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HomeMy WebLinkAbout2023 Resolution No. 0191 RESOLUTION NO. 19 SERIES OF 2023 A RESOLUTION AUTHORIZING THE EXECUTION OF A SETTLEMENT AGREEMENT WITH ENGLEWOOD DEPOT, INC. AND OTHER LITIGATION DEFENDANTS REGARDING CONSTRUCTION, OPERATION OF DEPOT MUSEUM. WHEREAS, after a 2013 request for proposal process, Thomas and Patti Parson (the “Parsons”) entered into a contract to purchase the historic Englewood Depot at 675 W. Dartmouth, Englewood, from the City of Englewood on August 19, 2013, (the “Contract”); and WHEREAS, under the Contract, the Parsons paid the City $30,000 and the City transferred title of the Property to the Parsons on May 24, 2014, which was subsequently transferred to Englewood Depot, Inc., on December 22, 2017; and WHEREAS, the City filed a lawsuit now pending in the Arapahoe County District Court as Case No. 2022CV031853 against the Parsons and Englewood Depot, Inc. on September 30, 2022, alleging (among other things) breach of contract, unjust enrichment, and fraudulent inducement related to the proposal submitted by the Parsons for the purchase, rehabilitation, and operation of a museum on the Property; and WHEREAS, the City lawsuit requested the Court: (1) enter a declaratory judgment finding the Defendants failed to comply with their response to request for proposal to rehabilitate the property; and (2) either order Defendants to renovate the property within a reasonable time or transfer the property back to the City or order Defendants to compensate the City for the difference between the amount paid for the property and the fair market value of the property; and WHEREAS, the Parties wish to settle any and all matters and dismiss the Litigation by entering into a contract providing a reasonable time for Defendants to renovate the property, require the property to be utilized as a museum, clarify the City’s first right of refusal to reacquire the property, require exterior landscaping and maintenance, and other matters. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ENGLEWOOD, COLORADO, AS FOLLOWS: Section 1. The Englewood City Council hereby authorizes the execution of a Settlement Agreement and Release with Thomas Parson, Patti Parson, and Englewood Depot, Inc. to resolve the disputes between the parties, as alleged in Arapahoe County District Court Case No. 2022CV031853. The Settlement Agreement and Release shall be In substantially the same form as that attached hereto. DocuSign Envelope ID: 86CB42ED-1EDF-450F-A643-6FC24F81FFB0 2 Section 2. The Mayor, Mayor Pro Tem (in the Mayor’s absence), and/or City staff are hereby granted the authority to take all actions necessary to implement the provisions of Section 1 above. ADOPTED AND APPROVED this 17th day of July, 2023. Othoniel Sierra, Mayor ATTEST: Stephanie Carlile, City Clerk I, Stephanie Carlile, City Clerk for the City of Englewood, Colorado, hereby certify that the above is a true copy of Resolution No. 19, Series of 2023. Stephanie Carlile DocuSign Envelope ID: 86CB42ED-1EDF-450F-A643-6FC24F81FFB0