to be provided from the City's half -cent economic development fund balance with future reimbursement of the City's costs through a reimbursement agreement that is currently being negotiated between the Pueblo Urban Renewal Authority (PURA) and the City. Staff has been working with PURA to negotiate an agreement for reimbursement of the City's costs associated with the project. The project site is located within the Lake Minnequa Urban Renewal Project Area which generates tax increment funding (TIF) revenues that may be allocated toward public improvement projects necessary to support development within the project area. While the Lake Minnequa Urban Renewal Area fund balance does not currently have enough funding to cover the cost of the construction project, PURA projects that sufficient funds will be available to reimburse the City in installments from future revenues generated from the Lake Minnequa Urban Renewal Project Area. A separate Ordinance to award the construction contract, to budget and appropriate the funds required to complete the project, and to approve a reimbursement agreement between the City and PURA will be presented to City Council at a later date. FINANCIAL IMPLICATIONS: If approved, the City will accept the developer's contribution of $250,000.00 to cover the cost of public improvements required to mitigate traffic impacts associated with its development projects on Pueblo Boulevard. In the unlikely event that interest becomes payable to the developer under the Contribution Agreement, such interest shall be paid from the City's Public Works Operating Budget. BOARD/COMMISSION RECOMMENDATION: Not applicable to this Ordinance. STAKEHOLDER PROCESS: Not applicable to this Ordinance. ALTERNATIVES: If the Ordinance is not approved, the City will not enter into the Contribution Agreement with Martinez Property Holdings, Inc. Docusign Envelope ID: 4B6D8F68-8D8F-8D3E-8228-D17BCB858F9B RECOMMENDATION: Approve the Ordinance. ATTACHMENTS: Contribution Agreement (signed) Docusign Envelope ID: 4B6D8F68-8D8F-8D3E-8228-D17BCB858F9B CONTRIBUTION AGREEMENT THIS CONTRIBUTION AGREEMENT ("Agreement") is made and entered into this day of 09/15/2026 2026 by and between PUEBLO, a Colorado Municipal Corporation, ("City"), and MARTINEZ PROPERTY HOLDINGS, INC., a New Mexico corporation ("Company"). Together, all entities entering this Agreement may be hereinafter referred to as the "Parties". WHEREAS, City and Company previously entered into a CDOT Access Permit Agreement without which the City would not have approved and executed the State Highway Access Permit Nos. 224097 and 224098 (the "CDOT Permits"), and WHEREAS, Company has requested the assistance of City in fulfilling certain obligation under the CDOT Permits and, subj ect to the terms and conditions herein provided, is able and agrees to advance funds to the City. NOW, THEREFORE, in consideration of the foregoing and mutual covenants contained herein, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, City and Company agree as follows: 1. The following terms as used in this Agreement shall have the following meaning unless the context clearly indicates otherwise: "Project" means the planning, design, and construction of public improvements required under CDOT Access Permit Nos. 224097 and 224098 which includes, but is not limited to, a traffic signal at Pueblo Boulevard and Mirror Avenue, raised channelizing medians at Pueblo Boulevard and Acero Avenue, center median, sidewalk, signing, striping, and related work. 2. Within ten (10) days of approval of this Agreement by City Council of City, the Company shall pay to the City the sum of Two Hundred and Fifty Thousand Dollars ($250,000.00) (the "Contribution") in the form of a check made payable to "City of Pueblo" and delivered to: Director of Public Works City of Pueblo 211 E. D Street Pueblo, Colorado 81003. It is acknowledged that acceptance and deposit of the Contribution shall create no binding commitment of or obligation upon the City to proceed with the Project. 3. If the City Council has not awarded a construction contract for the Project on or before June 30, 2027, the City shall return the full amount of the Contribution plus interest at the rate of 4.125% per annum simple interest to the Company within thirty (30) days of said deadline. Any funds returned to the Company shall be paid by check made payable to "Martinez Properties Holdings, Inc." and mailed to the address set forth herein, or to such other address as the Company may designate in writing. 4. It is expressly acknowledged and agreed that the City would not consider Docusign Envelope ID: 4B6D8F68-8D8F-8D3E-8228-D17BCB858F9B proceeding with design for or the bidding of construction contract for the Project without and until acceptance and deposit of the Contribution. 5. Nothing contained in this Agreement shall be construed or relied upon as releasing Company from any of its obligations or responsibilities under the CDOT Access Permit Agreement other than if the City performs the construction contract for the Project, any such related obligation under the CDOT Access Permit Agreement will no longer exist. 6. Exclusive venue for any litigation arising under this Agreement shall be Pueblo County, Colorado. All such litigation shall be filed in the District Court, County of Pueblo, State of Colorado and each party submits to the jurisdiction of such District Court. To the extent allowed by law, each party waives its right to a jury trial. 7. This Agreement expresses the entire understanding of the parties and supersedes and abrogates any and all prior dealings and commitments, whether oral or written, with respect to the subject matter of this Agreement and may not be amended or modified except in writing signed by City and Company. Any waiver of any provision of this Agreement must be in writing and signed by the party whose rights are being waived. No waiver of any breach of any provision hereof shall be or be deemed to be a waiver of any preceding or subsequent breach of the same or any other provision of this Agreement. The failure of either party to enforce or seek enforcement of the terms of this Agreement following any breach shall not be construed as a waiver of such breach. 8. This Agreement shall be construed in accordance with and be governed by the laws of the State of Colorado without regard to conflict of law principles. 9. Any notices hereunder shall be sufficiently given if given in writing personally or mailed by first class, registered, or certified mail, postage prepaid, addressed: If to City: Mayor City of Pueblo 1 City Hall Place Pueblo, CO 81003 With additional copy to: City Attorney 101 Riverwalk Pueblo, CO 81003 If to Donors: Martinez Property Holdings, Inc. 4611 Rio Grande Ln. NW 4 Docusign Envelope ID: 4B6D8F68-8D8F-8D3E-8228-D17BCB858F9B Los Ranchos, NM 87107 or to such other person or address as either party shall specify in written notice given to the other party. 10. This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and assigns, provided Company may not assign this Agreement or any interest herein without the express written consent of the City, which consent may be arbitrarily withheld, conditioned or delayed. Any assignment or attempted assignment of this Agreement by Company without such consent shall be null and void. 11. The persons signing this Agreement in the name of and on behalf of Company represent and warrant that they and Company have the requisite power and authority to enter into, execute, and deliver this Agreement, and that this Agreement is a valid legally binding obligation of Company enforceable against Company in accordance with its terms. 12. In no event shall City, its officers, agents or employees be liable to Company for damages, including without limitation, compensatory, punitive, indirect, special or consequential damages, resulting from or arising out of or related to this Agreement, the CDOT Access Permit Agreement or any decision of City to not proceed with the construction of the Project. It is expressly acknowledged that City has no obligation to Company to provide the assistance requested by Company. 13. If any provision of this Agreement is declared by a court of competent jurisdiction to be invalid or unenforceable, such determination shall not affect the other provisions of this Agreement which shall remain in full force and effect. 14. Neither party shall be, or hold itself out as, agent of the other or as joint venturers under this Agreement. 15. Each party acknowledges that this Agreement was fully negotiated by the parties and, therefore, no provision of this Agreement shall be interpreted against any party because such party or its legal representative drafted such provision. 16. The provisions of this Agreement are for the exclusive benefit of the parties hereto and their successors and permitted assigns, and no third party shall be a beneficiary, or have any rights by virtue of this Agreement. 17. This Agreement may be executed in any number of counterparts, and each such counterpart shall be deemed for all purposes to be an original, and all such counterparts shall together constitute but one and the same original. * * *SIGNATURE PAGE FOLLOWS * * * Docusign Envelope ID: 4B6D8F68-8D8F-8D3E-8228-D17BCB858F9B Executed at Pueblo, Colorado, the day and year first above written. PUEBLO, a Colorado Municipal Corporation Signed by: By Heather Graham, Mayor [SEAL] Docusigned by: Attest: City Cler .. MARTINEZ PROPERTY HOLDINGS, INC., a New Mexico Corporation DocuSigned by: f'ek'a�lnez, President M