HomeMy WebLinkAbout149 - 10/16/1984 - AUTHORIZING THE ISSUANCE OF DOWNTOWN DEVELOPMENT AUTHORITY TAX INCREMENT BONDS SERIES 1984A, DATED O r�
CFRTIFIED RECORD
OF
PnCCEEDINGS OF THE CCUNCIL OF
THE CITY OF FORT COLLINS , COLORADO
kr,LRTING TO AN CRDINANCE
P_UTHORIZIF'G THE ISSUANCE OF ITS
DOWNTOWN DEVELOPMENT AUTHORITY TAX INCREMENT BONDS
SERIES 1984A
DATED OCTOBER 1 , 1984
IN THE AGGREGATE PRINCIPAL AMGUNT OF NOT TO EXCEED $8 , 200 , 000
S
TABLE OF CONTENTS
(Not a part of this Ordinance)
Fade
Section 1 . Definitions and Construction . . . . . . 3
Section 1. 01. Definitions. . . . . . . . . . . . . . . 3
Section 1 . 02. Construction . . . . . . . . . . . . . . 9
Section 2. Authorization; Purpose of Bonds ; Pre-
liminary and Final Official Statement. 10
Section. 2 . 01 . Authorization . . . . . . . . . . . . . . 10
Section 2. 02. Purpose of Bonds . . . . . . . . . . . . 10
Section 2. 03. Preliminary and Final Official
Statement. . . . . . . . . . . . . . . . 11
Section 3 . Fature of Bonds; Security; Pledge. . . . li
Section 3 . 01 . Nature of Bonds; Security. . . . . . . . 11
Section 3 . 02. Pledge . . . . . . . . . . . . . . . . . 12
Section 4. Bond Execution, Registration , Transfer,
Details and Form of Bonds . . . . . . . . 14
Section 4 . 01 . Bond Execution . . . . . . . . . . . . . 14
Section 4 . 02. Registration . . . . . . . . . . . . . . 1.5
Section 4 . 03 . Transfer . . . . . . . . . . . . . . . . 16
Section 4 . 04 . Replacement Bonds . . . . . . . . . . . . 16
Section 4 . 05 . Form of Bonds . . . . . . . . . . . . . . 16
Section 5 . Issuance and Description of Bonds;
Interest Rate. . . . . . . . . . . . . . 27
Section 5 . 01 . Issuance and Description of Bonds . . . . 27
Section 5.02. interest Rate. . . . . . . . . . . . . . 28
Section 6 . Redemption of Bonds Prior to Maturity. 2.8
Section 6 . 01. General . . . . . . . . . . . . . . . . . 28
Section 6 . 02. Mandatory Sinking Fund Redemption. . . . 29
Section 6 . 03. Procedure for Redemption . . . . . . . . 30
Section 6 . 04. Cancellation . . . . . . . . . . . . . . 30
Section 7. Sale of Bonds, Disposition of Bond
Proceeds . . . . . . . . . . . . . . . . 30
Section 7 . 01. Sale of Bonds. . . . . . . . . . . . . . 30
Section 7. 02. Disposition of Bond Proceeds . . . . . . 31
Section 8. The Bond Fund. . . . . . . . . . . . . . 32
Section 8 . 01. Creation of Bond Fund. . . . . . . . . . 32
Section 8. 02. Use of Moneys in the Development
Account. . . . . . . . . . . . . . . . . 32
Section 8 . 03. Use of Moneys in the Principal and
"nterest Account . . . . . . . . . . . . 32
Section 9. The Reserve Funs; . . . . . . . . . . . . 33
Section 9 . 01. Creation of Reserve Fund . . . . . . . . 33
Sectior. 9. 02. Liens. . . . . . . . . . . . . . . . . . 33
Section 9 . 03. Deposits into Reserve Fund . . . . . . . 33
Section 9. 04. Use of Yoneys in Reserve Fund . . . . . . 34
Section 9. 05. Replenishment of Reserve Fund. . . . . . 35
Section 9. 06 Payment to City. . . . . . . . . . . . . 35
Section 10. The Escrow Fund. . . . . . . . . . . . . 36
Section 10 . 01 . Creation of Escrow Fund. . . . . . . . . 36
Section 10. 02. Liens. . . . . . . . . . . . . . . . . . 36
Section 10 . 03. Deposits into Escrow Fund. . . . . . . . 36
Section 10. 04. Use of Moneys in Escrow Fund . . . . . . 36
Section 1G. 05 Authorization of Escrow Agreement. . . . 37
Section 11 . The Expense Fund . . . . . . . . . . . . 37
Section 11 . 01 . Creation of Expense Fund . . . . . . . . 37
Section 11. 02. Liens. . . . . . . . . . . . . . . . . . 37
Section 11 . 03. Deposits into Expense Fund . . . . . . . 37
Section 11 . 04. Use of Moneys in Expense Fund. . . . . . 38
Section 12. Investments. . . . . . . . . . . . . . . 36
Section 13 . Issuance of 7983 Notes ; Additional Bonds 39
Section 13 . 01. Issuance of 1983 Notes . . . . . . . . . 39
Section 13. 02 . Issuance of Additional Bonds . . . . . 39
Section 13 . 03 . Subordinete Securities Permitted . . . . 40
Section 13 . 04. Superior Securities Prohibited . . . . . 40
Section 13 . 05 . Refunding Bonds. . . . . . . . . . . . . 40
Section 13 . 06 . Supplemental Ordinance . . . . . . . . . 41
Section 14 . Covenant Regarding Arbitrage Bonds . . . 41
Section 15. Concerning the Paying Agents . . . . . . 42
Section 16 . Defeasance . . . . . . . . . . . . . . . 42
Section 17. Amendments . . . . . . . . . . . . . . . 42
Section 18. Proceedings Constitute the Contract;
Events of Default; and Renedies of
Bondholders . . . . . . . . . . . . . . . 43
Section 18 . 01. Proceedings Constitute the Contract. . . 44
Section 18 . 02. Events of. Default; Remedies. . . . . . . 44
Section 16. 03. Nonwaiver. . . . . . . . . . . . . . . . 46
Section 19. Miscellaneous . . . . . . . . . . . . . . 47
Section. 19. 01. Rights and Immunities. . . . . . . . . . 47
Section 19. 02 CUSIP Numbers. . . . . . . . . . . . . . 48
Section 19. 03. Ratification . . . . . . . . . . . . . . 49
Section 19 . 04. Facsimile Signatures . . . . . . . . . . 49
Section 19 . 05. Authorized Action. . . . . . . . . . . . 49
Section 19 . 06. General Repealer . . . . . . . . . . . . 50
Section 19 . 07. Ordinance Irrepealable . . . . . . . . . 50
Section. 19 . 08 . Severability . . . . . . . . . . . . . . 50
STATE OF COLORAL'O )
COUNT`.f OF LAR.IMER ) 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, Port Collins, Colorado , on Tuesday, the 3nc day of
October, 1984 , beginning at the hour of 5 : 30 p.m.
The following persons were present:
Council Members : mX;(%,XIXXXXxxxxd4XDfJ(aXX3ax
E. John Clarke , F.ssistant Mayor
John B. Knezovich
Pdilliam C. Elliott
Ed Stoner
Kellv nh'_son
Barbara Rutstein
MX1XXl 4�S�('d ke:x aCX9QYu xxxxXXX'X=(X
Deputy City Manager: Richard Shannon
mQX xEmaxx kX (XxXX•XXXRX'X'X1(i(0W
Deputy City Clerk: Molly J. Davis
.The following persons were absent:
Gerald C. Horak, Mayor
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 i-ntroduced for each Council Member and for inspection and
copying by the general public:
ORDINANCE NO. 149 , 1984
AN CRDINANCE AUTHORIZING THE ISSUANCE OF CITY OF FORT
COLLINS , COLORADO DOWNTOWN DEVELCPMENT AUTHCRITY TAX INCRE-
YENT BONDS , SERIES 1984A, DATED GCTOPER 1 , 1984 , IN THE
AGGREGATE PP-17CIPAL AI.4GUNT CF NOT TO EXCEED $8 , 12eO , 000 , FOR
`SHE PURPOSE OF DEFRAYING, IN PT= OR IN WHOLE, -211E COST OF
ACQUIRING, CONSTRUCTING AND INSTALLINC CERTAIN IMPPCVEME1,1T5
IN TI:E DCIT'TOWN DEVELOPMENT AUTHORITY DISTRICT, FOR THE
PURPOSE OF ESTABLISHING A RESERVE FUND 'IN CONNECTICN
"IIFREWITH, AND FCR THE PURPOSE OF REFUNDING THE CITY OF FORT
CCLLINS , COLCRADO DO4aNTCWN DEVELCPN.ENT AUTHORITY TAX
Tr,CREMENT BCND ANTICIPATICN NOTES, SERIES APRII: 1 , 1983.
WHEREAS, on April 21, 1981 , the City of Fort Collins ,
Colorado (the "City" ) adopted Ordinance No. 46 , 1983 , thcreb
Y
establishing the Fort Collins , Colcra.dc Downtown Development
Authority (the "Authority" ) ; and
WHEREAS, the Authority is a body corporate uuly created,
established and authorized to transact business and exercise its
powers , all under and pursuant to the DCW1,Lown Development
Authorities Act of the State of Colorado, Section 31-25-801 et
seq. , C.R. S. , as amended (the "DDA Act" ) , and the powers of the
Authority include the power to plan and propose development and
redevelopment of public and private property within the central
business district of the City hereinafter defined (the
"District") ; and
WHEREAS, the Authority' s Plan of Development was approved by
the City on September 8 , 1981 , pursuant to which the Authority
now proposes to undertake the acquisition of real property and
land assembly , demolishing of existing structures and conducting
investigations and studies , and making and constructing a public
parking garage and other improvements within the District, all in
furtherance of and pursuant to the Plan of Development (the
"Project" ) , which Project includes the projects described in
Exhibit A hereto; and
WITEREAS , on June 1 , 1982, a special election was held
nursuant to Section 31-25-807 (3) (b) of the PDA Act approving the
issuance by the City of tax increment obligations in an amount
not to exceed $25, 000 , 000 in, the aggregate s-or the purpose of
financing projects of the Authority; and
WHEREAS , on June 13, 1983 , pursuant to the DDi� Act and the
Charter of the City, the City issued its City of Fort Cullins,
Colorado Downtown Development Authority ice_<. ?ncrement Bond
Anticipation Notes , Series Ar:"ii 1 , 1983 Ithe " 1983 Dotes" ) , In
the principal amount of $3 , 100 , 000 , which notes z,re secured by
said Pledged Revenues; and
WHEREAS, the Council of the City (the "Council" ) hereby
determines that _.t is reasonable , necessary and prudent at this
time to issue the Bends in order to carry out the Project, to
provide for the refunding of the 1983 Notes , to establish a
reserve fund for the Bonds, to pay the costs of iFo,iiance of the
Bonds and further to provide for the payment of such Bonds as
hereinafter provided; and
h'HLREAS, the Bonds will be secured by a pledge of certain
incremental ad valorem property taxes collected within the
District, as authorized by Section 31-25-8C7 (3) (a) of the DDA
Act; provided , however, ac valorem taxes of the City shall not be
used or pledged Lon such purposes ex( -pz to the extent such ad
valorem taxes constitute a part of the Pledged Revenues
(hereinafter defined) ; and
VTEREAS , the Bonds will be further secured by revenues of
the City from its Sales and Use Tax_ (hereinafter defined) to the
extent and under the terms and conditions specified herein ; and
2
WHEREAS , the City has received a proposal for the purchase
cf such Bonds upon terms favorable to and in the best interest of
the Citv, and the Council has determined to accept the same .
kl: IT OPDATNED BY THE COUNCIL OF THE CITY OF FORT COILnJS :
Section 1 . Definitions and Construction.
Section 1 . 01 . Definitions. As used in this Ordinance , tha
following terms shall have the following meanings, unless the
(:ontext otherwise requires :
(a) "Additional Bonds" ricans bonds or other
ubligata.cr: (, ' h- City issued in the future pur:,u.ailt to
Section 13. 02 of this Ordinance.
(1)) "Authority" means the Fort Collins , Colorado,
Downtown Development Authority .
(c) "Bond" or "Bonds" means the Seri.ee 1984A Bonds and
any Additional Lends authorized by this Ordinance.
(d) "Bond Fund" means the City of Fort Collins ,
Colorado Downtown Development Authority Tax Increment Bonds ,
Bond Fund established pursuant to Section ^ hereci,
including the Principal and Interest Account and the
Development Account therein.
(e) "Bondholder" or "holder" or "owner" of the Bonds
or any similar term means the registered owner of any Bond
as shown on the registration books maintained by the City.
(f) "City" means the City of Fort Collins , Colorado.
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(g) "DDA Act" means the Downto�,;n Development
Authorities Act of the State of Colorado . Section 31-25-101
et seq. , C.R. S. , as amended.
(h) "District" means the area described in the
Authority ' s Plan cf Development approved by the City ' :
Ordinance No. 46 , 1981 , on September 2 ' 981 , as amended by
i:he City ' s Ordinance Nc. 1_62 , 1981 and Ordinance No. 2,
1983 , and as may be further �;rr:ended from time to time in
compliance with the DDA Act .
(i) "Escrow Fund" means the Citv of Fort Collins,
Colorad., Downtown Development Authority Tax Increment Bonds ,
Escrow Fund established pursuant to Section = 0 hezeof.
(j ) "Expense Fund" means the City of Fort Collins ,
Col-crado Downtown Development Authority Tax "increment Bonds,
Expense Fund established pursuant to Section 11 hereof.
(k) "Federal Securi*ies" means (t(-j the extent the
ollowing are lawful inve.-:tne,ro.s for funds of the City)
direct obliGations of the United States of America or
obligations unconditionally guaranteed by the United States
of America.
(1) "Fiscal Year" means the year period beginning on
;ny January 1 and ending on the next following December 31 .
(m) "hiBIA" means the Municipal Bond Insurance
Association in its capacity as insurer of payment of
principal of and interest on the Series 198AL Bonds or any
successor to its function as issuer of a municipal bond
guaranty insurance policy with respect to the Series 19^41,
Bonds.
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(n) " 1983 Note" or " 1983 Notes" means the City' s
Downtown Development Authority Tax Increirent rend Anticipa-
tion. Notes , Series April 1 , 1983 , issued on Tune 13, 1983.
(o) "Notice by Mail" or "notice" of any action or
condition "by Mail" means a written notice meeting the
requirements cf this Ordi-ance mailed by first class mail to
the owners of reaistexed Bonds and at the addresses shown in
the registration books maintained by the City. Notice shall
be deemed to have been sufficiently given or served for all
purposes when deposited into the mail, first class postage
prepaid.
(p) "Opinion of Counsel" means a written opinion of an
attorney or firm of attorneys of national reputation in the
field of municipal bond law. Any opinion of such counsel
may be based upon, inscrar as it relates to factual matters ,
information which is in the possession of the City as shown
by a certificate or opinion of , or representation by, an
officer cr officers of the City, unless such counsel knows ,.
or in the exercise of reasonable care should have knco:n,
L
that the certificate or opinion or representation with
-respect to the matters upon which his opinion may be based ,
as aforesaid , is erroneous.
(q) "Ordinance" means this Ordinance , as from time to
time amended in accordance with Section 17 hereof.
(r) "Ordinance No. 58" means Ordinance No. 58 , 1967,
of the City which provides for the imposition of the initial
one percent (1%) Sales and Use Tax within the City.
(s) "Ordinance No. 80" means Ordinance No. 80 , 1984 ,
of the City, which provides procedure for issuing
replacement bonds for bonds that become destroyed, lost or
stolen.
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(t) "Crdinance 17c. 0 7" means Ordinance 'No. G71 , 1981 ,
rf the City, which provides for the establishment of the
Sales and Use Tax Fund.
(u) "Ordinance No. 113" means Ordinance No. 113 , 1982,
of the City, which provides for the impcsition of the
additional seventy-five hundreds percent (. 75€) Sales and
Use Tax within the Citv.
(v) "Ordinance No. 140" means Ordinance No. 140, 1979,
of the City, which provides for the imposition of the
additional one percent (1`s) Sales and Use ':l%l within the
City .
(w) "Ordinance Nc. 149" means Ordinance Nc. 149, 1981 ,
of the City, which provides; `or the imposition of the
additional one-quarter percent ( . 25€) Sales and U: e Tax
within the City.
(r) "Outstanding" means when used with reference to
bonds , as at any designated date , the aggregate cf all Bonds
or any other securities of the City payable in whole or in
part from the Pledged Revenues in any manner being executed
and delivered, except the following:
(1) Any Bond or other security of the City
payable in whole or in part from the Pledged Revenues
cancel-led by the City, by the Paying Agent , or
otherwise on the City ' s behalf , at or before such date;
(2) Any Bond or other security of the City
payable in whole or in part from the Pledged Revenues
held by or on behalf of the City;
(3) Any Bond or other security of the City
payable in whole or in part from the Pledged Revenues
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for the payment or the redemption e£ which moneys or
Federal or State Securities sufficient to meet all of
the payment requirements of the principal of, the
interest on , and any premiums due in connection with
the redemption of such Bond or other security of the
city payable .in whole or in part from the Pledged
Revenues to the date of maturity or any Redemption Date
thereof, shall have theretofore been deposited in
escrow or in trust with a bank for that purpose, as
provided in and required by Section 16 hereof; and
(4.) Any lost, apparently destroyed, or wrongfully
talcen Bond or other security of the City payable in
whole or in part from the Pledged Revenues in lieu of
or in substitution for which another k,ond or other
security shall have been executed and delivered
Tursuant to fhis Ordinance.
(y) "Paying Agent" means the Director of Finance of
the City, or any paying agents provided by the City pursuant
to this Ordinance .
(z) "Plan of Development" means the plan adopted by
the City by Ordinance No. 46 , 1981 , including the Project
described in Exhibit A hereto.
(aa) "Pledged Revenues" means, for each Fiscal Year,
that portion of ad valorem property taxes produced by the
levy 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 which is in excess of
the valuation for assessment of all taxable property within
the District on the Property Tax Base Dates , all in
accordance with Section 31-25-807 (3) (a) (II) of the DDA Act;
provided, however, that such amount shall be reduced by the
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arount of any collection fees lawfully payable to the City
or Larimer County, Colorado for �:ervicns rendered in
connection with the collection of such ad valorem property
taxes; and crovided , further however, 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 in accordance with such
reassessment as required by the DDA Act or other applicable
law.
(bb) "Proiect" means the acquisition of real property
and 'and assembly, demolishina of existing structures ,
conducting investications and studies , arl(' making and
constructing a public parking garage ana otter improvements
within the District, all in furtherance of and pursuant to
the Plan of Development_ , including but riot 'limited to the
projects described in Exhibit A hereto.
_,
(cc) Property Tax Base Dues means ..eptember 15 ,
1.980 , with respect to the District described in the City' s
Ordinance No. 46 , 1981 , and means September 15 , 1981 with
respect to the area added to the District by virtue of the
City ' s Ordinance No. 162 , 1981 , and means September 15 , 1982
with respect to the area added to the District by virtue of
the City' s Ordinance No. 2 , 1983 , and mean-- the applicable
date pursuant to the DDA Act with respect to such areas as
may be added to the District by appropriate legislative
action of the City.
(dd) "Redemption Date" means the date fixed for the
redemption prior to their maturity of any Bonds or other
designated securities payable in whole or in Fart from the
Pledged Revenues in any notice of prior redemption
authorized by the City, or otherwise fixed and designated by
the City.
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(ee) "Reserve Fui:d" means the City of Fort Collins ,
Colorado Downtown Development Authority Tax increment Bonds ,
Reserve Fund establ_.:hed i.vr' uant to Section 9 hereof.
(ff) ".ales and Use Tax" means the sales and use tax
established by Ordinance No. 58 , Ordinance No . 113 ,
Ordinance No. 140 , and Ordinance No. 149 upon sales and
purchases of tangible personal property at retail and
storage , use, distribution and consumption of tangible
personal property purchased or acquired at retail, within
the City, in such percentages as set: ferrh in Ordinance
No. 58 , Ordinance No. 113 , Ordinance No. 140, and Ordinance
No. 149 or any supplements or amendments thereof.
(qg) "Sales and Use Tax Fund" means the special fund
oieated by Crdinance No. 67 and referred to in Section 3
hereof.
(hh) "Series 1984A Bond" or "Series 1984A Bonds" means
the City' s Downtown Development Authority Tax Increment
Bonds , Series 1984A, in the aggregate principal amount of
not to exceed $8, 200 , 000 , initially dated as of October 1 ,
1984 , and authorized by this Ordinance.
(ii) "State Securities" means (to the extent the
following are lawful investments for funds of the City)
direct obligations of the State o= Colorado or obligations
unconditionally guaranteed by the State of Colorado.
Section 1 . 02. Construction. This Ordinance, except where
the context by clear implication herein otherwise requires , shall
be construed as follows:
(a) Words in the singular number include the plural,
and words in the plural include the singular.
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(b) fiords in the masculine gender include the feminine
and the neuter , and when the sense so indicates words of the
muter gender refer to any gender.
(c) 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 numbemcd or otherwise so designated.
(d) 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 iira^.it the scope or intent of, any provisions
of this Ordinance .
Section 2. Authorization; Purpose r,T Boras; Prelicc_inary and
Final Official Statement.
Section 2. 01. Authorization. Under and pursuant to the DDA
Act , the City ' s Charter and this Ordinance , Series 1984A Bonds of
the City in a principal amount not to exceed $6, 200, 000, having a
final maturity date of November 1 , 2004, shall be issued by the
City to aid in the financing cf the Project and for other
activities and operations related thereto as hereinafter
provided.
Section 2. 02. Purpose of Bonds. The proceeds of any Bonds
shall be used solely to finance development activities of the
Authority within the District, including the Project, to provide
for interest during acquisition, development and construction of
the Project, to provide for the refunding of the 1983 Notes, to
establish a reserve fund for the Bonds and to pay the Authority ' s
and the City ' s costs in connection with the issuance of the
Bonds , including premiums associated with insuring the prompt
payment of the principal of, premium, if any, and interest on the
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Bonds . The City hereby approves and authorizes the commencement
of the Project, including the projects described in Exhibit A
hereto , subject to such further terms and conditions as the City
may require in its sole discretion..
Section 2 . 03 . Preliminary and Final Official Statement.
The Preliminary Official Statement, in substantially the form
presented to the Council, is in all respects ratified, approved
and authorized for use by Boettcher & Company , Inc . in connection
with the pricing , sale and marketing of the Series 1984A Bonds.
The Mayor is hereby authorized and directed to affix his
signature to the Final Official Statement , for and on behalf of
the City, in Substantially the form presented at this meeting,
but with such changes therein as the administrative staff may
deem necessary or appropriate, as evidenced by his execution
thereof. The distribution by the City and use by the prospective
purchasers of the Series 1984A Bonds, including Boettcher &
Company, Inc, and its associates , of the Final Official
Statement , to contain appropriate amendments and supplements , is
hereby further authorized.
Section 3. Nature of Bonds; Security; Pledge.
Section 3. 01. Nature of Bonds; Security. The Bonds shall
be a special, limited obligation of the City and shall be payable
and collectible and equally secured by an irrevocable pledge of
the Pledged Revenues and monies in. the Reserve Fund as provided
in Section 4 hereof, as well as the proceeds of any subsequent
refunding bends issued by the City, and designated therefor. In
the event Pledged Revenues and monies in the Reserve Fund are
insufficient to pay the principal of, premium, if any, and the
interest on the Bonds when due and only in such event , moneys in
the Sales and Use Tax Fund of the City as hereinafter
specifically provided shall be paid by the City into the Bond
Fund or the Reserve Fund as hereinafter provided in an amount
sufficient to pay principal of , premium, if any , and the interest
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on the Bonds when due; provided however, at such time as the
Pledged Revenues derived in each of the last two complete
consecutive Fiscal Years shall have been sufficient to pay an
amount at least equal to 150% of the principal of, premium, if
any , and interest on the Bonds and the debt service on all of the
Ci.ty' s outstanding tax increment obligations issued on a parity
with the Bonds pursuant to the DDA Act, the lien and pledge
created pursuant to Section 3 . 02 hereof on Sales ana Use Tax
revenues of the City and the City ' s Sales and Use Tax Fund shall
be forever discharged and released. The Bonds shall not
constitute a dcbi. or an indebtedness of the City within the
meaning of any constitutional or statutory provision or
limitation of the State of Colorado or of the Charter of the City
and shall not be considered or held to be a general obli;ation of
the City. Except for the Pledged Revenues and Sales and Use Tax
Revenues as specifically herein provided, no ad valorem taxes or
other revenues of the City are pledged to the payment of the
principal of or interest on the Bonds . Neither the members of
the Council nor any persons executing the Bonds shall be liable
personally on the Bonds.
The validity of the Bonds is not and shall not be dependent
upon : (i) the completion of the Project or any part thereof, or
(ii) the performance by rnyone of any obligation relative to the
Project , or (iii) the proper expenditure of the proceeds of the
Bonds.
Nothing in this Ordinance shall preclude : W the payment
of the Bonds from the proceeds of refunding bonds issued pursuant
to law, or (ii) the payment of the Bonds from any legally
available funds including the proceeds derived by the City or the
Authority from the leasing, sale or other disposition of real
property within the District.
Section 3 . 02. Pledge. There is hereby irrevocably pledged
to the payment of the principal of, premium, if any , and interest
1� -
or. the lands , the Pledged Revenues , as and when received, and
moneys and Federal and State Securities in the Bond Fund and the
Reserve Fund; provided however, ad valorem„ taxes of the City
shall not be used or pledged for such purposes except to the
extent such ad valorem taxes constitute a part of the Pledged
Revenues . in addition , until such time as the Pledged Revenues
derived in each of the last two complete consecutive Fiscal Years
shall have been sufficient to pay an amount at least equal to
1500� of the principal of , premium, if any , and interest on the
Bonds and the debt service on all of the City' s outstanding tar,
increment obliaations issued pursuant to the DDA Act , the City
hereby irrevocably pledges to the payment of principal of,
premium, if any, and interest on the Bonds and hereby creates a
lien for such purposes on revenues of the City' s Sales and Use
Tax and on the moneys in the Sales and Use Tar, Fund; provided
however, at such time as the Pledged Revenues derived in the last
two complete consecutive Fiscal Years shall have been sufficient
to pay an amount at least equal to 150% of the principal of,
premium, if any, and interest on the Bonds and the debt service
on all of the City' s outstanding tax increment obligations issued
on a parity with the Bonds pursuant to the DDA Act, the lien and
pledge created pursuant to Section 3. 02 hereof on Sales and Use
Tax revenues of the City and the City' s Sales and Use Tax Fund
shall be forever discharged and released; and provided further,
such pledge and lien shall be subordinated to all liens on said
Sales and Use Tax revenues and the Sales and Use Tax Fund moneys
created as security for indebtedness of the City so long as the
ratio of Sales and Use Tax revenues to debt service on
obligations secured thereby , including the Bonds , is greater than
5 to 1 . In the event such ratio is less than 5 to 1 at any time,
and so long as the ratio remains less than 5 to 1 , the pledge and
lien to secure the Series 1984A Bends authorized by this
Ordinance on revenues from the Sales and. Use Tax and on the Sales
and Use Tax Fund shall be on a parity with all indebtedness of
the City secured by the Sales and Use Tax revenues and the Sales
and Use Tax Fund. The City further covenants and agrees that (i)
13 -
if SP..rlt's 1984A Bonds are 011tStari0111g 8J.{.t.] ..,;;,Udiy i , 2002 and
(ii) so long as the pledge of and lien on Sales and Use Tax
relrenues of the City and the City ' s Sales and Use Tax Fund is in
force pursuant to this Section 3. 02 , the City will maintain at
all times the Sales and Uc:e Tax Fund as a fund of the City
separate and distinct from all other funds of the City and will
continue to levy, impose , administer, enforce and collect the
Sales and Use Tax in an amount at least sufficient to timely pay
the principal of, premium, if any, and interest on the Series
1984A Bonds.
The Pledged Revenues , as received by the City, shall
immediately be subject to the lien of the pledge hereof, without
any physical delivery thereof, any filing or any further act, the
lien cf such pledge and the obligation to perform the contractual
provisions made in this ordinance shall have pricrity over all
other obligations and liabilities of the City, and the lien of
such pledge shall he valid and binding as against all persons
having claims of any kind in tort , contract or otherwise against
the City, irrespective of whether such persons have notice
thereof.
In addition, there is hereby irrevocably pledged to payment
of the Bonds the proceeds of any refunding obligations issued by
the City, and designated therefor.
Section 4. Bond Execution, Registration,_ Transfer, Details
and Form of Bonds.
Section 4. 01. Eond Execution. The Bonds shall be issuable
only as fully registered bonds in the denomination of $5, 000 or
any integral multiple thereof . The Bonds shall be signed by and
on behalf of the City with the facsimile signature of the Mayor,
shall bear a facsimile of the seal of the City, shall be signed
and attested with the facsimile signature of the City Clerk, and
shall be countersigned with the manual signature of the City
- 14 -
Finance Director. Should any officer whose facsimile or manual
signature appears on the Bonds cease to be such offices before
delivery of the Bonds to the purchasers thereof , such facsimile
or manual signature shall nevertheless lie valid and sufficient
for all purposes . The facsimile signatures provided for herein
shall be placed on the Bonds in the manner set forth in Section
11--55-101 et sea. , C.R.S. , as amended.
Notwithstandinq the foregoing , the Bonds may be issued in
temporary form, as one or more fully registered bonds , in any
uenomii:ation or denominations. Such temporary Bonds shall
otherwise be in the form herein provided, and executed and
authenticated as herein provided. Temporary Bonds shall be
exchanged for Bonds in definitive form withoi0- charge as secn as
practicable , at which time the City shall cancel all temporary
Bonds surrendered for definitive Bonds.
The Bonds and any temporary bonds issued hereunder shall be
fully negotiable within the meaning of and for all purposes of
Article H of Title 4 , C.R.S.
Section 4. 02. Registration. The City will cause to be kept
at the office of the City Clerk a record of the Bond or Bonds
outstanding upon and subject to which it will provide for the
registration or transfer of ownership of the Bonds. The Bonds
shall be transferable by the registered owner in person or by its
attorney or personal representative duly authorized in writing,
upon surrender of the Bonds together with a written instrument of
transfer, duly executed by the transferor or its duly authorized
_ Y
agent, and, if requested by the City Clerk, a legal opinion as to
exemption from registration satisfactory to the City Clerk. Upon
such transfer the City Clerk shall note the date of registration
acid the name and address of the new owner in such record and in
the registration blank appearing on the Bonds.
15 -
Section 4 . 01 . Transfer. Said Bonds shall not be
transferred or exchanged except in accordance with applicable
securities laws , regulations and rules and except with such
disclosure as may be appropriate under the circumstances or tact
material to the investment decision of a prudent investor
documented to the reasonable satistacticn of the Citv and its
coursel . The City hereby disclaims any responsibility for such
disclosure and hereby advises any transferor that such disclosure
is solely the obligation of such transfe_cr.
Section 4 . 04 . Replacement Bonds . The procedure applicable
to any fiord that becomes mutilated, destroyed, lost or stolen
shall be as set forth in Ordinance No. 60 , a� such ordinance may
be amended -from time to time.
Section 4. 05. Form of Bonds. The Bonds shall be in
substantially the following form, with such emissions ,
insertions, endersecrent.s , and.. variations as to recitals of fact
or other provisions as stay he required by the circumstances and
as may be required or permitted by this Ordinance , and as may be
necessary or appropriate to ccnform to the rules and requirements
of any governmental authority or to any usage or requirement of
law with respect thereto:
16 -
[Form of Bonds]
Ila. R- $
UNITED STATES OF AMERICA
STATE OF COLORADO
CCUNTY OF LPRIM,ER
CITY OF FORT COLLINS, COLGRADO
DOWNTC47N DEVELOPMENT AUTHORITY
TAX INCREMENT BOND
E' TEREST RATE MATURITY DATE DATED AS OF CUSIP
CCTOBER 1 , 3984
KNOW ALL PERSONS BY THESE PRESENTS THAT THE CITY OF FORT
COLLINS (the "City") , in the County of Larimer and State of
Colorado, for value received, hereby promises to pay to the order
of the registered owner identified on the reverse side hereof,
solely from the special funds provided therefor and hereinafter
specified, the Principal Sum stated above, as hereinafter set
forth , on the Maturity Date stated above , and to pay solely from
said special funds interest hereon from the date hereof to the
Maturity Date hereof at the per annum Interest Pate stated above
payable commencing May 1 , 1985 , and semiannually thereafter on
Lay 1 and November 1 of each year.
The principal of and interest on this Bond is payable in
lawful money of the United States of America, without deduction
17 -
for exchange or collection charges , out of the special funds
hereinafter specified, but not otherwise ; to the registered owner
hereof as shown on the registration Looks kept for that purpose
at the office of the City Clerk of the City, in Fort Collins ,
Colorado, as registrar, or her successor (the "registrar" ) , upon
maturity and presentation and surrender of this bond at the
office of the Director of Finance of the City, in Fort Collins ,
Colorado, as paying agent , or his successor (the "paying agent" ) .
'11_e interest hereon shall be 11ald to the registered owner hereof
by check or draft mailed by the paying agent , on or before each
interest payment date (or, if such interest payment date is not a
business day, on or before the next succeeding business day) , to
such registered owner at his addrees as it last appears on the
registration books kept for that purpose by the registrar. tf,
upon presentation at maturity, payment of this bond is net made
as herein provided, interest hereon shall continue at the same
rate per annum until. the principal hereof is paid in full.
Reference is hereby made to the further provisions of this
Bend set forth on the reverse side hereof and such further
provisions shall for all purposes have the same effect as if set
forth on the front side hereof.
This bond shall not be valid or obligatory for any purpose
until the registrar shall have manually signed the provision for
registration herein.
It is hereby recited, certified and declared that any and
all acts , conditions and things required to exist , to happen and
to be performed precedent to and in the issuance of this Bond
exist , have happened and have been performed in due time , form
and manner as required by the Constitution and laws of the State
of Colorado.
It' WITNESS WHEREOF, the Council of the City of Fort Collins ,
Colorado , has caused this Bond to be signed by 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
signed and attested with a facsimile signature of the City Clerk
18 -
of the City, and to be countersigned with the manual signature of
the Director of Finance of the City , all as of the first day of
October, 1984 .
CITY OF FORT COLLINS, COLORADO
Ly : (Facsi-mile Signature)
Mayor
(FACSIMILE)
(SEAL)
Countersigned : ATTEST:
(Manual Signature) ure Facsimile Si. n_a_t_
( 4 )
Director of Finance City Clerk
[Back of Bond Form]
CITY OF FORT COLLINS , COLOKADC
DOWNTOWN DEVELOPMENT AUTHORITY
TAX INCPEMENT BOND
SERIES 1984A
This Bord is one of a series of Bond-- issued by the Council
of the City of Fort Collins , Colorado, on behalf of said City and
the Fort Collins , Colorado Downtown Development Authority in the
aggregate principal amount of $8 , 200 , CC0, initially dated as of
October 1 , 1984 (the "Bonds" ) , for the object and purpose of
defraying, in whole or in part, the costs of certain projects of
the said. Authority, including the costs of acquiring real
property ar,d land assembly, demolishing existing structures ,
conducting investigations and studies and making and constructing
a public parking garage and other improvements, together with all
necessary incidental and appurtenant properties , facilities ,
equipment and costs , and to provide for the refunding of the 1983
Notes (as defined in the Ordinance) , to establish a reserve fund
for the Bonds , and to pav the costs of issuance of the Bonds;
provided, however, ad valorem taxes of the City shall not be used
or p1edged for such purposes except to the extent such ad valorem
taxes constitute a part of the Pledged Revenues hereinafter
described.
The Bonds of this issue maturing on or before November 1 ,
1994 , are not redeemable prior to their respective maturity date.
Bonds cf this issue maturing on or after November 1 , 3.995 are
redeemable prior to their respective maturity dates, at the
option of the City, in inverse numerical order, on November 1 ,
1994 , and on any interest payment date thereafter, at the
redemption prices (expressed as a percentage ofprincipal amount P P P P 9 )
set forth in the following table , together with accrued interest
thereon to the Redemption. Date defined in the Ordinance.
- 20 -
Redemption Period Redemption
(Dates Inclusive) Price
Fcvember 1, 1994 to Cctcber 31 , 1995 102 s
November 1, 1995 to October 31 , 1996 101�'
2
November 1, 1996. to October 31 , 1997 101
November 1 , 1997 to October 31, 1998 100x
November 1. , 1998 and thereafter 100
In the event this Bord is called fcr redemption., the City shall
give notice , in the name of the City , of the redemption of such
Bond, which notice shall (i) specify the Fords to be redeemed,
the Redemption Date , the redemption price , and the place or
places where amounts due upon such redemption will be payable
(which shall be the principal office of any Paying Agent for the
Bonds) and , if less than all of the Bonds are redeemed, the
numbers of the Bonds , and the portions of Bonds so to be
redeemed, (ii) state any condition to such redemption and (iii)
state that on the Redemption Date, and upon the satisfaction of
any such condition, the Bonds to be redeemed shall cease to bear
interest. Such notice shall be given by Mail at least thirty
(30) days prior to the date fixed for redemption to the
Registered Owners of the Bonds to be redeemed; provided however,
that failure duly to give such notice by mail, or any defect
therein, shall not affect the validity of any proceedings for the
redemption of Bonds.
This Bond and the Bonds of the series of which this is one
are a special , limited obligation of the City and the full faith
and credit of the City is not pledged to pay the principal of or
interest on this Bond.
THIS BOND AND THE INTEREST THEREON SHALL NEVER CONSTITUTE
THE DEBT OR INDEBTEDNESS OF THE CITY WITHIN THE MEANING OF ANY
PROVISION OR LIMITATION OF THE CCNSTITUTICN OR ANY STATUTE OF THE
STATE OF COLORADO. Payment of the principal of and interest on
this Bond shall be made solely from, and as security for such
payment there are irrevocably (but not necessarily exclusively)
pledged , pursuant to the Ordinance , two special funds identified
_ 21 _
as the "City of Fort Collins, Colorado Dcwntcwn Development
Authority Tax Increment Bond Fund" and the City of Fort Collins ,
Colorado Dcwntcwn Development Authority Tax Increment Bonds ,
Reserve Fund, " into which funds the City has covenanted in the
Ordinance to pay, respectively, from the Pledged Revenues (herein
(lefined) sums sufficient to pay when due the principal of and
interest on the Bonds of the series of which this is one and any
additional Parity Securities hereafter issued ana payable from
such revenues , and from the proceeds of the sale of the Bonds , to
accumulate and maintain a specified reserve for such purposes.
In addition, under certain ci-rcumstances and subject to the
restrictions, terms and conditions specified in the Ordinance ,
the City has pledged Sales and Use Tar: revenues and its Sales and
Use Tax Fund to secure the Bonds.
't is hereby recited, certified and warranted that for the
payment of this Bond and of the interest hereon, the Citv has
created and will maintain said special funds and will deposit the
Pledged Revenues therein, out of the amounts and revenues
specified in the Ordinance referred to above authorizing the
issuance of this Bond, and out of said special funds , as an
irrevocable charge thereon, will pay this Bend and the interest
hereon, in the mariner provided by the Ordinance.
The Bonds of the series of which this is one are equitably
and ratably secured by a lien on the Pledged Revenues and such
Bonds constitute an irrevocable and first lien (but not
necessarily an exclusive first lien) upon. the Pledged Revenues.
Bonds and other types of securities , in addition to the Bonds of
the series of which this is cne , subject to ez,�Y -sled conditions ,
may be issued and made payable from the Pledged Revenues having a
lien thereon subordinate and iunicr to the lien of the Bonds of
the series of which this is one or , subject to additional
expressed conditions , having a lien thereon on a parity with the
lien of such Bonds in accordance with the provisions of the
Ordinance. Except as otherwise expressly provided in this Bond
and the Ordinance, the Pledged Revenues are assigned, pledged and
set aside to the payment of this Bond, the series of Bonds of
- 22 -
which this Bond, is one, and the interest hereon and thereon in
anticipation of the collection of the Pledged Revenues .
"Pledged Revenues" r,.eans, for each Fiscal year (as defined
in the Ordinance) , that portion of ad valorem property taxes
produced by the levy at the rate fixed each year by or for each
public body having taxing power over all or any portion of the
District (as defined in the Ordinance) upon that portion of the
valuation for assessment of all taxable property within the
District which is in excess of the valuation of assessment of the
taxable property within the District on the Property Tax Base
Late+s defined in the Ordinance; provided, however, that such
amount shall he reduced by the amount of any collection fees
lawfully payable to Larimer County or the City for services
rendered in connection with the collection of such ad valorem
property taxes; and provided turther , however, that in the event
of a aenerai- 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
in accordance with such reassessment.
For the redemption of the Bonds of this series maturing on
November 1 , 2004, the City shall deposit in the Principal and
Interest Account of the Bond Fund, as established under the
Ordinance , on or before November 1 , 1999 , and on or before each
November 1 thereafter to and including November 1 , 2003 , a sum
which, together with other moneys available therefor in the
Principal and Interest Account of the Bond Fund, is sufficient to
redeem the Bonds maturing on November 1 , 2004 in the principal
amounts as set forth in the Ordinance.
The City covenants and agrees with the holder of this Bond
and with each and every person who may become the holder hereof
that it will keep and will perform all of the covenants contained
in this Bond and the Ordinance authorizing the issuance hereof.
Reference is hereby made to the Ordinance of the Council of
the City authorizing the issuance of this Bond 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, provisions with respect to
- 23 -
the custody and application of the proceeds of this Bend , the
collection and disposition of the proceeds charged with and
pledged to the payment of the principal. of and interest on this
Bend , a description of the special funds referred to above and
the nature and extent of the security and pledge afforded thereby
for the payment of this Bond and the interest hereon and the
manner of enforcement of said pledge , and the _^fights , duties ,
:unmunities and obligations of the City and the members of its
Council and also the rights and remedies of the holders of the
Fonds .
.STATE OF COLOFADO )
CCGIr'TY OF LA.F.IMF.I? 1 SS. TF;CAL GPINIGN CFRTIFICATF
CITY OF FORT COLLINS)
-S LEREBY CERTIFIED that the legal opinion on The City of
Fort Collins , Colorado Downtown Development Tax Increment Bonds ,
Series 1984A , is a true ana correct copy of the original legal
opinion of the firms of Kutak, Reek & Huie and Fischer, Brown. ,
Huddlesor. & Minn, as Co-Bond Counsel , and that such original
legal opinion is signed on behalz of said firms of attorneys and
has been delivered to the City of Fort Collins, Colorado on or
prior to the issuance, sale and delivery of such Bonds.
CITY CF FORT COLI,IITS, COLORADO
By: (Facsimile Signature)
g ---
City Clerk
[Opinion of Co-Bond Counsel to Appear Here]
[MBIA Statement of Insurance to be supplied]
24 -
PROVISION FOR REGISTRATION
This }%ond is registered in the office of the City Clerk of
the City cf Fort Collins, in Fort Collins , Colorado, as
registrar, or her successor; in the name of the last owner listed
below; and the principal ana interest on this hond shall be
Payable only to such owner, all in accordance with rho ordinance
authorizing the issutince of this bond. No transfer of this bend
shall be valid unless made on the registration books kept by the
registrar by the registered owner or hi.s duly authorized attorney
and noted in the registration blank below.
NAME OF REGT_STERED 01ST:ER - -
DATL OF AFD ADDRESS, "'iiX I.D. NUMBER SIGNATURE CF
1<EGISTRATION OR. SCCIAL SECURITY NUMBEE REG jcTRAR
[End of Form of Bond]
25
,Form of assignment]
ASSIGNMENT
FC12 VALUE RECEIVED, `, the undersigned,
hereby sells, assigns and transfers unto
TAX IDENTIFICATION
OR SOCIAT, SECURITY NO.
(Please Print or Type Name and. Address of Transferee)
the within bona and all. rights thereunder, and hereby irrevocably
constitutes and appoints
_ attorney
to transfer the within bend on the books kept for req-4stration
thereof, with full power of substitution in the premi:;c+s .
Dated:
~— NOTICE. the signature to this
assignment must correspond with th--e
name as it appears upon the face of
Signature Guaranteed : the within bond in every
particular, without altera " Jun cr
enlargement or any change whatever.
NOTICE: Signatures) must be
guaranteed by a member firm of
the New York Stock ELchanae or
a commercial bank or trust
company .
26 -
Section 5. Iseuance and Description cf Bonds; Interest
Rate.
Section 5. 01 . Issuance and Descriptp ion of Bonds . The
Series 1984A Bonds shall be issued solely in the aggregate
principal amount of not to exceed $8 , 2.00 ,000 and shall be
designated "City of Fort Collins, Colorado Downtown Development
Authority Tax Increment Bonds , Series 1984P.. " The Bonds shall be
numbered consecutively from "R-1" upward, shall be issued in
denomination of $5 ,000 or any integral multiple thereof and shall
be dated as of October 1 , 1.984, Interest on the Series 1984A
Bonds shall be payable commencing on May 1, 1985, and semi-
�_nnually thereafter or May 1 and November 1 of each year until
maturity. Fach Series 3.984A Bond shall bear interest until the
principal sum thereof has been paid; provided , however, that if
funds are available for the payment thereof in full accordance
%,I the terms of this Ordinance , the Series 1984A Bonds shall
then cease to bear interest.
The Bonds shall mature on the 1st day of November in the
principal amounts and years, and shall bear per annum interest at
the rates as shown in the following schedule:
Maturity Dates Principal Interest
(November 1) Amounts Rate
1987 $ 25,000 7.50%
1988 $ 25 , 000 8 00%
1989 $ 25, 000 8. 3 0%
1990 $ 25, 000 8 . 60%
1991 $ 25,000 8. 80%
1992 $ 310,000 9. 00%
1993 $ 330, 000 9. 20%
1.994 $ 370,000 9. 40%
1995 $ 400, 000 9. 50%
1996 $ 430 ,000 9. 625%
1997 $ 465 , 000 9. 75%
1998 $ 505, 000 9. 675%
2004 $5 , 265 ,000 10.50%
The principal of the Bonds shall be payable in lawful money
of the United States of America and shall be payable to the
- 27 -
registered owner thereof as shown on the registration books kept
for that purpose at Lhe office of the City Clerk of the City, in
Fort Ccll;_ns , Colorado , as registrar, or her successor , upon
maturity and presentation and sur'rendey of any Bond at the office
of any Paying, Agent. The interest or. the Ponds shall be paid to
the registered owner thereof by check or draft mailed by the
Paying Agent , on or before each interest payment date (or, if
such interest payment date is not a business dap , on or before
the next succeeding business day) , tc such registered owner at
his address as it last appears on the registration books kept for
that purpose by the City Clerk. If, upon Presentation at
maturity, payment of any Bond is not made as herein provided,
interest hereon shall continue at the same rate per annum until
the principal hereof is paid in full.
Section 5 . 02 . Interest Rate. The maximum net effective
interest rate authorized for the Series .19547>_ Lends is fifteen
percent i15 ) per annum. The actual net effective interest rate
on the Series ' 984A Bonds is Ten and forty-two hundreds percent
(10 . 42%) per annum.
Section 6. Redemption of Series 1984A Eords Prior to
Maturity.
Section 6 . 01 . General. Series 1984A Bonds maturing in the
years 1985 through 1994 are not redeemable prior to their
respective maturity dates. Series 19R4A Bonds maturing in the
year 1995 and thereafter are redeemable prior to their respective
maturity dates, at the option of the City, in inverse order of
maturity, as selected by lot by the City, on November 1 , 1994 ,
and on any interest payment date thereafter, at the redemption
prices (expressed as a percentage of principal amount) set forth
in the following table, together with accrued interest thereon to
the Redemption Late.
28 -
Redemption Period Redemption.
(Dates Inclusive) Price
November 1 , 1994 to October 31 , 1995 102 %
November 1 , 199° to October 31 , 1996 101'
November 1, 1996 to October 31 , 1997 101
November 1 , 1997 to October 31 , 1998 100'
November 1 , 199E and thereafter 100
Section 6. 02. Mandatory Sinking Fund Redemption. For the
redemption of the Bonds maturing on 'November 1 , 2004 , the City
shall deposit in the Principal and Interest Account of the Bond
Funa, as established under Section 8 of this Ordinance, on or
before November 1 , 1999 , and on or before each November 1
thereafter- to and including November 1 , 2003 , a sum which,
tcgether- with other moneys available therefor in the Principal
ana Interest Account of the Bond Fund , is sufficient to redeem
the following principal amounts of the following Bonds maturing
on November 1 , 2004 :
November 1 Principal
of the Year Amount
1999 $ 555 ,000
2000 605 ,000
2001 675 ,000
2002 740 ,000
2003 810 , 000
2004 1 , 880 ,000
In case a Bond maturing or, November 1 , 2004 is of a
denomination larger than $5 , 000 , a portion of such Bond ($5 , 000
or any intergral multiple thereof) may be redeemed, but Bonds
maturing on November 1 , 2004 shall be redeemed only in the
principal amount of $5 ,000 or any intergral multiple thereof.
G9
i
Section 6 . 03 . Procedure for Redemption. In the event any
of the Bonds are called for redemption , the City shall give
notice , in the name of the City, of the redemption of such Bonds ,
which notice shall (i) specify the Bonds to be redeemed, the
Redemption Date, the redemption price, and the place or places
where amounts due upon such redemption will be payable (which
shall be the principal office of any Paying Agent for the Bonds)
and, if less than al'_ of the Bonds are to be redeemed , the
rjurrbers of the Bonds , and the portions of Bends so to be
redeemed, (ii) state any condition to such redemption and (iii)
state that on the Redemption Date, ana upon the satisfaction of
any such condition, the Bonds to be redeemed eha.11 cease to bear
interest. Such notice shell be given by Nail at .least thirty
(30) days prior to the date fixed for redemption to the owners of
the Bonds to be redeemed; provided however, that failure duly to
give such notice by Mail, or any defect therein, shall not affect
the validity of any proceedings for the redemption of Bonds.
Notice shall also be given to the following:
Boettcher & Company, Inc.
828 17th Street
Denver, Colorado 80202
Section 6. 04. Cancellation. All Bonds which have been paid
or redeemed and paid, shall not be reissued and they shall be
cancelled and destroyed.
Section 7. Sale of Series 1984A Bonds, Disposition of Bord
Proceeds.
Section 7. 01. Sale of Series 1984A Bonds. The Series 1984A
Bonds shall be sold to Boettcher & Company, Inc. , Denver,
Colorado, at a price of ninety-seven and fifty one-hundreds
percent (97 . 50%) of par plus accrued interest from October 1 ,
1984 , to the delivery date, as set forth in the Bond Purchase
Agreement attached hereto as Exhibit B. The Director of Finance
of the City is hereby authorized and directed to execute and
deliver the Bond Purchase Agreement for and on behalf of the City
- 30 -
I '
in substantially the form attachea to this Ordinance as
Exhibit B , but with such minor changes thereto as are consistent
with this Ordinance and as are approved Ly the Director of
Finance . The execution of the Eond Purchase Agreement by the
Director of Finance shall constitute conclusive evidence of the
approval of the form and content thereof for ana on behalf of the
City
Section 7. 02 . Disposition of Bond Proceeds. Upon receipt
of the purchase price established above , the Series 1984A Bonds
shall he delivered by the City to Boettcher & Company, Inc. and
the proceeds thereof sha'_] h(, applied as follows :
(a) The accrued interest paid with respect to the
Series 1984A Bonds shall be deposited to the credit of the
Principal and Tinterest Account of the Lend Fund.
(b) $1 , 000 , 000 c:ith respect to the Series 1984A Bonds
shall be deposited in the Reserve Fund.
(c) $420 , 000 , representing capitalized interest with
respect to the Series 1984A Bonds , shall be deposited in the
Principal and Interest Account of the Bond Fund.
(d) The cost of issuance with respect to the Bonds ,
including the cost of the premiums on account of the
insurance policy provided by MBIA insuring the payment when
due of the principal of and interest on the Series 1984A
Bonds , shall he deposited in the Expense Fund.
(e) An amount sufficient to pay when due the principal
of, premium, if any, and interest on the 1983 Notes shall be
deposited in the Escrow Fund.
(f) The balance of the proceeds shall be deposited to
f-.he credit of the Development- Account of the Bond Fund.
- 31 -
Section 8 . The Bond Fund.
Section 8 . 01 . Creation of Bond Fund. There is hereby
created and established with the City a special fund called the
"City of Fort Collins, Colorado Downtown Development Authority
'fax increment Bonds , Bond Fund. " The Bond Fund shall contain two
separate accounts to be known as the "Principal and Interest
Account" and "Development Account. " Sc 'Long as any or the Series
1984A Bonds herein authorized or any Additional Bonds, or any
interest thereon, remain unpaid, the moneys the foregoing Bona
Fund shall be used for no purpo_-e other than those required or
permitted by this Ordinance.
Section 8. 02. Use of Moneys in the Development Account.
There shall be deposited in the Development Account the sums set
forth in Section 7 (e) hereof, together with such amounts as may
he directed to be deposited therein in any subsequent ordinance
authorizingAdditional Bonds. The moneys set aside and laced in
P
the Development Account shall remain therein until from time to
time expended by the City pursuant to the requisite appropriation
ordinances of the City solely for the purpose of financing all or
a portion of the cost of the Project, other costs related thereto
including undertakings set forth in the DDA Act , and any
necessary expenses incurred in connection with the issuance and
sale of the Bonds and fees of any Paying Agent not paid from the
Expense Fund, as well as the payment of the principal of and
interest on the Bonds to the extent of any deficiency of funds in
the Principal and Interest Account and the Reserve Fund.
If any sum remains in, the Development Account after the full
accomplishment of the objects and purposes for which the Bonds
were issued, as determined by the City, said sum shall be
transferred to the Principal and Interest Account.
Section 8 . 03 . Use of Moneys in the Principal and Interest
Account. There shall be deposited in the Principal and Interest
Account the sums set forth in Sections 7 .02 (a) and 7 . 02 (c)
32 -
hereof, together with such amounts as may be directed to be
deposited therein in any subsequent ordinance authorizing
Additional Bonds . In addition , all Pledged Revenues and other
moneys designated by the City, except as hereinafter provided,
shall be deposited as received by the City in the Principal and
Interest Account. Such Pledged Revenues so accumulated in the
Principal and Interest Account shall be t:sed solely for the
purposes of paying the principal of , premium, if any, and
interest on the Bonds and for no other purpose so long as any
Bonds remain outstanding and unpaid.
Gection 9 . The Reserve Fund.
Section. 9 . 01. Creation of Reserve Fund. There is hereby
cre;-AFF, ? and established with the City a special fund in the name
of the City to be designated "City of Fort Collins, Colorado
Downtown Development Authority Tax Increment bonds , Reserve
Fund. "
Section 9 . 02. Liens. The City shall not create any lien
upon the Reserve Fund other than the lien hereby created.
Section 9 . 03. Deposits into Reserve Fund. (a) There shall
be deposited into the Reserve Fund:
(i) from the proceeds of the Series 1984A Bonds an
amount equal to $1 , 000, 000;
(ii) all other moneys received by the City from any
other source when accompanied by directions by the City that
such moneys are to be paid into the Reserve Fund; and
(iii) such amounts as may be directed to be deposited
therein in any subsequent ordinance authorizing Additional
Bonds.
(b) All income or other gain from the investment of moneys
in the Reserve Fund shall be deposited into the Reserve Fund.
If, as a result of the accumulation of income, the amount of
moneys in the Reserve Fund exceeds $1 , 000, 000 , such excess shall
33 -
•
be trans�er-e(? e=ually to the Development Account of the Bond
Fund; prcvi.ded however, prior to any such transfer to the said
Development Account of the Bond Fund, the City may use moneys in
the Reserve Fund in excess of $1, 00C , 000 to reimburse the C:ii-v
for funds previously deposited by the City in the Bona Fund or
the Reserve Fund from sources other than Fledged Revenues .
Section 9 . 04 . Use—of Morevs in Reserve Fund . The Reserve
Fund shall be in the custody of the City, and shall he used as
follows :
(a) If the City determines that on the business day next
preceding any interest payment date with respect to the Bonds ,
there are insufficient moneys in the Bond Fund available to pay
the interest to be paid on the Bonds on such interest payment
date, the City shall transfer from moneys in the Reserve Fund to
the Bond Fund the amount (to the extent available) which, when
added to the amount of moneys in the Ber,d Fund available for the
payment of interest , will equal the interest col 1:- paid on the
Bonds on such interest payment date .
(b) If. the City determines that on the business day next
preceding the maturity or redemption date of any of the Bonds ,
there are insufficient moneys in the Bond Fund available to pay
the sum of
W the principal of the Bonds that will become due and
payable (whether by virtue of maturity or redemption) on such
maturity date ,
(ii) any applicable redemption premium, and
(iii) any accrued interest which will become due and payable
on such maturity or redemption date,
the City shall transfer from moneys in the Reserve Fund to the
Bond Fund the amount (to the extent available) which, when added
34 -
to the moneys in the Ford Fund available fdr payment of such sum,
ill equal the sum coming due on the Bonds on such maturity or
redemption date.
F:i.thin seven (7) business days after any transfer of moneys
from the Reserve Fund to the Bond Fund pursuant to this Section
9 . 04 , the City shall give written notice to .11
IBIA (34 South
Froadway, White Plains, New York 10602 , or at such other address
as may be specified in writing by MBIA to the City) of the date
and amount of any such transfer.
Section 9. 65. Replenishment of the Reserve Fund. At any
time the balance of moneys in the Reserve Fund is less than
$1 , 000 , 000 , the City shah cause any available Pledged Revenues
to be deposited in the Reserve Fund in amounts sufficient to
replenish the balance of moneys in the Reserve Fund to a level at
least equal to $1 , 000, 000. In the event that Pledged Revenues
are insufficient to replenish the Reserve Fund, the City shall
not later than December 31 of each fiscal year replenish the
Reserve Fund to a level at least equal to $1 , 00C , 000 from moneys
in the Sales and Use Tax Fund of the City.
Prior to the discharge and release of the lien and pledge
created pursuant to Section 3. 02 hereof, the City shall deposit
into the Reserve Fund an amount sufficient to replenish the
balance of moneys in the Reserve Fund to a level at least equal
to $1 , 000, 000. If the City is required to replenish the Reserve
Fund pursuant to the above provision, the Authority shall be
obligated to reimburse the City for the amount deposited into the
Reserve Fund.
Section 9 . 06. Payment to the City. Any monies remaining in
the Reserve Fund, after payment in full of the principal of,
redemption premium, if any, and interest on the Bonds, shall be
paid to the City.
35 -
Section 10 . The Escrow Fund.
Section 10. 01 . Creation of Escrow Fund. There is hereby
created and established with the City a special fund in the name
of the City to be designated ^._ty ui Fort Collins , Colorado
Downtown. Development Authority Tax Increment Fonds , Escrow Fund, "
which is hereby pledged and shall be used by the City to pay when
due the principal of, premiurl , if any , and interest on the 1983
Notes .
Section 10 . 03. Liens. The City shall not create any lien
upon the Escrow Fund other than the lien hereby created.
Section 10. 03 . Deposits into Escrow Fund. (a) There shall
be deposited into the Escrow Fund from the proceeds of the Bonds
an amount which shall be sufficient , or Federal or State
Securities which shall not contain provisions permitting the
rederption thereof at the option of the issuer, the principal of
and the interest on which when due , and without any regard to
reinvestment thereof, will provide moneys which shall be
sufficient, to pay when due the principal c and interest due and
to become due on the 1983 Notes or, and prior to the applicable
redemption date or maturity date thereof, as may be specified in
the escrow agreement descri.hc-() ;:, Section 10. G5 hereof.
(b) All income or other gain from the investment of moneys
in the Escrow Fund stall be deposited into the Escrow Fund.
Section 10. 04. Use of Moneys in Escrow Fund. (a) Moneys in
the Escrow Fund shall be used solely for the payment of the
principal of and interest on the 1983 Notes when and as due.
(b) Moneys deposited into the Escrow Fund, and any income
or other gain from the investment thereof, not used for the
purpose described in subsection (a) , shall after payment in full
of the principal and interest on the 1983 Notes be transferred to
the Principal and Interest Account of the Bond Fund.
36 -
Section 10. 05. Authorization of Escrow Acyreement. The
Director of Finance is authorized and directed to enter into an
escrow agreement with a commercial banking institution of his
selection for the purpose of establishing the Escrow Fund and
carrying out the purposes thereof as described in this Section
10. Said escrow agreement shall contain such terms and be in
such form as the Director of Finance may deem appropriate in the
circumstances.
Section 11. The Expense Fund.
Section 11. 01 . Creation of Expense Fund. There is hereby
created and established with the City a special fund in the name
of the City to he designated "City of Fort Collins , Colorado
Downtown Development Authority Tax Increment Bonds , Expense
Fund , " which is hereby pledged and shall be used by the City to
pay the expenses of the issuance of the Bonds.
Section 11. 02. Liens. The City shall not create any lien
upon the Expense Fund other than the lien hereby created.
Section 11 . 03 . Deposits into Expense Fund. (a) There shall
be deposited into the Expense Fund from the proceeds of the
Series 1984A Bonds all amounts not deposited into any other fund
created hereunder, together with such amounts as may be directed
to be deposited therein in any subsequent ordinance authorizing
Additional Bonds .
(b) An amount sufficient to pay the costs of issuing the
Series 1984A Bonds, including the premiums associated with
insuring the payment when due of the principal of and interest on
the Series 1984A Bonds.
(c) All income or other gain from the investment of moneys
in the Expense Fund shall be deposited into the Expense Fund.
37 -
Section 11 . 04 . Use of spense Moneys in Ex Fund. (a) Moneys
Y b Y
in the Expense Fund shall be used solely for the payment of
;_ .•�:;.« () F issuing the Series 1984A Bonds , tcaether with such
aruounts as may be directed to be deposited therein in any
subsequent ordinance authorizing Additional Sends . The City
officers are authorized ,a.,d eropcwered to disburse amounts in the
Expense Fund for the costs incurred in connection with the
issuance of the Bonds, including, but not limited tc , fees and
disbursements of Bond Counsel , printing expenses , Paying Agent ' s
fees and the premium associated with the issuance by MBIA of a
pclicy of insurance insuring the timely payment of the principal
of and interest on the Series 19P4A Bonds .
(b) If moneys remain in the Expense Fund after all costs
incurred in connection with the issuance of the Bonds have been
paid , any such remaining moneys shall be tran�rFrred by the City
to the Development Account of the Bond Fund .
Section 12. Investments . All moneys held by the City in
the Bond Fund, the Reserve Fund, the Escrow Fund or the F,;:pense
Fund shall be invested by the City in any lacvful investments for
funds of the City.
Such investments shall be also subject to the following
restrictions :
(a) Moneys in the Development Account shall be
invested only in the obligations which will by their terms
mature or are redeemable at the option of the City not later
than the date the City estimates the moneys represented by
the particular investment will be needed for withdrawal from
said Account.
(b) Moneys in the Principal and Interest Account shall
be invested only in obligations which will by their terms
mature or are redeemable at the option of the City on such
- 36 -
dates as to insure that before each interest and/or
principal payment date there will be in such Account, from
matured obligations and other moneys already in such
Account , crash equal to the interest and principal payable on
such date and available therefor.
Section 13. Issuance of 1983 Notes; Additional Bonds.
Oection 13. 01 . Issuance of 1983 Nctes. The City issued its
City of Fort Collins , Colorado Downtown Development Authority Tax
Increment Bend Anticipation Notes , Series April 1 , 1.983 , in the
principal amount of $3, 100, 000 on June 13, 1983 , which notes are
secured by the Pledged Revenues and are on a parity with the
Series 1984A Bond-- with respect to the payment of principal and
interest.
Section 13. 02. Issuance of Additional Bonds. Nothing
herein, subject to the limitations stated in Section 13 . 06
hereof, prevents the issuance by the City of Additional Bonds
payable from the Pledged Revenues and constituting a lien on the
Pledged Revenues on a parity with, but not prior or superior to,
the 'lien thereon of the Series 1984A Bonds and any Additional
Bonds, or prevents the issuance of bonds or other securities
refunding all or a part of the Bonds; but before any such
Additional Bonds are authorized or actually issued (excluding U)
any parity refunding securities refunding all of the Bonds , and
(ii) any Additional Bonds refunding Additional Bonds , and (iii)
any subordinate securities as permitted in Section 13 . 03 hereof)
the following provisions must first be satisfied:
(a) Absence of Default. At the time of the delivery
of and payment for any Additional Bonds , the City shall not
be in default in making any payments required by the Bonds ,
this Ordinance or ordinances authorizing Additional Bonds.
Such absence of default shall be certified in writing by the
Director of Finance of the City.
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(b) Historic Pledged Revenues 'Kest. As certified by
the Director of Finarce , Either. (i) the Pledged Revenues
derived in each of the last two complete Fiscal Years
immediately preceding the date of the issuance of such
Additional Bonds, or (ii) the Pledged Revenues derived in
Hach of the last two (2) twelve (12) consecutive and
complete calendar month periods ending not later than the
third calendar month prior to the month of .issuance of
Additional Bonds and ending not earlier than the end of the
last preceding Fiscal Year, sha11 have been sufficient to
pay in each period an amount at least equal to 130% of the
,na.x i.mum annual amount of principal cf and interest on all
outsi:andirg prior Bonds , and the Additional Bcnds proposed
to be issued. In determining the Pledged Revenues derived
in any applicable twenty-four (24) month period hereunder,
Pledged Revenues to Le received on account of improvements
completed and certified to the applicable taxing
jurisdiction within thirty (30) days after the ena of any
such period shall be included as though received within any
such period.
Section 13. 03. Subordinate_Securities Permitted. Nothing
herein, subject to the limitations stated in Section 13. 0E
hereof, prevents the City from issuing Additional Bonds or other
additional securities for any lawful purpose payable from the
Pledged Revenues and having a lien thereon subordinate, inferior
and junior to the lien thereon of the Bonds.
Section 13. 04. Superior Securities Prohibited. Nothing
herein permits the City to issue Additional Bonds or other
additional securities or to enter into any other contract or
obligation payable from the Pledged Revenues and having a lien
thereon prior and superior to the lien thereon of the Bonds.
Section 13. 05. Refunding Bonds . Refunding Bonds may be
issued pursuant to law then in force, provided if less than all
40 -
i
of the Bonds outstanding are to be refunded must comply with the
provision, pertaining to Additional Bonds provided in Section
13. 02 hereof.
Section 13. 06. Supplemental Ordinance. Additional Bonds or
other additional securities payable from any Pledged Revenues
shall be issued only after author!-nation thereof by ordinance ,
supplemental ordinance or other instrument of the Council stating
the purpose or purposes of the ` s,uance of such additional
securities , directing the application of the proceeds thereof to
suck purposes for purposes , directing the execution thereof, and
f :zing and determining the Olote, principal amount, maturity or
roturities, designation and numbers thereof, the maximum rate or
rates of interest to be borne thereby, any prior redemption
privileges of the City with respect thereto , and other provisions
thereof in accordance with this Ordinance. All additional
securities shall bear such date , shall bear such numbers and
series designation, letters or ,yrabo' :, 1;refixed to their numbers
distinguishing them from other securities issued or to be issued,
shall be payable at such place or places , may be subject to
redemption prior to maturity on such terms and conditions as may
be provided, and shall bear interest at such rate or at such
different or varying rates per annum, all as may be fixed by
ordinance , instrument or other document of the Council.
Section 14 . Covenant Regarding Arbitrage Bonds. The City
shall 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 the Code and the regulations
promulgated thereunder , unless, under any provision of law
hereafter enacted, the interest paid on the Bonds (a) shall be
excludable from the gross income of a recipient thereof for
federal income tax purposes without regard to whether the Bonds
41 -
are arbitrage bonds , or (b) shall be exempt from all federal
income taxation.
Section 15. Concerning the Paving Agents. The City hereby
rppoints its Director of Finance , in Fort Collins , Colorado , as
Paying Agent for the Bonds , and may at any time or from time to
time appoint one or more other Paying Agents or a :successor
Paying Agent. Such appointment shall be evidenced by an
agreement in writing executed on behalf of the City by the Mayor
or any Assistant Mayor. The Mayor or any Assistant 14ayor of the
City is hereby authorized to execute and deliver any such
agreement with one or more Paying Agents for and on behalf of the
Citv .
Section. 16. Defeasance. When all of the principal of and
the interest on the Bonas have been duly paid, all obligations
hereunder shall thereby be discharged, and the Bonds shall no
longer b - deemed to be outstanding . There shall be deemed to be
such due payment when the City has placed Federal or State
Securities in escrow or in tru---t with a trust bank located within
or without the State of Colorado in an amount sufficient
(including the known minimum yield available for such purpose
from said Federal or State Securities in which such amount may
wholly or in part be initially invested) to meet all principal
and interest requirements of the Bonds as the same become due on
the maturity date of the Bonds. The Federal or State Securities
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 bank at the
time of the creation of the escrow or trust , or the Federal or
State Securities shall be subject to redemption at the option of
the holder thereof to assure availability as needed to meet such
schedule.
Section 17. Amendments. This Ordinance and the rights and
obligations of the City and of the holders of the Bonds issued
42 -
hereunder, may be modified or amended at any time by supplemental
ordinance adopted by the City: (a) without the consent of
Eondho]ders , if such modification or amendment is --or the purpose
of (i) curing any ambiguities , defects or °-nconsistent provisions
in this Ordinance or to insert such previ�- ions clarifying matters-
or cguesticns arising under this; Ordinance as are necessary and
desirable to accomplish the same , or (ii) issuing Additional
Bonds pursuant to the terms of this Ordinance , and/or (b) with
the written consent of Bondholders holding 678 in aggregate
principal amount of the outstanding Pends , exclusive of Bonds , if
any , owned by the City and with the written consent of MBIA,
which consent of t-,BI_A shall not be unreasonably withheld;
provided, however, that no such modification or amendrent shall ,
without the e;cpress written consent of the holder of the Bond
affected, reduce the principal amount of any Bond, reduce the
interest rate payable thereon, extend its maturity or the times
for paying interest thereon or change the monetary medium in
which principal and interest is payable , or reduce the percentage
of consent required for amendment or modification.
Any; act done pursuant to a modification or amendment so
consented to shall be binding upon the holders of all of the
Bonds and 14BIA and shall not be deemed an infringement of any of
the provisions of this Ordinance or of the DDA Act, whatever the
character of such act may be , and may be done and performed as
fully and freely as if expressly permitted by the terms of this
Ordinance , and, after such consent relating to such specified
matters has been given, neither Bondholder detached therefrom nor
NBIP, shall have any right or interest to object to such action or
in any manner to question the propriety thereof or to enjoin or
restrain the City or any ofticer thereof from, taking any action
pursuant thereto.
Section 18 . Proceedings Constitute the Contract; Events of
Default; and Remedies of Bondholders.
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..___.. .. _____.. . . .
Section 3P . 01 . Proceedings Constitute the Contract. The
provisions of this Ordinance and of any other ordinance
supplementing or amending this Ordinance shall constitute a
contract among the City, the Authority and the Bondholders , and
the provisions hereof and thereof shall be enforceable by any
Bondholder for the equal benefit and pretection of all
Bondholders, s:i-milarly situated by mandamus , accounting , mandatory
injunction or any other suit, action or proceeding at law or in
equity that is now or may hereafter be authorized under the laws
of the State of Colorado in any court of competent jurisdiction.
Said contract is made under and is to be construed in accordance
with the laws of the State of Colorado. The following provisions
shall not limit the generality of the foregoing.
Section 18. 02. Events of Default; Remedies. If one or more
of the following events ("events of default" ) shall happen:
(a) if default shall be made in the due and punctual
payment of the principal of any Bond when and as the same
shall become due and payable , whether at maturity as therein
expressed, by declaration or otherwise;
(b) if default shall be made in the due and punctual
payment of any installmentt of interest on any Bond when and
as such interest installment shall become due and payable;
(c) if default shall be made by the City in the
observance of any other of the covenants , agreements or
conditions on its part in this Ordinance or in the Bonds
contained, and such default shall have continued for a
period of 30 days; or
(d) if the City shall file a petition or answer
seeking reorganization or arrangement under the federal
bankruptcy laws or any other applicable law of the United
States of America, or if a court of competent jurisdiction
- 44 -
shall approve petition, filed with or without the consent
PF a F
of the City, seeking reorganization under the federal
bankruptcy laws or any other applicable law of the United
States of America, or if, under the provisions of any other
law for the relief or aid of debtors , any courtt of competent
jurisdiction shall assume custody or control of the City or
of the whole or 101 of its property;
then, and in each and every such case during the continuance of
such event of default., the holders of not less than 25% in
aggregate principal amount of the Bonds at the time outstanding
shall have the right , for the equal benefit and protection of all
bondholders similarly situated:
(a) by mandamus , suit , action or nroof•eding, to compel
the City and its members , officers , agents or employees to
perform each and every term, provision and covenant
contained in this ordinance and in the Bonds , and to require
the carrying out of any or all such covenants and agreements
of the City and the fulfillment of all duties imposed upon
it by the DDA Act;
(b) by suit, action or proceeding in equity , to enjoin
any acts or things which are unlawful , or in violation of
any of the Bondholders ' rights; or
(c) upon the happening of any evert of default (as
defined in this Section) , by suit, action or proceeding in
any court of competent jurisdiction, to require the City and
its members and employees to account as if it and they were
the trustees of any express trust.
This provision , hcwever, is subject to the condition that
if , at any time after an event of default has occurred, and
before any judgment or decree for the payment of the moneys due
have been obtained or entered: U) the City shall deposit with
45 -
,ny Paying Agent a sum sufficient to pay all principal on the
Bonds matured prior to suer. declaration (if any) and all matured
installments of interest if any) upon all the Bonds, with
interest thereon at the rate borne by the respective Bonds or at
such maximum. lower rate to the extent then permitted by law on
any overdue installments of principal and interest, so that the
City is currently in compliance with all payment, deposit and
transfer provisions of this Ordinance, and (ii) the City shall
ceposit tii-h the Paying Agent a sum sufficient to pay the
reasonable expenses of the Paying Agent and to cure any and all
ether defaults known to the Paying Agent (other than in the
payment of principal of and interest on the Bonds due and payable.
solely by reason of such declaration) , and (iii) the City shall
have made good or cured to the satisfaction of the Paying Agent
or made provisions deemed by the Paying Agent to be adequate to
make coed or cure each and every other default , then, and in
every such case, the holders of not less than a majority in
aggregate principal amount of the Bonds then outstanding, by
written notice to the City and to the Paying Agent, may, on
behalf of the holders of all of the Bonds, rescind and annul such
declaration and its consequences. However, no such rescission
and annulment shall extend to or shall affect any subsequent
default , or shall impair or exhaust any right or power consequent
thereon.
Section 18. 03. Nonwaiver. Nothing in. this Section or in
any other provision of this Ordinance, or in the Bonds , shall
affect or impair the obligation of the City to pay the principal
of and interest on the Bonds to the respective holders of the
Bonds at the respective dates of maturity, from the special funds
herein provided, or affect or impair the right, which is absolute
and unconditional , of such holders to institute suit to enforce
such payment by virtue of the contract embodied in the Bonds.
No remedy conferred hereby upon any Bondholder is intended
to be exclusive of any other remedy , but each such remedy is
46 -
cumulative and in addition to every other remedy and may be
exercised without exhausting and without regard to any other
remedy conferred by the DDA Act or any other lac: of the state of
Colorado. No waiver of any default or breach of duty or contract
by any Bondholder shall affect any subsequent default or breach
of duty or contract or shall impair any rights or remedies of
said subsequent default or breach. No delay or omission of any
Bondholder to exercise any right or power accruing upon any
default shall impair any such right or power or shall be
construed as a waiver of any such default or acquiescence
thereon. In case any suit, action or proceeding to enforce any
right or exercise any remedy shall be brought or taker, and should
said suit, action or proceeding be abandoned , or be determined
adversely to the Bondholders, then , and in every such case , the
City and the Fondholders shall be restored to their former
positions , rights and remedies as if ; uch Suit, action or
proceeding had not been brought or taken. Every substantive
right and every remedy conferred upon the Bondholders may be
enforced and exercised as often as ma.v be deemed expedient , to
the extent permitted by law.
Section 19 . Miscellaneous.
Section 19. 01. Fights and Immunities. Except as herein
otherwise expressly provided, nothing herein expressed or implied
is intenced or shall be construed to confer upon or to give to
any person, other than the City, the Authority and the holders
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 , stipulations , promises and agreements
herein contained by and on behalf of the City and the Authority
shall be for the sole and exclusive benefit of the City, the
Authority and the holders of the Bonds .
No recourse shall be had for the payment of the principal of
and the interest on the Bonds or for any claim based thereon or
- 4 / -
ctherwise upon this Ordinance or any ether 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 , charter, statute or rule
of law, or by the enforcement of any penalty or otherwise , ali
such liability, if any, being by the acceptance of the Bonds and
as a part of the consideration of their issuance specially waited
and released.
Section 19. 02 CUSIP Numbers. CUSIP identification numbers
shall be imprinted on the Bonds, but such numbers shall not
constitute a part of the contract: evidenced by the Bends , and re
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.
Section 19. 03. Ratification. All action not inconsistent
with the provisions of this Ordinance heretofore taken by the
City or its officers and otherwise by the City directed toward
the issuance and delivery of the Bonds is hereby ratified ,
approved and confirmed.
Section 19. 04. Facsimile Signatures. Pursuant to the
Uniform Facsimile Signature of Public Officials Act of the State
of Colorado, Section 11-55-101 et seq. , C.R. S. , as amended, the
Mayor and the City Clerk 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.
Section 19. 05. Authorized Action. The officers of the City
are hereby authorized and directed to enter into such agreements
43 -
0
and takes all action necessar, c<c r,pprcipriate to effectuate the
provisions of this Crainance and to comply with the requirements
of law, including without limiting the generality of the
foregoing:
!a) The execution of the Bend Purchase Agreement
between the City and Boettcher & Company , Inc. or its agent;
(b) The preparation and printing of the Ponds;
(c) The execution of such certificates as may
reasonably be required by the purchasers of the Bonds
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 Bends ; receipt of the Bonds
and the purchase price therefor; using a suitable Signature
Certificate , General and No-Litigation Certificates , a
Delivery Certificate; a No Arbitrage Certificate and a Use
of Proceeds Certificate and such other certificates and
documents as are necessary to effectuate a closing of the
issuance of the Bonds;
(d) The making of various statements, recitals ,
certifications and warranties provided in the form of. Bond
set forth in this Ordinance;
(e) The payment of the interest on the Bonds as the
same shall accrue and the principal of the Bends at maturity
or upon prior redemption without further warrant or order;
and
(f) The execution of such documents between the City
and the Authority as may be reasonably necessary and
appropriate to carry out the purposes of this Ordinance and
the Project.
49 -
(g) The pavment of the costs and expenses of issuing
the Bonds , including legal fees , placement fees , insurance
premiums , and similar charges .
Section 19. O6 . General Repealer. All acts , orders,
resolutions , ordinances or parts thereof taken by the City in
conflict with this Ordinance are hereby repealed, except that
this repealer shall not be construed so t-c revive any act,
order, resolution, ordinance or part thereof heretofore repealed.
Section 19. 07. Ordinance Irr_epe.alable. This Ordinance i . ;
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 holders of
the Bonds and shall be and remain irrepealable ur;til the Bonds
and the. interest accruing thereon shall have been fully paid ,
satisfied and discharged.
Section 19. 08. Severabilit7. 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 paragraph, clauses
or provisions hereof are severable.
50 -
•
INTRODUCED, READ, APPROVED ON FIRST READING, AND CR.CLRED
PUBLISHED ONCE IN FULL THIS 2nd day of October, 1984.
CIi`Y Oi' i'ORT COLLINS, COLORADO
By: a2 '70A A;
(CITY) Assistant I y r
(SEP_L)
ATTEST:
D i R�
Deputy City Cler c
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 16th day of _ October , 1984 , at 5 : 30 p.m.
- 51 -
EXHIBIT A T THE RDINANCE F T G O O THE CIT1 OF' F'Gk_
COLLINS, COLCRADO AUTHORIZING THE ISSUANCE OF
NOT TC EXCEED $8 , 200 , 000 OF DOWNTOWN DEVELOPMENT
AUTHCRITY TAX INCREMENT BONDS, SERIES IS84A
The project shall ir:clude and the proceeds oL the Bonds
shall be spent to defray the cost of all or a portion of the
iolicw.ing facilities :
Acquisition, construction and equipping of a public parking
garage , including approximately 6 , 000 square feet of general
office space
Improvements to public sidewalks and curbing
Acquisition of land and demolition of existing buildings
Removal of railroad tracks and new street construction
Traffic , parking and development studies related to
downtown
Legal , Insurance and Finance fees and expenses
Administrative costs associated with implementing the fore-
' going project
Together with such additions and substitutions as are consistent
with the DDA Act and as may be approved from time to time by the
City and the I•uthority.
52 -
EXHIBIT B TO `.PITY; ORDINANCE OF THE CITY OF FORT
CCLLINS , COLOPADO AUTHORIZING THE ISSUANCE OF
S8 , 200,000 CF 'TS DOWNTOWN DEVELOPMENT AUTHORITY
TAX INCREMENT BONDS , SERIES 1984L
(BOETTCHER & COMPANY , INC. LETTERHEAD)
, 1984
PCND PURCHASE AGREEMENT
P'ayor and Members of
the Council
City of Fort Collins
City Hall
Fort Collins, CO R0521
RE: $8 , 200 , 000 CITY OF FORT COLLINS, COLORADO
DOWNTOWN DEVELOPMENT AUTHORITY TAX INCREMENT BONDS
SERIES 1984A
I:aYur and I'embers of the Council:
We hereby offer to purchase your 58 , 200 ,000 legally issued
Downtown Development Authority Tax Increment Bonds, Series 1984A
;the "Ponds" ) to be delivered to us in Fort Collins , Colorado,
date . cctober 1 , 1984 , and to mature and bear interest as as
described in Annex A hereto. Said Bonds are to be in $5 , 000
c'enominations , payable semiannually on May 1 and Lovember 1 ,
beginning May 1 , 1985, with principal due at maturity.
We will pay $7 ,995 , 000 and accrued interest from the date of the
Bonds to the delivery to us subject to the following conditions :
1. Prior to our accepting delivery of said securities , you
agree to furnish a certified transcript of all legal
proceedings requisite to their issuance and delivery,
including a signature and non-litigation certificate in
the customary form, evidencing the legality of said
securities and the security provisions relating thereto
to the satisfaction of Kutak Rock & Huie and Fischer,
Brown, Huddleson & Gunn, Cc-Bond Counsel, whose
unqualified approving legal opinion in the customary
form shall accompany said securities at delivery.
2. The Bonds are to be delivered to us on or before
January 1 , 1985, or thereafter at our option.
3. The cost of printing of the Bonds and the fees of the
approving attorneys will be paid by the City.
The net effective interest cost to the City on the Bonds is
10. 42%.
- S3 -
This contract to purchase is effective as of this date.
Respectively submitted,
BOETTCHER & CCMPANY, INC.
Title:
Accepted by and behalf of the City of Fort Collins this
day of , 1984 .
By:
Title: Director of Finance
54 -
ANNEX A
Maturity Dates Principal interest
(November 1) Amounts Rate
1987 $ 25 , 000 7 . 50%
1988 $ 25 , 000 8 00%
1969 $ 25 , 000 8. 30%
1-990 $ 25 , 000 8. 60%
1991 $ 25 , 000 8. 80%
1992 $ 310 , 000 9 . 00%
1993 $ 330 , 000 9 . 20%
1994 $ 37C , 000 9. 40%
1995 $ 400 , 000 9. 50%
1996 $ 430 , 000 9. 625%
1997 $ 465 , 000 9. 75%
1998 $ 505 , 000 9. 875E
2004 $5 , 265, 000 10 . 50%
55 -
Council Member Rutstein moved that the foregoing
Ordinance heretofore introduced and -read by title be approved on
tir.st reading. Council Member Knezovich seconded the motion .
The question being upon the approval on first reading of the
ordinance , the roil was called with the following results :
Council Members voting "AYE" : UmXAI)D( aYXDdwx)tX,XXUagxM
E. John Clarke , Assistant
Mayor
John B . Knezovich
William Elliott
Ed Storer
Kelly Chison
Barbara Rutstein
Council Iiembers voting "NAY" : None
The Mayor thereupon declared that, a majority of the Council
Miembers present 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 Colcradoan , 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,
J�;g '- AL
(CITY) yo
(SEAL) i of Fort Collins , Colorado
ATTEST:
�
�L� City CO �efic-
CJ City of Fort Collins, Colorado
56 -
0 �
STATE O1' COL•OPADO )
I )
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; i:ht- 16th day of
October, 1984 , at the hour of 5 : 30 p.m.
The following persons were present:
Council Members : Gcrald C. Horak, Mayor
L. John Clarke, Assistant Mayor
John L. F..nezovich
William C. Elliott
Ed Stoner
Kelly Ohlson
Barbara Rutstein.
City Manager: John E. Arnold
City Clerk: Wanda M. Krajicek
The following persons were absent :
None
The Mayor informed the Council that Ordinance No. 149 , 1984 ,
which was introduced, approved on first reading, and ordered
published once in full at a regular meeting of the Council held
on October 2 , 1984, was duly published in The Coloradoan, a
newspaper of general circulation published in the City, in its
issue of October 7 , 1984.
Council Member Rutstein then read said Ordinance by
its title.
Thereupon, Council Member Rutstein moved the final
passage of Ordinance No. 149 , 1984. Council Member
Clarke T seconded the motion, and the question being upon
57 -
the final pase,aoe of said ordinance , the rcli was called with the
following result:
Council Members voting "A"-E" : John B. Knezovich
Gerald C. Hcrak
E. John Clarke
William Elliott
Ed Stener
Kellv Ohlson
Barbara Rutstein
Council Members voting "NAY" : None
Council Members Absent : None
The Mayor thereupon declared t?`at a ma-iorlt_` oY the Council
Members present 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 Coloradcan, a newspaper of general
circulation published in the City, within five (5) days after
said final passage.
After consideration cf other husin_ess to come before the
Council the meeting was adjourned.
Mayor
(CITY) City o Fort Collins, Colorado
(SEAL)
ATTEST:
-
Citp Clerlkk—
City of Fort Collins, Colorado
- 58 -
STPTE OF COLORADO '
CCL'NTY OF LARlt:£R ) ss.
CITY OF FORT CCLLINS )
I , Wanda M. Krajicek, City Clerk of the City of Fort
Collins , Colorado, de hereby certify that the attached copy of
Ordinance Iv'o. 149 , 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 therea£ held at Council Chambers , City Hall , 300 LaPorte
Avenue , Fort Collins, Colorado , the regular meeting place
thereof, on Tuesday, the 2_n_ d day of October 1984; that
said Ordinance was finally passed on second reading by said
Council at a regular r,eetina thereof held at Cc,...rci1. Chambers ,
City Hail, 300 LaPorte Avenue , Fort Collins, Colorado , the
regular meeting place thereof, on Tuesday, the 16th day of
October , 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 OrdinancF 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 Ccloradoan, a newspaper u_` general
circulation published in the City , in its issues of
October 7 , 1984, and October 21 , 1984 , as evidenced by
the certificates of the publisher attached hereto at, pages60 and
a. I further certify that the foregoing pages 1 through�T8 ,
inclusive , constitute a true and correct copy of the record of
the proceedings of said Council at its regular meetings of
October 2 , 1984 , and October 16 , i964, insofar as
said proceedings relate. to 2aia Ordinance ; that said proceedings
were duly had and taken, that the meetings were duly held; and
that the persons were present at said meetings therein shown.
IN WITNESS WHEREOF, I have hereunto set my hand and the seal
of the City of Fort Collins, Colorado, this 22nd day of
October , 1984.
' (CITY) City Clerk
(SEAL) City of Fort Collins , Colorado
Deputy Ci 1
City of Fort Collins, Colorado
59 -
STATE OF COLORADO )
COUNTY OF LARIMER ) ss.
)
CITY OF FONT COLLINS )
(Attach affidavit of publication in full of Ordinance and
of ce giving date when Ordinance to be presented for final
passage. )
60 -
• •
The Coloradoan
STATE OF COLORADO )
)ss. AFFIDAVIT OF PUBLICATION
COUNTY OF LARIMER )
Tor-to R e d- rson being first duly sworn upon oath, deposes
and says: That said is the Legal 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
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
____�_ sUWC1eX9t040cm1efl6LG%o1DC _ da v A&/(aQtugtuCR0S16is')EE7nX9EDkR that the
first publication of said legal notice or advertisement was in the regular and entire edition
of said newspaper er on the 7 t h day of October , A.D. 19�4 that the last
P
publication of said legal notice or advertisement was in the regular and entire edition of
7 t h October 84 and that
said newspaper on the _ day of A.D. 19_,
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.
y-21
Subscribed and sworn to before me, at and within the County of Larimer, State of Colorado
this - 7 t h day of n r t n h e r _ _ A.D. 19 84__..
My
My commission expires
Notary Public
City Clerk
Delivered to— __ — — ---
STATE OF COT ORADO )
COUNTY OF LARIMER ) ss.
CITY 01 FORT COLLINS )
!Attach affidavit of publication of Ordinance b_v number and
title only and notice of firal passage thereof. )
- 61 -
The Coloradoan
STATE OF COLORADO )
)ss. AFFIDAVIT OF PUBLICATION !
COUNTY OF LARIMER ) v
Taros _R Anderson being first duly sworn upon oath, deposes
and says: That said is the Lag l ri ork of The Coloradoan; a
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 4
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 TRn R i
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 1
' , yqt
1_ 9> CRRxllf&&�€ tl da}r xRfc�@?Ex�6FkY8caPkaxc that the n ` " @• "
first publication of said legal notice or advertisement was in the regular and entire edition T �
of said newspaper on the 21st day of October A.D. 1984; that the last
publication of said legal notice or advertisement was in the regular and entire edition of r
said newspaper on the 21st day of October A.D. 1914, and that F
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.
Y-95 ' n
G
�T+a b °rt✓Cep.
Subscribed and sworn to before me, at and within the County of Larimer, State of Colorado
this __ 21st day of October — A.D. 19. 4 c
M�, Commission Expires August 15, 1937 U++
My commission expires 1212 P,iversid Fort Collins, f 0 8""-"a
� tsRt,
Notary
Public
tg..
City Clerk
Delivered
IK1 • ��
ORDINANCE NO. 149 , 1964
1N ORDINANCE OF THE CITY OF FORT COT INS, COLORADO
AUTHORIZING ThE ISSUANCE OF NOT TO EXCEED $3 , 200 , 000 TO
ITS DC50NTOWN DEVELOPMENT AUTHORITY TAX INCREMENT BONDS,
SERIES 1984A
READ, ADOPTED Ore SECOND READING, AND ORDERED PUBI,S SIT ED ONCE
J?Y NUMBFF. AND TITLE ONLY this 16th day of October ,
CITY OF FORT COLLJNS, COLORADO
;CITY)
(SEAL) Mayer
ATTEST:
��••
City Clerk
PG2 : 14
62