HomeMy WebLinkAbout11291Docusign Envelope ID: BAB77E95-1C1E-828D-82E0-B174E53BD990
City Clerk's Office Item # S5
COUNCIL MEETING DATE: October 13, 2026
TO: President Mark Aliff and Members of City Council
CC: Mayor Heather Graham
VIA: Clyde Bishop, City Clerk
FROM: Melissa Cook, Director Department of Housing & Citizen Services
SUBJECT: AN ORDINANCE TRANSFERRING FUNDS IN THE AMOUNT OF
$600,000.00 FROM PROJECT ACCOUNT C12510- CONVERGYS SITE
REDEVELOPMENT TO PROJECT ACCOUNT CIAN23- DEMOLITION
OF UNSAFE STRUCTURES
SUMMARY:
This Ordinance transfers $600,000.00 from Project Account C12510 - Convergys Site
Redevelopment to existing Project Account CIAN23 - Demolition of Unsafe Structures.
No new project account is created by this Ordinance, and the transfer does not
authorize expenditures for any specific demolition project.
PREVIOUS COUNCIL ACTION:
On November 10, 2025, City Council adopted Resolution No. 16175 establishing
Project No. C12510 - Convergys Site Redevelopment and transferring a total of
$600,000 from multiple existing project accounts into C12510. Also on November 10,
2025, City Council approved a Purchase Agreement and related documents between
Circle K Stores Inc., a Texas corporation, and the City of Pueblo for the City to acquire
approximately the northern two-thirds of the former Convergys site for $600,000.00 The
Purchase Agreement was executed on December 19, 2025.
BACKGROUND:
The City participated in a public -private redevelopment structure involving the former
Convergys/Concentrix property in the 1200 block of East Orman Avenue. Circle K
Stores Inc. was pursuing acquisition of the larger site from Concentrix, and the City's
Purchase Agreement contemplated the City acquiring approximately the northern two-
thirds of the property for $600,000.00. The transaction was structured to support
redevelopment of the property, removal of a long -vacant building, increased taxable
activity within the urban renewal area, and future housing development on the portion
contemplated for City acquisition.
Docusign Envelope ID: BAB77E95-1C1E-828D-82E0-B174E53BD990
As part of the related private transaction, demolition of the former Convergys building
was required. Demolition was substantially completed in December 2025 and finalized
in January 2026. The City did not expend any of the $600,000.00 held in Project
Account C12510.
On April 8, 2026, the City was notified by Circle K that the City's Purchase Agreement
would be terminated after the underlying Circle K-Concentrix transaction did not
proceed. Following the termination, City staff discussed with Concentrix the possibility
of a direct City acquisition of the site in order to continue pursuing the housing
component of the original redevelopment concept. It was ultimately determined not to
proceed with a City acquisition at that time.
Although the acquisition did not close, the former building was demolished through the
private transaction process while City funds remained unspent. With the contemplated
acquisition no longer moving forward, the $600,000.00 in C12510 is no longer needed
for the Convergys Site Redevelopment project, This Ordinance transfers the remaining
funds to existing Project Account CIAN23 - Demolition of Unsafe Structures so the
funds remain available for future demolition and blight -removal needs elsewhere in
Pueblo, subject to any additional approvals required for a specific project.
FINANCIAL IMPLICATIONS:
Funding in the amount of $600,000.00 shall be transferred from Project Account C12510
- Convergys Site Redevelopment to existing Project Account CIAN23 - Demolition of
Unsafe Structures. No new project account is created. This Ordinance does not award
a contract or authorize expenditure of the transferred funds for any specific demolition
project.
BOARD/COMMISSION RECOMMENDATION:
None.
STAKEHOLDER PROCESS:
The original redevelopment transaction involved the City of Pueblo, Circle K Stores Inc.,
and Concentrix. Following termination of the City -Circle K Purchase Agreement, City
staff also discussed potential acquisition directly with Concentrix. This Ordinance is
limited to transferring remaining City funds between existing project accounts.
ALTERNATIVES:
If this Ordinance is not adopted, the $600,000.00 will remain in Project Account C12510
- Convergys Site Redevelopment unless City Council takes other action.
RECOMMENDATION:
Council consideration of the Ordinance.
ATTACHMENTS:
None
Docusign Envelope ID: BAB77E95-1C1E-828D-82E0-B174E53BD990
ORDINANCE NO. 11291
AN ORDINANCE TRANSFERRING FUNDS IN THE AMOUNT OF
$600,000.00 FROM PROJECT ACCOUNT C12510- CONVERGYS
SITE REDEVELOPMENT TO PROJECT ACCOUNT CIAN23-
DEMOLITION OF UNSAFE STRUCTURES
WHEREAS, on November 10, 2025, City Council adopted Resolution No. 16175
establishing Project No. C12510 - Convergys Site Redevelopment and transferring a total of
$600,000 into said project account; and
WHEREAS, City Council also approved a Purchase Agreement and related documents
between Circle K Stores Inc., a Texas corporation, and the City of Pueblo, a Colorado Municipal
Corporation, pursuant to which the City contemplated acquiring approximately the northern two-
thirds of the former Convergys site for $600,000.00; and
WHEREAS, demolition of the former Convergys building was substantially completed in
December 2025 and finalized in January 2026 as part of the related private redevelopment
transaction; and
WHEREAS, , on April 8, 2026, the City was notified that the Purchase Agreement would
be terminated after the underlying Circle K-Concentrix transaction did not proceed, and the City
has not expended any of the funds held in Project Account C12510; and
WHEREAS, Project Account CIAN23 - Demolition of Unsafe Structures is an existing
City project account used for demolition and abatement of unsafe structures; and
WHEREAS, the City desires to transfer the unexpended $600,000 from Project Account
C12510 to existing Project Account CIAN23, without establishing a new project account or
authorizing a specific demolition project by this Ordinance; NOW, THEREFORE,
BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1.
Funds in the amount of $600,000.00 are hereby transferred from Project Account
C12510 - Convergys Site Redevelopment to existing Project Account CIAN23 - Demolition of
Unsafe Structures.
SECTION 2.
No new project account is established by this Ordinance. The funds transferred to
Project Account CIAN23 are not allocated by this Ordinance to any specific demolition or
abatement project. Nothing in this Ordinance awards a contract or authorizes a specific
demolition project, and future expenditures shall be subject to applicable City requirements and
any additional City Council action required by law.
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SECTION 3.
The officers and staff of the City are authorized to perform any and all acts consistent
with the intent of this Ordinance to effectuate the transfer described herein.
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 September 28, 2026,
Final adoption of Ordinance by City Council on October 13, 2026. GocuSfgnvdby
President of City Council
Action by the Mayor:
IN Approved on 10/14/2026
❑ Disapproved on based on the following objections:
Mayor
Action by City Council After Disanproval 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 UocuS1grnet9 by:
134 Bhp
City Clerk