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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"