HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 12/02/2008 - ITEMS RELATING TO THE ISSUANCE OF CITY OF FORT COL ITEM NUMBER: 16 A-B
AGENDA ITEM SUMMARY DATE: December2, 2008
FORT COLLINS CITY COUNCIL STAFF: Chip Steiner
Chuck Seest
SUBJECT
Items Relating to the Issuance of City of Fort Collins Downtown Development Authority Taxable
Subordinate Tax Increment Revenue Bonds, Series 2008A.
RECOMMENDATION
The Downtown Development Authority("DDA")Board of Directors and staff recommend adoption
of the Ordinances on First Reading.
FINANCIAL IMPACT
The City of Fort Collins Downtown Development Authority is requesting approval to issue Taxable
Subordinate Tax Increment Revenue Bonds, in the principal amount of$10,488,043. At the end of
2007,the Downtown Development Authority Debt Service Fund held$2,522,493 of unreserved fund
balance. The Fort Collins Downtown Development Authority Board (the `Board") and City staff
recommend using a portion of the unreserved fund balance and tax increment over the next three
years to make capital improvements in the downtown area consistent with the mission of the Fort
Collins Downtown Development Authority. Over the ensuing years,the taxable projects receiving
the benefit through the capital improvements will repay the value of the projects through increased
tax increment. In addition to the capital improvements,a portion of the bond proceeds will also be
used to fund a Green Building TIF fagade/grant program and Beet Street.
The DDA debt service fund is projected to have sufficient revenue to meet all required debt service
payments and reserve requirements for 2008 through 2011.
EXECUTIVE SUMMARY
A. First Reading of Ordinance No. 147,2008,Authorizing the Issuance of City of Fort Collins,
Colorado,Downtown Development Authority Taxable Subordinate Tax Increment Revenue
Bonds, Series 2008A, Dated Their Delivery Date, in the Aggregate Principal Amount of
$10,488,043, for the Purpose of Financing Certain Capital Improvements, Capital Projects
and Development Projects Within the Downtown Development Authority Area; Providing
for the Pledge of Certain Incremental Ad Valorem Tax Revenues to Pay the Principal of and
Interest on the Bonds; Approving Documents in Connection Therewith; and Ratifying
Action Previously Taken and Appertaining Thereto.
December 2, 2008 -2- Item No. 16 A-B
B. First Reading of Ordinance No. 148,2008,Appropriating Proceeds from the Issuance of City
of Fort Collins, Colorado, Downtown Development Authority Taxable Subordinate Tax
Increment Revenue Bonds, Series 2008A, for the Purpose of Making Certain Capital
Improvements, Capital Projects and Development Projects Within the Downtown Area of
Fort Collins,Authorizing the Transfer of Appropriations Between Funds and Appropriating
Expenditures from the DDA Debt Service Fund to Make the 2008 Payment on the Bonds.
The Downtown Development Authority Board of Directors (the`Board") has adopted Resolution
2008-11 which recommended to the Council the issuance of$10,488,043 Tax Increment Bonds and
the appropriation of the proceeds of the issuance to be used for the projects and programs identified.
The City of Fort Collins created the DDA to make desired improvements in the downtown area.
Through tax increment financing,the DDA has made significant contributions to the redevelopment
and improvement of the downtown area. These two Ordinances contemplate additional
improvements and initiate a green building TIF fagade/grant program and the 2009 funding for Beet
Street.
BACKGROUND
A summary for each project and the two programs is provided below. All the projects listed for
funding through this bond issue have either been approved or are pending approval by the Board.
All approvals by the Board are contingent upon City Council appropriation of the necessary funds
to fulfill the DDA's commitment to the project. With the exception of those projects which are
purely public in nature,no DDA expenditures are to be made until projects are completed and have
received certificates of occupancy from the City.
1. Year-Round Community Market- $700,000
Staff has estimated that $700,000 is needed to begin the planning and design phases of the
downtown year-round community market. Staff proposes the completion of the budget occur in
Phases with specific milestones called out to provide the Board with an opportunity to decide if
feasibility has been adequately demonstrated and whether continuing with next steps is justified.
Phase one has been established at a cost of $400,000 with the balance of $300,000 placed in a
reserve account for the Community Market, to be used only if the Board makes the decision to
proceed.
Review and approval of all conceptual and final designs,request for bids, approval of professional
service contracts, approval of inter-governmental agreements, etc. for the year-round community
market project is subject to DDA Board and City Council approval as required by the DDA statutes
and City regulations and policies.
2. Alley Improvements - $4,000,000
Previous project commitment(s):
At the January 10, 2008 meeting the Board approved a contract with Russell+Mills Studios in the
amount of$46,000 to create a Master Plan for Downtown Alleys and Integrated Walkways. The
December 2, 2008 -3- Item No. 16 A-B
estimated date of completion of the plan is fall 2008, and the finished product will provide a
prioritized list of alleys suggested for improvement, conceptual designs, and preliminary
construction estimates.
Current Need:
A budget of$4,000,000 is proposed to complete up to 3 enhanced alleys. This estimate is derived
from staff s knowledge of costs associated with the Trimble and Tenney Court project. Funds would
be used to develop final construction drawings and complete construction.
Review and approval of all conceptual and final designs,request for bids, approval of professional
service contracts,approval of inter-governmental agreements,etc.,for the alley improvement project
is subject to DDA Board and City Council approval as required by the DDA statute and City
regulations and policy.
3. Elks Purchase- $2,800,000
Previous project commitment(s):
In the issuance of the City of Fort Collins Downtown Development Authority Subordinate Tax
Increment Revenue Bonds, Series 2007A("2007A bonds")the DDA Board recommended and City
Council approved appropriations of funds in the amount of$500,000 to begin preliminary planning
and design for the Downtown Hotel.
Current Need:
At the April 10,2008 DDA meeting,the Board approved$2,800,000 to purchase the Elks Building.
Ordinance No. 076, 2008 appropriated the funds from the 2004 A and the 2007A bond projects for
this purchase. Allocation of funds in this new issuance are identified as re-appropriated funds back
to the 2004A and 2007A existing project commitments.
4. Beet Street Program- $962,247
The Beet Street cultural program was conceptualized in 2003,and has been in implementation since
the January 2007. The DDA Board has committed to provide funding and other services to Beet
Street for a period of three years, with the option to extend such funding and services for an
additional year. The DDA commitment to Beet Street is $3,000,000 before consideration of the
additional year. Year one funding was allocated in the issuance of the 2007A bonds. Year two was
appropriated in City Ordinance No. 117,2007 and No.009,2008. Funds in the amount of$962,247
are proposed for allocation in this 2008 bond issuance. The Beet Street budget for 2009, approved
by City Council in October 2008, is attached (Attachment 4).
5. River District Improvements - $500,000
In 2000, the City Council approved the annexation of the Mulberry/Lemay Crossings project into
the boundaries of the Downtown Development Authority. In 2001, the Downtown Development
Authority adopted Resolution 2001-02. This resolution detailed the financial support for projects
within the district which fit the DDA Plan of Development. At the June 5, 2008 DDA meeting,the
December 2, 2008 -4- Item No. 16 A-B
Board approved total funding in the amount of $1,500,000 for river district improvements as
outlined in resolution 2001-02, breaking the project into three phases. The current request is for
phase 1 in the amount of$500,000.00, for Linden Street, from Jefferson Street to the Poudre River
Bridge. (To be leveraged with the City's $250,000 federal enhancement grant)
6. Fort Zed - $250,000
At the July 12, 2007 DDA meeting, a Board commitment was made in the amount of$250,000 for
transfer to the City and disbursement to the Clean Energy/Fort Zed Community Foundation Fund.
This commitment was contingent upon a DOE Grant to the City where the DDA funds were a
portion of the local cash match required. On April 11, 2008 the City of Fort Collins was awarded
a three-year DOE Grant. Funds are allocated in this new issuance for this commitment.
7. Railroad Quiet Zone Study - $100,000
At the May 8, 2008 DDA meeting during discussions about noise mitigation for the amphitheater
project, staff introduced a verbal proposal for conducting a railroad quiet zone study. Staff has
prepared a RFP/Q with assistance from City staff to seek professional services for a quiet zone study
at 12 at-grade railroad crossings in the DDA district. The project budget for the study is $100,000.
Funds are allocated in this new issuance to conduct the study.
8. Green Building Program - $500,000
At the July 10, 2008 DDA meeting a Board commitment was made in the amount of$500,000 to
the green building program with the understanding that there may be procedural and administrative
issues to amend at a later date.
Review and approval of all requests for the green building program will be subject to DDA Board
approval.
9. Miscellaneous Projects and Administrative Expenses - $675,796
These funds are typically applied to projects that were not anticipated at the time of the bond
issuance and for smaller project funding such as the ice rink, holiday lights, and the bike library.
Cost of issuance and administrative fees will be covered here.
Summary
The DDA Board has met to review each of these projects as well as the two programs. For the
reasons indicated above,the Board recommends each project and the programs for funding through
the issuance of subordinate taxable revenue bonds to be repaid with tax increment revenue that will
be received in 2008 to 2011. The Board and its staff recommend adoption of the ordinances. City
staff also recommends adoption of the ordinances.
December 2, 2008 -5- Item No. 16 A-B
ATTACHMENTS
1. DDA Resolution 2008-11 Approving and Recommending to the Fort Collins City Council
the Issuance of Ten Million,Four Hundred Eighty Eight Thousand,and Forty Three Dollars
($10,488,043) in Downtown Development Authority Tax Increment Bonds and the
Appropriation of the Proceeds from the Sale of Those Bonds into the Tax Increment Fund
for Expenditure on Certain Projects and Programs in Accordance with the Downtown
Development Authority Plan of Development, the Downtown Plan and the Downtown
Strategic Plan.
2. DDA Resolution 2008-13 Approving the Expenditure of$700,000 for Costs Associated with
the Pre-Development of the Fort Collins Community Marketplace.
3. DDA Resolution 2001-02 Setting Priorities for Expenditures Related to the Estimated
Revenue Generated from the Annexation of the Mulberry/Lemay Crossings Property into
the Boundaries of the Fort Collins Downtown Development Authority.
4. 2009 Beet Street Budget as approved.
5. DDA Board Meeting Minutes approving the Projects.
6. Draft November 17, 2008 Council Finance Committee Minutes.
ATTACHMENT
RESOLUTION 2008-11
OF THE BOARD OF DIRECTORS OF THE FORT COLLINS, COEORADO
DOWNTOWN DEVELOPMENT AUTHORITY RECOMMEDNING TO THE FORT
COLLINS, COLORADO CITY COUNCIL THE ISSUANCE OF TEN MILLION,FOUR
HUNDRED EIGHTY EIGHT THOUSAND,AND FORTY THREE($10,488,043.00) .
DOLLARS IN DOWNTOWN DEVELOPMENT AUTHORITY TAX INCREMENT
BONDS AND THE APPROPRIATION OF THE PROCEEDS FROM THE SALE OF
THOSE BONDS INTO THE TAX INCREMENT FUND FOR EXPENDITURE ON
CERTAIN PROJECTS AND PROGRAMS IN ACCORDANCE WITH THE
DOWNTOWN DEVELOPMENT AUTHORITY PLAN OF DEVELOPMENT,THE
DOWNTOWN PLAN,AND THE DOWNTOWN STRATEGIC PLAN
WHEREAS]the Fort Collins Downtown Development Authority has been duly organized
in accordance with the Colorado Revised Statutes 31-25-801, et seq. (the"DDA"); and,
WHEREAS,the Board of Directors of the Downtown Development Authority has
determined that the following projects and programs are in accordance with the Council-
adopted Downtown Plan of Development,the Downtown Plan, and the Downtown
Strategic Plan and has authorized the expenditure of funds to further said projects and
programs:
Community Market-4700,000
Alleys-44,000,000
Elks Purchase--2,800,000
Beet Street Funding-4962,247
River District Street Scape Improvements-4500,000
Fort Zed-4250,000
Rail Road Quiet Zone Study--$100,000
Green Building Program-4500,000
Cost of Issuance/Admin. Expenses-4366,208
Miscellaneous--$309,588
NOW;THEREFORE BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE
DOWNTOWN DEVELOPMENT AUTHORITY that it recommends to the Council ofthe
City of Fort Collins, Colorado the issuance of Ten Million, Four Hundred Eighty Eight
Thousand,and Forty Three($10,488,043.00)Dollars in Downtown Development
Authority Tax Increment Bonds and the appropriation of the proceeds of the issuance to
be used for the projects and programs herein described.
Passed and adopted at a regular meeting of the Board of Directors of the Fort Collins
Downtown Development Authority this 1la'day of September,2008.
Ja k Wolfe, Ch
Georg Brelig, Secretary
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ATTACHMENT
RESOLUTION 2008-13
OF THE BOARD OF DIRECTORS OF THE FORT COLLINS,
COLORADO DOWNTOWN DEVELOPMENT AUTHORITY
APPROVING THE EXPENDITURE OF$700,000 FOR COSTS
ASSOCIATED WITH THE PRE-DEVELOPMENT OF
THE FORT COLLINS COMMUNITY MARKETPLACE
WHEREAS, The Fort Collins, Colorado Downtown Development Authority has been
duly organized in accordance with CRS 31-25-801 et seg(the"DDA"); and
WHEREAS,the Board of Directors of the DDA (the"DDA Board") desires to bring the
concept of a community marketplace into the broader vision of the DDA for the.purpose of
creating a long-term economic engine within the DDA boundaries through the implementation of
a unique cultural and business center in Colorado; and
WHEREAS, on October 9, 2008,members of the Marketplace Planning Team presented
the Fort Collins Community Marketplace Concept Report("Concept Report")to the DDA Board
at its annual retreat;
WHEREAS, the Concept Report proposed completion of the Phase I -Project Feasibility
phase of pre-development at a cost of$400,000, and the creation of a special reserve account in
the amount of$300,000 to contribute toward funding of a future Phase 2 - Site Acquisition and
Design phase, should pre-development of the Community Marketplace proceed to Phase 2.
WHEREAS, the DDA Board endorses the concept, vision and plans presented in the
Concept Report and desires to contribute DDA funds to the pre-development phases of the
Community Marketplace.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF
THE FORT COLLINS, COLORADO DOWNTOWN DEVELOPMENT AUTHORITY
that it approves the expenditure of $400,000 for costs associated with the Phase 1 - Project
Feasibility phase,and the expenditure of$300,000 for the creation of a special reserve account to
contribute toward funding of a future Phase 2 - Site Acquisition and Design phase, should pre-
development of the Community Marketplace proceed to Phase 2.
Passed and adopted at a regular meeting of the Board of Directors of The Fort Collins,
Colorado Downtown Development Authority this 13th day of November,2008:
Jack Wolfe, Chairperson
ATTEST:
George Brefig, Secretary
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ATTACHMENT 3
RESOLUTION 2001-02
OF THE BOARD OF DIRECTORS
OF THE FORT COLLINS DOWNTOWN DEVELOPMENT AUTHORITY
SETTING ITS PRIORITIES FOR EXPENDITURES RELATED TO THE
ESTIMATED REVENUE GENERATED FROM THE ANNEXATION OF THE
MULBERRY/LEMAY CROSSINGS PROPERTY
INTO THE BOUNDARIES OF THE FORT COLLINS
DOWNTOWN DEVELOPMENT AUTHORITY
WHEREAS,the Fort Collins Downtown Development Authority has been duly
organized in accordance with the Colorado Revised Statutes 31-25-804, 1973 as
amended;and,
WHEREAS,the City Council ofFort Collins approved the annexation of the
Mulberry/Lemay Crossings project into the boundaries of the Downtown Development
Authority on second reading on December 19,2000, creating an additional revenue
stream into the Tax Increment Reserve account of the Downtown Development
Authority;and,
WHEREAS,the Downtown Developmenf Authority finds it to be in the best interests
and welfare of the Downtown Development Authority district to identify funding, in
whole or part,far selected projects detailed below,within the district which fit the
Downtown Development Authority Plan of Development;and,
WHEREAS,the Downtown Development Authority Board of Directors desires that a
significant portion of the tax increment money anticipated to be received from this
annexation be placed hi reserve for future projects, which fit within the goals and
objectives of the Plan of Development.
NOW, THEREFORE,BE IT RESOLVED that the Board.of Directors ofthe
Downtown Development Authority hereby expresses its intent to financially support the
following projects from such anticipated tax increment revenues as outlined below:
1. Linden/RiversideIntersection improvements of up to $1,500,000,to
include design, administration and construction.
2. Improvements to those portions of the Mulberry/Lemay intersection
project`which fall withinthe boundaries of the Downtown Development
Authority in an amount of up to $376,060.
3. 'Various improvements to the Poudre River, as identified in the Plan of
Development and,to the extent consistent with such plan,the Downtown
River Corridor Implementation Program adopted on July 18, 2000 by the
Fort Collins City Council. Funding may be up to $400,000, with each
request to be matched by a corresponding amount of funding from other
sources. ' ,
4. Update of the Downtown Plan in conjunction with the City of Foil Collins
and other interested parties in an amount of up to $275,000,which could
include plans for the following, among other components:
a. Downtown parking study update.
b. Market analysis and recommendation
C. Planning and Urban Design
d. Infrastructure analysis
e. Faoilitation/Citizen participation
5. The DDA Board maintains the discretion to approve, deny or approve with
conditions individual proposed projects based on their compliance with
the Plan of Development and their relative priority to other proposed
projects.
Passed and adopted at a special meeting of the Board of Directors of the Fort Collins
Downtown Development Authority this 8a'day of February,2001 and amended on March
1,•2601 as written.
Mary J.$rkton, Clfair
A T:
J n Mors, Secretary
ATTACHMENT 4
2009 Beet Street Budget
as approved
A J I K I L I M
8yC S„Rroet Fl°! Beat Street FY Beat Sheet FY Beat Street FY '
108 108 - 109
2 pRual Budgot Forecast Proposed
3
4 Personal Services
5 Salado _r$J118'785; $394,482 E349,558 2443,372
6 Employee Group Life $998; $1,373 $998 $1,214
7 Unemployment Comp $SfB, $1,184 $441 $918
8 Employee health-insurance %;tY7,s5 $50,820 $40,004 $57,154
9 FICA _ 32 7g?' $5.898 $6,315 $8,427
10 ICMA $18572; $31,391 $29.197 - $33,372
11 Dental Insurance $3,300 $2,599 $3,824
12 Long-term Disability $3,905 $2,359 ,$3,427
13 Termination Pay $0 $3 029 SO
14 'rS235 ew $4921353 $434,488 M1,508
15 Contractual Services
16 Telephone ,$$895 $5.700 $51550 $11,220
17 Postage $1222; $12,000 $7,582 $8,420
18115iities rf5: $0 SO $0
19 ContraUuel Labor $0 $34.864 $21,346
20 LIab98y'lrts Premium $11,000 $14,336 $13,803
-F Interview 8 Moving Expense 5$',839' $0. $o $10,000
22 Mileage : :t •S4Xa. $2,100 $1,182 $1,228
23 Outside Reproduction 530,500 $28.497 $38,040
24 Computer Charges b $5,330 $55,192 $72,868
25 Copier Maintenance i'.• $1r19..4 $1200 $1.962 $4,500
28 Other RepaldMakdenance ' ,=SOr to $0 SO
27 Enterprise Zone $0;- $0 $300 $300
28 DT Maintenance ''$0 $0 $0 $0 x,
29 Conference 5.9;239'_ =1000 $4,185 $1,200
30 Legal Services _ ,?? $6;g2.5; $12,000 $7,072 $10,200
31 Volunteer Management } ;0; SO 3500 51,500
32 JanitorialSiervicea $0 $2.310 $500
39 Consulting Services 3309.000 $50,970 $71,620
34 Box Ofte Transaction Fee $0 $726 $2,165
35 Marlating }S1;tA pA9! $516,000 $187,379 $134.900
38 Investment Servkes $500 5282 $300
37 Ran ,_,..;i $12,300 $17,484 528,021
38 Dues/Subscriptions $3,765 $4.331 $3,105
39 Artist and Musician Fee 30 $0 $158,801 $279,645
40 Other Cornrettual 4 $t296S $206,ti50 $55,022 $24,190
41 Meals $4,785 $6,436 $23,300
42 Omer Rent " >.; .;.<S0; $0 $14,893 $17,559
43 Sawdy 6ervics $453 $800
44 Ladmer Cty Treasurers Fee ....,.r.,.;:r'..._..,:..::�SU- $0 $0 $8
45 $1,157,800 5880288 $778,521
Excerpt from DDA Minutes ATTACHMENT 5
October 9, 2008
i the same enhanced space. Selection of priority alleys,design,the public process and trash/recyeling were
discussed. Board members were very favorable to the concept designs.
Chip BUDGET ITEMS
Chip Steiner and Kathy Cardona presented three items for Board action and the Chip Budget for approval.
1. Resolution 2008-11: Bond Authorization
This'agenda items is a request to City Council for issuance of 2008 City of Fort Collins
Downtown Development Authority Subordinate Tax Increment Revenue Bonds. The request
identifies$7.4 million in recommended tax increment projects. Board members approved the
resolution,requesting that an additional million be added to the alley project. Ms.Cardona
noted that that would also increase the issuance and administrative costs.
Moved by Ms.Spencer,seconded by Mr.Callahan: To approve Resolution 2008-11 with an
Increase of$3 million for the alley project plus associated cost increases. The motion passed
unanimously.
2. Resolution 2008-09
This resolution is the recommendation to City Council for the mill levy rate of(5)mills for 2009.
3. Resolution 2008-10
This resolution is the recommendation to City Council of the 2009 debt service payments on the
2004A and the 2007A City of Fort Collins Downtown Development Authority Subordinate Tax
Increment Revenue Bonds and the 2009 DDA's obligation for the Civic Center Parking Structure.
Moved by Mr.Kelifer,seconded by Ms.Zibelli To approve Resolution 2008-09 and
Resolution2008-10. The motlon.passedunanimously.
4. 2009 Budget
The Board discussed the 2009 budget presented by Ms.Cardona and Mr, Steiner.
Moved by Mr.Sears,seconded by Ms.Zibell: To approve the 2009 Budget as presented.
The motion passed unanimously. lnelu 44, ' (3ee•F SdvL+ i;'undik--s
UPDATES '
Sales Tax: Diane Jones handed out the latest sales tax report,with a breakout of the Mulberry/Lemay
retail area. The DDA area showed a 1.3%drop in sales tax revenue.
ADJOURN
There being no further business the meeting adjourned at 10:25 a.m.
George Brelig,Secretary
=14,2008
CONSENT AGENDA
1. DBA Holiday Enhancements:For the past two years the DDA has provided the Downtown Business
Association funding to enhance the downtown holiday environment. The request is for$29,600 which is
the same amount w previously funded.
2. Organizational Structure: To conform to Colorado Statutes,legal counsel is advising the DDA to
adopt a revised organization structure reflecting the addition of Beet Street. Board approval is requested.
3. IGA—Civic Center Parking Structure: The City,the County and the DDA had previously agreed to
certain shared responsibilities regarding the construction,operation and maintenance of the Civic Center
Parking Structure. Originally the DDA was anticipated to cease operations after September 2006 and the
City and County were to share equally.in the remaining DDA one-third share. With the passage of
legislation extending the period of time that a DDA may use tax increment fmanciii&the DDA is now able
to make its annual contribution toward the Parking Structure debt service. The IGA needs to be amended
to carry out the original intention of the parties which was to share the cost to build and operate the Parking
Structure.
Moved by Ms.Rennels;seconded by Mr.Sears: To approve the Consent Agenda as presented. The
motion carried unanimously.
WILLOW STREET LOFTS
(Ryan Keiffer recused himself from this discussion.)
Willow Street Lofts is a mixed use project that includes 24 residential units and some retail and office
space. Staff strongly supports the project and urged the Board to fund the requested amount,with the
exception of a small park on the Willow Street side which would bring the recommended funding to
$260,443.
Jolty Prouty of Lagunitas Companies presented the project to the Board,pointing out the green building
features and unique design elements.
Moved by Mr.Sears;seconded by Ms.Spencer:To fund the Willow Street Lofts up to the amount of
$260,443.-The motion carried unanimously.
ROAD QUIET ZONE STUD
Sta reco—lea the D n Railroad quiet zone study,with costs estimated at between$50,000 and
$100,000. A quiet zone would have significant positive impact on the downtown environment and adjacent
residential neighborhood,as well as the Beet Street amphitheater. The DDA will collaborate with the City,
as the study will start downtown,then expand to the rest of the City if budgeted.
Ben Manvel suggested another option would be to try and change the federal standards. Darin Atteberry
commented that he felt it was a good investment. Kathay Rennels.added that to effect legislative change,
there must be data to back it up and the study could provide that.
Moved by Mr.Taylor,seconded by Mr.Brelig: To approve funds up to$100,000 for a railroad quiet
zone study. The motion passed unanimously.
UNIVERCITY CONNECTIONS REPORT
Doug Johnson,Director of UniverCity Connections described UCC as an initiative,rather than an
organization. Since the kickoff in fall 2006,UCC has benefited from great support from a broad cross
section of the community. Mr.Johnson gave an overview of the activities of several UCC projects: Fort
ZED;the work of the transit and mobility.group;the homeless initiative;and,the arts and culture task
force.
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(::DDA:7MDinutes
CONSENT AGENDA
Two employee issues were on the consent agenda:
1. Recommendation to renew Jean Lamm's contract as Director of Development for Beet Street;
2. Amend DDA/Beet Street staff contracts to reflect new vacation policy.
Moved by Ms.Jordan,seconded by Mr.Sears:To approve the consent agenda as presented. The
motion passed unanimously.
WAYFINDING PROGRAM UPDATE
City retained the design firm Nuszer Kopatz to create a downtown wayfinding plan. Advance Planning
staff and the consultants are soliciting reaction to the preliminary designs and direction,which will soon be
presented to City Council. Clark Mapes of the City presented the designs,noting that this project has been
on the agenda for a long time and was included in the 2004 strategic plan. In response to Mr.Wolfe's
question about who will pay for the project,Mr.Mapes noted that Advanced Planning paid for the design
phase. He hopes that funds for implementation will come from a variety of sources,possibly including the
DDA,GID,transportation grant funding,and the traffic department. Ms.Jordan noted the possibility of the
use of signs in the public education piece for LEED certifications. Mr.Robenalt added the opportunity to
integrate with the green building criteria. Mr.Attebeny described the current study as the master plan,to
be followed by an implementation plan. Blue Hovatter commented that he hoped the City would take the
opportunity to review all signs downtown.
GREEN BUELDING PROGRAM
race a green ui ng pro 7t s proposed in February,the project team lies worked on simplifying the
program. The basic mechanics of the proposed program are,when used in conjunction with either
traditional tax increment commitment or a fagade grant commitment,a building owner may apply for a
green building grant in two ways. If they are seeking LEED certification,the request can be for up to
$50,000 for Gold certification and the purchase or installation of specific green elements as part of that
certification or,up to$25,000 for LEED Silver certification if Gold is not achieved. If the owner is not
seeking LEED certification,the request can be for up to$50,000 for the purchase and installation of
renewable energy technologies. DDA legal counsel,in answer to earlier legal questions,has determined
that a higher DDA investment in fagade improvements equal to the cost of LEED certification and green
technologies,and a longer f igade easement term is the appropriate method for ensuring a strong connection
to the benefit nexus and staying compliant with the DDA statute. Staff recommended Board approval of
$500,000 to fund the Green Building Grant Program.
Judy Dorsey of the Brendle Group was available to answer questions. She noted that these criteria tie to
the City's Integrated Design Assistance Program. Lucia Liley reminded the Board that the grant still
cannot exceed that value of the easement,which is the DDA legal connection to the building. It was
requested that there be further discussion of various scenarios at the annual Board retreat.
Board members expressed approval of the changes made since the original proposal and felt the criteria
were more measurable. Board discussed the second part of the proposal which funds renewable energy
technology. Acknowledging that green building means more than just energy,it was noted that this
provision would probably mainly be used in historic buildings or for pioneers who are not seeking LEED
but are implementing other green building practices. Ms.Jordan noted that in the quest to curb greenhouse
gasses,renewable energy is high on the list and,as in the example of her building,LEED does not work
well for all building types.
Moved by Mr.Kelffer,seconded by Ms.Jordan:To approve the green building program as
presented in the amount of$500,000 with the understanding that there may be procedural and
administrative issues to amend at a later date. The motion passed unanimously.
DDA Minutes
June 5,2008
Page 3
rER INFRASTRrrcTTtrtu
Kathleen Bracke,John Sayer and Bruce Hendee presented the final draft of the Downtown River District
Improvement Project Plan. The document includes a summary of the project process,an infrastructure
needs assessment,preferred design alternatives,and a phasing and implementation strategy. The plan has
received a recommendation for City Council approval from both the Planning and Zoning Board and the
Transportation Advisory Board. Staff recommended the Board take two actions on this matter. First the
Board was asked to accept the plan and recommend Council approval of the final draft. Second,the Board
was asked to appropriate funds,which had been budgeted but not appropriated or allocated,in the amount
of$1,500,000 for the design,administration and construction of improvements on Linden Street,a Willow
and Linden roundabout,and a roundabout at Jefferson Street and Mountain Avenue,which is to be
leveraged with the City's CMAQ grant and in collaboration with CDOT and the North Front Range MPO.
About one-third of the funds would be used at each of the three locations. (Kathay Rennels left the meeting
before the vote on this matter)
Moved by Mr.Sears,seconded by Mr.Keiffer: To approve the River District Plan as accepted and
recommend City Council approval. The motion passed unanimously.
Moved by Mr.Keiffer,seconded by Mr.Brelig: To approve the appropriation of$1,500,000 to be
allocated to the River District Plan as presented. The motion passed unanimously.
COMMUNITY MARKET PROJECT—WALLACE CENTER GRANT
The Community Market project planning team is seeking a local'cash match for a Wallace Center grant
application. The grant would provide funds to conduct a feasibility study and public involvement process
to examine the agricultural production and distribution system in Northern Colorado. The total project
budget is$85,000. The grant request is$30,000. A local$10,000 in kind contribution has been given by
the Local Living Economy Project: Staff requests a commitment from the Board in the amount of$30,000
as a local cash match in anticipation of the project team using the DDA commitment as seed to acquire an
additional$15,000 in local contributions.
Moved by Mr.Ohlson,seconded by Mr,Sears: To approve a cash match In the amount of$30,000
for the Wallace Center grant for the community market project to look at the producer network
system and authorize the DDA to enter into an IGA to transfer the funds to the City for
administration of funds. The motion passed unanimously.
HOTEL
There will be a joint work session with City Council on July 22nd. There is a tentative financial agreement
that will have to be approved.
AMPHITHEATER SITE SELECTION PROCESS
HOK Venues was present to explain the site selection process and ask for Board recommendation of a site
for the amphitheater to City Council. Susan Sieger of Crossroads Consulting first spoke about the
economic feasibility of a downtown amphitheater and the factors that will have an impact,both positive
and negative. She also discussed possible operating structure. Ms.Sieger noted that the next steps are to
refine the program,estimate the utilization,project revenues and expenses,outline the economic and fiscal
benefits,prepare a funding analysis,and summarize those findings.
David Gruesel and Tom Williams of HOK discussed the site selection process and how they arrived at the
top locations. The Justice Center site came out first overall but Chestnut Street and Poudre Valley
Creamery sites also had high ratings. Many factors were considered including access to public
transportation,accessibility,current ownership,proximity to parking and residential buildings andvisibility.
DDA Minutes
April 10,2008
Page 3
Board discussion clarified that the landscaping was part of the permanent structural improvement and
therefore qualified for a fagade grant.
Moved by Ms.Jordan,seconded by Mr.Sears: To fund this proposal at 417 West Mountain Avenue
for the amount of$11,036. The motion passed unanimously.
UPDATES
New Racks: Mr.Steiner reported the results of two facilitated meetings between the parties involved in
the debate over news racks. The current proposal to City Council that has been agreed to by both sides is to
approve twelve(12)condominium locations now and also approve four(4)additional permitted future sites
that would not be installed at this time. This will involve an amendment to the ordinance between first and.
second reading by Council.
Moved by Ms.Jordan,seconded by Mr.Taylor: To approve funding of four(4)additional
condominium news racks if they are permitted at a future date with the understanding that this is the
final offer. The motion passed unanimously.
EXECUTIVE SESSION
Moved by Mr.Taylor,seconded by Mr.Sears: To move to Executive Session to discuss real estate
Issues. This Executive Session for the purpose stated Is authorized pursuant to CRS 24-6-402(4)(1)
(1). The motion passed unanimously.
Moved by Mr.Taylor,seconded by Mr.Sears: To move from Executive Session back to Regular
Session. The motion passed unanimously.
J� Moved by Mr.Taylor,seconded by Ms.Spencer: To authorize the Authority to offer$2.8 million to
purchase the Elks Building and,if accepted,to amend the contract accordingly: The motion passed
unanimously.
Further discussion of the Board reached consensus that it would be advisable to postpone the April 22°"
joint work session with City Council on the hotel project.
ADJOURN
There being no further business the meeting adjourned at 0:45 a.m.
George Brelig,Secretary
DDA Minutes
July 12,2007
Pa e2
FORT ZED
ro Energy District)is an initiative that grew out of UniverCity Connections.They are seeking$4 million match
for a S5 million Department of Energy grant for a demonstration project which would be a"living laboratory"for
implementation of the Zero Energy District in the University,downtown and river district.Their goal is to generate as much
energy from within the designated area as the area uses on an annual basis, Chip Steiner encouraged the Board to approve
$100,000 towards the local cash match of$500,000,which must be pledged by July 17,2007 The rest ofthe$4 million needed
will be provided by state grants and In-kind services and equipment donated by team members.Judy Dorsey of The Brendle
Group presented the goats of Fort Zed and information about the grant process.There are three mi jor steps to attain this goal;
local energy generation,less energy use and provide a template and inspiration through the demonstration project.
Fort ZED has a 5 part program:Jump start the program by providing a smaller scale demonstration of what is possible;stabilize
growth,showing sustainability and high performance In the built environment;remove barriers;local power generation;
education and promotion, They see the benefits to the community as establishing Fort Collins as the"North Star"of Colorado;
position downtown as the capital of the Northern Colorado Clean Energy Cluster;become a venue for growing primary
employment;create a strong niche that differentiates downtown from other competing areas;provides benefits to Investors and
property owners;and,Improves the quality of life,
Ms.Dorsey announced that there would be a fundraiser tonight hosted by New Belgium Brewery. Fort ZED is looking to DDA
as a lead donor to show progress to their goal.The local match would be administered by the Community Foundation. The
pledges would be paid out over a 3 year period and would only be used if they received the federal Department of Energy grant.
Board discussion focused on the future of Fort Collins as a leader in Innovation and energy conservation.
Moved by Ms.Spencer,seconded by Mr.Sears:To commit$200,000 to the Clean Energy/Fort ZED Community
Foundation Fund. Mr.Callahan suggested a friendly amendment to the motion to Increase the DDA commitment to
$250,000 which would bring them half way to tine needed match. Ms.Spencer and Mr.Sears agreed to the amendment.
The motion passed unanimously.
SOLAR VILLAGE
Solar Village is located at the corner of Maple and Meldmm. It consists of four artist's lofts,23 residential units and
commercial space on the ground floor. This project will seek LEED designation,incorporating many green building principles
Including solar hot water,R-23 wails,photovoltaic power,and efficient lighting fixtures. The partners are requesting$694,000
In fhgade and right-of-way Improvements. Mr.Steiner supports funding to the amount of$300,000 for fapade and right-of-way
improvements and matching any cash incentives for energy eificlency earned from the City up to$100,000. He also suggested
making some modifications to the rooflino to soften the flat look and using upgraded materials on more of the fagade.
Chadee Randle,Mark Kostovny and Justin Larson of Solar Village presented the project to the Board. They noted that some
design changes had already been made to the roofline and that they were still finalizing plans for the facades. Their concept is
to bring green building to a wider audience by pricing the residential units in the$160,000 to$340.000 price range. Green
building features will include PV awnings which will produce electricity. The will also have solar hot water,energy star
appliances,maximize natural lighting,use non-toxic paints and finishes,and use more sustainable,longer lasting materials.
They also Intend to have all occupants buy wind credits. They would like to set an example ofwhat is possible now. They
fluther noted that their first project in Longmont won solar project of the year.Flood plain issues have also arisen since plans
were flrst drawn,necessitating either raising the building by two feet or putting in expensive flood gates.
Public comment felt the mixed use development would fbrther increase the vibrancy of downtown and appreciated the price
points.Board discussion focused on future design changes as the developers are still making subtle changes to the roofline and
f igado materials. Board members encouraged the use of brick and stucco on the west side of the building.
Ms.Jordan made a motion to accept the staff recommendation on fimding. Further discussion suggested that the design should
be brought back to the Board since it was not finalized yet Ms.Jordan agreed to the change.Mr.Ohison suggested that since
this was such a great project that perhaps funding should be Increased to$400,000 instead of approving a match for City energy
Incentives which will probably not amount to more than$16,000. A compromise was suggested as a friendly amendment and
passed by the Board.
Moved by Mo.Jordan,seconded by Mr.Sears:To provisionally commit$300,000 plus additional match for energy
incentives from the City up to the amount of$100,000 with the caveat that the materials used are up to the design
standards that are promoted by the DDA.A friendly amendment to the motion was to fund up to the amount of 5350,000
with it match of City energy incentives subject to design review. The motion passed unanimously, '
ATTACHMENT 6
City Of ® ir Finance Administration
215 N. Mason
Fort CollinsFloor97
PO Box 580
Fort Collins,CO 80522
970.221.6788
' 970.221.6782fax
fcgov.cornom
Council Finance Committee
Minutes
11/17/08
10:30 a.m - 12:00 p.m.
Council Attendees: Mayor Doug Hutchinson, Councilmember Ben
Manvel, Councilmember Kelly Ohlson
City Staff Attendees: Darin Atteberry, Kraig Ecton, Mike Freeman,
Chuck Seest, Jeremy Reese , Heather Shepherd
Others: Ann Hutchison from the Chamber of Commerce;
Kevin Gertig from Utilities; Matt Robenalt, DDA
and Kathy Cardona, DDA
Approval of the Minutes from the October 27th meeting.
Darin Atteberry would like a more detailed description on the section of the minutes that
discussed FIR benefits from this meeting.
Purchase Power Reserve Policy
Terri Bryant reviewed proposed changes to the Purchase Power Reserve Policy
Current Policy:
• Current Reserve Policy:
- Revenue Reserve - 8% of ensuing year's operating budget less purchase power
- Capital Reserve -20% of 5-yr capital plan
- Capital Outlay-equipment replacement
- Art in Public Places - per code
- Encumbrance Reserve - carry over purchase orders
- Purchase Power- after all other reserves are met
Background:
• Purchase Power Reserve authorized in 1985
- Offset future rate increases
- Mitigate potential changes in cost of Federal hydropower
• Stable rates from PRPA have resulted in low electric rate increases
• Purchase Power Reserve has not been needed for intended purpose
• Purchase Power Reserve has accumulated to $31.6 million
City of
�Fort Collins
Staff Proposal
• Eliminate Purchase Power Reserve Policy
• Spend down for Capital required to implement Energy Policy/Climate Policy initiatives
— Benefits rate payers
— Reduces rate impacts otherwise needed to implement Policy initiatives
• Future Purchase Power increases will be passed through to retail customers to reflect
full cost of power
Terri said staff is proposing to eliminate the Purchase Power Reserve policy which will reduce
rate impacts otherwise needed to implement policy initiatives.
Darin Atteberry stated that he doesn't support using one-time reserves to buffer consumers from
rate increases for on year since It would just make the increase more extreme when it did
happen in the following year(s).
Mayor Hutchinson asked what the next steps would be if the Committee accepts these
recommendations. Terri stated that first, it would have to be approved by the Electric Board,
and eventually it would come to the City Council for approval. This would occur sometime in the
first quarter of next year.
Mulberry Wastewater Bond Discussion
Chuck Seest told Committee that he and Terri Bryant had a recent meeting with City's bond
council/attorney to advise the Finance Department on the best way proceed with these bonds .
The City is scheduled to take these bonds to the market in the first full week of January, 2009.
Chuck said there isn't much change in the bonds to be expected between now and then. The
City's intent is to sell a full $30 million bond.
Terri pointed out that during budget development for this it was important to develop a stable
rate for the coming years. So it was set at 12% for this year, 11% for next year 10%, for the
following year, etc. (This would be done to avoid a 25% rate increase right at the beginning.)
]j DDA Bonds
Bond Structure
• Will utilize Updated City Investment Policy
- Borrowing meets the criteria of"Stub Period", not typical period for the
market (4 years)
- Borrowing total of$10.5 million plus costs
- Source of funds will be City Portfolio
- Bonds will mature in 2012, tied to 5 year Treasury Note (approx. 2.50%
11/13/08)
• Bond will make payments in June & December
DDA Projects Funded by Bond
• Downtown Alley Improvements $4.OM
• Purchase of the Elks Building 2.8M
• Beet Street Cultural Program 1.0M
• Year Round Community Market 0.7M
• River District Improvement 0.5M
• Green Building Program in Downtown 0.5M
• Other Items- Fort ZED, Railroad Study, Etc 1.0M
TOTAL PROJECTS $10.5M
Councilmember Ohlson stated that he wants to ensure that anyone the City worked with
would get similar treatment and the City is not favoring DDA over others in future,
similar projects.
Mayor Hutchinson asked if the plans for the Elks Building will remain the same and Matt
Robenalt responded that the plan will probably have to be reviewed now.
RM12 Financing
Mike Freeman supplied the Committee with information on the Rocky Mountain
Innovation Initiative. This used to be called the Technology Incubator and now
incorporates all of Northern Colorado.
Currently existing companies are in 10,000 sq ft. of office space but current companies
will need 16,000 sq ft. within the next year. They also need a below market lease rate
to be successful. It is growing and the City definitely wants to keep supporting the
initiative, however:
The new DDA amphitheater will displace all RM12 companies, except Sprig Toys, when
it is built.
As a result of this, a new facility is being proposed at Inverness Innovation Park which
would include a 29,000 sq ft. 4 story building with 3,000 sq ft. for wet lab space (not
competing with CSU), and the 4th floor rented out at market rate. The building would
also be LEED certified.
Mike said that this project can't happen without City and URA Board support. The
process for the new RMI building would be as follows:
RMI will create a nonprofit LLC. The City would loan the URA board the full construction
value of the project, which is $4.4million, and then the URA board would loan that
amount to the RM12 nonprofit.
Mike stated that it's a low risk deal for the City. Once construction is done, a URA bond
would be issued for $3.2 million and a permanent loan would then be put in place to
make up the difference.
C of
�. o�rt�linS
Mike also recommended attempting to keep this building in the downtown area if
possible. It would help with employment downtown is critical.
Mike asked the Council Finance Committee if they agree with the logic of the funding for
this project.
Kelly asked how the City could be sure there isn't a `better deal' if the project was
located in mid-town, for example. The Mayor suggested that more information be
prepared for Council Members that would contain some of those scenarios.
Darin Atteberry told the Committee that he strongly supports this approach, however
there is still some work to be done on the details. Darin said that if the Committee
members agree to move forward with the project, Mike will prepare more information
and time will be spent individually with each of the three Council Committee members to
ensure that everyone has the opportunity to consider the project and ask questions.
The Committee agreed to this approach.
Quarterly Financial Update
Jeremy Reese summarized the Sales Tax Revenue year-to-date. Collections are up
almost 1% for the last quarter and this is mainly due to restaurant sales.
-Sales tax collections have increased 0.9% year-to-date
-Factors contributing to the growth in 2008:
• Restaurant Sales (+5.9%)
• Food Stores (+7.0%)
-Retail categories challenging growth in 2008:
• General Merchandise Stores (-8.8%)
• Home Furnishings & Consumer Electronics (-1.6% vs. +16.0% in 2007)
Revenue Projections
• General fund projected sales tax revenue without redevelopment at the mall in
2010 and 2011:
2008 - $50.3 M (2.1% increase)
2009 - $52.3 M (4.0% increase)
2010 - $53.5 M (2.4% increase)
2011 - $54.8 M (2.3% increase)
Use Tax Revenue
-General use tax collections have decreased 16.9% through September 2008 when
compared to the same period in 2007. (The decrease is the result of one-time audit
revenue in 2007).
-General use tax revenue is on track to meet the 2008 budgeted amount of$8.2M.
Jeremy Reese stated that Use Tax is down, but still in line to meet budget projections.
Other Business
Mall URA— Councilmember Ohlson mentioned that he had recently been interview by
the media on the topic of the Mall URA and the fact that the plan is to shut the URA
down until a new developer would be able to offer a new plan. Darin Atteberry asked
Mike if that is a feasible option, and Mike responded that it is definitely the best way to
proceed.
Councilmember Ohlson asked if getting a whole new project would entail spending
more money doing new studies. Mike Freeman said the City will use the same study
that is already completed unless a significant amount of time were to pass. The
Committee agreed that this URA should be dissolved formally at the next City Council
Meeting and it can be resumed at such time that the City has viable new developers for
the Mall. Darin Atteberry told the Committee he plans to make sure the Public knows
that the City is still working on various strategies for the Mall and has not abandoned the
site.
Meeting adjourned at 12:30.
ORDINANCE NO. 147, 2008
AN ORDINANCE AUTHORIZING THE ISSUANCE OF CITY OF FORT
COLLINS, COLORADO, DOWNTOWN DEVELOPMENT AUTHORITY
TAXABLE SUBORDINATE TAX INCREMENT REVENUE BONDS, SERIES
2008A, DATED THEIR DELIVERY DATE, IN THE AGGREGATE
PRINCIPAL AMOUNT OF $10,488,043, FOR THE PURPOSE OF
FINANCING CERTAIN CAPITAL IMPROVEMENTS, CAPITAL PROJECTS
AND DEVELOPMENT PROJECTS WITHIN THE DOWNTOWN
DEVELOPMENT AUTHORITY AREA; PROVIDING FOR THE PLEDGE OF
CERTAIN INCREMENTAL AD VALOREM TAX REVENUES TO PAY THE
PRINCIPAL OF AND INTEREST ON THE BONDS; APPROVING
DOCUMENTS IN CONNECTION THEREWITH; AND RATIFYING ACTION
PREVIOUSLY TAKEN AND APPERTAINING THERETO
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS,
COLORADO, THAT:
Section 1. Definitions and Construction.
A. Definitions. In this Ordinance the following terms have the following
respective meanings unless the context hereof clearly requires otherwise:
(1) Additional Parity Bonds: any Parity Securities issued after the
issuance of the Bonds.
(2) Authority: the City of Fort Collins, Colorado, Downtown
Development Authority.
(3) Bond Ye az: the twelve (12) months commencing on the second day of
December of any calendar year and ending on the first day of December of the next
succeeding calendar year.
(4) Bonds: the City of Fort Collins, Colorado, Downtown Development
Authority Taxable Subordinate Tax Increment Revenue Bonds, Series 2008A.
(5) Charter: the Home Rule Charter of the City, as amended.
(6) Cam: the City of Fort Collins, Colorado.
(7) Commercial Bank: a state or national bank or trust company that is a
member of the Federal Deposit Insurance Corporation and of the Federal Reserve
System, which has a combined capital and surplus of $25,000,000 or more, and that is
located within the United States of America.
(8) Cost of the Project: all or any part of the cost of acquiring,
constructing and installing the Project; all surveying, inspection, fiscal, and legal
expenses; all costs of issuing the Bonds; any discount on the sale of the Bonds; costs of
financial, professional, and other estimates and advice; repayment of any interim loans or
interfund borrowings; capitalized interest on the Bonds; contingencies; reserves for
payment of the principal of or interest on the Bonds; and all such other costs as may be
necessary or incidental to the acquisition, construction and installation of the Project or
any part thereof.
(9) Council: the governing body of the City.
(10) Debt Service Requirements: the principal of, interest on and any
premium due in connection with the redemption of the Bonds, any Additional Parity
Bonds, any Parity Securities or any other securities payable from the Tax Increment
Revenues.
(11) Development and Expense Fund: the special fund created in
Ordinance No. 142, 1985, of the City, designated therein as the "Development Account'
of the "City of Fort Collins, Colorado, Downtown Development Authority Tax Increment
Bonds, Bond Fund" and referred to in Section 5A hereof.
(12) District: the area described in the Plan of Development and
approved by Ordinance No. 46, 1981, of the City, as amended by Ordinance No. 162,
1981, of the City and Ordinance No. 2, 1983, of the City and as has heretofore been or as
may hereafter be amended by valid legislative action of the City as may be determined in
accordance with the decisions of the appellate courts of the State.
(13) Downtown Development Authority Act: part 8 of article 25 of title
31, Colorado Revised Statutes, as amended.
(14) Event of Default: one of the events described in Section 10A
hereof.
(15) Federal Securities: means only direct obligations of, or obligations
the principal of and interest on which are unconditionally guaranteed by, the United
States (or ownership interests in any of the foregoing) and which are not callable prior to
their scheduled maturities by the issuer thereof (or an ownership interest in any of the
foregoing).
(16) Financial Officer: the Financial Officer of the City.
(17) Fiscal Year: the twelve (12) months commencing on the first day
of January of any calendar year and ending on the last day of December of such calendar
year or such other twelve-month period as may from time to time be designated by the
Council as the fiscal year of the City.
(18) Interest Payment Date: the interest payment dates on the Bonds.
(19) Investment Earnings: all income derived from the investment of
any proceeds of the Bonds deposited in the Development and Expense Fund or
investment earnings on funds on deposit in the Subordinate Bonds Debt Service Account.
2
(20) Investment Letter: the investment letter to be executed by any
transferee of the Purchaser, who or which purchases all or any portion of the Bonds in a
transaction exempt from the requirements of SEC Rule 15c2-12.
(21) Maturity Date: the date for the payment of principal of the Bonds.
(22) 1982 Election: the special election held in the City on Tuesday,
June 1, 1982.
(23) Ordinance: this Ordinance of the City.
(24) Outstanding or outstanding: when used with reference to the
Bonds or portions thereof as of any particular date, means all of the Bonds or portions
thereof theretofore and thereupon being authenticated and delivered:
(a) Except any Bond or portion thereof canceled by the City or by
the Registrar or otherwise on the City's behalf at or before such date;
(b) Except any Bond or portion thereof which has been paid or
deemed to have been paid pursuant to the provisions hereof, and
(c) Except any Bond or portion thereof in lieu of or in substitution
for which another Bond shall have been authenticated and delivered by the Town
pursuant hereto.
(25) Owner: the holder of any bearer instrument or registered owner of
any registered instrument.
(26) Parity Securities: the outstanding 2004 and 2007 DDA Bonds and
any other bonds, warrants, notes, securities, leases or other contracts evidencing
borrowings and payable from the Tax Increment Revenues equally or on a parity with the
Bonds.
(27) wing Agent: the Financial Officer of the City, or his successors,
acting as paying agent for the Bonds.
(28) Permitted Investments: all securities or deposits authorized by
ordinances of the City and, to the extent applicable,the laws of the State.
(29) Person: any individual, firm, partnership, corporation, company,
association, joint-stock association, or body politic or any trustee, receiver, assignee, or
other similar representative thereof.
(30) Plan of Development: the plan approved by Resolution 81-129 of
the City.
(31) Pledged Revenues: the Tax Increment Revenues and the
Investment Earnings.
3
(32) Project: the improvements or projects permitted by the Plan and
the Downtown Development Authority Act.
(33) Property Tax Base Dates: September 15, 1980, with respect to the
District described in Ordinance No. 46, 1981, of the City; September 15, 1981, with
respect to the area added to the District by Ordinance No. 162, 1981, of the City;
September 15, 1982, with respect to the area added to the District by Ordinance No. 2,
1983, of the City; and the applicable dates pursuant to the Downtown Development
Authority Act with respect to such other areas as have heretofore been or as may
hereafter be added to the District by valid legislative action of the City as may be
determined in accordance with the decisions of the appellate courts of the State.
(34) Purchaser: the City.
(35) Redemption Date: the date fixed for the redemption prior to
maturity of any Bonds or other designated securities payable from the Tax Increment
Revenues in any notice of prior redemption given by or on behalf of the City.
(36) Registrar: the Financial Officer of the City, or his successors,
acting as registrar for the Bonds.
(37) Regular Record Date: the fifteenth day of the calendar month next
preceding an Interest Payment Date for the Bonds.
(38) Security or securities: any bond issued by the City or any other
evidence of the advancement of money to the City.
(39) Special Record Date: the date fixed by the Paying Agent for the
determination of ownership of Bonds for the purpose of paying interest not paid when
due or interest accruing after maturity.
(40) State: the State of Colorado.
(41) Subordinate Bonds or Subordinate Securities: any bonds or
securities payable from the Tax Increment Revenues having a lien thereon subordinate or
junior to the lien thereon of the Bonds.
(42) Subordinate Bonds Debt Service Account: the special fund created
in Ordinance No. 101, 1998, of the City designated therein as the "City of Fort Collins,
Colorado, Downtown Development Authority Subordinate Tax Increment Bonds Debt
Service Account' and referred to in Section 5E hereof.
(43) Superior Bonds or Superior Securities: any bond or security
payable from the Tax Increment Revenues having a lien thereon superior or senior to the
lien thereon of the Bonds.
(44) implemental Act: the Supplemental Public Securities Act,
constituting Title 11, Article 57, Part 2, C.R.S.
4
(45) Tax Increment Fund: the special fund created in Ordinance No.
142, 1985, of the City designated therein as the "City of Fort Collins, Colorado,
Downtown Development Authority Tax Increment Bonds, Bond Fund" and referred to in
Section 5B hereof.
(46) Tax Increment Principal and Interest Account: the special fund
created in Ordinance No. 142, 1985, of the City, designated therein as the "Principal and
Interest Account' of the "City of Fort Collins, Colorado, Downtown Development
Authority Tax Increment Bonds, Bond Fund" and referred to in Section 5C hereof.
(47) Tax Increment Reserve Account: the special fund created in
Ordinance No. 142, 1985, of the City, designated therein as the "City of Fort Collins,
Colorado, Tax Increment Bonds, Reserve Fund" and referred to in Section 5D hereof.
(48) Tax Increment Revenues: all revenues derived in each Fiscal Year
from the levy of ad valorem taxes at the rate fixed each year by or for each public body
having taxing power over all or any portion of the District upon that portion of the
valuation for assessment of all taxable property within the District and the boundaries of
such public body that is in excess of the valuation for assessment of all taxable property
within the District and the boundaries of such public body on the Property Tax Base
Dates, all in accordance with Section 31-25-807(3)(a)(II) of the Downtown Development
Authority Act, less any collection fees lawfully payable to the City or Larimer County,
Colorado, for services rendered in connection with the collection of such ad valorem
taxes; provided, that in the event of a general reassessment of taxable property in the
City, the valuation for assessment of taxable property within the District on the Property
Tax Base Dates will be proportionately adjusted as required by the Downtown
Development Authority Act or other applicable law.
(49) Transfer Agent: the Financial Officer of the City, or his
successors, acting as transfer agent for the Bonds.
(50) Trust Bank: any depository for public funds permitted by the laws
of the State for political subdivisions of the State which has a capital and surplus of
$25,000,000 or more, which is located within the United States, and which is authorized
to exercise and is exercising trust powers.
(51) 2004 and 2007 DDA Bonds: the City of Fort Collins, Colorado,
Downtown Development Authority Subordinate Tax increment Revenue Bonds, Series
2004A and 2007A.
(52) 2006 Election: the election held in the City on Tuesday,
November 7, 2006.
B. Construction. This Ordinance, except where the context by clear implication
herein otherwise requires, shall be construed as follows:
(1) Words in the singular number include the plural, and words in the
plural include the singular.
5
(2) Words in the masculine gender include the feminine and the
neuter, and when the sense so indicates, words of the neuter gender refer to any gender.
(3) Articles, sections, subsections, paragraphs and subparagraphs
mentioned by number, letter or otherwise correspond to the respective articles, sections,
subsections, paragraphs and subparagraphs of this Ordinance so numbered or otherwise
so designated.
(4) The titles and headlines applied to articles, sections and
subsections of this Ordinance are inserted only as a matter of convenience and ease in
reference and in no way define or limit the scope or intent of any provisions of this
Ordinance.
Section 2. Recitals.
A. Establishment of Authority and Approval of Plan of Development.
Pursuant to Ordinance No. 46, 1981, the City has heretofore established the Authority. Pursuant
to Resolution 81-129 the City has heretofore approved the Plan of Development. The Plan of
Development so approved contained a provision for division of taxes as authorized by the
Downtown Development Authority Act effective for thirty (30) years beginning September 8,
1981.
B. 1982 Election. At the 1982 Election, a majority of the qualified electors
of the District authorized the City to issue bonds or other indebtedness in an amount not to
exceed $25,000,000 to finance capital improvements and capital projects within the parameters
of the Plan of Development of the Authority pursuant to the following ballot question:
SHALL THE CITY OF FORT COLLINS ISSUE BONDS OR
OTHERWISE PROVIDE FOR LOANS, ADVANCES OR
INDEBTEDNESS FROM TIME TO TIME IN AN AMOUNT
NOT TO EXCEED $25,000,000 AT A MAXIMUM NET
EFFECTIVE INTEREST RATE NOT TO EXCEED 18 PER
CENTUM PER ANNUM, THE USE OF WHICH SHALL BE TO
FINANCE CAPITAL IMPROVEMENTS AND CAPITAL
PROJECTS WITHIN THE PARAMETERS OF THE PLAN OF
DEVELOPMENT OF THE FORT COLLINS DOWNTOWN
DEVELOPMENT AUTHORITY, AND IRREVOCABLY
PLEDGE THE SPECIAL FUND INTO WHICH ALL OF THAT
PORTION OF PROPERTY TAXES IN EXCESS OF SUCH
TAXES WHICH ARE PRODUCED BY THE LEVY AT THE
RATE FIXED EACH YEAR BY OR FOR ANY PUBLIC BODY
UPON THE VALUATION FOR ASSESSMENT OF TAXABLE
PROPERTY WITHIN THE BOUNDARIES OF THE DISTRICT
LAST CERTIFIED PRIOR TO THE EFFECTIVE DATE OF
APPROVAL BY THE FORT COLLINS CITY COUNCIL OF
THE PLAN OF DEVELOPMENT OF THE DOWNTOWN
DEVELOPMENT AUTHORITY OR, AS TO AN AREA LATER
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ADDED TO THE BOUNDARIES OF THE DISTRICT, THE
EFFECTIVE DATE OF THE MODIFICATION OF THE PLAN
OF DEVELOPMENT FROM WHICH SPECIAL FUND SHALL
BE PAID THE PRINCIPAL OF, THE INTEREST ON, AND
ANY PREMIUMS DUE IN CONNECTION WITH THE BONDS
OF, LOANS OR ADVANCES TO, OR INDEBTEDNESS
INCURRED BY, WHETHER FUNDED, REFUNDED,
ASSUMED, OR OTHERWISE, THE CITY OF FORT COLLINS
FOR FINANCING OR REFINANCING, IN WHOLE OR IN
PART, DEVELOPMENT PROJECTS WITHIN THE
BOUNDARIES OF THE PLAN FOR DEVELOPMENT AREA.
C. 2006 Election. At the 2006 Election, a majority of the qualified electors
of the District authorized the City to issue bonds, notes, contracts or other financial obligations in
an amount not to exceed $150,000,000 to finance the costs of development projects to be
undertaken by or on behalf of the Authority pursuant to the following ballot question:
SHALL CITY OF FORT COLLINS DEBT BE INCREASED BY
NO MORE THAN $150,000,000 WITH A REPAYMENT COST
OF $250,000,000 FOR THE PURPOSE OF FINANCING THE
COSTS OF DEVELOPMENT PROJECTS TO BE
UNDERTAKEN BY OR ON BEHALF OF THE FORT COLLINS
DOWNTOWN DEVELOPMENT AUTHORITY PURSUANT TO
THE APPLICABLE PROVISIONS OF COLOR-ADO LAW AND
THE FORT COLLINS DOWNTOWN DEVELOPMENT
AUTHORITY PLAN OF DEVELOPMENT, AS SUCH PLAN
MAY BE AMENDED FROM TIME TO TIME; SUCH DEBT
AND THE INTEREST THEREON TO BE PAYABLE SOLELY
FROM AND SECURED BY A PLEDGE OF THE SPECIAL
FUND OF THE CITY WHICH SHALL CONTAIN AD
VALOREM PROPERTY TAX INCREMENT REVENUES
LEVIED AND COLLECTED WITHIN THE BOUNDARIES OF
THE AUTHORITY; AND SHALL SUCH DEBT BE
EVIDENCED BY BONDS, NOTES, CONTRACTS OR OTHER
FINANCIAL OBLIGATIONS TO BE SOLD OVER TIME IN
ONE SERIES OR MORE FOR A PRICE ABOVE OR BELOW
THE PRINCIPAL AMOUNT THEREOF, ON SUCH TERMS
AND CONDITIONS, AND WITH SUCH MATURITIES AS
MAY BE PERMITTED BY LAW AND AS THE CITY
COUNCIL MAY DETERMINE, INCLUDING PROVISIONS
FOR REDEMPTION OF THE DEBT PRIOR TO MATURITY
WITH OR WITHOUT PAYMENT OF THE PREMIUM OF NOT
MORE THAN 3% OF THE PRINCIPAL AMOUNT SO
REDEEMED AND SHALL THE PROCEEDS FROM SUCH
DEBT AND ANY INVESTMENT INCOME EARNED FROM
SUCH PROCEEDS BE COLLECTED AND SPENT AS A
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VOTER-APPROVED REVENUE CHANGE UNDER SECTION
20 OF ARTICLE X OF THE COLORADO CONSTITUTION?
D. Prior Bonds. The City has heretofore issued and sold $25,000,000
aggregate principal amount of bonds or other indebtedness pursuant to the authority conferred at
the 1982 Election. The City has heretofore issued and sold $1,088,000 aggregate principal
amount of bonds or other indebtedness pursuant to the authority conferred at the 2006 Election
and $148,912,000 of the authority so conferred at the 2006 Election remains. Pursuant to Article
X, Section 20(4) of the State Constitution, that portion of the Bonds that will be issued pursuant
to the authority conferred at the 2006 Election may not be sold on terms which exceed their share
of the maximum repayment costs described in the 2006 ballot question or in the notice sent to
voters. Pursuant to the ballot issue notice provided to the electors in connection with the 2006
Election, the maximum annual repayment cost of the indebtedness issued pursuant to the election
question may not exceed $17,000,000 and the total repayment cost of the debt issued pursuant to
the election question may not exceed $250,000,000.
E. Project. The City has need for and desires to acquire, construct, install and
finance the Project. The Council has determined, and does hereby determine, that it is necessary
and for the best interest of the City that the Bonds now be authorized to be issued and delivered,
and the City hereby determines to use the proceeds of the Bonds authorized by this Ordinance to
finance the Project and to pay the costs of issuance of the Bonds.
F. Authority. Pursuant to art. XX, §6 of the Colorado Constitution, Art. V,
Section 19.8 of the Charter, the Downtown Development Authority Act, and the Supplemental
Act, the City is authorized by Council action and pursuant to the 1982 Election and the 2006
Election to issue the Bonds.
Section 3. The Bonds.
A. Authorization of Bonds; Supplemental Act.
(1) The Bonds are hereby authorized to be issued for the purpose of
financing the Project and paying the costs of issuance of the Bonds. The Bonds shall be
issued in the aggregate principal amount of$10,488,043.
(2) Section 11-57-204 of the Supplemental Act provides that a public
entity, including the City, may elect in an act of issuance to apply all or any of the
provisions of the Supplemental Act. The Council hereby elects to apply all of the
Supplemental Act to the Bonds, except for Section 11-57-205. The Bonds are issued
under the authority of the Supplemental Act and shall so recite. Pursuant to Section 11-
57-210 C.R.S., such recital conclusively imparts full compliance with all provisions of
said sections, and the bonds issued containing such recital shall be incontestable for any
cause whatsoever after their delivery for value.
B. Bond Details.
(1) Generally. The Bonds shall be issuable in fully registered form in
the denomination of$100,000 or any integral multiple of$5,000 in excess of thereof. No
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Bond shall be issued in any denomination larger than the aggregate prircipal amount
maturing on the Maturity Date of such Bond and bearing interest at the same interest rate,
and no Bond shall be made payable on more than one Maturity Date. The Bonds shall be
initially issued so that a single Bond shall evidence the obligation of the City to pay all
principal due on each of the Maturity Dates set forth herein.
Pursuant to the recommendations of the Committee on Uniform Security
Identification Procedures, CUSIP numbers may be printed on the Bonds.
The Bonds shall mature on December 1 in the following years in the
following aggregate principal amounts and shall bear interest from their delivery date or
the Interest Payment Dates to which interest has been paid next preceding their respective
dates, whichever is later, to their respective Maturity Dates, except if redeemed prior
thereto, at the following per annum interest rates:
Years Principal Amounts Interest Rates
2009
2010
2011
Said interest shall be payable on June 30, 2009 and semiannually thereafter on the first
day of June and the first day of December of each year. Interest on the Bonds shall be
calculated on the basis of a 360-day year of twelve 30-day months. The maximum
interest rate on the Bonds shall not exceed 6.00%per annum.
The Debt Service Requirements of the Bonds shall be payable in lawful
money of the United States of America to the Owners of the Bonds by the Paying Agent.
The principal and interest shall be payable to the Owner of each Bond upon presentation
and surrender thereof at maturity or upon prior redemption, by check or draft mailed to
such Owner at the address appearing on the registration books of the City maintained by
the Registrar or by wire transfer to such bank or other depository as the Owner shall
designate in writing to the Paying Agent. Except as hereinbefore and hereinafter
provided, the interest shall be payable to the Owner of each Bond determined as of the
close of business on the Regular Record Date, irrespective of any transfer of ownership
of the Bond subsequent to the Regular Record Date and prior to the Interest Payment
Date, by check or draft or wire transfer directed to such Owner as aforesaid. Any interest
not paid when due and any interest accruing after maturity shall be payable to the Owner
of each Bond entitled to receive such interest determined as of the close of business on
the Special Record Date, irrespective of any transfer of ownership of the Bond
subsequent to the Special Record Date and prior to the date fixed by the Paying Agent for
the payment of such interest, by check or draft or wire transfer directed to such Owner as
aforesaid. Notice of the Special Record Date and of the date fixed for the payment of
such interest shall be given by sending a copy thereof by certified or registered first-class,
postage prepaid mail, at least fifteen (15) days prior to the Special Record Date, to the
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Owner of each Bond upon which interest will be paid determined as of the close of
business on the day preceding such mailing at the address appearing on the registration
books of the City. If the date for making or giving any payment, determination or notice
described herein is a Saturday, Sunday, legal holiday or any other day on which the office
of the Paying Agent or Registrar is authorized or required by law to remain closed, such
payment, determination or notice shall be made or given on the next succeeding day that
is not a Saturday, Sunday, legal holiday or other day on which the office of the Paying
Agent or Registrar is authorized or required by law to remain closed.
The Paying Agent may make payments of interest on any Bond by such
alternative means as may be mutually agreed to between the Owner of such Bond and the
Paying Agent. All such payments shall be made in lawful money of the United States of
America, without deduction for services of the Registrar or Paying Agent.
(2) Redemption. The Bonds shall be subject to optional redemption
prior to their respective Maturity Dates, in whole or in part, on any date at a price equal to
the principal amount of each Bond so redeemed plus accrued interest thereon to the
Redemption Date.
The Bonds may be redeemed in part if issued in denominations that are
integral multiples of $100,000, and any integral multiple of $5,000 in excess thereof.
Such Bonds shall be treated as representing a corresponding number of separate Bonds in
the denomination of $100,000 each. Any such Bond to be redeemed in part shall be
surrendered for partial redemption in the manner hereinafter provided for transfers of
ownership. Upon payment of the redemption price of any such Bond redeemed in part
the Owner thereof shall receive a new Bond or Bonds of authorized denominations in
aggregate principal amount equal to the unredeemed portion of the Bond surrendered.
Unless waived by the Owners of any Bonds to be redeemed, notice of
redemption shall be given by the Paying Agent in the name of the City by sending a copy
thereof by certified or registered first-class postage prepaid mail, not less than thirty (30)
nor more than sixty (60) days prior to the Redemption Date, to the Owner of each of the
Bonds being redeemed determined as of the close of business on the day preceding the
first mailing of such notice at the address appearing on the registration books of the City.
Such notice shall specify the number or numbers of the Bonds to be redeemed, whether in
whole or in part, the principal amounts thereof and the date fixed for redemption and
shall further state that on the Redemption Date there will be due and payable upon each
Bond or part thereof so to be redeemed the principal amount or part thereof plus accrued
interest thereon to the redemption date and that from and after such date interest will
cease to accrue. Bonds called for optional redemption as provided herein shall be
redeemable only to the extent of moneys on deposit with the Paying Agent and legally
available for redemption of Bonds on the date of such notice. Failure to mail any notice
as aforesaid or any defect in any notice so mailed with respect to any Bond shall not
affect the validity of the redemption proceedings with respect to any other Bond. Any
Bonds redeemed prior to their respective Maturity Dates by call for prior redemption or
otherwise shall not be reissued and shall be cancelled the same as Bonds paid at or after
maturity.
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Notwithstanding the provisions of this section, any notice of optional
redemption may contain a statement that the redemption is conditioned upon the receipt
by the Paying Agent of funds on or before the date fixed for redemption sufficient to pay
the redemption price of the Bonds so called for redemption, and that if such funds are not
available, such redemption shall be cancelled by written notice to the Owners of the
Bonds called for redemption in the same manner as the original redemption notice was
mailed.
(3) Execution and Authentication. The Bonds shall be executed by and on
behalf of the City with the facsimile or manual signature of the Mayor, shall bear a
facsimile or manual impression of the seal of the City, shall be attested with the facsimile
or manual signature of the City Clerk, shall be countersigned with the facsimile or
manual signature of the Financial Officer of the City, and shall be authenticated with the
manual signature of the Registrar. Should any officer whose facsimile or manual
signature appears on the Bonds cease to be such officer before delivery of the Bonds to
the Purchaser, such facsimile or manual signature shall nevertheless be valid and
sufficient for all purposes. No Bond shall be valid or become obligatory for any purpose
or be entitled to any security or benefit under this Ordinance unless and until the
certificate of authentication on such Bond shall have been duly executed by the Registrar,
and such executed certificate upon any such Bond shall be conclusive evidence that such
Bond has been authenticated and delivered under this Ordinance.
(4) Registration, Transfer and Exchange. Upon their execution and
authentication and prior to their delivery the Bonds shall be registered for the purpose of
payment of principal and interest by the Registrar. Thereafter, the Bonds shall be
transferable only upon the registration books of the City by the Transfer Agent at the
request of the Owner thereof or his, her or its duly authorized attorney-in-fact or legal
representative. A Bond may be transferred upon surrender thereof together with a written
instrument of transfer duly executed by the Owner or his, her or its duly authorized
attorney-in-fact or legal representative with guaranty of signature satisfactory to the
Transfer Agent, containing written instructions as to the details of the transfer, along with
the social security number or federal employer identification number of the transferee
and, if the transferee is a trust, the names and social security numbers of the settlors and
the beneficiaries of the trust. The Transfer Agent shall not be required to transfer
ownership of any Bond during the fifteen (15) days prior to the first mailing of any notice
of redemption or to transfer ownership of any Bond selected for redemption on or after
the date of such mailing. The Owner of any Bond or Bonds may also exchange such
Bond or Bonds for another Bond or Bonds of authorized denominations. Transfers and
exchanges shall be made without charge, except that the Transfer Agent may require
payment of a sum sufficient to defray any tax or other governmental charge that may
hereafter be imposed in connection with any transfer or exchange of Bonds. No transfer
of any Bond shall be effective until entered on the registration books of the City. In the
case of every transfer or exchange, the Transfer Agent shall deliver to the new Owner a
new Bond or Bonds of the same aggregate principal amount, maturing in the same year,
and bearing interest at the same per annum interest rate as the Bond or Bonds
surrendered. Such Bond or Bonds shall be dated as of their date of authentication. New
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Bonds delivered upon any transfer or exchange shall be valid obligations of the City,
evidencing the same obligation as the Bonds surrendered, shall be secured by this
Ordinance, and shall be entitled to all of the security and benefits hereof to the same
extent as the Bonds surrendered. The City may deem and treat the Person in whose name
any Bond is last registered upon the books of the City as the absolute owner thereof for
the purpose of receiving payment of the Debt Service Requirements of such Bond and for
all other purposes, and all such payments so made to such Person or upon his, her or its
order shall be valid and effective to satisfy and discharge the liability of the City upon
such Bond to the extent of the sum or sums so paid, and the City shall not be affected by
any notice to the contrary.
(5) Replacement of Bonds. If any Bond shall have been lost,
destroyed or wrongfully taken, the City shall provide for the replacement thereof in the
manner set forth and upon receipt of the evidence, indemnity bond and reimbursement for
expenses provided in Ordinance No. 80, 1984.
(6) Recitals in Bonds. Each Bond shall recite in substance that the
Bond is a special and limited obligation of the City payable solely from the Pledged
Revenues and the funds and accounts hereby pledged and that the Bond is not a debt or
an indebtedness of the City and that the Bond is not a general obligation of the City and
that the full faith and credit of the City is not pledged to pay the Debt Service
Requirements of such Bond. Each Bond shall further recite that it is issued under the
authority of the Constitution of the State of Colorado, the Charter, the Downtown
Development Authority Act, and this Ordinance. Pursuant to § 11-57-210, C.R.S., the
Bonds shall also contain a recital that they are issued pursuant to the Supplemental Act,
which recital shall conclusively impart full compliance with all of the provisions of the
Supplemental Act, and all Bonds issued containing such recital shall be incontestable for
any cause whatsoever after their delivery for value.
(7) Form of Bonds. The Bonds shall be in substantially the following
form, with such omissions, insertions, endorsements and variations as may be required by
the circumstances, be required or permitted by this Ordinance, or necessary or
appropriate to conform to the rules and requirements of any governmental authority or
any usage or requirement of law with respect thereto:
12
[Form of Bond)
(Text of Face)
UNITED STATES OF AMERICA
STATE OF COLORADO COUNTY OF LARIMER
CITY OF FORT COLLINS
DOWNTOWN DEVELOPMENT AUTHORITY
TAXABLE SUBORDINATE TAX INCREMENT REVENUE BOND
SERIES 2008A
No. R- $
Interest Rate Maturity Date Original Date CUSIP
_% December 1, _, 2008
REGISTERED OWNER:
PRINCIPAL SUM: Thousand Dollars
The City of Fort Collins, in the County of Latimer and State of Colorado, for
value received, hereby promises to pay to the Registered Owner (specified above), or registered
assigns, solely from the special fund and account provided therefor, as hereinafter set forth, the
Principal Sum (specified above), in lawful money of the United States of America, on the
Maturity Date (specified above), with interest thereon from the Original Date (specified above)
to the Maturity Date, except if redeemed prior thereto, at the per annum Interest Rate (specified
above), payable on the first day of June and the first day of December of each year, commencing
June 30, 2009, or the first such date after the date hereof, whichever is later, in the manner
provided herein.
The Bonds are subject to optional redemption prior to their maturity date, in
whole or in part, on any date at a price equal to the principal amount of each Bond so redeemed
plus accrued interest thereon to the redemption date.
Bonds that are redeemable prior to their maturity date may be redeemed in part if
issued in denominations that are integral multiples of $100,000 and any integral multiple of
$5,000 in excess thereof. In such case the Bond is to be surrendered in the manner provided for
transfers of ownership. Upon payment of the redemption price the Registered Owner is to
receive a new Bond or Bonds of authorized denominations in aggregate principal amount equal
to the unredeemed portion of the Bond surrendered.
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Unless waived by the registered owners of the Bonds to be redeemed, notice of
redemption of any Bonds is to be given by the paying agent in the name of the City by sending a
copy of such notice by certified or registered first-class postage prepaid mail, not less than thirty
(30) nor more than sixty (60) days prior to the redemption date, to the registered owner of each
of the Bonds being redeemed determined as of the close of business on the day preceding the
first mailing of such notice at the address appearing on the registration books of the City, in the
manner and upon the conditions provided in the Ordinance authorizing the issuance of this Bond
(the "Ordinance"). Bonds called for optional redemption as provided herein are redeemable only
to the extent of moneys on deposit with the paying agent and legally available for redemption of
Bonds on the date of such notice. Failure to mail any notice as aforesaid or any defect in any
notice so mailed with respect to any Bond does not affect the validity of the redemption
proceedings with respect to any other Bond.
The principal of and interest on this Bond are payable to the Registered Owner by
the Financial Officer of the City, or his successors, as paying agent. The principal and interest
are payable to the Registered Owner upon presentation and surrender of this Bond at maturity or
upon prior redemption, by check or draft mailed to the Registered Owner at the address
appearing on the registration books of the City maintained by the Financial Officer of the City,
or his successors, as registrar, or by wire transfer to such bank or other depository as the
Registered Owner shall designate in writing to the paying agent. Except as hereinbefore and
hereinafter provided, the interest is payable to the Registered Owner determined as of the close
of business on the regular record date, which is the fifteenth day of the calendar month next
preceding the interest payment date, irrespective of any transfer of ownership hereof subsequent
to the regular record date and prior to such interest payment date, by check or draft or wire
transfer directed to the Registered Owner as aforesaid. Any interest hereon not paid when due
and any interest hereon accruing after maturity is payable to the Registered Owner determined as
of the close of business on the special record date, which is to be fixed by the paying agent for
such purpose, irrespective of any transfer of ownership of this Bond subsequent to such special
record date and prior to the date fixed by the paying agent for the payment of such interest, by
check or draft or wire transfer directed to the Registered Owner as aforesaid. Notice of the
special record date and of the date fixed for the payment of such interest is to be given by
sending a copy thereof by certified or registered first-class postage prepaid mail, at least fifteen
(15) days prior to the special record date, to the registered owner of each Bond upon which
interest will be paid determined as of the close of business on the day preceding such mailing at
the address appearing on the registration books of the City. If the date for making or giving any
payment, determination or notice described herein is a Saturday, Sunday, legal holiday or any
other day on which the office of the paying agent or registrar is authorized or required by law to
remain closed, such payment, determination or notice is to be made or given on the next
succeeding day that is not a Saturday, Sunday, legal holiday or other day on which the office of
the paying agent or registrar is authorized or required by law to remain closed.
Payment of the principal of and interest on this Bond is to be made solely from,
and as security for such payment there is pledged, pursuant to the Ordinance, a special fund
designated as the Tax Increment Fund and a special account designated as the Subordinate Bonds
Debt Service Account, into which account the City has covenanted in the Ordinance to pay,
respectively, from the pledged revenues described in the Ordinance sums sufficient to pay when
due the principal of and interest on this Bond and any additional securities heretofore issued and
14
hereafter issued and payable from such pledged revenues on a parity with the Bonds, after
provision for payment of all principal and interest due in the current year on any securities
payable from the pledged revenues superior or senior to the Bonds.
Interest on this Bond is not excluded from gross income or alternative minimum
taxable income under federal income tax laws in effect on the date of delivery of this Bond.
It is hereby recited, certified and warranted that for the payment of the principal
of and interest on this Bond the City has created and will maintain said special fund and account
and will deposit therein the required amounts out of the funds and revenues described in the
Ordinance and out of said special fund and account will pay the principal of and interest on this
Bond in the manner provided by the Ordinance.
The Bonds are equitably and ratably secured by a lien on the pledged revenues,
and such Bonds constitute an irrevocable lien(but not necessarily a first lien or an exclusive lien)
upon the pledged revenues. At the time of issuance of the Bonds, certain bonds are outstanding
that have a lien on the pledged revenues on a parity with the lien of the Bonds. Additional bonds
and other types of securities, subject to certain conditions, may be issued and made payable from
the pledged revenues having a lien thereon on a parity with the lien of the Bonds or having a lien
thereon superior and senior with the lien of the Bonds in accordance with the provisions of the
Ordinance. Except as otherwise expressly provided in this Bond and the Ordinance, the pledged
revenues are pledged and set aside to the payment of the principal of and interest on the Bonds of
this issue in anticipation of the collection of the pledged revenues.
The City covenants and agrees with the Registered Owner that it will keep and
perform all of the covenants of this Bond and of the Ordinance.
This Bond is authorized and issued for the purpose of financing certain
improvements and projects pursuant to, by virtue of and in full conformity with the Constitution
of the State of Colorado, the City Charter, part 8 of article 25 of title 31, Colorado Revised
Statutes, as amended, and all other laws of the State of Colorado thereunto enabling and pursuant
to elections held June 1, 1982 and November 7, 2006, and the Ordinance duly adopted prior to
the issuance of this Bond. The Bonds are also issued pursuant to Title 11, Article 57, Part 2,
C.R.S. (the "Supplemental Act'). Pursuant to Section 11-57-210 of the Supplemental Act, this
recital shall be conclusive evidence of the validity and the regularity of the issuance of the Bonds
after their delivery for value.
Reference is hereby made to the Ordinance, and to any and all modifications and
amendments thereof, for a description of the provisions, terms and conditions upon which the
Bonds are issued and secured, including, without limitation, the nature and extent of the security
for the Bonds, the bonds that are currently outstanding and that have a lien on the pledged
revenues on a parity with the Bonds, provisions with respect to the custody and application of the
proceeds of the Bonds, the collection and disposition of the revenues and moneys charged with
and pledged to the payment of the principal of and interest on, the terms and conditions on which
the Bonds are issued, a description of the special fund and account referred to above and the
nature and extent of the security and pledge afforded thereby for the payment of the principal of
and interest on the Bonds, and the manner of enforcement of said pledge, as well as the rights,
15
duties, immunities and obligations of the City and the members of its Council and also the rights
and remedies of the registered owners of the Bonds.
To the extent and in the respects permitted by the Ordinance, the provisions of the
Ordinance, or any instrument amendatory thereof or supplemental thereto, may be modified or
amended by action of the City taken in the manner and subject to the conditions and exceptions
provided in the Ordinance. The pledge of revenues and other obligations of the City under the
Ordinance may be discharged at or prior to the maturity or prior redemption of the Bonds upon
the making of provision for the payment of the Bonds on the terms and conditions set forth in the
Ordinance.
It is hereby recited, certified and warranted that all the requirements of law have
been fully complied with by the proper officers of the City in the issuance of this Bond; that it is
issued pursuant to and in strict conformity with the Constitution and all other laws of the State of
Colorado, including the City Charter, and with the Ordinance; that this Bond does not contravene
any constitutional or statutory limitation of the State of Colorado or any limitation of the City
Charter; and that this Bond is issued under the authority of the Ordinance.
This Bond is transferable only upon the registration books of the City by the
Financial Officer of the City, or his successors, as transfer agent, at the request of the Registered
Owner or his, her or its duly authorized attorney-in-fact or legal representative, upon surrender
hereof together with a written instrument of transfer duly executed by the Registered Owner or
his, her or its duly authorized attorney-in-fact or legal representative with guaranty of signature
satisfactory to the transfer agent, containing written instructions as to the details of the transfer,
along with the social security number or federal employer identification number of the transferee
and, if the transferee is a trust, the names and social security numbers of the settlors and the
beneficiaries of the trust. The transfer agent is not required to transfer ownership of this Bond
during the fifteen (15) days prior to the first mailing of any notice of redemption or to transfer
ownership of any Bond selected for redemption on or after the date of such mailing. The
Registered Owner may also exchange this Bond for another Bond or Bonds of authorized
denominations. Transfers and exchanges are to be made without charge, except that the transfer
agent may require payment of a sum sufficient to defray any tax or other governmental charge
that may hereafter be imposed in connection with any transfer or exchange of Bonds. No
transfer of this Bond is to be effective until entered on the registration books of the City. In the
case of every transfer or exchange, the transfer agent is to deliver to the new registered owner a
new Bond or Bonds of the same aggregate principal amount, maturing in the same year, and
bearing interest at the same per annum interest rate as the Bond or Bonds surrendered. Such
Bond or Bonds are to be dated as of their date of authentication. The City may deem and treat
the person or entity in whose name this Bond is last registered upon the books of the City as the
absolute owner hereof for the purpose of receiving payment of the principal of and interest on
this Bond and for all other purposes, and all such payments so made to such person or entity or
upon his, her or its order will be valid and effective to satisfy and discharge the liability of the
City upon this Bond to the extent of the sum or sums so paid, and the City will not be affected by
any notice to the contrary.
This Bond is a special and limited obligation of the City payable solely out of and
secured by a pledge (but not necessarily an exclusive pledge) of certain tax increment revenues
16
and certain income derived from the investment of such revenues and of certain bond proceeds,
all as more specifically provided in the Ordinance, and of certain funds and accounts pledged in
the Ordinance. This Bond does not constitute a debt or an indebtedness of the City within the
meaning of any constitutional, charter or statutory provision or limitation of the State of
Colorado or of the City. This Bond is not a general obligation of the City, and the full faith and
credit of the City is not pledged for the payment of the principal of or interest on this Bond.
IN WITNESS WHEREOF, the City has caused this Bond to be executed in its
name and on its behalf with the facsimile or manual signature of the Mayor of the City, to be
sealed with a facsimile or manual impression of the seal of the City, to be attested with the
facsimile or manual signature of the City Clerk of the City, and to be countersigned with the
facsimile or manual signature of the Financial Officer of the City.
CITY OF FORT COLLINS, COLORADO
(CITY) By: (Facsimile or Manual Signature)
(SEAL) Mayor
ATTEST:
(Facsimile or Manual Si ng ature)
City Clerk
Countersigned:
(Facsimile or Manual Signature)
Financial Officer
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CERTIFICATE OF AUTHENTICATION
This Bond is issued pursuant to the Ordinance herein described. Attached hereto
is the complete text of the opinion of bond counsel, Sherman & Howard L.L.C., Denver,
Colorado, a signed copy of which, dated the date of the first delivery of the Bonds, is on file with
the undersigned.
FINANCIAL OFFICER OF THE CITY
as registrar
(Manual Si ng ature)
Dated:
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ABBREVIATIONS
The following abbreviations, when used in the inscription on the face of this
Bond, shall be construed as though they were written out in full according to applicable laws or
regulations.
TEN COM - as tenants in common
TEN ENT - as tenants by the entireties
JT TEN - as joint tenants with the right of
survivorship and not as tenants in
common
UNIF TRANS MIN ACT - Custodian
(Cust) (Minor)
under Uniform Transfers to Minors Act
(State)
Additional abbreviations may also be used
though not on the above list.
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ASSIGNMENT
FOR VALUE RECEIVED, the undersigned sells, assigns and transfers unto
PLEASE INSERT SOCIAL SECURITY OR
OTHER IDENTIFYING NUMBER OF ASSIGNEE
(Name and Address of Assignee)
this Bond and does hereby irrevocably constitute and appoint
, or its successors, to transfer this Bond on the books kept for
registration thereof.
Dated:
Signature guaranteed:
(Eligible Guarantor Institution)
NOTICE: The signature to this assignment
must correspond with the name of the
Registered Owner as it appears upon the
face of this Bond in every particular without
alteration or enlargement or any change
whatever.
[End of Form of Bond]
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C. Bonds Equally Secured. The covenants and agreements herein set forth to
be performed on behalf of the City shall be for the equal benefit, protection and security of the
Owners of the Bonds, all of which, regardless of the time or times of their maturity, shall be of
equal rank without preference, priority or distinction of any of the Bonds over any other thereof,
except as otherwise expressly provided in or pursuant to this Ordinance.
D. Financial Obligations. All of the Bonds, as to all Debt Service
Requirements thereof, shall be payable solely out of the Pledged Revenues and the funds and
accounts pledged hereunder. The Owners of the Bonds may not look to the general or any other
fund of the City for the payment of the Debt Service Requirements thereof, except the special
fund and account pledged therefor, and the Bonds shall constitute special and limited obligations
of the City.
Section 4. Sale of Bonds.
A. Purchaser's Proposal; Award of Contract. A proposal for the purchase of
the Bonds upon terms favorable to the City has been received from the Purchaser, and the
Financial Officer of the City has recommended that said proposal be accepted by the Council.
The contract for the purchase of the Bonds is hereby awarded to the Purchaser at a price equal to
the aggregate principal amount of the Bonds upon the terms set forth in this Ordinance.
B. Approval of Investment Letter. The Council hereby approves the form of
the Investment Letter that is on file in the office of the City Clerk, with such changes therein, if
any, not inconsistent herewith as may be approved by the Financial Officer of the City.
Section 5. Disposition of Bond Proceeds and Pledged Revenues; Funds and Accounts
Adopted or Created by Ordinance; Security For Bonds.
The proceeds of the sale of the Bonds and the Pledged Revenues received by the
City shall be deposited by the City in the funds described in this Section 5, to be accounted for in
the manner and priority set forth in this Section 5.
Neither the Purchaser nor any subsequent Owner of any Bond shall be responsible
for the application or disposal by the City or by any of its officers, agents and employees of the
moneys derived from the sale of the Bonds or of any other moneys designated in this Section 5.
The Pledged Revenues and all moneys and securities paid or to be paid to or held
or to be held in any fund or account hereunder (except the Tax Increment Principal and Interest
Account and the Tax Increment Reserve Account) are hereby pledged to secure the payment of
the Debt Service Requirements of the Bonds, the Parity Securities and any Additional Parity
Bonds. This pledge shall be valid and binding from and after the date of the first delivery of the
Bonds, and the moneys, as received by the City and hereby pledged, shall immediately be subject
to the lien of this pledge without any physical delivery thereof, any filing, or further act. The
lien of this pledge and the obligation to perform the contractual provisions hereby made shall
have priority over any or all other obligations and liabilities of the City (except as herein
otherwise expressly provided), and the lien of this pledge shall be valid and binding as against all
parties having claims of any kind in tort, contract or otherwise against the City (except as herein
otherwise expressly provided), irrespective of whether such parties have notice thereof.
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A. Disposition of Bond Proceeds. The City shall deposit in the Development
and Expense Fund forthwith upon receipt thereof the net proceeds of the Bonds, to be used and
withdrawn only as provided in this Section 5A. The net proceeds of the Bonds deposited in the
Development and Expense Fund shall be used and paid out from time to time solely for the
purpose of paying the Cost of the Project. Any proceeds of the Bonds remaining in the
Development and Expense Fund after payment in full of the Cost of the Project may be
transferred to the Tax Increment Fund and used for the purposes thereof.
B. Disposition of Tax Increment Revenues. For so long as any of the Bonds
shall be Outstanding, as to any Debt Service Requirements, except as otherwise provided herein,
the Tax Increment Revenues, upon their receipt from time to time by the City, shall be set aside
and credited immediately to the Tax Increment Fund.
For so long as any of the Bonds shall be Outstanding as to any Debt Service
Requirements, the Tax Increment Fund shall be accumulated and administered, and the moneys
on deposit therein shall be applied, in the following order of priority:
(1) First, to the extent that there are Outstanding Superior Bonds or
Superior Securities, to the Tax Increment Principal and Interest Account to pay any Debt
Service Requirements of Superior Bonds or Superior Securities then Outstanding in the
manner set forth in Section 5C hereof,
(2) Second, to the extent that there are Outstanding Superior Bonds or
Superior Securities, to the Tax Increment Reserve Account, in the manner set forth in
Section 5D hereof; and
(3) Third, to the Subordinate Bonds Debt Service Account to pay the
Debt Service Requirements of the Bonds, any Parity Securities and any Additional Parity
Bonds in accordance with Section 5E hereof.
C. Tax Increment Principal and Interest Account Payments. To the extent
that there are Outstanding Superior Bonds or Superior Securities, the City shall deposit in the
Tax Increment Principal and Interest Account from the Tax Increment Revenues the amounts
required by the Ordinances authorizing the Superior Bonds or Superior Securities, at the times
and in the manner specified therein.
D. Tax Increment Reserve Account Payments. To the extent that there are
Outstanding Superior Bonds or Superior Securities, the City shall retain in the Tax Increment
Reserve Account the amounts, if any, required by the Ordinances authorizing such Superior
Bonds or Superior Securities. The Tax Increment Reserve Account shall be funded at the times
and in the manner specified in any such Ordinances and funds on deposit therein shall be utilized
as set forth in any such Ordinances.
E. Subordinate Bonds Debt Service Account Payments. After there have
been deposited in the Tax Increment Principal and Interest Account an amount sufficient to pay
all the Debt Service Requirements due or to become due during the current Bond Year on all
Superior Bonds or Superior Securities then Outstanding and after the accumulations to and
replenishments of the Tax Increment Reserve Account to be made in the current Bond Year have
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been made, any moneys remaining in the Tax Increment Fund in any Bond Year shall be used by
the City for the payment of Debt Service Requirements of the Bonds, any Parity Securities and
any Additional Parity Bonds; but the lien of such securities on the Tax Increment Revenues and
the pledge thereof for the payment of such securities shall be subordinate and junior to the lien
and pledge for the payment of all Outstanding Superior Bonds or Superior Securities as herein
provided.
F. Budget and Appropriation of Sums. The sums required to make the
payments specified in this Section 5 shall be appropriated for said purposes, and the amounts so
required in each year shall be included in the budget and the appropriation ordinance or measures
to be adopted or passed by the Council while any of the Bonds, as to either principal or interest,
are Outstanding and unpaid. No provisions of any constitution, charter, statute, ordinance,
resolution, or other order or measure enacted after the issuance of the Bonds shall in any manner
be construed as limiting or impairing the obligation of the City to keep and perform the
covenants contained in this Ordinance so long as any of the Bonds remain Outstanding and
unpaid.
Section 6. General Administration of Funds and Accounts.
A. Places and Times of Deposits. Each of the special funds or accounts
referred to in Section 5 hereof shall be kept separate and apart from all other accounts or funds of
the City as trust accounts solely for the purposes herein designated therefor. For purposes of
investment of moneys, nothing, except as specifically provided herein, prevents the commingling
of moneys accounted for in any two or more such funds or accounts pertaining to the Pledged
Revenues or to such fund and account and any other funds or accounts of the City adopted or
created under this Ordinance. Such funds or accounts shall be continuously secured to the fullest
extent required and permitted by the laws of the State for the securing of public funds and shall
be irrevocable and not withdrawable by anyone for any purpose other than the respective
designated purposes of such funds and accounts. Each periodic payment shall be credited to the
proper fund or account not later than the date therefor herein designated, except that when any
such date shall be a Saturday, a Sunday or a legal holiday, then such payment shall be made on
or before the next preceding business day.
B. Investment of Funds and Accounts. Any moneys in the Development and
Expense Fund and the Subordinate Bonds Debt Service Account may be deposited, invested, or
reinvested in Permitted Investments. Securities or obligations purchased as such an investment
shall either be subject to redemption at any time at face value by the Owner thereof at the option
of such Owner or shall mature at such time or times as shall most nearly coincide with the
expected need for moneys from the fund or account in question. Securities or obligations so
purchased as an investment of moneys in any such fund or account shall be deemed at all times
to be a part of the applicable fund or account; provided that the interest accruing on such
investments and any profit realized therefrom shall be credited to the Tax Increment Fund and
any loss resulting from such investments shall be charged to the particular fund or account in
question. The City shall present for redemption or sale on the prevailing market any securities or
obligations so purchased as an investment of moneys in a given fund or account whenever it
shall be necessary to do so in order to provide moneys to meet any required payment or transfer
from such fund or account.
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C. No Liability for Losses Incurred in Performing Terms of Ordinance.
Neither the City nor any officer of the City shall be liable or responsible for any loss resulting
from any investment or reinvestment made in accordance with this Ordinance.
D. Character of Funds. The moneys in any fund or account herein authorized
shall consist of lawful money of the United States of America or Permitted Investments or both
such money and Permitted Investments. Moneys deposited in a demand or time deposit account
in a Commercial Bank, appropriately secured according to the laws of the State, shall be deemed
lawful money of the United States of America.
E. Accelerated Payments Optional. Nothing contained herein prevents the
accumulation in any fund or account herein designated of any monetary requirements at a faster
rate than the rate or minimum rate, as the case may be, provided therefor, but no payment shall
be so accelerated if such acceleration shall cause a default in the payment of any obligation of
the City pertaining to the Pledged Revenues.
Section 7. Priorities; Liens; Issuance of Additional Securities.
A. Lien on Pledged Revenues. Except as expressly provided in this Ordinance
with respect to the issuance of Superior Bonds or Superior Securities and Additional Parity
Bonds or Parity Securities, the Tax Increment Revenues and the Investment Earnings shall be
and hereby are irrevocably pledged and set aside to pay the Debt Service Requirements of the
Bonds. The Bonds constitute an irrevocable lien (but not necessarily a first lien or an exclusive
lien) upon the Tax Increment Revenues and the Investment Earnings. The Bonds, any Parity
Securities and any Additional Parity Bonds authorized to be issued and from time to time
Outstanding are equitably and ratably secured by a lien on the Tax Increment Revenues and the
Investment Earnings and shall not be entitled to any priority one over the other in the application
thereof regardless of the time or times of the issuance of the Bonds, any Parity Securities and any
Additional Parity Bonds, it being the intention of the Council that there shall be no priority
among the Bonds, any Parity Securities and any Additional Parity Bonds, regardless of the fact
that they may be actually issued and delivered at different times. Bonds and other types of
securities may be issued and made payable from the Pledged Revenues having a lien thereon
superior and senior with the lien of the Bonds in accordance with the provisions of this
Ordinance.
B. Issuance of Additional Parity Bonds. Nothing herein, subject to the
limitations stated in Section 7E hereof, prevents the issuance by the City of Additional Parity
Bonds payable from the Pledged Revenues and constituting a lien thereon on a parity with the
lien thereon of the Bonds.
C. Issuance of Superior Securities Permitted. Subject to the limitations stated in
Section 7E hereof and in the ordinances authorizing the issuance of Superior Bonds or Superior
Securities, the City may issue Superior Bonds or Superior Securities for any lawful purpose
payable from the Tax Increment Revenues and having a lien thereon superior and senior to the
lien thereon of the Bonds.
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D. Issuance of Subordinate Securities Permitted. Subject to the limitations stated
in Section 7E hereof, the City may issue Subordinate Bonds or Subordinate Securities payable
from the Tax Increment Revenues having a lien thereon subordinate or junior to the lien thereon
of the Bonds.
E. Action by Council. Additional Parity Bonds, Superior Bonds, Superior
Securities, Subordinate Bonds and Subordinate Securities shall be issued only after authorization
thereof by ordinance, supplemental ordinance or other instrument of the Council.
Section 8. Covenants.
The City hereby particularly covenants and agrees with the Owners of the Bonds
from time to time, and makes provisions that shall be a part of its contract with such Owners,
which covenants and provisions shall be kept by the City continuously until all of the Bonds
have been fully paid and discharged:
A. Continuance and Collection of Tax Increment Revenues.
(1) The Plan of Development, as approved and amended as described
in this Ordinance, is now in full force and effect. The City will not revoke its approval or
amend the Plan of Development in any manner that would diminish the Tax Increment
Revenues.
(2) The City shall continue to collect the Tax Increment Revenues in
accordance with the Downtown Development Authority Act.
(3) The City shall maintain the Tax Increment Fund as a fund of the
City separate and distinct from all other funds of the City and shall place the Tax
Increment Revenues therein. The Tax Increment Fund shall be subject to appropriation
only as authorized by the Downtown Development Authority Act and this Ordinance.
(4) All of the Tax Increment Revenues shall be subject to the payment
of the Debt Service Requirements of all securities payable therefrom, including any
reserves therefor, as provided herein or in any instrument supplemental or amendatory
hereto.
B. Defense of Le¢ality of Pledged Revenues. There is not pending or
threatened in writing any suit, action or proceeding against or affecting the City before or by any
court, arbitrator, administrative agency or other governmental authority that affects the validity
or legality of this Ordinance, any ordinance affecting the Tax Increment Revenues or any of the
City's obligations under such ordinances.
The City shall, to the extent permitted by law, defend the validity and legality of
all ordinances affecting the Tax Increment Revenues and all amendments thereto against all
claims, suits and proceedings that would diminish or impair the Pledged Revenues.
Except as permitted in this Ordinance, the City has not pledged the Pledged
Revenues in any manner that would diminish the security for payment of the Bonds.
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C. Performance of Duties. The City, acting and through its officers, or
otherwise, shall faithfully and punctually perform, or cause to be performed, all duties with
respect to the Pledged Revenues required by the Constitution and laws of the State, the Charter
and the various ordinances, resolutions and contracts of the City, including, without limitation,
the proper segregation of the proceeds of the Bonds and the Pledged Revenues and their
application from time to time to the respective funds provided therefor.
D. Contractual Obligations. The City will perform all contractual obligations
undertaken by it under the contract with the Purchaser and any other agreements relating to the
Bonds and the Pledged Revenues.
E. Further Assurances. At any and all times the City shall, so far as it may be
authorized by law, pass, make, do, execute, acknowledge, deliver, and file or record all and every
such further instruments, acts, deeds, conveyances, assignments, transfers, other documents, and
assurances as may be necessary or desirable for the better assuring, conveying, granting,
assigning and confirming all and singular the rights, the Pledged Revenues and other funds and
accounts hereby pledged, or intended so to be, or that the City may hereafter become bound to
pledge, or as may be reasonable and required to carry out the purposes of this Ordinance. The
City, acting by and through its officers, or otherwise, shall at all times, to the extent permitted by
law, defend, preserve and protect the pledge of the Pledged Revenues and other funds and
accounts pledged hereunder and all the rights of every Owner of any of the Bonds against all
claims and demands of all Persons whomsoever.
F. Conditions Precedent. Upon the date of issuance of any of the Bonds, all
conditions, acts and things required by the Constitution or laws of the United States of America,
the Constitution or laws of the State, the Charter, or this Ordinance, to exist, to have happened,
and to have been performed precedent to or in the issuance of the Bonds shall exist, have
happened and have been performed, and the Bonds do not contravene any debt or other
limitation prescribed by the Constitution or laws of the United States of America, the
Constitution or laws of the State or the Charter.
G. Records. The City will keep proper books of record and account, separate
and apart from all other records and accounts, showing complete and correct entries of all
transactions relating to the funds and accounts described herein.
H. Protection of Security. The City, its officers, agents and employees, shall
not take any action in such manner or to such extent as might prejudice the security for the
payment of the Debt Service Requirements of the Bonds and any other securities payable from
the Pledged Revenues according to the terms thereof. No contract shall be entered into nor any
other action taken by which the rights of any Owner of any Bond or other security payable from
Pledged Revenues might be materially impaired or diminished.
I. Accumulation of Interest Claims. In order to prevent any accumulation of
claims for interest after maturity, the City shall not directly or indirectly extend or assent to the
extension of the time for the payment of any claim for interest on any of the Bonds or any other
securities payable from the Pledged Revenues; and the City shall not directly or indirectly be a
party to or approve any arrangements for any such extension or for the purpose of keeping alive
26
any of such other claims for interest. If the time for the payment of any such installment of
interest is extended in contravention of the foregoing provisions, such installment or installments
of interest after such extension or arrangement shall not be entitled in case of default hereunder
to the benefit or the security of this Ordinance, except upon the prior payment in full of the
principal of all of the Bonds and any such securities the payment of which has not been
extended.
J. Prompt Payment of Bonds. The City shall promptly pay the Debt Service
Requirements of every Bond on the dates and in the manner specified herein and in the Bonds
according to the true intent and meaning hereof.
K. Use of Funds and Accounts. The funds and accounts described in the
Ordinance shall be used solely and only, and the moneys credited to such funds and accounts are
hereby pledged, solely for the purposes specified herein.
L. Additional Securities. The City shall not hereafter issue any bonds or
securities payable from the Pledged Revenues without compliance with the requirements with
respect to the issuance of such bonds or securities set forth herein to the extent applicable.
M. Other Liens. There are no liens or encumbrances of any nature
whatsoever on or against any of the Tax Increment Revenues except as provided herein.
N. Surety Bonds. Each official or other person having custody of any
Pledged Revenues, or responsible for their handling, shall be fully bonded at all times, which
bond shall be conditioned upon the proper application of said moneys.
Section 9. Defeasance.
When all Debt Service Requirements of the Bonds have been duly paid, the
pledge and lien and all obligations hereunder shall thereby be discharged and the Bonds shall no
longer be deemed to be Outstanding within the meaning of this Ordinance. There shall be
deemed to be such due payment when the City has placed in escrow or in trust with a Trust Bank
located within or without the State, moneys or Federal Securities in an amount sufficient
(including the known minimum yield available for such purpose from Federal Securities in
which such amount wholly or in part may be initially invested) to meet all Debt Service
Requirements of the Bonds, as the same become due to their respective Maturity Dates or to any
Redemption Date as of which the City shall have exercised or shall have obligated itself to
exercise its option to redeem Bonds prior to their respective Maturity Dates. The Federal
Securities shall be non-callable and shall become due prior to the respective times at which the
proceeds thereof shall be needed, in accordance with a schedule established and agreed upon
between the City and such Trust Bank at the time of the creation of the escrow or trust, or the
Federal Securities shall be subject to redemption at the option of the Owner thereof to assure
such availability as so needed to meet such schedule. Nothing herein shall be construed to
prohibit a partial defeasance of the Outstanding Bonds in accordance with the provisions of this
Section 9.
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Section 10. Default Provisions and Remedies of Bond Owners.
A. Events of Default. Each of the following events is hereby declared to be
an Event of Default by the City:
(1) Payment of Principal. Payment of the principal of any of the
Bonds is not made when the same becomes due and payable, either at maturity or upon
prior redemption, or otherwise;
(2) Nonpayment of Interest. Payment of any installment of interest on
any of the Bonds is not made when the same becomes due and payable;
(3) Incapacity to Perform. The City for any reason becomes incapable
of fulfilling its obligations hereunder;
(4) Nonperformance of Duties. The City shall have failed to carry out
and to perform (or in good faith to begin the performance of) all acts and things lawfully
required to be carried out to be performed by it under any contract relating to the Bonds
or the Pledged Revenues, or to all or any combination thereof, or otherwise including,
without limitation, this Ordinance, and such failure shall continue for sixty (60) days after
receipt of notice from the Owners of ten percent (10%) in aggregate principal amount of
the Bonds then Outstanding;
(5) Appointment of Receiver. An order or decree is entered by a court
of competent jurisdiction, with the consent or acquiescence of the City, appointing a
receiver or receivers for the Pledged Revenues and any other moneys subject to the lien
to secure the payment of the Bonds, or if any order or decree, having been entered
without the consent or acquiescence of the City, is not vacated or discharged or stayed on
appeal within sixty(60) days after entry;
(6) Default of Any Provision. The City makes any default in the due
and punctual performance of any other of the representations, covenants, conditions,
agreements and other provisions contained in the Bonds or in this Ordinance on its part to
be performed, and such default continues for sixty (60) days after written notice,
specifying such default and requiring the same to be remedied, is given to the City by the
Owners of ten percent (10%) in aggregate principal amount of the Bonds then
Outstanding.
B. Remedies for Defaults. Upon the happening and continuance of any Event
of Default, the Owner or Owners of not less than ten percent (10%) in aggregate principal
amount of the Bonds then Outstanding, including, without limitation, a trustee or trustees
therefor, may proceed against the City and its agents, officers and employees to protect and to
enforce the rights of any Owner of Bonds under this Ordinance by mandatory injunction or by
other suit, action, or special proceedings in equity or at law, in any court of competent
jurisdiction, either for the appointment of a receiver or an operating trustee or for the specific
performance of any covenant or agreement contained herein or for any proper legal or equitable
remedy as such Owner or Owners may deem most effectual to protect and to enforce the
aforesaid rights, or thereby to enjoin any act that may be unlawful or in violation of any right of
28
any Owner of any Bond, or to require the City to act as if it were the trustee of an expressed
trust, or any combination of such remedies, or as otherwise may be authorized by any statute or
other provision of law. All such proceedings at law or in equity shall be instituted, had and
maintained for the equal benefit of all Owners of the Bonds and any Parity Securities then
Outstanding. Any receiver or operating trustee appointed in any proceedings to protect the rights
of such Owners hereunder, the consent to any such appointment being hereby expressly granted
by the City, may collect, receive and apply all Pledged Revenues arising after the appointment of
such receiver or operating trustee in the same manner as the City itself might do.
Notwithstanding the foregoing or any other applicable provisions of law, no Event of Default
shall result in acceleration of any obligation of the City represented by the Bonds.
C. Rights and Privileges Cumulative. The failure of any Owner of any
Outstanding Bond to proceed in any manner herein provided shall not relieve the City, or any of
its officers, agents or employees of any liability for failure to perform or carry out any duty,
obligation or other commitment. Each right or privilege of any such Owner or any trustee
thereof is in addition and is cumulative to any other right or privilege, and the exercise of any
right or privilege by or on behalf of any Owner shall not be deemed a waiver of any other right
or privilege thereof. Each Owner of any Bond shall be entitled to all of the privileges, rights, and
remedies provided or permitted in this Ordinance and as otherwise provided or permitted by law
or in equity or by statute, except as provided in Section 12A and Section 12B hereof, and subject
to the applicable provisions concerning the Pledged Revenues and the proceeds of the Bonds.
Nothing herein affects or impairs the right of any Owner of any Bond to enforce the payment of
the Debt Service Requirements due in connection with his, her or its Bond or the obligation of
the City to pay the Debt Service Requirements of each Bond to the Owner thereof at the time and
the place expressed in such Bond.
D. Duties Upon Defaults. Upon the happening of any of the Events of
Default as provided in Section I OA hereof, the City, in addition, shall do and perform all proper
acts on behalf of and for the Owners of the Outstanding Bonds to protect and to preserve the
security created for the payment of their Bonds and to insure the payment of the Debt Service
Requirements of the Bonds promptly as the same become due. During any period of default, so
long as any of the Bonds, as to any Debt Service Requirements, are Outstanding, except to the
extent it may be unlawful to do so, all Pledged Revenues shall be paid into the Tax Increment
Principal and Interest Account, or, in the event of securities hereafter or heretofore issued and
Outstanding during such period of time senior or subordinate to or on a parity with the Bonds,
shall be applied as provided in Section 5C and Section 5E hereof on an equitable and prorated
basis, and used for the purposes therein provided. If the City fails or refuses to proceed as in this
Section IOD provided, the Owner or Owners of not less than ten percent (10%) in principal
amount of the Bonds then Outstanding, after demand in writing, may proceed to protect and to
enforce the rights of the Owners of the Bonds as hereinabove provided; and to that end any such
Owners of Outstanding Bonds shall be subrogated to all rights of the City under any agreement
or contract involving the Pledged Revenues entered into prior to the effective date of this
Ordinance or thereafter while any of the Bonds are Outstanding. Nothing herein requires the
City to proceed as provided herein if it determines in good faith and without any abuse of its
discretion that such action is likely materially and prejudicially to affect the Owners of the
Outstanding Bonds and any Outstanding Parity Securities.
29
E. Evidence of Security Owners. Any request, consent or other instrument
that this Ordinance may require or may permit to be signed and to be executed by the Owner of
any Bonds or other securities may be in one instrument or more than one instrument of similar
tenor and shall be signed or may be executed by each Owner in person or by his, her or its
attorney appointed in writing. Proof of the execution of any such instrument or of any
instrument appointing any such attorney, or the ownership by any Person of the securities, shall
be sufficient for any purpose of this Ordinance (except as otherwise herein expressly provided) if
made in the following manner:
(1) Proof of Execution. The fact and the date of the execution by any
Owner of any Bonds or other securities or his, her or its attorney of such instrument may
be proved by the certificate, which need not be acknowledged or verified, of any officer
of a bank or trust company satisfactory to the City Clerk or of any notary public or other
officer authorized to take acknowledgments of deeds to be recorded in the state in which
he or she purports to act that the individual signing such request or other instrument
acknowledged to him or her the execution, duly sworn to before such notary public or
other officer; the authority of the individual or individuals executing any such instrument
on behalf of a corporate Owner of any securities may be established without further proof
if such instrument is signed by an individual purporting to be the president or vice-
president of such corporation with the corporate seal affixed and attested by an individual
purporting to be its secretary or an assistant secretary; and the authority of any Person or
Persons executing any such instrument in any fiduciary or representative capacity may be
established without further proof if such instrument is signed by a Person or Persons
purporting to act in such fiduciary or representative capacity; and
(2) Proof of Owners. The amount of Bonds owned by any Person
executing any instrument as an Owner of Bonds, and the numbers, dates and other
identification thereof, together with the dates of his ownership of the Bonds, shall be
determined from the registration books of the City. The amount of other securities, if
applicable, owned by any Person executing any instrument as an Owner of such
securities, and the numbers, dates and other identification thereof, together with the dates
of his ownership, if in bearer form, may be proved by a certificate, which need not be
acknowledged or verified, in form satisfactory to the City Clerk, executed by a member
of a financial firm or by an officer of a bank or trust company, insurance company or
financial corporation or other depository satisfactory to the City Clerk, or by any notary
public or other officer authorized to take acknowledgments of deeds to be recorded in the
state in which he or she purports to act, showing at the date therein mentioned that such
Person exhibited to such member, officer, notary public or other officer so authorized to
take acknowledgments of deeds or had on deposit with such depository the securities
described in such certificate or if in registered form shall be determined from the related
registration books; but the City Clerk may nevertheless in his or her discretion require
further or other proof in cases where he or she deems the same advisable.
F. Warranty Issuance of Bonds. Any of the Bonds as herein provided, when
duly executed and registered for the purposes provided for in this Ordinance, shall constitute a
warranty by and on behalf of the City for the benefit of each and every future Owner of any of
30
the Bonds that the Bonds have been issued for a valuable consideration in full conformity with
law.
Section 11. Amendment of Ordinance.
A. Amendment of Ordinance Not Requiring Consent of Bond Owners. The
City may, without the consent of, or notice to, the Owners of the Bonds, adopt such ordinances
supplemental hereto, which amendments shall thereafter form a part hereof, for any one or more
or all of the following purposes:
(1) To cure or correct any formal defect, ambiguity or inconsistent
provision contained in this Ordinance;
(2) To appoint successors to the Paying Agent, Registrar or Transfer
Agent;
(3) To designate a trustee for the Owners of the Bonds, to transfer
custody and control of the Pledged Revenues to such trustee, and to provide for the rights
and obligations of such trustee;
(4) To add to the covenants and agreements of the City or the
limitations and restrictions on the City set forth herein;
(5) To pledge additional revenues, properties or collateral to the
payment of the Bonds;
(6) To cause this Ordinance to comply with the Trust Indenture Act of
1939, as amended from time to time; or
(7) To effect any such other changes hereto that do not in the opinion
of nationally recognized bond counsel materially adversely affect the interests of the
Owners of the Bonds.
B. Amendment of Ordinance Reauirina Consent of Bond Owners. Exclusive
of the amendatory ordinances covered by Section I IA hereof, this Ordinance may be amended
or modified by ordinances or other instruments duly adopted by the Council, without receipt by it
of any additional consideration but with the written consent of the Owners of sixty-six percent
(66%) in aggregate principal amount of the Bonds Outstanding at the time of the adoption of
such amendatory ordinance, provided that no such amendatory ordinance shall permit without
the written consent of one hundred percent (100%) in aggregate principal amount of the Bonds
Outstanding:
(1) Changing Payment. A change in the maturity or in the terms of
redemption of the principal of any Outstanding Bond or any installment of interest
thereon; or
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(2) Reducing Return. A reduction in the principal amount of any
Bond, the rate of interest thereon or any premium payable in connection with the
redemption thereof, without the consent of the Owner of the Bond; or
(3) Prior Lien. The creation of a lien upon or a pledge of revenues
ranking prior to the lien or to the pledge created by this Ordinance; or
(4) Modifying Amendment Terms. A reduction of the principal
amount or percentages of Bonds, or any modification otherwise affecting the description
of Bonds, otherwise changing the consent of the Owners of Bonds, that may be required
herein for any amendment hereto; or
(5) Priorities Among Bonds or Parity Securities. The establishment of
priorities as among Bonds issued and Outstanding under the provisions of this Ordinance
or as among Bonds and other Securities on a parity therewith; or
(6) Partial Modification. Any modifications otherwise materially and
prejudicially affecting the rights or privileges of the Owners of less than all of the Bonds
then Outstanding.
Whenever the Council proposes to amend or modify this Ordinance under the
provisions of this Section 11B it shall give notice of the proposed amendment by mailing such
notice to all Owners of Bonds at the addresses appearing on the registration books of the City.
Such notice shall briefly set forth the nature of the proposed amendment and shall state that a
copy of the proposed amendatory ordinance or other instrument is on file in the office of the City
Clerk for public inspection.
C. Time for and Consent to Amendment. Whenever at any time within one
(1) year from the date of the completion of the notice required to be given by Section 11B hereof
there shall be filed in the office of the City Clerk an instrument or instruments executed by the
Owners of at least sixty-six percent (66%) in aggregate principal amount of the Bonds then
Outstanding, which instrument or instruments shall refer to the proposed amendatory ordinance
or other instrument described in such notice and shall specifically consent to and approve the
adoption of such ordinance or other instrument, thereupon, but not otherwise, the Council may
adopt such amendatory ordinance or instrument and such ordinance or instrument shall become
effective. If the Owners of at least sixty-six percent (66%) in aggregate principal amount of the
Bonds then Outstanding, at the time of the adoption of such amendatory ordinance or instrument,
or the predecessors in title of such Owners, no Owner of any Bond, whether or not such Owner
shall have consented to or shall have revoked any consent as herein provided, shall have any
right or interest to object to the adoption of such amendatory ordinance or other instrument or to
object to any of the terms or provisions therein contained or to the operation thereof or to enjoin
or restrain the City from taking any action pursuant to the provisions thereof. Any consent given
by the Owner of a Bond pursuant to the provisions thereof shall be irrevocable for a period of six
(6) months from the date of the completion of the notice above provided for and shall be
conclusive and binding upon all future Owners of the same Bond during such period. Such
consent may be revoked at any time after six (6) months from the completion of such notice, by
the Owner who gave such consent or by a successor in title, by filing notice of such revocation
32
with the City Clerk, but such revocation shall not be effective if the Owners of sixty-six percent
(66%) in aggregate principal amount of the Bonds Outstanding as herein provided, prior to the
attempted revocation, shall have consented to and approved the amendatory instrument referred
to in such revocation.
D. Unanimous Consent. Notwithstanding anything in the foregoing
provisions contained, the terms and the provisions of this Ordinance, or of any ordinance or
instrument amendatory thereof, and the rights and the obligations of the City and of the Owners
of the Bonds may be modified or amended in any respect (except as would adversely affect the
rights of the Owners of any Parity Securities or Superior Bonds or Superior Securities) upon the
adoption by the City and upon the filing with the City Clerk of an instrument to that effect and
with the consent of the Owners of all the Outstanding Bonds, such consent to be given in the
manner provided in Section I IC hereof; and no notice to Owners of Bonds shall be required as
provided in Section 1113 hereof, nor shall the time of consent be limited except as may be
provided in such consent.
E. Exclusion of Bonds. At the time of any consent or of other action taken
hereunder the Registrar shall famish to the City Clerk a certificate, upon which the City Clerk
may rely, describing all Bonds to be excluded for the purpose of consent or of other action or of
any calculation of Outstanding Bonds provided for hereunder, and, with respect to such excluded
Bonds, the City shall not be entitled or required with respect to such Bonds to give or obtain any
consent or to take any other action provided for hereunder.
F. Notation on Bonds. Any of the Bonds delivered after the effective date of
any action taken as provided in Section I I hereof, or Bonds Outstanding at the effective date of
such action, may bear a notation thereon by endorsement or otherwise in form approved by the
Council as to such action; and if any such Bonds so delivered after such date does not bear such
notation, then upon demand of the Owner of any Bond Outstanding at such effective date and
upon presentation of his Bond for such purpose at the principal office of the City, suitable
notation shall be made on such Bond by the City Clerk as to any such action. If the Council so
determines, new Bonds so modified as in the opinion of the Council to conform to such action
shall be prepared, executed and delivered; and upon demand of the Owner of any Bond then
Outstanding, shall be exchanged without cost to such Owner for Bonds then Outstanding upon
surrender of such Outstanding Bonds.
G. Proof of Instruments and Bonds. The fact and date of execution of any
instrument under the provisions of this Section 11, the amount and number of the Bonds owned
by any Person executing such instrument, and the date of his registering the same may be proved
as provided by Section l0E hereof.
Section 12. Miscellaneous.
A. Consent as Owner of 2004 and 2007 DDA Bonds. The City is the sole
Owner of the 2004 and 2007 DDA Bonds, and no other obligations are outstanding as of the date
hereof that have a lien on the Pledged Revenues. The City, as owner of the 2004 and 2007 DDA
Bonds, hereby consents to the issuance of the Bonds upon the terms and conditions set forth
33
herein, and waives or amends any requirements in the Ordinance authorizing the issuance of the
2004 and 2007 DDA Bonds that are in conflict herewith.
B. Charter. Pursuant to Article XX of the State Constitution and the Charter, all
State statutes that might otherwise apply in connection with the provisions of this Ordinance,
including but not limited to the issuance of the Bonds and the use of the Pledged Revenues and
the moneys on deposit in funds and accounts referred to herein, are hereby superseded to the
extent of any inconsistencies between the provisions of this Ordinance and such statutes. Any
such inconsistency is intended by the Council and shall be deemed made pursuant to the Charter.
C. Tax Advice. Any express or implicit tax advice provided in this Ordinance
cannot be used by any taxpayer to avoid penalties that may be imposed on any taxpayer by the
Internal Revenue Service.
D. Character of Agreement. None of the covenants, agreements, representations,
or warranties contained herein or in the Bonds shall ever impose or shall be construed as
imposing any liability, obligation, or charge against the City (except for the special funds
pledged therefor) or against the general credit of the City payable out of general funds.
E. No Pledge of Property. The payment of the Bonds is not secured by an
encumbrance, mortgage or other pledge of property of the City except for the Pledged Revenues.
No property of the City, subject to such exception with respect to the Pledged Revenues, pledged
for the payment of the Bonds, shall be liable to be forfeited or taken in payment of the Bonds.
F. Statute of Limitations. No action or suit based upon any Bond or other
obligation of the City shall be commenced after it is barred by any statute of limitations
pertaining thereto. Any trust or fiduciary relationship between the City and the Owner of any
Bond or the obligee regarding any such obligation shall be conclusively presumed to have been
repudiated on the Maturity Date or other due date thereof unless the Bond is presented for
payment or demand for payment of such other obligation is otherwise made before the expiration
of the applicable limitation period. Any moneys from whatever source derived remaining in any
fund or account reserved, pledged or otherwise held for the payment of any such obligation,
action or suit, the collection of which has been barred, shall revert to such fund as the Council
shall provide by ordinance. Nothing herein prevents the payment of any such Bond or other
obligation after an action or suit for its collection has been barred if the Council deems it in the
best interests of the City or the public so to do and orders such payment to be made.
G. Delegated Duties. The officers of the City are hereby authorized and
directed to enter into such agreements and take all action necessary or appropriate to effectuate
the provisions of this Ordinance and to comply with the requirements of law, including, without
limitation:
(1) Printing. The printing of the Bonds or, if necessary or desirable,
the preparation of typewritten Bonds as provided herein; and
(2) Execution, Authentication, Registration and Delivery. The
execution, authentication and registration of the Bonds and the delivery of the Bonds to
the Purchaser pursuant to the provisions of this Ordinance.
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(3) Closing Documents. The execution of such certificates as may be
reasonably required by the Purchaser, relating, inter alia, to:
(a) The signing of the Bonds;
(b) The tenure and identity of the officials of the City;
(c) If in accordance with fact, the absence of pending litigation
affecting the validity of the Bonds;
(d) That portion of the Bonds that are authorized pursuant to
the authority conferred at the 1982 Election and that portion of the Bonds that are
authorized pursuant to the authority conferred at the 2006 Election; and
(e) The delivery of the Bonds and the receipt of the Bond
purchase price.
H. Successors. Whenever herein the City is named or is referred to, such
provision shall be deemed to include any successors of the City, whether so expressed or not.
All of the covenants, stipulations, obligations and agreements by or on behalf of and other
provisions for the benefit of the City contained herein shall bind and inure to the benefit of any
officer, board, district, commission, authority, agency, instrumentality or other Person or Persons
to whom or to which there shall be transferred by or in accordance with law any right, power or
duty of the City or of its respective successors, if any, the possession of which is necessary or
appropriate in order to comply with any such covenants, stipulations, obligations, agreements or
other provisions hereof.
I. Rights and Immunities. Except as herein otherwise expressly provided,
nothing herein expressed or implied is intended or shall be construed to confer upon or to give to
any Person, other than the City and the Owners from time to time of the Bonds, any right,
remedy or claim under or by reason hereof or any covenant, condition or stipulation hereof. All
the covenants, stimulations, promises and agreements herein contained by and on behalf of the
City shall be for the sole and exclusive benefit of the City and any Owner of any of the Bonds.
No recourse shall be had for the payment of the Debt Service Requirements of the
Bonds or for any claim based thereon or otherwise upon this Ordinance authorizing their
issuance or any other ordinance or instrument pertaining thereto, against any individual member
of the Council, or any officer or other agent of the City, past, present or future, either directly or
indirectly through the City, or otherwise, whether by virtue of any constitution, statute or rule of
law or by the enforcement of any penalty or otherwise, all such liability, if any, being by the
acceptance of the Bonds and as a part of the consideration of their issuance specially waived and
released.
J. Facsimile Si ng atures. Pursuant to the Uniform Facsimile Signature of
Public Officials Act, part 1 of article 55 of title 11, Colorado Revised Statutes, as amended, the
Mayor, the City Clerk and the Financial Officer of the City shall forthwith, and in any event
prior to the time the Bonds are delivered to the Purchaser, file with the Colorado Secretary of
State their manual signatures certified by them under oath.
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K. Ordinance Irrepealable. This Ordinance is, and shall constitute, a
legislative measure of the City and after any of the Bonds are issued, this Ordinance shall
constitute an irrevocable contract between the City and the Owner or Owners of the Bonds; and
this Ordinance, subject to the provisions of Section 9 and Section 11 hereof, if any Bonds are in
fact issued, shall be and shall remain irrepealable until the Bonds, as to all Debt Service
Requirements, shall be fully paid, satisfied or discharged, as herein provided.
L. Ratification. All actions not inconsistent with the provisions of this
Ordinance heretofore taken by the City or its officers, and otherwise by the City directed toward
the pledging of the Tax Increment Revenues, the construction, acquisition or installation of the
Project, the issuance and delivery of the Bonds and sale thereof to the Purchaser are hereby
ratified, approved and confirmed.
M. Repealer. All ordinances, resolutions, bylaws, orders, and other
instruments, or parts thereof, inconsistent herewith are hereby repealed to the extent only of such
inconsistency. This repealer shall not be construed to revive any ordinance, resolution, bylaw,
order, or other instrument, or part thereof, heretofore repealed.
N. Severability. If any section, subsection, paragraph, clause or other
provision of this Ordinance shall for any reason be held to be invalid or unenforceable, the
invalidity or unenforceability thereof shall not affect any of the remaining sections, subsections,
paragraphs, clauses or provisions of this Ordinance.
Introduced and considered favorably on first reading and ordered published this 2nd day
of December, A.D. 2008, and to be presented for final passage on the 16th day of December,
A.D. 2008.
Mayor
ATTEST:
City Clerk
Passed and adopted on final reading this 16th day of December, A.D. 2008.
Mayor
ATTEST:
City Clerk
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ORDINANCE NO. 148, 2008
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROPRIATING PROCEEDS FROM THE ISSUANCE OF CITY OF FORT COLLINS,
COLORADO, DOWNTOWN DEVELOPMENT AUTHORITY TAXABLE
SUBORDINATE TAX INCREMENT REVENUE BONDS, SERIES 2008A,
FOR THE PURPOSE OF MAKING CERTAIN CAPITAL IMPROVEMENTS,
CAPITAL PROJECTS AND DEVELOPMENT PROJECTS WITHIN THE DOWNTOWN
AREA OF FORT COLLINS, AUTHORIZING THE TRANSFER OF APPROPRIATIONS
BETWEEN FUNDS AND APPROPRIATING EXPENDITURES FROM THE DDA DEBT
SERVICE FUND TO MAKE THE 2008 PAYMENT ON THE BONDS
WHEREAS, on April 21, 1981,the City of Fort Collins, Colorado, adopted Ordinance No.
046, 1981, establishing the Fort Collins, Colorado, Downtown Development Authority; and
WHEREAS,the Downtown Development Authority's Plan of Development was approved
by the City on September 8, 1981, and established the purpose of the Authority and the types of
projects in which the Authority would participate; and
WHEREAS, on June 1, 1982,a special election was held pursuant to Section 31-25-807(b)
of the Colorado Revised Statutes approving the issuance by the City of up to $25,000,000 in tax
increment obligations to finance certain projects of the Downtown Development Authority; and
WHEREAS,on November 7,2006,an election was held and electors approved the issuance
by the City of up to$150,000,000 in tax increment obligations to finance the costs of development
projects of the Downtown Development Authority; and
WHEREAS,there is sufficient remaining bonding authorization available to fund additional
projects in the downtown area, pursuant to Ordinance No. 147, 2008, as approved by the City
Council this same date, and there is sufficient revenue in the Operations and Maintenance Fund
available to pay the annual debt service payments on the bonds issued by said Ordinance; and
WHEREAS, through the adoption of Ordinance No. 147, 2008, of the Council of the City
of Fort Collins,the Council authorized the issuance ofthe City of Fort Collins,Colorado,Downtown
Development Authority Taxable Subordinate Tax Increment Revenue Bonds, Series 2008A (the
"Bonds"), in the maximum aggregate principal amount $10,488,043; and
WHEREAS, the issuance of the Bonds, and the appropriation of the proceeds thereof, are
necessary to complete the construction of certain capital improvements, capital projects and
development projects in the downtown area of the City; and
WHEREAS,Article V, Section 9,of the Charter of the City of Fort Collins permits the City
Council to make supplemental appropriations, in conjunction with all previous appropriations for
that fiscal years,provided that the total amount of such supplemental appropriations,in combination
with all previous appropriations for that fiscal year, does not exceed the current estimate of actual
and anticipated revenues to be received during the fiscal year; and
WHEREAS,Article V, Section 10, of the Charter authorizes the City Council to transfer by
ordinance any unexpended appropriated amount or portion thereof from one fund or capital project
to another fund or capital project, if the purpose for which the transferred funds are to be expended
remains unchanged.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows:
Section 1. That, contingent upon the final sale and issuance of the Bonds, there is hereby
appropriated for expenditure from Bond proceeds in the Downtown Development Authority
Operating Fund the amount of TEN MILLION FOUR HUNDRED EIGHTY EIGHT THOUSAND
AND FORTY THREE DOLLARS ($10,488,043)to be used for the following:
Projects
1. Community Market $ 700,000
2. Alleys 4,000,000
3. Elks Purchase 2,800,000
4. River District Street Scape Improvements 500,000
5. Fort Zed 250,000
6. Rail Road Quiet Zone Study 100,000
Miscellaneous Projects pending DDA Board Approval 309,588
Total Projects $8,659,588
Programs
Green Building Program $ 500,000
Beet Street Program 962,247
Total Programs $1,462,247
Administrative Expenses $ 366,208
Total Project, Program and Administrative Costs $10,488,043
Introduced, considered favorably on first reading, and ordered published this 2nd day of
December, A.D. 2008, and to be presented for final passage on the 16th day of December, A.D.
2008.
Mayor
ATTEST:
City Clerk
Passed and adopted on final reading on the 16th day of December, A.D. 2008.
Mayor
ATTEST:
City Clerk