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HomeMy WebLinkAbout11299Docusign Envelope ID: CDC8CA9B-B7AC-838A-83BD-C429A3368ACE ORDINANCE NO. 11299 AN ORDINANCE APPROVING AN OPTION TO PURCHASE AGREEMENT BETWEEN THE CITY OF PUEBLO, A COLORADO MUNICIPAL CORPORATION AND PROJECT FALCON, AN ECONOMIC DEVELOPMENT PROSPECT, RELATING TO A FUTURE JOB CREATING CAPITAL IMPROVEMENT PROJECT, AND AUTHORIZING THE MAYOR TO EXECUTE THE SAME BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. The Option to Purchase Agreement ("Agreement") dated October 13, 2026, between the City of Pueblo and Project Falcon, a copy of which is attached hereto and incorporated herein by this reference, 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. The officers and staff of the City are authorized to perform any and all acts consistent with this Ordinance and the attached Agreement which are necessary or appropriate to implement the transactions described therein. SECTION 3 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 October 13, 2026. Final adoption of Ordinance by City Council on October 26, 2026. DocuSignedby: President of City Council Docusign Envelope ID: CDC8CA9B-B7AC-838A-83BD-C429A3368ACE Action by the Mayor: R Approved on ❑ Disapproved on 10/27/2026 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 Docusigned by: F4f +4 ... City Clerk Docusign Envelope ID: CDC8CA9B-B7AC-838A-83BD-C429A3368ACE City Clerk's Office Item # R7 Ciify of PUEBLO m;µ ...w Background Paper for Proposed Ordinance COUNCIL MEETING DATE: October 26, 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 APPROVING AN OPTION TO PURCHASE AGREEMENT BETWEEN THE CITY OF PUEBLO, A COLORADO MUNICIPAL CORPORATION AND PROJECT FALCON, AN ECONOMIC DEVELOPMENT PROSPECT, RELATING TO A FUTURE JOB CREATING CAPITAL IMPROVEMENT PROJECT, AND AUTHORIZING THE MAYOR TO EXECUTE THE SAME SUMMARY: Attached is an Ordinance approving an Option to Purchase Agreement with Project Falcon relating to a future job creating capital improvement project and authorizing the Mayor to sign the same. PREVIOUS COUNCIL ACTION: Not applicable to this Ordinance. BACKGROUND: The City is currently in confidential negotiations with an out-of-state corporation designated as Project Falcon, which is considering the construction of a large manufacturing facility to be located in the St. Charles Industrial Park. Project Falcon has asked for assurances from the City that if the Pueblo site is selected, approximately 200 acres of land will be available in the St. Charles Industrial Park for construction of the manufacturing facility. Any contract for the ultimate purchase of the property shall be part of an overall economic development package that includes an Employment Agreement for primary jobs and all of which will be subject to approval by City Council. FINANCIAL IMPLICATIONS: The attached agreement gives Project Falcon an option to purchase approximately 200 acres of land located in the St. Charles Industrial Park for its appraised value. Docusign Envelope ID: CDC8CA9B-B7AC-838A-83BD-C429A3368ACE BOARD/COMMISSION RECOMMENDATION: Not applicable to this Ordinance. STAKEHOLDER PROCESS: Not applicable to this Ordinance. ALTERNATIVES: A no -action alternative may cause the prospective employer to select another site for its manufacturing facility. RECOMMENDATION: Approval is recommended. ATTACHMENTS: 1. Option to Purchase Docusign Envelope ID: CDC8CA9B-B7AC-838A-83BD-C429A3368ACE OPTION TO PURCHASE REAL ESTATE AGREEMENT THIS OPTION TO PURCHASE REAL ESTATE AGREEMENT ("Agreement") is made this 26th day of October 2026, between the City of Pueblo, a Colorado municipal corporation (hereinafter referred to as "Owner"), and Project Falcon, an economic development prospect (hereinafter referred to as the "Purchaser"). Owner and Purchaser may be referred to individually as "Party" or collectively as the "Parties". WHEREAS, Purchaser desires to have the exclusive right and option (the "Option") to purchase certain real property owned by Owner in Pueblo County, Colorado as generally described in Exhibit A, attached hereto and incorporated by this reference (hereinafter the "Property"); and WHEREAS, the Owner is willing to grant this Option to the Purchaser. NOW THEREFORE, the Owner, in consideration of the sum of Ten Dollars ($10.00) and other good and valuable consideration received from the Purchaser, the receipt and adequacy of which are hereby acknowledged, Owner hereby grants to Purchaser an exclusive option to purchase the Property, as generally described in the attached Exhibit A, upon the following terms and conditions: 1. Option Period: This Option shall commence on October 26, 2026, and shall remain in effect until 11:59 PM (Mountain Daylight Time) on January 31, 2027. 2. Exercise of Option: This Option may be exercised by Purchaser at any time during the Option Period, by written notice to Owner which shall be given by personal delivery, or by certified mail, postage prepaid using the United States Postal Service, or by using a reputable national overnight courier service as follows: City of Pueblo Attn: Mayor 1 City Hall Place, Second Floor Pueblo, CO 81003 with a copy to: City Attorney 1 City Hall Place, Third Floor Pueblo, CO 81003 Said notice shall be deemed delivered on the day on which personal delivery is made, or three (3) days after deposit in the mail in the case of registered or certified mail, or on the date of delivery if made by overnight courier service. 3. Purchase Price: The total purchase price for the Property shall be the appraised value as determined by a licensed appraiser mutually acceptable to the Owner and Purchaser. Any contract for the ultimate purchase of the Property is conditioned upon acceptance and approval by Pueblo Docusign Envelope ID: CDC8CA9B-B7AC-838A-83BD-C429A3368ACE City Council by ordinance. Failure to approve a future Contract to Buy and Sell the Property shall not be a breach of this Agreement. 4. Condition of Property Owner disclaims any and all warranties with respect to the Property. Should Purchaser exercise this Option, Owner shall sell and convey to Purchaser, and Purchaser shall accept the Property "AS IS, WHERE IS, AND WITH ALL FAULTS." 5. Entry unto Property During the term of this Agreement, Purchaser, its agents, employees, contractors, and engineers, shall have the right from time to time to enter upon the Property at their own risk for the purpose of inspecting the same and conducting surveys, engineering studies, borings, soil tests, investigations, feasibility studies, and the like. Within a reasonable time after such entries Purchaser shall, to the extent practicable, restore the Property to its prior condition. 6. Failure to Exercise Option: If for any reason Purchaser does not exercise this Option within the time allowed all obligations under this Agreement shall terminate and Owner shall be entitled to keep the option money without accounting to Purchaser therefor. 7. Liability of Owner: In consideration of Owner entering into this Agreement, Purchaser waives and discharges Owner, its officers, agents, employees, and representatives from any and all monetary damages for breach of this Agreement In the event of an alleged breach of this Agreement by Owner, Purchaser's sole and exclusive remedy shall be to bring an equitable action for specific performance in the District Court of Pueblo, Colorado. 8. No Third -Party Liability The provisions of this Agreement are for the benefit of Owner and Purchaser only and are not for the benefit of any third -party and accordingly, no third -party shall have the right to enforce any of the provisions of this Agreement. 9. Governing Law and Venue: 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. Exclusive venue shall be in Pueblo County District Court. 10. Waiver of Jury Trial and Attorney Fees: To the extent permitted by law, Owner and Purchase each knowingly and voluntarily waiver their rights to a trial by jury for any claims brought pursuant to this Agreement. In the event a civil action is filed regarding the terms of this Agreement, the prevailing party shall be entitled to recover all costs and expenses incurred, including reasonable attorneys' fees. 11. Assignability: It is expressly understood that the right of purchase under this Option may not be assigned by Purchaser. 12. Counterparts and Electronic Signatures: This Agreement may be executed in two (2) or more 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. Facsimile or electronic signatures shall be allowed and considered the same as original signatures. 13. Signature Authority: Purchaser represents and warrants that (a) the person signing on its Docusign Envelope ID: CDC8CA9B-B7AC-838A-83BD-C429A3368ACE behalf has the authority and legal capacity to execute and deliver this Agreement on behalf of Purchaser, (b) the execution, delivery and performance of this Agreement by Purchaser has been duly authorized, and (c) no further consent, approval or authorization of any governing body is necessary to bind Purchaser to the terms of this Agreement. Executed as of the day and year first written above. ATTEST: DocuSigned by: G ________LF1C1AF8727B149A... City Clerk APPROVED A DocuSigned by: t,s 339611A1696A4DD... City Attorney By CITY OF PUEBLO, a Col-, .....T1 .se:1 Corporation 1 \� -3A8595DB7BCA462.. Heather uranam, iviayor PROJECT FALCON, an economic development prospect (Ic By:_ Its: Authorized Agent Stewart Austin Print Name Title: Authorized Agent Docusign Envelope ID: CDC8CA9B-B7AC-838A-83BD-C429A3368ACE EXHIBIT A A parcel of unimproved land designated as Lot 2 on the St. Charles Industrial Park Filing No. 4 Subdivision plat map attached hereto. An area containing 297.538 acres, more or less. EXHIBIT A Z Ta LIE II UU T llz IL PA Gig FUNS NO. 4 A PARCEL OF LAND LOCATED IN THE NORTHEAST ONE -QUARTER OF SECTION 1, TOWNSHIP 22 SOUTH, RANGE 65 WEST, THE EAST ONE-HALF OF SECTION 36, TOWNSHIP 21 SOUTH, RANGE 65 WEST, THE NORTHWEST ONE -QUARTER OF SECTION 6, TOWNSHIP 22 SOUTH, RANGE 64 WEST, AND SECTION 31, TOWNSHIP 21 SOUTH, RANGE 64 WEST, THE 6TH P.M. IN THE COUNTY OF PUEBLO AND STATE OF COLORADO I N891904'W BASIS OF B ARINCS � I I I I II I ii (recccv1-11µ 03r6)M3N I � �Cp315a e906x rearrvn acs ' i 1 c ! 759, 410.70 SF _ 17.434 ACRES_ sa I m °No°7; "gt� n�recemn° s�� 8 I lad N88595YW 12500 0IIADrcw No .soaiai z�°c�vi�oN00o�ieos es�� I � ens w �� 1° vcncv.mv Na , cuwr �, 9383 � z ''5 rececvn°n Na ,sos3e3 A°wr 1 / I I rR3 Eo°o�°°°EA o��av I I� I C I nnlc xavc ro°venvn�cs— izssz ,°°ra / P R E P A R E D LOT 2 I2.84 755.83 SF »Es 287:538 ACRES M1� aR-1�in�sz00i L -41x08 00 412806( D 2806 ( ( YJ II 24.26 BASIS OF BEARINGS LEGEND gym, m�s�5a ' recttvn°ry rva r2 nz LOT' 5,740,535.83 SF 154.741 ACRES NHTY O��S5 I {IE�EPS W 1248 N62'H'JB•E (N) N00625W % 22&22 (N) 95A94 ii - <=x a3sssnOS11NC LINE ROAD RONi 0 -WAY AS O. I O�aEGf� 02 I 2 — \L� N85s S•W 2582 B Y NORTHSTAR ENGINEERING AND SURVEYING, INC.