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HomeMy WebLinkAbout097 - 01/04/1977 - AUTHORIZING THE ISSUANCE OF SPECIAL ASSESSMENT BONDS FOR DOWNTOWN IMPROVEMENT DISTRICT NO. 1 ORDINANCE NO. 97 1976 AN ORDINANCE AUTHORIZING THE ISSUANCE OF SPECIAL ASSESSMENT BONDS OF THE CITY OF FORT COLLINS, COLORADO, FOR DOWNTOWN IMPROVEMENT DISTRICT NO. 1, FOR THE CONSTRUCTION AND INSTALLATION OF STREET AND MALL IMPROVEMENTS IN SAID DISTRICT; PRESCRIBING THE FORM OF THE BONDS; AND PROVIDING FOR THE PAYMENT OF SAID BONDS AND THE INTEREST THEREON. WHEREAS , in accordance with the City Charter and Chapter 16 of the Code of the City of Fort Collins, the City Council has created .Downtown Improvement District No. 1, for the purpose of constructing and installing street and mall improvements within the District, as described herein; and WHEREAS , such improvements are part of the proposed improvements to be constructed or installed in the downtown area of Fort Collins, which improvements will be financed in part by special assessment bonds for Downtown Improvement District No. 1, and by general obligation bonds of the City of Fort Collins General Improvement District No. 1; and WHEREAS , the construction and installation of such improvements will result in general benefits to the City and in special benefits to the assessable property to be assessed within the boundary of the District; and WHEREAS , the City Council has determined that the cost of the construction and installation of the street and mall improvements, together with necessary incidental costs, shall not exceed the amount of $700,000 , and that bonds of the City for said District should be issued in this amount; and WHEREAS , in accordance with the City Charter and a resolution passed on December 21 , 1976 , the City Council has determined that it is in the best interest of the City that special assessment bonds of the City in the principal amount of $700 , 000 should be issued and sold to Boettcher and Company , Denver , Colorado, in accordance with their proposal dated November 23 , 1976 ; and WHEREAS , it is necessary to provide for the issuance of said bonds and the form and payment thereof; _ BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS , COLORADO: - 1 - Section 1 . Improvements Ordered . The improvements authorized to be constructed in accordance with Ordinance No. 76 - 1976 , finally passed and adopted on October 26 , 1976 , which ordinance created Downtown Improvement District No. 1 , include the following , and are referred to in this ordinance as "street and mall improvements" : Improvements designated to improve the visual appearance of streets and other public ways within the district and to make such streets and other public .ways better accommodate pedestrian and vehicular traffic, such improvements including construction and reconstruction of sidewalks , curbs , gutters , and streets; installation of planters and landscaping; installation of benches in the sidewalk area; installation of plazas , installation of street lighting; signalization for traffic; and other allied improvements, the improvements to be located on streets within the district and principally upon College Avenue from the vicinity of Magnolia Street to the vicinity of LaPorte Avenue and extending along intersecting streets and Linden Street. Section 2 . Bond Details. By virtue of and pursuant to the Ci-ty Charter and -Chapter---16 of the Code of the City of Fort Collins, Special Assessment Bonds of the City of Fort Collins, for Downtown Improvement District No. 1 shall be issued for the purpose of paying for local improvements constructed in the District. The bonds shall be in the principal amount of $700;000 , shall be dated December 1 , 1976 , and shall consist of 700 bonds in the denomination of $1 ,000 each, numbered 1 to 700, inclusive. The Bonds shall be payable to bearer, and shall be due and payable on December 1 , 1991 , subject to call and prior payment on any interest payment date, in direct numerical order , upon payment of par and accrued interest. Notice of prior redemption shall be given by the Director of Finance by: (a) publication of such notice for five (5) days in an official newspaper published in the City of Fort Collins; and (b) forwarding a copy of such notice by first class mail , postage prepaid to any bondholder who has furnished his or her post office address to the City Clerk , within ten (10) days after the publication required in (a) above .- Such notice shall specify the number or numbers of the bonds to be so redeemed and the date fixed for redemption and such notice shall further state that on such redemption date there shall become due and payable upon each bond so to be redeemed at the office of the Director of Finance the principal amount thereof and accrued interest to the redemption date, and from and after . such date interest shall cease to accrue. The Bonds shall bear interest at the rate of 6-1/8% per annum, payable on December 1 , 1977 , and semi-annually thereafter on June 1 and December 1 , each year , as follows: - 2 - Amount Bond Numbers Interest Rate $70 ,000 1 to 70, incl. 6-1/88 45,000 71 to 115, incl .' 6-1/8% 45,000 116 to 160, incl. 6-1/88 45,000 161 to 205, incl. 6-1/8% 45,000 206 to 250, incl. 6-1/8% $45 ,000 251 to 295, incl. 6-1/8% 45,000 296 to 340, incl. 6-1/8% 45,000 341 to 385, incl. 6-1/88 45,000 386 to 430 , incl. 6-1/8% 45,000 431 to 475, incl. 6-1/8% $45,000 476 to 520, incl. 6-1/8% 45,000 521 to 565, incl. 6-1/8% 45,000 566 to 610 , incl. 6-1/8% 45,000 611 to 655, incl . 6-1/8% 45,000 656 to 700, incl. 6-1/88 The net effective interest rate of this issue of Bonds is 6 . 136% per annum. The principal of and interest on said bonds shall be payable at the office of the Director of Finance , in Fort Collins, Colorado. Section - ,2 . Execution of Bonds and Interest Coupons. The Bonds shall be signed with the facsimile signature of the Mayor of the City, attested by the manual signature of the City Clerk , countersigned with the facsimile signature of the Director of Finance , with a facsimile of the seal of the City affixed thereto, and the interest coupons attached shall be signed with the facsimile signature of the City Clerk . When issued as afore- said as part of said bonds , the interest coupons shall be the binding obligations of. the City according to their import. Should any officer whose manual or facsimile signature appears on said bonds or the coupons attached thereto cease to be such officer before delivery of the bonds to the purchaser, such manual or facsimile signature shall nevertheless be valid and sufficient for all purposes. Section 3 . Form of Bond and Interest Coupons . The bonds and the interest coupons to be attached thereto shall be in substantially the following form: - 3 - (Form of Bond) UNITED STATES OF AMERICA STATE OF COLORADO COUNTY OF LARIMER . CITY OF FORT COLLINS DOWNTOWN IMPROVEMENT DISTRICT NO. 1 No. $1 ,000 The City of Fort Collins , in the County of Larimer , State of Colorado, for value received, hereby promises to pay to the bearer hereof, out of the special fund hereinafter designated, ' but not otherwise, the principal sum of ONE THOUSAND DOLLARS in lawful money of the United States of America on the lst day of December , 1991 , with interest thereon at the rate of six and one-eighth per centum (6-1/8%) per annum from date until payment, payable on December 1 , 1977 and semi-annually thereafter on June 1 and December 1 each year , both principal and interest being payable- at the office of.-- the Director. of Finance, in Fort Collins, Colorado, upon presentation and surrender of the attached coupons and this Bond as they severally become due or are called for payment. This Bond is subject to call and redemption in. direct numerical order of the issue of which it is one, on any interest payment date , upon payment of par and accrued interest to the date of redemption . Notice of such prior redemption shall be published for 5 days in an official newspaper published in the City. This Bond is issued for the purpose of paying the cost of constructing and installing street and mall improvements , together with necessary incidentals in Downtown Improvement District No. 1, in the City of Fort Collins, Colorado, by virtue of and in full conformity with the Constitution and Laws of the State of Colorado, the Charter of the City, Chapter 16 of the Code of the City of Fort Collins , and an Ordinance of the City duly adopted, approved, published and made a law of the City prior to the issuance hereof . Payment of this Bond and the interest thereon shall be made from, and as security for such payment there is pledged, a special fund designated as the "Downtown Improvement District No. 1 Bond and Interest Fund" , which Fund shall contain initially any - 4 - monies in the construction account remaining after the cost of improvements has been paid in full and thereafter to contain the proceeds from special assessments to be levied against the property included within the District and specially benefited by the construction and installation of improvements therein. The assessments to be levied will constitute a lien on and against each lot or tract of land in the respective amounts to be appor- tioned by an ordinance of the City. Bonds of this issue , together with bonds of other local improvement districts of the City, shall be additionally secured by moneys in the special surplus and deficiency fund authorized by the City Charter . Whenever there is a deficiency in the Bond and Interest Fund for the payment of principal and interest, the deficiency shall be paid out of the special surplus and deficiency fund. Whenever three-fourths of the bonds of this f series have been paid and cancelled and for any reason the remain- ing assessments are not paid in time to redeem the remaining bonds ! and the interest thereon, and there are not sufficient funds in the special surplus- and - deficiency -fund ,=.:then the City shall pay the remaining bonds when due and the interest thereon, and levy additional ad valorem taxes necessary therefor , and reimburse itself by collecting the unpaid assessments due the district . This Bond does not constitute a debt of the City of Fort Collins within the meaning of any constitutional , statutory or charter limitation or provision, and shall not be considered or held to be a general obligation of the City. This Bond and the interest thereon are payable solely from the special assessments and other funds and moneys pledged to the payment thereof , as indicated above. The payment of the Bond is not secured by an encumbrance , mortgage or other pledge of the City. No property of the City, subject to the above, shall be liable to be forfeited or to be taken in payment of the bonds of this issue. It is hereby further certified and recited that all requirements of law have been fully complied with by the proper officers of the City in the issuance of this Bond, and that the total amount of this issue does not exceed the cost and expense of said improvements or any limitation prescribed by-law. For the payment of this Bond and the interest thereon the City pledges all of its lawful corporate powers. - 5 - IN TESTIMONY WHEREOF , The City of Fort Collins has caused this Bond to be signed with the facsimile signature of the Mayor of the City, attested by the manual signature of the City Clerk, countersigned with the facsimile signature of the Director of Finance , with a facsimile of the seal of the City affixed hereto, and the interest coupons attached hereto to be signed with the facsimile signature of the City Clerk , as of the lst day of December , 1976. CITY OF FORT COLLINS, COLORADO (FACSIMILE) ( S E A L ) By (Facsimile Signature) Mayor i ATTEST: COUNTERSIGNED: (Manual Signature) (Facsimile Signature) City Clerk Director of Finance - 6 - (Form of Interest Coupon) No. $ June, On the 1st day of December , 19 unless the Bond to which this coupon is attached has been called for prior redemp- tion, the City of Fort Collins , in the County of Larimer and State of Colorado, will pay to bearer the amount shown hereon, in lawful money of the United States of America, solely out of the special . .fund or funds referred to in the Bond to which this coupon. is attached , at the office of the Director of Finance , in Fort Collins, Colorado , being interest then due on its Special Assess- ment Bond for Downtown Improvement District No. 1, dated December 1 , 1976 , bearing No. (Facsimile Signature) City- Clerk 7 _ Section 4 . Disposition of Bond Proceeds . The proceeds of said bonds shall be applied only to pay the costs and expenses of constructing and installing improvements in said District and all other costs and expenses incident . thereto. In the event that all of the proceeds of said bonds are not required to pay such costs and expenses, any remaining amount shall be paid into the special. assessment fund for the purpose of calling in and paying the principal of and interest on said bonds. Neither the pur- chasers of said bonds nor any subsequent holder of the same shall be responsible for the application of the proceeds of said bonds by the City or any of its officers. All or any portion of the bond proceeds may be tempor- arily invested, or reinvested , pending such use, in securities or obligations which are lawful investments for such municipalities in the State of Colorado. It is hereby covenanted and agreed by the City that the temporary investment or reinvestment of the bond proceeds , or any portion thereof , shall be of such nature and extent, and for such period, that the bonds of the City shall not become "arbitrage bonds" within the meaning of Section 103 (c) of the Internal Revenue Code, and pertinent.. regulations, and such proceeds, if so invested or reinvested, shal'1 be subject to the limitations and restrictions of said Section 103 (c) , as the same now exists or may later be amended , and shall further be subject to any applicable regulations of the Internal Revenue Service . Section 5 . Downtown Improvement District No . 1 Bond and Interest Fund . The bonds and the interest thereon shall be payable solely from a special sinking fund , designated as the Downtown Improvement District No. 1 Bond and Interest Fund, which shall contain initially any monies in the construction account remaining after the cost of improvements has been paid in full and thereafter to contain the proceeds from special assessments to be levied against the property within the District and specially benefited by the construction of improvements therein. When assessments are collected, including interest and any penalties, they shall . be placed in the Bond and Interest Fund, and shall be deemed specially appropriated to the payment of the bonds author- ized herein, and the interest thereon, and shall not be used for any other purpose until the bonds and the interest are fully paid. When there is on hand a sufficient amount to pay six months' interest on outstanding bonds for the District, the City shall call for payment , on the next interest payment date, out- standing bonds in direct numerical order with funds available therefor . Notice of call and redemption shall be given in ac- cordance with Section 16 . 29 of the Code of the City of Fort Collins, as provided in Section 1 hereof. - 8 - After the expiration of the period for cash payments of assessments in full, the City shall, to the extent possible, pay each year approximately 7% of the total amount of bonds outstand- ing after the payment of the bonds with the proceeds of such cash payments of assessments in full. Section 6 . Additional Security for the Payment of Principal and Interest. Bonds of this issue, together with bonds of other local improvement districts of the City, shall be addi- tionally secured by moneys in the special suplus and deficiency fund authorized by the City Charter. Whenever there is a defi- ciency in the Bond and Interest Fund for the payment of principal and interest , the deficiency shall be paid out of the special surplus and deficiency fund . Whenever three-fourths of the bonds of this series have been paid and cancelled and for any reason the remaining assessments are not paid in time to redeem the remaining bonds and the interest thereon, and there are not sufficient funds in the special surplus and deficiency fund, then the City shall pay the remaining bonds when due and the interest thereon, and • levy additional -ad valorem taxes necessary- therefor-; and reimburse itself by collecting the unpaid assessments due the district. Section 7 . Assessment of Costs . The City Council covenants that upon completion of the local improvements and acceptance thereof by the City Council, it will cause a statement showing the whole cost of the improvements and as assessment roll to be prepared and filed. The City Council shall further cause assessments to be levied against the property included within the special improvement district and specially benefited by the construction and installation of such improvements, in accordance with law and the Charter of the City. Section 8 . Severability. That if any one or more sections or parts of this Ordinance shall be adjudged unenforce- able or invalid , such judgement shall not affect, impair or invalidate the remaining provisions of this Ordinance, it being the intention that the various provisions hereof are severable. Section 9 . Repealer . All Ordinances or parts thereof in conflict with this Ordinance are hereby repealed. Section 10 . Ordinance Irrepealable. - After said bonds are issued, this Ordinance shall be and remain irrepealable until said bonds and the interest thereon shall have been fully paid, satisfied and discharged. 9 - Section 11. Recording and Authentication. This Ordinance, as adopted by the City Council, shall be numbered and recorded, and the adoption and publication shall be authenticated by the signature of the Mayor and the City Clerk, by the certificate of the publisher, respectively. Introduced, considered favorably on first reading, and ordered published this 21st day of December 1976, and to be presented for final passage on the 4th day of January, 1977. Mayor. ATTEST: City Clerk (Deputy) passed and adopted on final reading this 4th day of January, 1977. Mayor ATTEST: City Clerk 10 -