HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 07/18/2000 - FIRST READING OF ORDINANCE NO. 82, 2000, AMENDING AGENDA ITEM SUMMARY ITEM NUMBER: 16
DATE: July 18, 2000
FORT COLLINS CITY COUNCIL STAFF:
Alan Krcmarik
SUBJECT:
First Reading of Ordinance No. 82, 2000, Amending Ordinance No. 118, 1999, Which Provided
for the Issuance of$8,890,000 of Private Activity Bonds for the Dry Creek Apartments Project
and Authorizing the Execution of Certain Related Documents and Instruments. (Option I and
Option 14
RECOMMENDATION:
Staff recommends adoption of Option 1 of the Ordinance on First Reading.
EXECUTIVE SUMMARY:
Representatives from Concorde Capital Corporation contacted the City of Fort Collins in
December 1998 requesting that the City consider issuing private activity bonds for the purpose
of financing an affordable housing project. Council approved the issuance of $8,980,000 of
bonds for the project on August 3, 1999, by adopting Ordinance No. 118, 1999. Ordinance No.
118, 1999 provided for temporary financing that would be converted to permanent financing
within one year. Although the project has progressed, the permanent financing is not yet
completed. The Corporation has negotiated with the bond holders for an extension of time to
complete the permanent financing. This Ordinance will authorize the amendment of the
appropriate documents to provide the additional time needed to complete the permanent
financing.
The project will consist of up to 150 dwelling units. Twenty-seven of the units will be for
individuals or households making no greater that 60% of area median income. Forty percent of
the units will be for households under the 50% of median income level. The remaining units of
the project, 33%, will be rented at market rates. The project uses the City's 1999 private activity
bond allocation of $2,684,075 and an additional allocation of $6.3 million from the State of
Colorado. The project is located on an irregularly shaped parcel in northern Fort Collins.
Adjusting the project to the shape of the parcel has been part of delay in the completion of the
financing. The Planning Department reports that the project has developed a land use plan that
is expected to be presented for review in the next few weeks. The agenda item summary from
August 1999 is attached for additional background.
Two options of Ordinance No. 82, 2000, are being presented for Council consideration. Option
I is a regular ordinance that would require two readings and would not go into effect until
August 25, 2000. Option 2 of Ordinance No. 82, 2000 is being presented as an emergency
ordinance to better ensure that the tax-exempt status of the bonds is preserved and that the
development will be completed.
DATE: July 18, 2000 2
ITEM NUMBER: 16
Staff is not concerned that this situation presents such a threat to the welfare of the community
that an emergency ordinance is warranted. Therefore, staff is recommending adoption of
Option 1. However, Council has broad discretion in determining whether an emergency exists,
and may believe the passage of the emergency ordinance (Option 2) is the more appropriate
approach.
ORDINANCE NO. 82, 2000 Option 1
AN ORDINANCE AUTHORIZING THE EXECUTION AND DELIVERY OF A FIRST
AMENDMENT TO TRUST INDENTURE IN CONNECTION WITH THE AMENDMENT OF
THE ADJUSTABLE RATE DEMAND MULTIFAMILY HOUSING REVENUE BONDS,
SERIES 1999 (DRY CREEK APARTMENTS PROJECT), OF THE CITY OF FORT
COLLINS, COLORADO, THE PROCEEDS OF WHICH WERE LOANED TO REDWOOD
HOUSING LIMITED PARTNERSHIP TO FINANCE THE ACQUISITION, DESIGN,
CONSTRUCTION, INSTALLATION AND EQUIPPING OF MULTIFAMILY RENTAL
HOUSING FACILITIES LOCATED WITHIN THE CITY OF FORT COLLINS, COLORADO;
AND AUTHORIZING OTHER ACTIONS IN CONNECTION THEREWITH.
WHEREAS, the City of Fort Collins, Colorado (the "City"), is a municipal corporation
duly organized and existing as a home rule city under the laws of the State of Colorado (the
"State"), in particular under the provisions of Article XX of the State Constitution and under the
home-rule charter of the City (the "Charter"), and is a political subdivision of the State; and
WHEREAS, subject to certain exceptions herein, all legislative powers possessed by the
City, conferred by Article XX of the State Constitution, contained in the Charter or otherwise
existing by operation of law, are vested in the City Council of the City (the "City Council"); and
WHEREAS, pursuant to Article XX of the State Constitution, the Charter and its plenary
grant of powers for the government and administration of its local and municipal affairs and the
County and Municipality Development Revenue Bond Act, as amended, §§29-3-101 C.R.S. (the
"Act'), the City heretofore issued its Adjustable Rate Demand Multifamily Housing Revenue
Bonds, Series 1999 (Dry Creek Apartments Project) (the 'Bonds") to finance the acquisition,
design, construction, installation and equipping of a multifamily housing facility for persons of
low and moderate income comprised of approximately 150 residential units and related
amenities and equipment, located on a parcel of land at the southeast corner of Redwood Street
and Conifer Street within the boundaries of the City, known as Dry Creek Apartments (the
"Development") for Redwood Housing Limited Partnership, an Ohio limited partnership (the
'Borrower"); and
WHEREAS, the Bonds are special, limited obligations of the City, payable solely from
the monies pledged to the payment thereof, and no holders of any Bonds shall ever have the right
to compel the exercise of the taxing power of the City to pay the principal of the Bonds or the
interest thereon or any cost incident thereto, or to enforce payment thereof against any property
of the City. The Bonds do not constitute a debt or multiple-fiscal year financial obligation of the
City, the City is not liable therefore and neither the faith, revenues, credit nor taxing power of
the City is pledged to the payment of the principal of or interest on the Bonds; and
WHEREAS, the City has determined to amend the Bonds in order to extend the Initial
Rate Period (as defined in the hereinafter defined Indenture); and
• WHEREAS, in connection with the amendment of the Bonds it is necessary to provide
for certain amendments to the Trust Indenture dated as of August 1, 1999 (the "Indenture")
between the Issuer and U.S. Bank National Association,as Trustee (the "Trustee").
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS,
COLORADO, as follows:
Section 1. Definitions. All defined terms used herein and those not otherwise
defined herein shall have the respective meanings given to them in the Indenture.
Section 2. Authorization of Amendment and All Other Documents to be Executed by
the Issuer. The First Amendment to Trust Indenture dated its date of execution and delivery (the
"Amendment"), by and between the Issuer and the Trustee, in substantially the form submitted to
the Issuer, is hereby approved in all respects and the proper officers and employees of the City,
including but not limited to the Mayor and the Clerk, are hereby authorized and directed on
behalf of and in the name of the City, to execute and deliver the Amendment.
Such officers and employees are each hereby separately authorized to take any and all
actions and to execute such financing statements, assignments, certificates and other instruments
that may be necessary or appropriate in the opinion of Bond Counsel, in order to effect the
amendment of the Indenture and the Bonds and the intent of this Ordinance including, without
limitation, any documents necessary to maintain the exclusion from gross income for federal
income tax purposes of interest on the Bonds.
Section 3. Subsequent Revisions to Documents. The Financial Officer of the City is
hereby authorized to approve such changes to and completion of missing information from the
Amendment, as he deems necessary or advisable and which are not materially inconsistent with
this Ordinance or the form of documents presented to the City Council. The approval of the
Financial Officer with respect to any such changes shall constitute approval for all purposes of
such changes by the City Council without need for any further action or separate approval by the
City Council, and the execution and delivery of any of the foregoing documents by any person
authorized herein shall constitute conclusive evidence of such approval by the Financial Officer.
Section 4. Further Assurances. The proper officers and employees of the City are
hereby authorized and directed to take such action, including executing and delivering such
additional documents and financing statements, as they deem necessary or advisable to carry out
the purposes of this Ordinance.
Section 5. Irrgpealability. Upon full and complete execution and delivery of the
Amendment, this Ordinance and the Indenture, as amended, shall constitute irrevocable contracts
between the City and the owners of the Bonds and shall be irrepealable until all of the principal
of and interest on the Bonds have been paid in full and the Bonds have been canceled and
discharged.
Section 6. Severability. If for any reason any section, subsection, clause or other
provision of this Ordinance shall be declared invalid or unenforceable, the invalidity or
unenforceability of such section, subsection, clause or other provision shall not affect the validity
or enforceability of any other provision of this Ordinance.
Section 7. Repealer. All bylaws, orders, resolutions and ordinances, or parts thereof,
inconsistent herewith are hereby repealed to the extent only of such inconsistency. This repealer
shall not be construed as reviving any bylaw, order, resolution or ordinance, or part thereof,
heretofore repealed.
• Section 8. Ratification of Prior Actions. All actions taken prior to the effective date
hereof not inconsistent with the provisions of this Ordinance by any official, employee or agent
of the City with respect to any matter addressed herein are hereby ratified and confirmed in all
respects.
Section 9. Pavment of Costs. All costs incurred by the City in connection with the
Amendment and the adoption of this Ordinance, including the fees and costs of the City's outside
legal counsel, shall be paid by the Borrower.
READ, PASSED ON FIRST READING AND ORDERED PUBLISHED ONCE BY
NUMBER AND TITLE ONLY this 18th day of July, A.D. 2000.
CITY OF FORT COLLINS, COLORADO
Mayor
(CITY)
(SEAL)
ATTEST:
•
City Clerk
READ AND PASSED ON SECOND READING this_day of August, 2000.
Mayor
ATTEST:
City Clerk
•
• ORDINANCE NO. 82, 2000 Option 2
AN ORDINANCE AUTHORIZING THE EXECUTION AND DELIVERY OF A FIRST
AMENDMENT TO TRUST INDENTURE IN CONNECTION WITH THE AMENDMENT OF
THE ADJUSTABLE RATE DEMAND MULTIFAMILY HOUSING REVENUE BONDS,
SERIES 1999 (DRY CREEK APARTMENTS PROJECT), OF THE CITY OF FORT
COLLINS, COLORADO, THE PROCEEDS OF WHICH WERE LOANED TO REDWOOD
HOUSING LIMITED PARTNERSHIP TO FINANCE THE ACQUISITION, DESIGN,
CONSTRUCTION, INSTALLATION AND EQUIPPING OF MULTIFAMILY RENTAL
HOUSING FACILITIES LOCATED WITHIN THE CITY OF FORT COLLINS, COLORADO;
AUTHORIZING OTHER ACTIONS IN CONNECTION THEREWITH; AND DECLARING
AN EMERGENCY.
WHEREAS, the City of Fort Collins, Colorado (the "City"), is a municipal corporation
duly organized and existing as a home rule city under the laws of the State of Colorado (the
"State"), in particular under the provisions of Article XX of the State Constitution and under the
home-rule charter of the City (the "Charter"), and is a political subdivision of the State; and
WHEREAS, subject to certain exceptions herein, all legislative powers possessed by the
City, conferred by Article XX of the State Constitution, contained in the Charter or otherwise
existing by operation of law, are vested in the City Council of the City (the "City Council'); and
• WHEREAS, pursuant to Article XX of the State Constitution, the Charter and its plenary
grant of powers for the government and administration of its local and municipal affairs and the
County and Municipality Development Revenue Bond Act, as amended, §§29-3-101 C.R.S. (the
"Act"), the City heretofore. issued its Adjustable Rate Demand Multifamily Housing Revenue
Bonds, Series 1999 (Dry Creek Apartments Project) (the 'Bonds") to finance the acquisition,
design, construction, installation and equipping of a multifamily housing facility for persons of
low and moderate income comprised of approximately 150 residential units and related
amenities and equipment, located on a parcel of land at the southeast corner of Redwood Street
and Conifer Street within the boundaries of the City, known as Dry Creek Apartments (the
"Development") for Redwood Housing Limited Partnership, an Ohio limited partnership (the
'Borrower"); and
WHEREAS, the Bonds are special, limited obligations of the City, payable solely from
the monies pledged to the payment thereof, and no holders of any Bonds shall ever have the right
to compel the exercise of the taxing power of the City to pay the principal of the Bonds or the
interest thereon or any cost incident thereto, or to enforce payment thereof against any property
of the City. The Bonds do not constitute a debt or multiple-fiscal year financial obligation of the
City, the City is not liable therefore and neither the faith, revenues, credit nor taxing power of
the City is pledged to the payment of the principal of or interest on the Bonds; and
WHEREAS, the City has determined to amend the Bonds in order to extend the Initial
Rate Period(as defined in the hereinafter defined Indenture); and
• WHEREAS, in connection with the amendment of the Bonds it is necessary to provide
for certain amendments to the Trust Indenture dated as of August 1, 1999 (the "Indenture")
between the Issuer and U.S. Bank National Association, as Trustee (the "Trustee").
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS,
COLORADO, as follows:
Section 1. Definitions. All defined terms used herein and those not otherwise
defined herein shall have the respective meanings given to them in the Indenture.
Section 2. Authorization of Amendment and All Other Documents to be Executed by
the Issuer. The First Amendment to Trust Indenture dated its date of execution and delivery (the
"Amendment"), by and between the Issuer and the Trustee, in substantially the form submitted to
the Issuer, is hereby approved in all respects and the proper officers and employees of the City,
including but not limited to the Mayor and the Clerk, are hereby authorized and directed on
behalf of and in the name of the City,to execute and deliver the Amendment.
Such officers and employees are each hereby separately authorized to take any and all
actions and to execute such financing statements, assignments, certificates and other instruments
that may be necessary or appropriate in the opinion of Bond Counsel, in order to effect the
amendment of the Indenture and the Bonds and the intent of this Ordinance including, without
limitation, any documents necessary to maintain the exclusion from gross income for federal
income tax purposes of interest on the Bonds.
Section 3. Subsequent Revisions to Documents. The Financial Officer of the City is
hereby authorized to approve such changes to and completion of missing information from the
Amendment, as he deems necessary or advisable and which are not materially inconsistent with
this Ordinance or the form of documents presented to the City Council. The approval of the
Financial Officer with respect to any such changes shall constitute approval for all purposes of
such changes by the City Council without need for any further action or separate approval by the
City Council, and the execution and delivery of any of the foregoing documents by any person
authorized herein shall constitute conclusive evidence of such approval by the Financial Officer.
Section 4. Further Assurances. The proper officers and employees of the City are
hereby authorized and directed to take such action, including executing and delivering such
additional documents and financing statements, as they deem necessary or advisable to carry out
the purposes of this Ordinance.
Section 5. Irrepealability. Upon full and complete execution and delivery of the
Amendment,this Ordinance and the Indenture, as amended, shall constitute irrevocable contracts
between the City and the owners of the Bonds and shall be irrepealable until all of the principal
of and interest on the Bonds have been paid in full and the Bonds have been canceled and
discharged.
Section 6. Severability. If for any reason any section, subsection, clause or other
provision of this Ordinance shall be declared invalid or unenforceable, the invalidity or
unenforceability of such section, subsection, clause or other provision shall not affect the validity
or enforceability of any other provision of this Ordinance.
Section 7. RRe ealer. All bylaws, orders, resolutions and ordinances, or parts thereof,
inconsistent herewith are hereby repealed to the extent only of such inconsistency. This repealer
shall not be construed as reviving any bylaw, order, resolution or ordinance, or part thereof,
heretofore repealed.
Section 8. Ratification of Prior Actions. All actions taken prior to the effective date
hereof not inconsistent with the provisions of this Ordinance by any official, employee or agent
of the City with respect to any matter addressed herein are hereby ratified and confirmed in all
respects.
Section 9. Payment of Costs. All costs incurred by the City in connection with the
Amendment and the adoption of this Ordinance, including the fees and costs of the City's outside
legal counsel, shall be paid by the Borrower.
Section 10. Emergency Ordinance: Effective Date. The immediate passage of this
Ordinance is hereby determined by the Council to be necessary and in the public interest for the
immediate preservation of the public health, safety and welfare and, in particular, to preserve the
tax-exempt status of the Bonds and to ensure that the Development will be completed. Toward
that end, this Ordinance must take effect prior to August 1, 2000, the mandatory tender date for
the Bonds. Therefore, an emergency exists, and this Ordinance shall be effective immediately
upon its passage.
READ AND FINALLY PASSED AS AN EMERGENCY ORDINANCE AND
ORDERED PUBLISHED BY NUMBER AND TITLE ONLY ON this 18th day of July, A.D.
2000.
CITY OF FORT COLLINS, COLORADO
Mayor
(CITY)
(SEAL)
ATTEST:
City Clerk
i
AGENDA ITEM SUMMARY Il cM NUMBER: 16
FORT COLLINS CITY COUNCIL DATE: July 20, 1999
STAFF: Alan Krcmarik
SUBJECT:
First Reading of Ordinance No. 118, 1999, Authorizing the Issuance of Not to Exceed $8,980,000
of Private Activity Bonds for the Dry Creek Apartments Project and Authorizing the Execution of
Certain Related Documents and Instruments.
RECOMMENDATION: COPY
Staff recommends adoption of the Ordinance on First Reading
FINANCIAL IMPACT:
The total amount of the private activity bond issue will be an amount not to exceed$8,980,000. The
City serves as the issuer of the bonds, however, the bonds are not obligations of the City of Fort
Collins. The debt service will be paid from rental income to the developer from the housing units
constructed with the proceeds of the bonds. The affordable units within the project will carry
10 monthly rents of$551 to $794 per month. This will allow individuals and families with income at
50%of the area median income to live in the units. The units will remain affordable for at least 20
years subject to the trust indenture and financing documents.
EXECUTIVE SUMMARY:
Representatives from Concorde Capital Corporation contacted the City of Fort Collins in December
of 1998 requesting that the City consider issuing private activity bonds for the purpose of supporting
an affordable housing project. Under the federal and state laws,the project would qualify as a low-
income rental housing project. The project is to be located in the north part of Fort Collins near the
southeast corner of the intersection of Redwood and Conifer. The project will consist of up to 150
dwelling units. The site is approximately 13.6 acres. Twenty-seven of the units will be for
individuals or households making no greater than 60%of area median income. Forty percent of the
units will be for households under the 50% median income level. The remainder of the project
(33%) will be rented at market rates. The City Council considered the request and approved a
resolution inducing the project on January 19, 1999. This action used all of the City's 1999 private
activity bond allocation of$2,684,075. Concorde Capital and City staff prepared an allocation to
the state for additional bonding capacity and made a presentation to the state allocation board. The
board awarded$6.3 million of additional allocation to the project.
Concorde Capital and its financing team have secured the appropriate financial guarantees and
structured the financing. The interest rate on the bonds will be about 3.9%in the variable rate mode
and the final maturity of the bonds will not exceed 43 years from the date of issuance.
DATE: July 20, 1999 2 ITEM NUMBER: 16
BACKGROUND:
Staff has attached the agenda item summary from the inducement resolution including the site map
of the location of the project.
Project Costs
The following figures are the best estimates available as of the deadline for first reading. They are
subject to change up to the sale of the bonds.
Sources of Funds
Tax Exempt Private Activity Bonds $ 8,890,000
City HOME Program Support 250,000
Private Equity Loan 673,500
Equity Contribution from Developer 4,913,804
Total Project Sources $14,817,304
Applications of Funds
Land Acquisition $ 800,000
Project Construction 9,429,000
Soft Costs(impact fees, cost of issuance, reserves
developer fees, interest, etc.) 4,588,304
Total Project Uses $14,817,304
Sources and Uses of Bond Proceeds
The following figures are also subject to change up to the sale of the bonds.
Sources
Proceeds from the Sale of the Bonds $ 8,890,000
Uses
Project Construction Costs 8,712,200
Costs of Issuance 177,800
Total Uses of Bond Proceeds $8,890,000
DATE: July 20, 1999 3 ITEM NUMBER: 16
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Term and Estimated Interest Rate on the Bonds
The bonds will be initially offered with a variable interest rate. The estimated rate on the variable
rate bonds will be about 3.9%. The interest rate can also be fixed on the bonds. When the interest
rate on the bonds is adjusted, the bondholders have the option to tender the bonds back for
repurchase. The payment of principal and interest on the bonds and any repurchase obligations are
supported by a letter of credit issued by a AA rated bank, Fifth Third Bank of Cincinnati, Ohio.
Recommendation
The Affordable Housing Board reviewed the project proposal at the time of its inducement and
recommended it for Council's approval. Staff finds that the project supports Council's goal of
increasing the quality and affordability of housing in the community. The project has also met the
City's adopted policies for multi-family private activity bonds. Therefore, staff recommends
adoption of the Ordinance on first reading.
This Project uses the City's private activity bond allocation of$2,684,075 to leverage $12,133,229
of state allocation and private sector investment.
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COPY
ORDNANCE NO. 118, 1999
AN ORDNANCE AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $8,980,000
ADJUSTABLE RATE DEMAND MULTIFAMILY HOUSING REVENUE BONDS,SERIES 1999
(DRY CREEK APARTMENTS PROJECT), BY THE CITY OF FORT COLLINS,COLORADO,
THE PROCEEDS OF WHICH SHALL BE LOANED TO REDWOOD HOUSING LIMITED
PARTNERSHIP TO FINANCE THE ACQUISITION,CONSTRUCTION,NSTALLATIONAND
EQUIPPING OF A MULTIFAMILY RESIDENTIAL RENTAL HOUSING FACILITY;
AUTHORIZING THE ISSUANCE OF ADDITIONAL BONDS;PROVIDING FOR THE PLEDGE
AND ASSIGNMENT OF REVENUES FOR THE PAYMENT OF SUCH BONDS;
AUTHORIZING A LOAN AGREEMENT AND A TRUST INDENTURE APPROPRIATE FOR
THE PROTECTION AND DISPOSITION OF SUCH REVENUES AND TO FURTHER SECURE
SUCH BONDS; AUTHORIZING A BOND PURCHASE AGREEMENT AND PRELIMINARY
AND FINAL OFFICIAL STATEMENTS;AUTHORIZING A DECLARATION OF RESTRICTIVE
COVENANTS AND REGULATORY AGREEMENT AND SUCH OTHER DOCUMENTS AS
MAY BE NECESSARY TO EFFECT AND CARRY OUT THE PURPOSES OF THIS
ORDNANCE AND AUTHORIZING OTHER ACTIONS N CONNECTION WITH THE
ISSUANCE OF SUCH BONDS.
WHEREAS,the City of Fort Collins,Colorado(the"City"),is a municipal corporation duly
organized and existing as a home rule city under the laws of the State of Colorado (the "State"), in
particular under the provisions of Article XX of the State Constitution and under the home-rule
charter of the City (the "Charter"), and is a political subdivision of the State;
WHEREAS,subject to certain exceptions herein,all legislative powers possessed by the City,
conferred by Article XX of the State Constitution,contained in the Charter or otherwise existing by
operation of law, are vested in the City Council of the City (the "City Council');
WHEREAS, Redwood Housing Limited Partnership, an Ohio limited partnership (the
'Borrower"),has requested the City to finance the acquisition, design, construction and equipping
of a multifamily housing facility for persons of low and moderate income comprised of
approximately 150 residential units and related amenities and equipment,located on a parcel of land
at the southeast comer of Redwood Street and Conifer Street within the boundaries of the City,
known as Dry Creek Apartments(the"Development")through the issuance of the City's Adjustable
Rate Demand Multifamily Housing Revenue Bonds, Series 1999 (Dry Creek Apartments Project)
(the "Bonds");
WHEREAS, pursuant to Article XX of the State Constitution, the Charter and its plenary
grant of powers for the government and administration of its local and municipal affairs and the
County and Municipality Development Revenue Bond Act, as amended, §§29-3-101 C.R.S. (the
"Act"), the City is empowered to issue and sell the Bonds to finance the Development for the
Borrower;
WHEREAS, the Bonds are special, limited obligations of the City, payable solely from the
monies pledged to the payment thereof, and no holders of any Bonds shall ever have the right to
compel the exercise of the taring power of the City to pay the principal of the Bonds or the interest
thereon or any cost incident thereto,or to enforce payment thereof against any property of the City.
• The Bonds shall not constitute a debt or multiple-fiscal year financial obligation of the City,the City
shall not be liable therefore and neither the faith, revenues, credit nor taking power of the City is
pledged to the payment of the principal of or interest on the Bonds;
WHEREAS, the City desires to have the Development meet the requirements of Section
142(d)(1)(B)of the Code by having forty percent(40%)or more of the Development units occupied
by individuals and families whose income is sixty percent (60%) or less of the Median Income for
the Area, and in order to ensure that these and other requirements of the Code are complied with,
desires to enter into the Regulatory Agreement (defined below) to be recorded among the land
records of Larimer County, Colorado;
WHEREAS, the City Council hereby determines that the acquisition, construction and
financing of the Development are in the best interests of the City and that the City should issue the
Bonds to pay a portion of the costs of the Development in order to encourage and assist the Borrower
to design, acquire, construct and equip the Development;
WHEREAS, as required under the Act, the City Council hereby determines that (1) the
amount necessary in each year to pay the principal of and the interest on the Bonds is set forth in the
Indenture (defined below), (2) no reserve funds need to be established in connection with the
retirement of the Bonds or the maintenance of the Development, and (3) under the terms and
conditions of the Loan Agreement (defined below), the Borrower is required to maintain the
Development and to carry all proper insurance with respect thereto; and
WHEREAS, proposed fortes of the following documents have been presented to the City
for approval in connection with the issuance,sale,and delivery of the Bonds and are on file with the
City Clerk:
1. Trust Indenture(the"Indenture")between the City and a trustee to be named therein
(the"Trustee"),with respect to the proposed Bonds, including the proposed form of
the Bonds;
2. Loan Agreement(the"Loan Agreement")between the City and the Borrower,with
respect to the Bonds;
3. Bond Purchase Agreement (the "Bond Purchase Agreement") with respect to the
Bonds among the City, the Borrower, Fifth Third Bank, as provider of a letter of
credit(the"Bank"),and Kirkpatrick,Pettis, Smith, Polian Inc. (the"Underwriter");
4. Declaration of Restrictive Covenants and Regulatory Agreement (the "Regulatory
Agreement") among the City,the Borrower and the Trustee; and
5. Preliminary Official Statement(the"Preliminary Official Statement") with respect
to the Bonds.
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS,
COLORADO,AS FOLLOWS:
-2-
Section 1. Authorization and Creation of Bond Issue There is hereby authorized an
. issue of revenue bonds designated as "City of Fort Collins, Colorado Adjustable Rate Demand
Multifamily Housing Revenue Bonds, Series 1999 (Dry Creek Apartments Project), (the "Bonds")
to finance the design,acquisition,construction and equipping of the Development. The Bonds shall
be in an aggregate principal amount not to exceed $8,980,000, shall bear interest at a weighted
average interest rate not to exceed 10%per annum and shall mature over a period of not to exceed
43 years.
Section 2. Issuance and Sale of Bonds. The City shall issue the Bonds pursuant to and
in accordance with the terms and conditions of the Indenture. The Bonds shall be sold to the
Underwriter pursuant to the Bond Purchase Agreement and sold to other investors pursuant to the
Official Statement. The proceeds of the Bonds shall be applied in accordance with the terms and
conditions of the Indenture and the Loan Agreement. The form,terms and conditions of the Bonds,
as described in the Indenture and the exhibits thereto, are hereby approved in all respects. The
proper officers and employees of the City,including but not limited to the Mayor,the Clerk and the
City Manager are hereby authorized and directed,on behalf of and in the name of the City,to execute
and deliver the Bond Purchase Agreement and the Bonds and to cause the City to perform its
obligations thereunder. The preparation and distribution of the Preliminary Official Statement with
respect to the public offering of the Bonds is hereby authorized and approved. The City Council also
hereby authorizes the preparation and distribution of a final Official Statement in conjunction with
the offer and sale of the Bonds to the public. The final Official Statement shall contain any
additional or updated information so that it will not contain any untrue statement of a material fact
or omit to state a material fact necessary in order to make the statements made therein,in light of the
circumstances under which they were made, not misleading. If necessary, the Mayor,the Clerk or
. the City Manager are hereby authorized to execute copies of the final Official Statement. The
Preliminary Official Statement is hereby deemed to be final as of its date within the meaning of Rule
15c2-12(b)(1) of the Securities and Exchange Commission.
Section 3. Repayment of Bonds. The Bonds shall constitute special,limited obligations
of the City payable solely out of the monies payable under the Loan Agreement as provided in the
Indenture. The Bonds shall not constitute the debt or indebtedness or a multiple-fiscal year financial
obligation of the City, the State or any county, municipality or political subdivision of the State
within the meaning of any provision or limitation of the Constitution nor statutes of the State, the
Charter or the charter of any other political subdivision of the State. The Bonds shall not constitute
or give rise to any pecuniary liability or financial obligation whatsoever or a charge against the
general credit or taxing powers of the City, the State or any county, municipality or political
subdivision of the State.
Section 4. Pledge and Assignment of Pledged Revenues. The City shall pledge and
assign to the Trustee the Trust Estate as security for the repayment of the Bonds pursuant to and in
accordance with the terms and conditions of the Indenture. The Indenture, substantially similar in
form presented to the City Council, and the City's execution,delivery and performance thereof,are
hereby approved in all respects,and the proper officers and employees of the City,including but not
limited to the Mayor and the Clerk,are hereby authorized and directed,on behalf of and in the name
of the City, to execute and deliver the Indenture and to cause the City to perform its obligations
thereunder.
Section 5. Agreements. The Loan Agreement and Regulatory Agreement, each
substantially in the form presented to the City Council, and the City's execution, delivery and
performance thereof,are hereby approved in all respects,and the proper officers and employees of
the City, including but not limited to the Mayor and the Clerk, are hereby authorized and directed,
on behalf of and in the name of the City,to execute and deliver the Loan Agreement and Regulatory
Agreement.
Section 6. Subsequent Revisions to Documents. The Financial Officer is hereby
authorized to approve such changes to and completion of missing information from the Indenture,
the Loan Agreement,the Bond Purchase Agreement and the Regulatory Agreement prior to the date
of issuance of the Bonds as he deems necessary or advisable and which are not materially
inconsistent with this Ordinance or the form of documents presented to the City Council. The
approval of the Financial Officer with respect to any such changes shall constitute approval for all
purposes of such changes by the City Council without need for any further action or separate
approval by the City Council,and the execution and delivery of any of the foregoing documents by
any person authorized herein shall constitute conclusive evidence of such approval by the Financial
Officer.
Section7. Further Assurances. The proper officers and employees ofthe City are hereby
authorized and directed to take such action, including executing and delivering such additional
documents and financing statements,as they deem necessary or advisable to carry out the purposes
of this Ordinance, including but not limited to the issuance and sale of the Bonds and the
consummation of the transactions contemplated by the Indenture, the Loan Agreement, the Bond
Purchase Agreement and the Regulatory Agreement.
Section 8. Irrepealability. Upon issuance and sale of the Bonds,this Ordinance and the
Indenture shall constitute irrevocable contracts between the City and the owners of the Bonds and
shall be irrepealable until all of the principal of and interest on the Bonds have been paid in full and
the Bonds have been canceled and discharged.
Section 9. Severability. If for any reason any section, subsection, clause or other
provision of this Ordinance shall be declared invalid or unenforceable, the invalidity or
unenforceability of such section, subsection, clause or other provision shall not affect the validity
or enforceability of any other provision of this Ordinance.
Section 10. Repealer. All bylaws, orders, resolutions and ordinances, or parts thereof,
inconsistent herewith are hereby repealed to the extent only of such inconsistency. This repealer
shall not be construed as reviving any bylaw, order, resolution or ordinance, or part thereof,
heretofore repealed.
Section 11. Ratification of Prior Actions. All actions taken prior to the effective date
hereof not inconsistent with the provisions of this Ordinance by any official, employee or agent of
the City with respect to any matter addressed herein are hereby ratified and confirmed in all respects.
Section 12. Inconsistent Provisions. Any inconsistency between the provisions of this
Ordinance and those of the Act is intended by the City Council. To the extent of any such
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inconsistency the provisions of this Ordinance shall be deemed made pursuant to the Charter and
shall supersede to the extent permitted by law the conflicting provisions of the Act.
READ, PASSED ON FIRST READING AND ORDERED PUBLISHED ONCE BY
NUMBER AND TITLE ONLY this 20th day of July, 1999.
CITY OF FORT COLL S, COLORADO
ayor
ATTEST:
o�L {�Zirhs
City Clerk - G'/Iie-j-� elg
READ AND PASSED ON SECOND READING this 3rd day of August, A.D. 1999.
i
. Mayo,,r��,,
ATTEST:
City Clerk — �L
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