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HomeMy WebLinkAbout127 - 09/18/1984 - AUTHORIZING THE ISSUANCE OF LEMAY/HARMONY SPECIAL IMPROVEMENT DISTRICT NO. 78 (PHASE 2) SPECIAL ASSE 00805 08/28/84 CERTIFIED RECORD OF PROCEEDINGS OF THE COUNCIL OF THE CITY OF FORT COLLINS , COLORADO RELATING TO AN ORDINANCE AUTHORIZING THE ISSUANCE OF ITS LEMAY/HARMONY SPECIAL IMPROVEMENT DISTRICT NO. 78 (PHASE 2) SPECIAL ASSESSMENT BONDS DATED SEPTEMBER 15 , 1984 IN THE AGGREGATE PRINCIPAL AMOUNT OF $3 ,100 , 000 STATE OF COLORADO ) COUNTY OF LARIMER ) ss. CITY OF FORT COLLINS ) The Council of the City of Fort Collins , Colorado, held a regular meeting at Council Chambers , City Hall , 300 LaPorte Avenue , Fort Collins , Colorado, on Tuesday, the 4th day of September , 1984 , at the hour of 5: 30 p.m. The following persons were present: Council Members : Gerald Horak , Mayor E. John Clarke , Assistant Mayor John Knezovich William Elliott Kelly Ohlson Barbara Rutstein Ed Stoner City Manager : John E. Arnold )(jQX14x)M4(i U xa t(01)0c)Rxx !AP0x Deputy City Clerk: Nolly J. Davis The following persons were absent : None Council Member Rutstein introduced the following Ordinance, which was read by title , copies of the full Ordinance having been available in the office of the City Clerk at least forty-eight (48) hours prior to the time said Ordinance was introduced for each Council Member and for inspection and copying by the general public : -1- , f � • ORDINANCE NO. 127 , 1984 AN ORDINANCE AUTHORIZING THE ISSUANCE OF CITY OF FORT COLLINS , COLORADO , LEMAY/HARMONY SPECIAL IMPROVEMENT DISTRICT NO. 78 (PHASE 2) , SPECIAL ASSESSMENT BONDS , DATED SEPTEMBER 15 , 1984 , IN THE AGGREGATE PRINCIPAL AMOUNT OF $3, 100, 000 ; PRESCRIBING THE FORM OF SAID BONDS ; PROVIDING FOR THE PAYMENT OF SAID BONDS AND THE INTEREST THEREON; AND AUTHORIZING THE APPROPRIATE OFFICERS OF THE CITY TO ENTER INTO AN ESCROW AGREEMENT IN ORDER TO FURTHER SECURE SAID BONDS . WHEREAS , the Council (the "Council" ) of the City of Fort Collins , Colorado (the "City" ) , has heretofore created Lemay/Harmony Special Improvement District No. 78 (the "District" ) and authorized the construction and installation of street and utility improvements (the " Improvements" ) therein , all in accordance with the Charter of the City (the "Charter" ) and Chapter 16 of the Code of the City (the "Code" ) ; and WHEREAS , the Improvements have been or will be constructed and installed in two phases with Phase 1 Improvements as set forth in Ordinance No. 117 , 1983, adopted by the Council on September 20, 1983 , and with Phase 2 Improvements as follows : PHASE 2 IMPROVEMENTS A. Construction and surfacing of the south half of Harmony Road to 3, 682 feet east of Lemay Avenue and to 1 , 960 feet west of Lemay Avenue. B. Widening of Lemay Avenue from Harmony Road to 1 , 000 feet south of Harmony Road to a width of 70 feet from flow line to flow line , including all construction and surfacing therefor and installation of curb , gutter , sidewalk and other like improvements. C. Construction and surfacing of Oak Ridge Drive from Lemay Avenue to Wheaton Drive; construction and surfacing of Wheaton Drive from Harmony Road to Boardwalk Drive ; construction and surfacing of McMurry Drive from Lemay Avenue to Wheaton Drive ; and construction and surfacing of Boardwalk Drive from Lemay Avenue to Wheaton Drive , including all utility improvements therefor . D. Placement of a 20" water line on Lemay Avenue from Harmony Road to the southernmost property line of Lake Sherwood Joint Venture property; and -2- WHEREAS , the construction and installation of the Improvements in the District has conferred and will confer general benefits on the City and special benefits on the assessable property within the District ; and WHEREAS , pursuant to Ordinance No- 11-7 , 1983, adopted by the Council on September 20 1983, the -City issued its Lemay/Harmony Special Improvement District No.- 78 . -(Phase 1) , Special _ Assessment Bonds, - dated October1 ,.. 1983, in the aggregate principal - amount of -$1 ,885 D00 in order- to defray the cost of constructing -and installing the - Phase 1 . Improvements within the District ; and WHEREAS , the Council has determined that the portion of the cost of the construction and installation of the Phase 2 Improvements to be assessed against the property within the District will not exceed $3,100 , 000 and that special assessment bonds of the City for the District should be issued in said amount ; and WHEREAS , the Council has determined to issue a City of Fort Collins , Colorado , Street Oversizing Fund Revenue Note (the "Note" ) to be delivered to Everitt Development , Inc. ("Everitt Development" ) , payable solely from the assets of the City' s Street Oversizing Fund , including all moneys deposited and held therein , representing the city' s obligation to Everitt Development for the extra expense caused by certain streets within the District being improved as arterial or collector streets rather than as -residential streets ; and WHEREAS , Everitt Development and its affiliates (collectively, the , "Everitt Companies" ) , are the owners _of approximately one half of the real property within the District to be assessed for the cost of the Phase 2 Improvements , and has agreed to furnish the Note . as collateral security for the payment of a portion of the principal of and interest on said bonds ; and WHEREAS , a form of escrow agreement (the "Escrow Agreement" ) dated as of September 15 , 1984 , among the City, the Everitt Development and United Bank of Fort Collins National Association (the "Escrow Agent" ) , providing for the custody and application of such collateral security, has been filed in - the office of the City Clerk ; and WHEREAS , a proposal for the .purchase of said bonds on - terms favorable to the City has been received from Boettcher & Company, Inc. , Denver , Colorado (the "Purchaser" ) , and associates , if any, which the Council has determined , and does hereby determine , to accept ; and WHEREAS , it is necessary to authorize the issuance of said bonds and to provide for the repayment thereof . -3- BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS , COLORADO , AS FOLLOWS : 1 . In order to defray the cost of constructing and installing the Phase 2 Improvements within the District , together with all necessary and incidental costs and expenses permitted by the Charter and the Code , the City shall issue its Lemay/Harmony Special Improvement District No. 78 (Phase 2) , Special Assessment Bonds , dated September 15, 1984 , in the aggregate principal amount of $3, 100 , 000 (the "Bonds" ) , consisting of 620 fully registered bonds in the denomination of $5 , 000 each, numbered consecutively from 1 to 620 , inclusive. The Bonds shall mature on October 1 , 1999 , and shall bear interest as herein set forth. Pursuant to the recommendations of the Committee on Uniform Security Identification Procedures , CUSIP numbers may be printed on the Bonds . 2. The following numbered Bonds in the following principal amounts shall bear per annum interest from September 15, 1984 , to October 1, 1999 , except if redeemed prior thereto , at the followinq rates : Bonds Numbered Principal Per Annum (both inclusive) Amounts Interest Rates 1 - 70 $350, 000 9.0 8 71 - 120 250 , 000 9.5 121 - 170 250 , 000 10.0 171 - 220 250 ,000 10.25 221 - 270 250 , 000 10.5 271 - 320 250 , 000 10.75 321 - 370 250 , 000 11.0 371 - 420 250 ,000 11.0 421 - 470 250 , 000 11.125 471 - 520 250, 000 11. 125 521 - 570 250 , 000 11.25 571 - 620 250 , 000 11.25 Said interest shall be payable April 1 , 1985 , and semiannually thereafter on the 1st day of October and the 1st day of April of each year . If upon presentation at maturity the principal of any Bond is not paid as provided herein, interest shall continue thereon at the same interest rate until the principal thereof is paid in full. 3. The maximum net effective interest rate for the Bonds is 18% . The actual net effective interest rate on the Bonds is 11.04 % . 4 . The principal of and interest on the Bonds shall be payable in lawful money of the United States of America to the registered owners of the Bonds by the Finance Director of the -4- City, who is hereby designated the paying agent for the Bonds . The principal of and the final interest payment due on the Bonds shall be paid to the registered owner of each Bond upon presentation and surrender of the Bond at maturity or upon prior redemption. Except as heretofore and hereinafter provided , the interest shall be paid to the registered owner of each Bond determined as of . the_ _--close of : business on _the - regular _ record date, which shall be the fifteenth (15th) day of the calendar month next preceding .the interest payment -date, irrespective - of any transfer :of - ownership of the- Bond subsequent to= the :regalar record date and prior - to _such - interest payment date; : by. check or draft mailed to such registered owner at the address - appearing on the registration books of the City maintained by . the City Clerk as registrar . Any interest not paid when due and any interest accruing after maturity shall be paid to the registered owner of each Bond entitled to receive such interest determined as of the close of business on the special record date, which shall be fixed by the City for such purpose , irrespective of any transfer of ownership of the Bond subsequent to such special record date and prior to the date fixed by the City for the payment of such interest , by check or draft mailed 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 first-class , postage prepaid mail , at least ten (10) days prior to the special record date , to the Purchaser and 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 - registrar or payinq agent initially appointed hereunder shall resign , or if the City shall reasonably determine that said registrar or paying agent has become incapable of fulfilling his or her duties hereunder , the City may, upon notice mailed to each registered owner of bonds at the address last shoran on the registration books , appoint a successor reqistrar or payinq agent , or both. Every such successor registrar or paying agent shall be a bank or trust company located in and in good standing in the State of Colorado and having a capital and surplus of not less than $5,000 , 000. It shall not be required that the same institution serve as both bond registrar and paying agent hereunder , but the City shall have the right to have the same institution serve as both registrar and paying agent hereunder . 5. The Bonds _ shall be subject to _ redemption prior to maturity at the option of the City in regular numerical order at any time at a price equal to the principal amount of the Bonds plus accrued interest , with no premium, as follows : within thirteen months of receipt of moneys initially deposited in the Lemay/Harmony Special Improvement District No. 78 (Phase 2) , Special Assessment Bonds , Bond and Interest Fund (the "Bond Fund" ) hereinafter described (other than from bond proceeds) , it -5- shall be the duty of the Finance Director to call in and pay a suitable number of Bonds outstanding , provided that the Bond Fund (except for amounts initially deposited therein from bond proceeds) shall be depleted at least once a year except for a reasonable carryover amount not to exceed the greater of one year ' s earnings on the Bond Fund or one-twelfth of annual debt service on the Bonds . Notice of such call shall be given by the Finance Director by mailing a copy thereof by first-class , postage prepaid mail , at least forty-five (45) days and not more than sixty (60) days prior to the designated redemption date to the Purchaser and to the registered owners of each of the Bonds being redeemed at their addresses as the same shall last appear on the registration books of the City. Said notice shall specify by number the Bonds so called . Bonds so called shall be redeemed in regular numerical order at a price equal to the principal amount of each Bond so redeemed plus accrued interest thereon as hereinafter provided . If any Bond shall have been duly called for redemption , then such Bond shall become due and payable upon such redemption date , and from and after such date interest shall cease to accrue thereon. Failure to mail any notice as aforesaid or any defect in any notice 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 maturity by call for prior redemption or otherwise shall not be reissued and shall be cancelled the same as Bonds paid at or after maturity. 6. The Bonds shall be executed in the name and on behalf of the City with the facsimile signature of the Mayor of the City, shall bear a facsimile of the seal of the City, shall be attested by the facsimile signature of the City Clerk of the City, and shall be countersigned with the manual signature of the Finance Director of the City. Should any officer whose manual or facsimile signature appears on the Bonds cease to be such officer before delivery of the Bonds to the Purchaser , such manual or facsimile signature shall nevertheless be valid and sufficient for all purposes. 7. Upon their execution and prior to their delivery the Bonds shall be registered for the purpose of payment of principal and interest in the office of the City Clerk as registrar . Thereafter , the Bonds shall be transferable only upon the registration books of the City at the office of the City Clerk by the registered owner thereof or by his or its duly authorized attorney-in-fact or legal representative. The City Clerk shall accept a Bond for registration or transfer only if the registered owner is to be an individual , a corporation , a partnership , or a trust . Bonds may be transferred upon surrender of the Bonds together with written instruments of transfer duly executed by the registered owners or their duly authorized attorneys-in-fact or legal representatives with guaranty of signatures satisfactory to the City Clerk , containing written instructions as to the details of the -6- transfer of such Bonds , along with the social security numbers or federal employer identification numbers of such transferees and , if such transferee is a trust , the names and social security numbers of the settlor and the beneficiaries of the trust. Transfers shall be made without charge , except that the City Clerk 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 of Bonds. No registration of any Bond shall be- effective until entered on the registration books : Concurrently with the entry of the required: information on the registration books the City Clerk shall - enter the required information on the registration - panel pertaining to each Bond. The City Clerk shall not be required to transfer ownership of any Bond during the fifteen (15) days next preceding any interest payment date nor to transfer any bond after mailing any notice of redemption as herein provided nor during the fifteen (15) days next preceding such mailing of any notice of redemption. 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 principal of and interest on such Bond and for all other purposes , and all such payments so made to such person or upon his 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. 8 . If any Bond- shall _ have- been lost ,- destroyed or wrongfully taken , _th-e 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 ,- la84 , adopted by the Council on July 17, 1984. 9. The Bonds and the registration panels pertaining thereto shall be in substantially the following form: -7- [Form of Bond] (Text of Face) UNITED STATES OF AMERICA STATE OF COLORADO COUNTY OF LARIMER CITY OF FORT COLLINS LEMAY/HARMONY SPECIAL IMPROVEMENT DISTRICT NO. 78 (PHASE 2) SPECIAL ASSESSMENT BOND No. $5, 000 The City of Fort Collins, in the County of Larimer and State of Colorado, for value received, hereby promises to pay to the registered owner hereof whose name , address, and identification number appear on the registration panel attached hereto, solely out of the special funds hereinafter described , but not otherwise, the principal sum of FIVE THOUSAND DOLLARS in lawful money of the United States of America, on the 1st day of October , 1999, and likewise to pay interest thereon from the date hereof to the maturity date hereof, except if redeemed prior thereto, at the rate of and hundredths per cent ( %) per annum, payable April 1, 1985 , and semiannually thereafter on the 1st day of October and the lst day of April of each year. If upon presentation at maturity the principal of this Bond is not paid as provided herein, interest shall continue hereon at the same interest rate until the principal hereof is paid in full. The principal of and interest on this Bond are payable to the registered owner hereof by the Finance Director of the City or a successor paying agent. The principal of and the final interest payment due on this Bond shall be paid to the registered owner hereof upon presentation and surrender of this Bond at maturity or upon prior redemption. Except as heretofore and hereinafter provided, the interest shall be paid to the registered owner hereof determined as of the close of business on the regular record date, which shall be the fifteenth (15th) 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 mailed to such registered owner at the address appearing on the registration books of the City maintained by the City Clerk as registrar or by a successor registrar. Any interest hereon not paid when due and any interest hereon accruing after maturity shall be paid to the registered owner of -8- this Bond determined as of the close of business on the special record date , which shall be fixed by the City for such purpose , irrespective of any transfer of ownership of the Bond subsequent to such special record date. and prior to the date fixed by the City for the payment of such interest , by check or draft mailed 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 first-class , postage prepaid mail, at least ten (10) days prior to the special record date , to Boettcher & Company, Inc . , Denver , Colorado, and 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. The Bonds of the issue of which this is one are subject to redemption prior to maturity at the option of the City in regular numerical order at any time at a price equal to the principal amount of the Bonds redeemed plus accrued interest , with no premium, as follows : within thirteen months of receipt of moneys initially deposited in the Lemay/Harmony Special Improvement District No. 78 (Phase 2) , Special Assessment Bonds , Bond and Interest Fund hereinafter described (other than from bond proceeds) , it shall be the duty of the Finance Director of the City or his successor to call in and pay a suitable number of Bonds outstanding , provided that the Bond and Interest Fund (except for amounts initially deposited therein from bond proceeds) shall be depleted at least once a year except for a reasonable carryover amount as set forth in the Ordinance author.iaing the issuance of this Bond. Notice of such call shall be given by the Finance Director by- mailing a copy thereof by first-class , postage prepaid mail , at least forty-five (45) days and not more than sixty -(-6(l)--da7ys pr-ior to the- - erig-nated redemption date, to Boettcher & Company, Inc. , Denver , Colorado , and to the registered owners of each of the Bonds being redeemed at their address as the same shall last appear on the registration books of the City. Said notice shall specify by number the Bonds so called. Bonds of this issue so called shall be redeemed in regular numercial order at a price equal to the principal amount of each Bond so redeemed plus interest thereon as hereinafterprovided . If this Bond shall have been duly called for redemption, this Bond shall become due and payable upon such redemption date , and from and after such date interest shall cease to accrue hereon. Failure to mail any notice as aforesaid or any defect in any notice mailed with respect to any Bond shall not affect the validity of the redemption proceedings with respect to any other Bond. This Bond is one of a series of special assessment bonds in the aggregate principal amount of $3 ,100,000 issued for the purpose of defraying the costs of constructing and installing Phase 2 street and utility improvements in and for Lemay/Harmony Special Improvement District No. 78 by virtue of and in full conformity with the Constitution of the State of Colorado , the -9- home rule Charter of the City, and Chapter 16 of the Code of the City and pursuant to and under the authority of an Ordinance duly adopted by the Council of the City prior to the issuance of this Bond. This Bond is not , and shall not be considered or taken to be , a general obligation or indebtedness of the City within the meaning of any requirement of or limitation imposed by law. This Bond and the interest hereon are payable solely from, and as security for such payment there is exclusively pledged, a special fund designated as the Lemay/Harmony Special Improvement District No. 78 (Phase 2) , Special Assessment Bonds , Bond and Interest Fund, into which there shall initially be deposited accrued interest and capitalized interest on the Bonds and any proceeds of the Bonds remaining in the Capital Projects Fund of the City after the cost of the aforesaid Phase 2 improvements has been paid in full and into which there shall thereafter be deposited moneys collected on account of assessments hereafter to be levied against the property within Lemay/Harmony Special Improvement District No. 78 and specially benefited by the construction and installation of the Phase 2 improvements therein. As collateral security for the payment of a portion of the principal of and interest on the Bonds of this issue , an owner of certain real property within the District to be assessed for the cost of a portion of the aforesaid Phase 2 improvements has deposited in escrow with United Bank of Fort Collins National Association a City of Fort Collins , Colorado , Street Oversizing Fund Revenue Note payable to such owner with instructions that the principal remaining to be paid on said Note be accelerated if under specified circumstances said owner or its affiliates or any surviving, resulting or transferee entity thereof fail to pay when due any assessments with respect to the Phase 2 improvements levied against their respective properties. Upon such acceleration and payment by the City of all principal remaining to be paid on the Note the United Bank of Fort Collins National Association shall deposit such sum to the Lemay/Harmony Special Improvement District No. 78 (Phase 2) , Special Assessment Bonds , Bond and Interest Fund. Bonds of this issue , together with bonds of other special or local improvement districts of the City, are additionally secured by moneys deposited in the special Surplus and Deficiency Fund of the City. Whenever there is a deficiency in the Bond and Interest Fund for the payment of principal or interest on this Bond , the deficiency is to be paid by transferring moneys from the special Surplus and Deficiency Fund to the Bond and Interest Fund. The Ordinance authorizing the issuance of this Bond provides that whenever three-fourths (3/4) of the Bonds of this issue have been paid and cancelled and for any reason the remaining assessments are not paid in time to -10- redeem the remaining Bonds and to pay the interest thereon , and there are not sufficient funds in the special Surplus and Deficiency Fund to do so, then the City shall pay the remaininq Bonds when due and the interest thereon , levy additional ad valorem taxes therefor , and reimburse itself by collecting the unpaid assessments due. The City covenants with the registered owner of .this Bond that it will levy and collect the assessments against the property specially benefited and deposit the same -- into the Bond and Interest Fund and that it will diligently enforce the lien of any unpaid assessment . against the property charged therewith . The City further covenants with the registered owner of this Bond that it will keep and perform all of the covenants of this Bond and of the Ordinance authorizing the issuance hereof. Reference is hereby made to said Ordinance for a description of the provisions , terms , and conditions upon which this Bond is issued and secured, including , without limitation , the nature and extent of the security for this Bond , the collection and disposition of the special assessments and moneys charged with and pledged to the payment of this Bond , the special funds referred to above , and the nature and extent of the security and pledge afforded thereby for the payment of this Bond , the rights , duties and obligations of the City and its Council , and the rights and remediesof the registered owner of this Bond . It is herebyrecited-, certified and warranted that the total issue of Bonds, of the City for Lemay/Harmony _Special Improvement District No. 78., including this Bond , does not - exceed any limitation imposed by law; that every requirement of law relating to the _creation of said District , the construction and installation of the aforesaid Phase 2 improvements , the preparation for levying of the aforesaid assessments , and the issuance of this- Bond has been fully complied with by the proper officers of the City; that all acts , conditions and things required by law to be done precedent to and in the issuance of this Bond have been properly done ; and that this Bond does not contravene any constitutional or statutory provision of the State of Colorado or provision of the City Charter or ordinances. For the payment of this Bond and the interest hereon , the City pledges the exercise of all of its lawful corporate powers. REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS BOND SET FORTH ON THE REVERSE HEREOF. IN TESTIMONY WHEREOF, the City of Fort Collins , Colorado , has caused this Bond to be executed in the name and on behalf of the City with the facsimile signature of the Mayor of the City, to be sealed with a facsimile of the seal of the City, to be attested by the facsimile signature of the City Clerk of the -11- City, and to be countersigned with the manual signature of the Finance Director of the City, all as of the 15th day of September , 1984 . CITY OF FORT COLLINS , COLORADO (CITY) By: (Facsimile Signature) (SEAL) Mayor Attest : (Facsimile Signature) City Clerk Countersigned : (Manual Signature) Finance Director -12- (Text of Reverse) This Bond is transferable only upon the registration books of the City at the office. of the City Clerk or a successor registrar by the registered owner _hereof or by his 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 or its duly authorized attorney-in-fact or legal representative with guaranty of signature satisfactory to the - City- Clerk , _containing written instructions as to the detaila- 6f--the 'tra-nsfer, 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 settlor and beneficiaries of the trust. Transfers shall be made without charge , except that the City Clerk 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 of Bonds . Upon such transfer the City Clerk will enter the date of registration and the name , address , and social security number or federal employer identification number of the new registered owner of this Bond on the registration panel attached hereto. The City Clerk shall not be required to transfer ownership of any Bond during the fifteen (15) days next preceding any interest payment date nor to transfer any bond after mailing any notice of redemption as herein provided nor during the fifteen (15) days next preceding such mailing of any notice of redemption. The City may deem and treat the person 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 upon his order shall 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 shall not be affected by any notice to the contrary. -13- t (Registration Panel) This Bond is registered in the office of the City Clerk of the City of Fort Collins , Colorado , as registrar , or its successor registrar , in the name of the owner listed below, and the principal of and interest on this Bond shall be payable only to such owner . Name , Address , and Date of Identification Number of Signature of Registration Registered Owner Citv Clerk -14- (Assignment Provision) ASSIGNMENT FOR VALUE RECEIVED, the undersigned sells , assigns and transfers unto PLEASE INSERT SOCIAL SE=I-TY- OR- OTHER IDENTIFYING_ NUMBER_OF_ASSIGNEE(Name and Address of Assignee) the attached Bond and does hereby irrevocably constitute and appoint , , , or its successor , as registrar and transfer agent , to transfer said Bond on the books kept for registration thereof. Dated : Signature quaranteed : (Bank , Trust Company or Firm) NOTICE: The signature to this assignment must correspond with the name of the Registered Owner as it appears upon the registration panel of the attached Bond in every particular without alteration or enlargement or any change whatever . [End of Form of Bond] -15- 10. The proceeds of the Bonds , excluding accrued interest and capitalized interest , shall be deposited into the Capital Projects Fund of the City (the "Capital Projects Fund" ) , and thereafter said proceeds shall be used only to pay or reimburse the City for the costs and expenses of constructing and installing the Phase 2 Improvements. There is hereby appropriated the sum of $2 ,245, 875 in the Capital Projects Fund for the construction of the Phase 2 Improvements and associated costs . In the event that less than all of the proceeds of the Bonds are expended to pay such costs and expenses , any remaining sums shall be transferred upon completion of the Phase 2 Improvements to the Bond Fund and used for the purpose of calling in and paying the principal of and interest on the Bonds . Accrued interest and capitalized interest shall be deposited into the Bond Fund and applied for the payment of interest first due on the Bonds. 11. The Bonds and the interest thereon shall be payable solely from, and there is hereby created, the Bond Fund , into which there shall initially be deposited accrued interest and capitalized interest on the Bonds and any proceeds of the Bonds remaining in the Capital Projects Fund after the cost of the Phase 2 Improvements has been paid in full and into which there shall thereafter be deposited all moneys collected on account of assessments to be levied against the property within the District and specially benefited by the construction and installation of the Phase 2 Improvements therein. The moneys in the Bond Fund shall be used for the purpose of paying the principal of and interest on the Bonds and for no other purpose whatsoever until the Bonds , both principal and interest , have been fully paid and discharged , and as security for such payment the Bond Fund is hereby exclusively pledged. 12. The Bonds shall be collaterally secured by the Note deposited in escrow with the Escrow Agent pursuant to the Escrow Agreement . The Mayor , the City Clerk and the Finance Director are hereby authorized and directed to execute the Escrow Aqreement and to perform all such acts as the City is required thereunder to perform for the benefit of the registered owner of the Bonds. 13. The Bonds , together with bonds of other special or local improvement districts of the City, shall be additionally secured by moneys deposited in the special Surplus and Deficiency Fund of the City (the Surplus and Deficiency Fund) . Whenever there is a deficiency in the Bond Fund for the payment of principal or interest on the Bonds , the deficiency shall be paid by transferring moneys from the Surplus and Deficiency Fund to the Bond Fund. Whenever three-fourths (3/4) of the Bonds have been paid and cancelled and for any reason the remaining assessments are not paid in time to redeem the remaining Bonds and to pay the interest thereon, and there are not sufficient funds in the Surplus and Deficiency Fund to do so, then the City -16- shall pay the remaining Bonds when due and the interest thereon , levy additional ad valorem taxes therefor , and reimburse itself by collecting the unpaid assessments due. 14. The Bonds , when executed and registered as provided herein_ and in the Code , shall be delivered by any one of the officers of the City to the Purchaser upon payment to the City of the purchase_ price therefor . The proceeds derived from the sale of the Bonds shall be used exclusively for the purposes stated herein ; -provided however that any portion of- such proceeds may be . temporarily invested pending such use in securities or obligations which are lawful investments for the City with such temporary investments to be made consistent with the covenant hereinafter made concerning arbitrage bonds . Neither the Purchaser nor the registered owner of any Bond shall be in any way responsible for the application of the proceeds of the Bonds by the City or any of its officers . 15. The City covenants that it will make no investment or other use of the proceeds of the Bonds at any time during the term thereof which, if such investment or other use had been reasonably expected on the date the Bonds are issued , would have caused the Bonds to be arbitrage bonds within the meaning of Section 103 (c) of the Internal Revenue Code of 1954 , as amended , and the regulations promulgated thereunder , unless , under any provision of law hereafter enacted , the interest paid on the Bonds shall be excludible from - the gross income of a recipient thereof for federal income tax purposes without regard to whether- or not the Bonds arearbitrage bonds or shall be exempt from all federal income taxation-. " 16. The Council shall cause the assessments to be levied and collected as provided by law for the benefit of the registered owners of the Bonds . All assessments made, together with all interest thereon and penalties for default in payment thereof , shall be a lien in the several amounts assessed against each property from the date of the publication of the assessing ordinance and shall be a first and prior lien over all other liens excepting general tax liens. The Council will further cause the lien of any unpaid assessment to be diligently enforced against the property charged therewith. 17. So long as any of the Bonds remain outstanding , the City will keep or cause to be kept by Larimer County, Colorado (the "County" ) , true and accurate books of records and accounts showing full and true entries covering the collection and disposition of the assessments and any delinquencies in the collection thereof , cove-ring deposits and disbursements in each of the special funds herein described, covering the payment of the Bonds , both principal and interest , and covering disbursements to defray the costs and expenses of the Phase 2 Improvements. If any such books covering collection and disposition of the assessments and any delinquencies in the -17- collection thereof are kept by the County, the City shall arrange to receive from the County notice of any delinquency in the payment of any assessment with respect to Phase 2 Improvements levied against anv lot or tract of land located within the District owned by any of the Everitt Companies on or after the date of the Escrow Agreement to enable the City promptly to exercise any rights and duties it may have under the Escrow Agreement. The City will permit inspection and examination of all such books and notices maintained or received by the City at any reasonable time by the Purchaser or the registered owner of any Bond. 18. The registered owner of any Bond shall have the right and power for the equal benefit and protection of all registered owners of Bonds similarly situated : a. By mandamus or other suit , action, or proceeding at law or in equity to enforce his rights against the City and to require and compel the City to perform and carry out its duties , obligations , or other commitments under this Ordinance and under its covenants and agreements with the registered owners of the Bonds ; b . By action or by suit in equity to require the City to account as if it were the trustee of an express trust ; C . By action or by suit in equity to have appointed a receiver , which receiver may take possession of any accounts and may collect, receive, and apply all revenues or other moneys pledged for the payment of the Bonds in the same manner as the City itself might do ; d . By action or by suit in equity to enjoin any acts or things which might be unlawful or might be in violation of the rights of the registered owners of the Bonds ; and e. To bring suit upon the Bonds. No right or remedy conferred by this Ordinance upon the registered owner of any Bond or any trustee therefor is intended to be exclusive of any other right or remedy, but each such right or remedy is cumulative and is in addition to every other right or remedy and may be exercised without exhausting and without regard to any other remedy conferred by this Ordinance or by any other law. The failure of the registered owner of any Bond so to proceed as provided herein shall not relieve the City of any obligation to perform or to carry out any duty, obligation , or other commitment. 19. This Ordinance is , and shall constitute , a legislative measure of the City, and after the Bonds are issued , sold , and outstanding , this Ordinance shall constitute a contract between the City and the registered owners of the Bonds , and shall be -18- and remain irrepealable until the Bonds and the interest thereon shall have been fully paid , satisfied and discharged. 20. Pursuant to the Uniform Facsimile Signature of Public Officials Act, part 1 of article 55 of title 11 , Colorado Revised Statutes 1973, as amended , the Mayor and the City Clerk of the City shall- forthwith but in any event prior to the delivery of the Bonds to the Purchaser , file with the Colorado Secretary of State their manual signatures- and an impression of the seal of the City, ,certified by them under oath, using a Facsimile Signature Certificate for this purpose. 21. 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 limiting the generality of the foregoing : a . The printing of the Bonds , including the printing upon each of the Bonds of a copy of the approving legal opinion of Ballard, Spahr , Andrews & Ingersoll , bond counsel , duly certified by the City Clerk ; and b. The execution of such certificates as may be required by the Purchaser relating to the signing of the Bonds , the tenure and identity of the City officials , if in accordance with the facts , the absence of litigation , pending or threatened , affecting the _validity of the Bonds , the exemption - of the interest on the Bonds from federal income taxation , - and receipt of the Bond purchase price and of the Bonds , using - a- Signature Certificate, a General and No-Litigation Certificate , a Certificate as to Amount and Use of Bond Proceeds , and a Delivery Certificate for these purposes ; and C . The preparation of a Preliminary Official Statement and a final Official Statement relating to the Bonds ; and d . The making of various statements , recitals , certificates and warranties provided in the form of Bond set forth in this Ordinance ;for , and e. The payment of the interest on the Bonds as the same shall become due and the principal of the Bonds at maturity or _upon prior redemption without further warrant or order . 22. All action heretofore taken by the City and by the officers thereof not inconsistent herewith directed toward the creation of the District , the construction and installation of the Phase 2 Improvements therein, and the authorization and sale of the Bonds is hereby ratified , approved and confirmed. -19- t • 23. All resolutions , ordinances , or parts thereof , taken by the City and in conflict with this Ordinance are hereby repealed , except that this repealer shall not be construed so as to revive any resolution , ordinance , or part thereof , heretofore repealed. 24 . If any paragraph , clause or provision of this Ordinance is judicially adjudged invalid or unenforceable , such judgment shall not affect , impair or invalidate the remaining paragraphs , clauses or provisions hereof , the intention being that the various paragraphs , clauses or provisions hereof are severable. INTRODUCED , READ , APPROVED ON FIRST READING , AND ORDERED PUBLISHED ONCE IN FULL this 4th day of September , 1984. CITY OF FORT COLLINS , COLORADO By: (CITY) Kayor (SEAL) Attest : City Cle&L,/ The foregoing Ordinance will be presented for final passage at a regular meeting of the Council, to be held at Council Chambers , City Hall, 300 LaPorte Avenue , Fort Collins , Colorado, on Tuesday, the 18th day of September , 1984 , at 5: 30 p.m. -20- READ , FINALLY PASSED ON SECOND READING , AND ORDERED PUBLISHED ONCE BY NUMBER AND TITLE ONLY this 18th day of September , 1984. CITY OF FORT COLLINS , COLORADO By: ✓6[�.�✓ (CITY) Mayor (SEAL) Attest : City Clerk —� 1 -21- Council Member Rutstein moved that the foregoing Ordinance heretofore introduced and read by title be approved on first reading . Council Member Knezovich seconded the motion. The question beinq upon the approval on first - reading of the Ordinance , the roll was called with the following results : Council Members voting "AYE" : Gerald Horak E. John _Clarke ._�._ John Knezovich William Elliott Kelly Ohlson Barbara Rutstein Ed Stoner Council Members voting "NAY" : None The Mayor thereupon declared that , a majority of the Council Members having voted in favor thereof , the motion was carried and the Ordinance duly approved on first reading . Thereupon the Mayor ordered said Ordinance published once in full together with a notice giving the date when said Ordinance will be presented for final passage in The Coloradoan , a newspaper of general circulation published in the City, at least seven ( 7) days before presentation for final passage. After consideration of other business to come before the Council , the meeting was adjourned. Mayor (CITY) City o Fort Collins , Colorado (SEAL) Attest : City 4 City of Fort Collins , Colorado -22- STATE OF COLORADO ) COUNTY OF LARIMER ) ss. CITY OF FORT COLLINS ) The Council of the City of Fort Collins , Colorado , held a regular meeting at Council Chambers , City Hall , 300 LaPorte Avenue , Fort Collins , Colorado , on Tuesday, the 18th day of September , 1934 , at the hour of 5 : 30 p.m. The following persons were present : Council Members : Gerald Horak , Mayor >g X X XAHy(d6 X xxa�c x k�(X Xl�l6X�b(�t4�XXtX X��)5x9(�R John Knezovich W Y Ha1X1X�(1�X?ECDQ(X 74k�(C( Kelly Ohlson Barbara Rutstein Ed Stoner Assistant City Manager: Verna Lewis City Clerk : Wanda M . Krajicek The following persons were absent : E. John Clarke Assistant Mayor William Elliott Counrilmember John E. Arnnld City Manager The Mayor informed the Council that Ordinance No. 127 1984 , which was introduced, approved on first reading , and ordered published once in full at a regular meeting of the 84 was duly September 4 19 Y Published in The Council , held on Septe , Coloradoan , a newspaper of general circulation published in the City, in its issue of September 7, 1984 . Council Member Rutstein then read said Ordinance by its title. Thereupon , Council Member Rutstein moved the final passage of Ordinance No. 127 , 1984 . Council Member Ohl son seconded the motion , and the question being upon the final passage of said Ordinance , the roll was called with the following result : Council Members voting "AYE" : Gerald Horak WX.Txx MXU YBfik John Knezovich X9&X1AWXx1XI 0 kXX Kelly Ohlson Barbara Rutstein Ed Stoner -23- Council Members voting "NAY" : None The Mayor thereupon declared that a majority of the Council Members having voted in favor thereof , the motion was carried and the Ordinance finally passed. Thereupon the Mayor ordered said Ordinance published by number and title only together with a notice of the final passage of the Ordinance in The Coloradoan, a newspaper of general circulation published in the City, within five (5) days after said final passage. After consideration of other business to come before the Council the meeting was adjourned. Mayor U City of Fort Collins , Colorado (CITY) (SEAL) Attest : - -- ------- - - k r'Q Q CityC _ City of Fort Collins, Colorado - -24- STATE OF COLORADO ) COUNTY OF LARIMER ) ss. CITY OF FORT COLLINS ) I , Wanda M. Krajicek , City Clerk of the City of Fort Collins , Colorado , do hereby certify that the attached copy of Ordinance No. 127 , 1984 , is a true and correct copy; that said Ordinance was introduced and approved on first reading by the Council of the City of Fort Collins , Colorado , at a regular meeting thereof , held at Council Chambers , City Hall , 300 LaPorte Avenue , Fort Collins , Colorado, the regular meeting place thereof , on Tuesday, the 4th day of September , 1984 ; that said Ordinance was finally passed on second reading by said Council at a regular meeting of thereof , held at Council Chambers , City Hall , 300 LaPorte Avenue, Fort Collins , Colorado , the regular meeting place thereof , on Tuesday, the 18th day of September , 1984 ; that a true copy of said Ordinance has been authenticated by the signatures of the Mayor of said City and myself as City Clerk thereof , sealed with the seal of the City, and numbered and recorded in a book marked "Ordinance Record" kept for that purpose in my office ; and that said Ordinance was duly published once in full together with a notice giving the date when said Ordinance would be presented for final passage and once by number and title only together with a notice of the final passage thereof in The Coloradoan , a newspaper of general circulation published in the City , in its issues of September 9, 1984, and September 23, 1984, as evidenced by the certificates of the publisher attached hereto at pages 25 and 26. I further certify that the foregoing pages 1 through 23, inclusive , constitute a true and correct copy of the record of the proceedings of said Council at its aforesaid meetings , insofar as said proceedings relate to said Ordinance ; that said proceedings were duly had and taken , that the meetings were duly held ; and that the persons were present at said meetings as therein shown. IN WITNESS WHEREOF, I have hereunto set my hand and the seal of the City of Fort Collins , Colorado, this24thday of September , 1984. 1 t0.i 2. (CITY) City Clerk (SEAL) City of Fort Collins , Colorado Deputy erk City of Fort Collins, Colorado -25- STATE OF COLORADO ) COUNTY OF LARIMER ) ss. CITY OF FORT COLLINS ) (Attach- affidavit of publication in full of Ordinance and notice giving date when Ordinance to be presented for final passage.. ) -26- The Coloradoan STATE OF COLORADO ) COUNTY OF LARIMER )as. AFFIDAVIT OF PUBLICATION Donna Boltz being first duly sworn upon oath, deposes and says: That said is the lei I C I erk of The Coloradoan; that said has personal knowledge of all facts set forth in this affidavit; that The Coloradoan is a public daily newspaper of general circulation, having its principal office and place of 1 business situated in said County of Larimer; that said Coloradoan is printed and published daily; that said Coloradoan is a daily newspaper, duly qualified for the purpose set forth within the meaning of Chapter 109, Article 1, Sections 1-1 to 1-8 inclusive of Colorado Revised Statutes 1973, and any amendment thereof passed prior to the date hereof; that said newspaper had, prior to January 1, 1936, and has ever since said date been admitted to the United States Mails as second class matter under the provisions of the Act of March 3, 1879, and any amendments thereof, that said newspaper is printed in whole in said County of Larimer and has a general circulation therein; that said newspaper has been so printed and published as a public daily newspaper of general circulation in said County of Lar- imer, uninterruptedly and continuously, during the period of more than fifty-two consecu- tive weeks next prior to the first issue thereof containing the annexed legal notice of advertisement; that said annexed legal notice or advertisement was published in the regular and entire editions of said newspaper for One day successive iicdM:Klbn 0()MckXXKoEX bttx**k; that the first publication of said legal notice or advertisement was in the regular and entire edition of said newspaper on the 9 th day of So p t.mh.r , A.D. 19--8¢; that the last publication of said legal notice or advertisement was in the regular and entire edition of said newspaper on the day of , A.D. 19__, and that copies of each number of said paper in which said notice or advertisement was published were delivered by carriers or transmitted by mail to each of the subscribers of said paper, according to the accustomed mode of business in this office. 1 Lb i- W-82 Subscribed and sworn to before me, at and within the County of Larimer, State of Colorado this 9th day of September , A.D. 1984 My Commission Expires August 15, 1997 My commission expires 1 fiver de, Fort Col s, C 80524 City C I e r k Notary Publ Fe P. O . Box 580 Fort Collins , CO 80522 relivered to STATE OF COLORADO ) COUNTY OF LARIMER ) ss . CITY OF FORT COLLINS ) (Attach affidavit of publication of Ordinance by number and title only and notice of final passage thereof. ) -27- The Coloradoan 5;TATE OF COLORADO l COUNTY OF LARIMER )ss. AFFIDAVIT OF PUBLICATION Donna Boltz being first duly sworn upon oath, deposes -Donna and says: That said is the LeF_a L 1_er_k. _of The Coloradoan; that said has personal knowledge of all facts set forth in this affidavit; that The Coloradoan is a public daily newspaper of general circulation, having its principal office and place of business situated in said County of Larimer; that said Coloradoan is printed and published daily; that said Coloradoan is a daily newspaper, duly qualified for the purpose set forth within the meaning of Chapter 109, Article 1, Sections 1-1 to 1-8 inclusive of Colorado Revised Statutes 1973, and any amendment thereof passed prior to the date hereof; that said newspaper had, prior to January 1, 1936, and has ever since said date been admitted to the United States Mails as second class matter under the provisions of the Act of March 3, 1879. and any amendments thereof, that said newspaper is printed in whole in said County of Larimer and has a general circulation therein; that said newspaper has been so printed and published as a public daily newspaper of general circulation in said County of Lar- imer, uninterruptedly and continuously, during the period of more than fifty-two consecu- tive weeks next prior to the first issue thereof containing the annexed legal notice of advertisement; that said annexed legal notice or advertisement was published in the regular and entire editions of said newspaper for One day successive j(�C100t __.-. XP )e)t CKlxxtXOC) X9(V( W)egK ; that the first publication of said legal notice or advertisement was in the regular and entire edition of said newspaper on the 9Rrd day of Se-litembex- .- . A.D. 19g¢; that the last publication of said legal notice or advertisement was in the regular and entire edition of said newspaper on the day of _ A.D. 19__, and that copies of each number of said paper in which said notice or advertisement was published were delivered by carriers or transmitted by mail to each of the subscribers of said paper, according to the accustomed mode of business in this office. x-46 Subscribed and sworn to before me, at and within the County of Larimer, State of Colorado this __ 23rd dayof — Sectember S4 -- -- _-- , A.D. 19 My Comrgission Expires August 15, 1987 My commission expires - _ 1212-Wive ide, Fort,Cbi ins, CO 80524 — Notary Public City Clerk P .O . BOx 580 Fort Collins , CO 80522 Delivered to ORDINANCE NO. 127 , 1984 AN ORDINANCE AUTHORIZING THE ISSUANCE OF CITY OF FORT COLLINS , COLORADO, LEMAY/HARMONY SPECIAL IMPROVEMENT DISTRICT NO. 78 (PHASE 2) , SPECIAL ASSESSMENT BONDS , DATED SEPTEMBER 15, 1984 , IN THE AGGREGATE PRINCIPAL AMOUNT OF $3,100, 000 ; _PRESCRIBING_ THE FORM OF SAID BONDS ; PROVIDING FOR THE -PAYMENT OF SAID BONDS AND THE INTEREST THEREON; AND AUTHORIZING THE APPROPRIATE OFFICERS OF THE CITY TO ENTER INTO AN ESCROW AGREEMENT IN ORDER TO FURTHER SECURE SAID BONDS. READ, FINALLY PASSED ON SECOND READING , AND ORDERED PUBLISHED ONCE BY NUMBER AND TITLE ONLY this 18th day of September , 1984 . CITY OF FORT COLLINS , COLORADO 1 IF (CITY) Mayor (SEAL) Attest : 166�City Clerk ` -28-