HomeMy WebLinkAbout165 - 12/06/1988 - ISSUANCE OF TAXABLE INDUSTRIAL DEVELOPMENT REVENUE BONDS FOR THE OPERA HOUSE PROJECT IN THE AMOUNT O ORDINANCE NO. 165 , 1988
AN ORDINANCE RELATING TO THE ISSUANCE OF TAXABLE
INDUSTRIAL DEVELOPMENT REVENUE BONDS UNDER THE
PROVISIONS OF THE COLORADO COUNTY AND MUNICIPALITY
DEVELOPMENT REVENUE BOND ACT; PROVIDING FOR THE
ISSUANCE AND SALE OF CITY OF FORT COLLINS, COLORADO,
TAXABLE INDUSTRIAL DEVELOPMENT REVENUE BONDS (THE OPERA
HOUSE PROJECT) , SERIES 1988 , IN THE AGGREGATE PRINCIPAL
AMOUNT OF $1, 000, 000 FOR THE PURPOSE OF LOANING FUNDS
TO HISTORICAL OPERA HOUSE PROPERTIES, LTD. TO FINANCE
IMPROVEMENTS RELATING TO ACQUIRING, IMPROVING,
RENOVATING, CONSTRUCTING, INSTALLING AND EQUIPPING OF A
COMMERCIAL FACILITY IN FORT COLLINS, COLORADO;
AUTHORIZING THE PREPARATION AND EXECUTION OF DOCUMENTS
AND INSTRUMENTS RELATING THERETO.
WHEREAS, the City of Fort Collins, Colorado (the
"City") , is authorized by part 1 of article 3 of title 29 ,
Colorado Revised Statutes, as amended (the "Act") , to issue
revenue bonds for the purpose of financing projects to the end
that business enterprises will locate and expand in the City of
Fort Collins, to enter into financing agreements with others for
the purpose of providing revenues to pay such bonds, and further
to secure the payment of such bonds; and
WHEREAS, the City has determined to take all necessary
and advisable steps to issue such bonds in accordance with the
provisions of the Act for the purpose of financing a Project
( the " Project" ) to be owned by Historical Opera House
Properties, Ltd. , a limited partnership (the "Company") , and to
be located within the City of Fort Collins ; and
WHEREAS, the following documents will be submitted to
the Council of the City (the "Council") and filed in the office
of the City Clerk of the City of Fort Collins (the "Clerk") and
will there be available for public inspection
(a) a Loan Agreement, to be dated as of December
15, 1988 (the "Loan Agreement") , between the City and the
Company; and
(b) an Indenture of Trust, to be dated as of
December 15, 1988 (the "Indenture") , from the City, as
grantor, to Central Bank of Denver, as trustee (the
"Trustee") ; and
(c) a Mortgage and Security Agreement, to be
dated as of December 15, 1986 (the "Mortgage and Security
Agreement") , between the Company, as mortgagor and debtor,
and the Trustee, as mortgagee and secured party; and
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(d) a Guaranty Agreement, to be dated as of
December 15, 1988 (the "Guaranty Agreement") , between the
Mayflower Group, Marshall Sterman and Lester Grant, as
guarantors, and the Trustee; and
(e) a Placement Agreement, to be dated as of the
date of its delivery (the "Placement Agreement") , among
Capital Markets Corporation (the "Placement Agent ) , the
City and the Company.
WHEREAS, the Council desires to issue at this time
the City of Fort Collins , Colorado , Taxable Industrial
Development Revenue Bonds (The Opera House Project) , Series
1988 , in the aggregate principal amount of $1, 000, 000 (the
"Bonds") ; and
WHEREAS, it is necessary to authorize the issuance of
the Bonds by ordinance and to approve the form and authorize the
execution of the aforementioned documents thereby.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE
CITY OF FORT COLLINS, COLORADO, THAT:
ARTICLE I
DEFINITIONS, LEGAL AUTHORIZATION AND FINDINGS
1. 1. Definitions
The terms used herein, unless the context hereof shall
require otherwise, shall have the same meanings when used herein
as assigned to them in the Loan Agreement unless the context or
use thereof indicates another or different meaning or intent.
1. 2 . Legal Authorization
The City is a political subdivision of the State of
Colorado and is authorized under the Act to finance the Project
herein referred to, and to issue and sell the Bonds for the
purpose, in the manner and upon the terms and conditions set
forth in the Act and in this Ordinance.
1. 3 . Findings
It is hereby found, determined and declared that:
(a) The financing of the Project will promote the
public health, welfare, safety, convenience and prosperity and
promote and develop trade or other economic activity by inducing
business enterprises to locate and expand in the City and the
State of Colorado in order to mitigate the serious threat of
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extensive unemployment and to secure and maintain a balanced and
stable economy for the City and the State of Colorado.
(b) The amounts necessary in each year to pay the
principal of and interest on the Bonds. assuming that the Bonds
bear interest at the interest rate specified in the Indenture
for the entire term thereof, are as follows:
YEAR PRINCIPAL INTEREST TOTAL
1988 $ 0 . 00 $ 0. 00 $ 0. 00
1989 0 . 00 130, 000. 00 130, 000. 00
1990 5, 000. 00 130, 000. 00 135, 000. 00
1991 5, 000. 00 129 , 350. 00 134 , 350. 00
1992 5, 000. 00 128 , 700. 00 133 , 700. 00
1993 5, 000. 00 128 , 050. 00 133 , 050 . 00
1994 10, 000. 00 127 , 400. 00 137 , 400 . 00
1995 10, 000. 00 126, 100. 00 136, 100 . 00
1996 10 , 000 . 00 124 , 800. 00 134 , 800. 00
1997 10, 000 . 00 123 , 500. 00 133 , 500. 00
1998 15, 000 . 00 122 , 200. 00 137 , 200. 00
1999 15, 000. 00 120, 250. 00 135 , 250 . 00
2000 15, 000. 00 118, 300. 00 133 , 300 . 00
2001 20, 000. 00 116, 350. 00 136 , 350 . 00
2002 20, 000. 00 113 , 750. 00 133 , 750 . 00
2003 25, 000. 00 111, 150. 00 136 , 150 . 00
2004 30, 000. 00 107 , 900. 00 137 , 900. 00
2005 30, 000. 00 104 , 000. 00 134 , 000. 00
2006 35, 000. 00 100, 100. 00 135, 100 . 00
2007 40, 000. 00 95, 550. 00 135, 550 . 00
2008 45, 000. 00 90, 350 . 00 135 , 350 . 00
2009 50, 000. 00 84 , 500 . 00 134 , 500 . 00
2010 55, 000. 00 78, 000. 00 133 , 000. 00
2011 65, 000. 00 70, 850. 00 135, 850. 00
2012 75, 000. 00 62 , 400. 00 137 , 400. 00
2013 85, 000. 00 52 , 650. 00 137 , 650. 00
2014 95, 000. 00 41, 600. 00 136, 600 . 00
2015 105, 000. 00 29, 250. 00 134 , 250 . 00
2016 120, 000. 00 15 , 600. 00 135 , 600 . 00
1, 000, 000. 00 2 , 782 , 650. 00 3 , 782 , 650 . 00
(c) The amount necessary to be paid each year into any
reserve funds which the City Council may deem advisable to
establish in connection with the retirement of the Bonds and the
maintenance of the Project is $150, 000.
(d) The Loan Agreement provides that the Company shall
maintain the Project and carry all proper insurance with respect
thereto.
(e) The Loan Agreement requires that the Company pay
the taxes which the taxing entities specified in Section
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29-3-120 (3) of the Act are entitled to receive from the Company
with respect to the Project.
(f) The payments required in the Loan Agreement to be
made are sufficient to pay the principal of and interest on the
Bonds when due and to pay all other costs required in the Loan
Agreement to be paid.
1. 4 . Authorization and Ratification of Protect
The City hereby authorizes the Company to provide for
the acquisition, construction and installation of the Project
pursuant to the Plans and Specifications by such means as shall
be available to the Company and in the manner determined by the
Company, and the City hereby ratifies, affirms and approves all
actions heretofore taken by the Company.
ARTICLE II
BONDS
2 . 1 . Issuance and Sale of Bonds ; Interest Rates
The City shall issue the Bonds for the purpose, in the
form and upon the terms set forth in the Bonds and the
Indenture. The Bonds shall be executed as provided in the
Indenture. The Bonds shall be subject to redemption as set
forth in the Indenture. The Bonds shall be sold pursuant to the
terms of the Placement Agreement.
The Bonds shall be numbered consecutively from "R-1"
upward, shall be issued in denominations of $5, 000 or any
integral multiple thereof and shall be dated as of their date of
issuance. Interest on the Bonds shall be payable semiannually
on each June 1 and December 1 until maturity. Each Bond shall
bear interest until the principal sum thereof has been paid;
provided, however, that if Bonds have been called for redemption
and funds are available for the payment on the redemption date
thereof in full accordance with the terms of this Ordinance, the
Bonds shall then cease to bear interest.
The Bonds shall mature on December 1, 2016, and shall
bear interest at the rate specified in the Indenture.
The maximum net effective interest rate authorized for
the Bonds is thirty percent (30%) per annum. The actual net
effective interest rate on the Bonds does not exceed thirty
percent (30%) per annum.
The principal of and interest on the Bonds shall be
payable by the Trustee or as may otherwise be provided in the
Indenture.
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ARTICLE III
GENERAL COVENANTS
3 . 1. Payment of Principal and Interest
The City covenants that it will promptly pay or cause
to be paid the principal of and interest on the Bonds at the
place, on the dates, from the sol.irce and in the manner provided
herein and in said Bonds. The principal and interest are
payable solely from and secured by revenues and proceeds derived
from the Project and payable pursuant to the Loan Agreement; and
nothing in the Bonds or in this Ordinance shall be considered as
assigning, pledging or otherwise encumbering any other funds or
assets of the City.
3 . 2 . Performance of and Authority for Covenants
The City covenants that it will faithfully perform at
all times any and all covenants, undertakings, stipulations and
provisions contained in this Ordinance, the Loan Agreement, the
Indenture, in the Bonds, and in all proceedings of the City
Council pertaining thereto; that it is duly authorized under the
Constitution and laws of the State of Colorado, including
particularly and without limitation the Act, to issue the Bonds
authorized hereby, pledge the revenues and assign the Loan
Agreement and endorse the Company Note in the manner and to the
extent set forth in this Ordinance, the Loan Agreement and the
Indenture; that all action on its part for the issuance of the
Bonds and for the execution and delivery thereof has been duly
and effectively taken; and that the Bonds are and will be valid
and enforceable obligations of the City according to the terms
thereof.
3 . 3 . Nature of Security
The Bonds shall never constitute the debt or
indebtedness of the City within the meaning of any provision or
limitation of the Constitution or statutes of the State of
Colorado or Charter of the City and shall not constitute nor
give rise to a pecuniary liability of the City or a charge
against its general credit or taxing powers; and the City, its
agents, officers and employees shall not be subject to any
personal or pecuniary liability thereon.
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ARTICLE IV
MISCELLANEOUS
4 . 1. Facsimile Signatures.
Pursuant to the Uniform Facsimile Signature of Public
Officials Act of the State of Colorado, Section 11-55-101 et
sue. , C.R. S. , as amended, the Mayor, the City Clerk and the
Finance Director of the City shall forthwith, but in any event
prior to the time the Bonds are delivered to the purchasers
thereof, file with the Colorado Secretary of State their manual
signatures, certified by them under oath, using a suitable
Facsimile Signature Certificate for such purpose.
4 . 2 . CUSIP Numbers.
CUSIP identification numbers may be imprinted on the
bonds, but such numbers shall not constitute a part of the
contract evidenced by the Bonds, and no liability shall
hereafter attach to the City or any of the officers or agents
thereof because of or on account of said numbers. Any error or
omission with respect to said numbers shall not constitute cause
for refusal by any person to accept delivery of and pay for the
Bonds nor shall it affect the validity of such Bonds.
4 . 3 . Severability
If any provision of this Ordinance, except Section
3 . 3 of Article III, hereof, shall be held or deemed to be, or
shall, in fact, be, inoperative or unenforceable as applied in
any particular case in any jurisdictions or in all cases because
it conflicts with any provisions of any constitution or statute
or rule or public policy, or for any other reason, such
circumstances shall not have the effect of rendering the
provision in question inoperative or unenforceable in any other
case or circumstance, or of rendering any other provision or
provisions herein contained invalid , inoperative or
unenforceable to any extent whatever. The invalidity of any one
or more phrases, sentences, clauses or paragraphs in this
Ordinance, except Section 3 . 3 of Article III hereof, shall not
affect the remaining portions of this Ordinance or any part
hereof.
4 . 4 . Authorization to Execute Agreements
The forms of the Loan Agreement, the Indenture, the
Mortgage and Security Agreement, the Guaranty Agreement and the
Placement Agreement are hereby approved in substantially the
form presented to the City Council; and the Mayor and the City
Clerk are authorized to execute the Loan Agreement, the
Indenture, and the Placement Agreement in the name of and on
behalf of the City and such other documents as Bond Counsel
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considers appropriate in connection with the issuance of the
Bonds. In the event of the absence or disability of the Mayor
or the City Clerk, such officers of the City as, in the opinion
of the City Attorney, may act in their behalf, shall without
further act or authorization of the City Council do all things
and execute all instruments and documents required to be done or
executed by such absent or disabled officers.
4 . 5 . Authority to Correct Errors, Etc.
The Mayor and the City Clerk are hereby authorized and
directed to make or agree to any alterations, changes or
additions in the instruments hereby approved as the Mayor and
the City Attorney deem necessary or proper to accomplish the
purposes of this Ordinance, the signatures of the Mayor and the
City Clerk on the instruments to be conclusive evidence of such
approval ; provided, however, no alteration, change or addition
shall be made which shall alter the maximum net effective
interest rate. denomination, date, maturities, form, interest
rates, registration privileges, manner of execution, places of
payment or terms of prepayment of the Bonds or which shall
increase the aggregate principal amount of the Bonds authorized
by the City Council or in any way give rise to a pecuniary
liability of the City or a charge against its general credit or
taxing powers with respect to the Bonds.
4 . 6. Further Authority
The Mayor and the City Clerk and other proper City
off`.cials, and each of them, are hereby authorized to execute
and deliver for and on behalf of the City any and all additional
certificates, documents and other papers and to perform all
other acts they may deem necessary or appropriate in order to
implement and carry out the matters herein authorized.
4 . 7 . Repealer
All ordinances or parts thereof in conflict with this
Ordinance are hereby repealed.
4 .8 . Ordinance Irreoealable
After said bonds are issued this Ordinance shall be
and remain irrepealable until said bonds and the interest
thereon shall have been fully paid, satisfied and discharged.
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4 . 9 . Recording and Authentication
This Ordinance, as adopted by the City Council ,
shall be numbered and recorded, and the adoption and publication
shall be authenticated by the signatures of the Mayor and City
Clerk and by the certificate of the publisher, respectively.
INTRODUCED, READ, APPROVED ON FIRST READING, AND
ORDERED PUBLISHED BY NUMBER AND TITLE ONLY this 22nd day of
November, 1988 .
CITY OF RT C NS COLORADO
(CITY) �t
a
By:
(SEAL) Mayor
Attest:
City Clerk
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READ, FINALLY PASSED ON SECOND READING, AND ORDERED
PUBLISHED ONCE BY NUMBER AND TITLE ONLY this 6th day of December,
1988 .
CITY OF FORT COLLINS, COLORADO
r�
By:
Mayor
(CITY)
(SEAL)
ATTEST:
City Clerk
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