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HomeMy WebLinkAbout72050 RESOLUTION NO. 7205 A RESOLUTION APPROVING AN AGREEMENT BETWEEN PUEBLO, A MUNICIPAL CORPORATION AND PACIFIC AREO MANUFACTURING, INC. RELATING TO A JOB CREATING CAPITAL IMPROVEMENT PROJECT AT PUEBLO MEMORIAL AIRPORT AND AUTHORIZING THE EXPENDI- TURE OF FUNDS THEREFOR FROM THE 1992 SALES AND USE TAX CAPITAL IMPROVEMENT PROJECT FUND WHEREAS, Pacific Areo Manufacturing, Inc. has expressed a willingness to locate its business activities at Pueblo Memorial Airport and has committed to employ at its facilities at Pueblo Memorial Airport a minimum of 26 full -time employees, and WHEREAS, Pacific Areo Manufacturing, Inc. through the Pueblo Economic Development Corporation has made application for funds from the 1992 Sales and Use Capital Improvement Project Fund, and WHEREAS, the City Council is willing to approve such application for funds upon the terms and conditions set forth herein; NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1 The City Council does hereby find and determine that Pacific Areo Manufacturing, Inc.'s application for funds meets and com- plies with the criteria and standards established by Ordinance No. 5742 and will create employment opportunities justifying the expenditure of public funds. SECTION 2 The Agreement dated August 9, 1993 between Pueblo, a municipal corporation and Pacific Areo Manufacturing, Inc., a copy of which is attached hereto and incorporated herein, having been approved as to form by the City Attorney, is hereby approved. The President of the City Council is authorized to execute and deliver the Agreement in the name and on behalf of the City and the City Clerk is authorized and directed to affix the seal of the City thereto and attest same. SECTION 3. Funds in an amount not to exceed $77,835 are hereby authorized to be expended and made available to Pacific Areo Manufacturing, Inc. out of the 1992 Sales and Use Tax Capital Improvement Project Fund for the sole purpose of reimbursing it for the cost of labor, material or equipment consumed in remodeling the Stevia property at the Pueblo Memorial Airport as described in the attached Agreement. The funds hereby authorized to be expended shall be released and paid by the Director of Finance to Pacific Areo Manufacturing, Inc. upon receipt of written requests for payment certified by an authorized officer of Pacific Areo Manufacturing, Inc. that the amounts included in the requests for payment are for the costs of labor and material used and consumed in the construction and completion of the remodeling work for which reimbursement is requested. C A This Resolution shall become effective upon final passage. INTRODUCED: August 9, 1993 ATTEST: By HOWARD WHITLOCK Councilperson APPROVED: ?- CL yC� i y Clerk Pres' dent of the City Council TJ 68.35 -2- AGREEMENT THIS AGREEMENT entered into as of the 9th day of August, 1993 between Pueblo, a municipal corporation (the "City ") and Pacific Areo Manufacturing, Inc., a California corporation (the "Company "). WHEREAS, Company has expressed a willingness to locate its business activities at Pueblo Memorial Airport, and in furtherance thereof has through the Pueblo Economic Development Corporation made application for funds with the City, and WHEREAS, the City is willing to approve such application and make funds available to Company subject to and upon the terms and conditions of this Agreement. NOW, THEREFORE, City and Company agree as follows: 1. Company has or will enter into a lease of the real property located at Pueblo Memorial Airport commonly known as the "Stevia Property" (the "Lease ") and will conduct its business activities at such location (the "Leased Premises "). 2. Company has committed under the Lease to make certain improvements to the Leased Premises described in the attached Exhibit "A" (the "Improvements "). 3. If needed by Company, City will advance funds to Company in an amount not to exceed $77,835 for the sole purpose of reimbursing Company for its cost of the work performed in making the Improvements to the Leased Premises, subject to and contingent upon: (a) Company entering into and filing an executed copy of the Lease with the City Clerk of City. (b) Company submitting to the Director of Finance of City written requests for payment certified by an authorized officer of Company that the amounts included in the requests for payment are for the cost of labor, material or equipment used and consumed in the construction and completion of the Improvements for which reimbursement is requested. 4. Company acknowledges that the primary purpose of City entering into this Agreement and the sole benefit to the City for making such funds available to Company is the creation of jobs, therefore, Company represents and agrees that it will employ at a minimum 26 full -time employees at the Leased Premises on or before March 1, 1994. 5. Notwithstanding anything contained herein to the contrary, Company shall repay to City all funds advanced and paid to Company by City, provided, that, if Company meets and complies with the terms and provisions of this Agreement, an amount equal to $18,820 or one -half of the cost of the Improvements described in paragraph 6 of the attached Exhibit "A ", whichever is less, shall not be required to be repaid. The funds to be repaid to City by Company hereunder shall be due and owing on March 1, 1994. If Company shall default in such repayment or in its employment commitment set forth in paragraph 4 hereof, all funds advanced to Company by City shall accrue interest at the rate of ten (10) percent per annum from the date so advanced by the City. In the event of litigation arising out of this Agreement, the court shall award to the prevailing party its costs including reasonable attorney fees. 7. This Agreement expresses the entire understanding of the parties and incorporates all prior dealings and commitments with respect to the subject matter of this Agreement and may not be amended except in writing signed by City and Company. 8. This Agreement shall be construed and governed by the applicable laws of the State of Colorado. 9. Any notices hereunder shall be sufficiently given if given personally or mailed by first class mail, postage prepaid, addressed: (a) if to City, City Manager, City of Pueblo, 1 City Hall Place, Pueblo, Colorado, 81003, or (b) if to the Company, 3209 Kashiwa Street, Torrance, California, 90505, or to such other 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 prior written consent of City. Any attempted assignment without the consent of City shall be null and void. 11. The person signing this Agreement on behalf of a party hereto represents and warrants that such party and person have the requisite power and authority to enter into, execute, and perform this Agreement. Executed at Pueblo, Colorado, the day and year first above written. (SEAL] PUEBLO, A MUNICIPAL CORPORATION By Pres' ent of t e City Council -2- ATTEST: fe ry PACIFIC AREO MANUFACTURING, INC. By President TJ 68.34 -3- IMPROVEMENTS TO STEVIA BUILDING BY PACIFIC AREO MANUFACTURING, INC. (1) Run overhead air lines from compressor with drops as required. $ 6,695 (2) Add electrical circuits through overhead conduit as required, using existing service panels. $25,000 (:3) Install sign "Pacific Aelro Mfg., Inc." on front of building and /or at the road entrance adjacent to United Avenue. $ 3,000 (4) Add 8 foot X 8 foot double door between "laboratory" area and shop area. $ 1,500 (5) Install heating units in shop area as required. $ 4,000 (6) Pave road from United Avenue to building and parking area around building. Pavement will have 4 inches of asphalt over a 6 inch gravel base. Area will be graded for drainage prior to paving. Striping and stops for parking spaces will be incorporated as necessary. $37,640 TOTAL: $77,835 XHIBIT "A"