HomeMy WebLinkAbout096 - 09/01/2015 - AMENDING ORDINANCE NO. 090, 2010 RELATING TO THE CITY OF FORT COLLINS, COLORADO, DOWNTOWN DEVELOPMEN ORDINANCE NO. 096, 2015
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING ORDINANCE NO. 090, 2010 RELATING TO
THE CITY OF FORT COLLINS, COLORADO, DOWNTOWN
DEVELOPMENT AUTHORITY TAXABLE TAX INCREMENT
REVENUE BONDS, SERIES 2010A, AND TAX-EXEMPT TAX
INCREMENT REVENUE BONDS, SERIES 2010B, TO
REDUCE THE RESPECTIVE INTEREST RATES ON SUCH
BONDS
WHEREAS, the City of Fort Collins, Colorado (the "City") is a home rule municipality
and political subdivision of the State of Colorado (the "State") organized and existing under a
home rule charter(the "Charter") pursuant to Article XX of the Constitution of the State; and
WHEREAS, the City duly established the Fort Collins Downtown Development
Authority (the "Authority') pursuant to Ordinance No. 46, 1981, and approved the Plan of
Development for the Fort Collins Colorado Downtown Development District pursuant to
Resolution 81-129; and
WHEREAS, the City duly adopted Ordinance No. 090, 2010 (the "2010 Ordinance")
authorizing the issuance of the City's (a) Downtown Development Authority Taxable Tax
Increment Revenue Bonds, Series 2010A, dated September 21, 2010, in the original aggregate
principal amount of $8,015,000 (the "2010A DDA Taxable Bonds"), and its (b) Downtown
Development Authority Tax-Exempt Tax Increment Revenues Bonds, Series 2010B, dated
September 21, 2010, in the original aggregate principal amount of$4,485,000 (the "2010B DDA
Tax-Exempt Bonds," and together with the 2010A DDA Taxable Bonds, the "2010 DDA
Bonds"); and
WHEREAS, all of the outstanding 2010 DDA Bonds are owned by Great Western Bank
(the "Bank"); and
WHEREAS, pursuant to the terms and provisions of the 2010 Ordinance, the interest rate
payable on the 2010A DDA Taxable Bonds will be converted to a new interest rate on December
2, 2015 in accordance with a formula set forth in Section 3.D.(3) of the 2010 Ordinance; and
WHEREAS, pursuant to the terms and provisions of the 2010 Ordinance, the interest rate
on the 2010B DDA Tax-Exempt Bonds will be converted to a new interest rate on December 2,
2015 in accordance with a formula set forth in Section 3.D.(3) of the 2010 Ordinance; and
WHEREAS, the City, the Authority and the Bank have determined to revise the formulas
for determining the respective interest rates on the 2010 DDA Bonds in order to reduce the
respective interest rates on the 2010 DDA Bonds; and
WHEREAS, pursuant to Section 11 of the 2010 Ordinance, the City may reduce the
interest rates on the 2010 DDA Bonds by amending the 2010 Ordinance only with the prior
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written consent of the owners of one hundred percent (100%) in aggregate principal amount of
the outstanding 2010 DDA Bonds; and
WHEREAS, the Bank, as the owner of 100% of the outstanding 2010 DDA Bonds, has
given its written consent to the amendment of the 2010 Ordinance and the adoption of this
Ordinance and has filed its written consent and approval in the office ,of the City Clerk, as
required by Section I I.C. and Section I I.D. of the 2010 Ordinance; and
WHEREAS, the Authority has adopted a resolution (the "Authority Resolution")
requesting that the City Council adopt this amendatory Ordinance in order to reduce the interest
rates on the 2010 DDA Bonds; and
WHEREAS, the City Council has determined and hereby determines that adopting this
amendatory Ordinance is necessary and in the best interest of the City; and
WHEREAS, capitalized terms used herein and not otherwise defined shall have the
meanings set forth in the 2010 Ordinance.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS, COLORADO:
Section 1. Ratification and Approval of Prior Actions. All action heretofore taken
(not inconsistent with the provisions of this Ordinance) by the City Council or the officers,
agents or employees of the City Council or the City relating to reducing the respective interest
rates on the 2010A DDA Taxable Bonds and the 2010B DDA Tax-Exempt Bonds and the
execution and delivery of this Ordinance is hereby ratified, approved and confirmed.
Section 2. Finding of Best Interests. The City Council hereby finds and determines,
pursuant to the Constitution, the laws of the State and the Charter, that amending the 2010
Ordinance in accordance with the terms and provisions of this Ordinance is necessary,
convenient, and in furtherance of the City's purposes and is in the best interests of the inhabitants
of the City.
Section 3. Amendment of 2010 Ordinance.
A. Section 3.D.(3) of the 2010 Ordinance shall be amended and restated in its entirety as
follows:
(3) Interest Rates. The 2010A DDA Taxable Bonds shall initially bear
interest at the per annum interest rate of 6.08% from the date of issuance to December 1,
2015. The 2010B DDA Tax-Exempt Bonds shall initially bear interest at the per annum
interest rate of 4.01% from the date of issuance to December 1, 2015. From December 2,
2015 (the "Conversion Date") to their respective Maturity Dates (a) the interest rate on
the 2010A DDA Taxable Bonds shall be converted to a new interest rate calculated by
the Financial Officer no more than thirty (30) days and no less than fifteen (15) days prior
to the Conversion Date as the rate on such calculation date that is 3.5% above the United
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States 5-year Treasury Rate based on a 365/366-day year, and (b) the interest rate on the
2010B DDA Tax-Exempt Bonds shall be converted to a new interest rate calculated by
the Financial Officer no more than thirty (30) days and no less than fifteen (15) days prior
to the Conversion Date as the rate on such calculation date that is 0.66 multiplied by the
following rate: 4.25% above the United States 5-year Treasury Rate and based on a
365/366-day year. The City will notify the Owners of the Bonds by first-class postage
prepaid mail of the new interest rate on the Bonds within ten (10) days of such
calculations. The maximum net effective interest rate on the Bonds shall not exceed
10.00% per annum.
B. The footnote on the first page of the Form of Bond set forth in Section 3.D.(8) of the
2010 Ordinance shall be conformed to comply with the amendments to Section
3.D.(3) set forth above
Section 4. Direction to Act. The Mayor, the City Manager, the Financial Officer, the
City Clerk and other appropriate officials and employees of the City are hereby authorized and
directed to execute and deliver for and on behalf of the City any and all certificates, documents,
instruments and other papers, and to perform all other acts that they deem necessary or
appropriate, in order to implement and carry out this Ordinance.
Section 5. Ratification of 2010 Ordinance. Except as expressly amended hereby, the
2010 Ordinance shall remain as originally adopted and is hereby ratified, approved and
confirmed.
Section 6. Severability. If any section, subsection, paragraph, clause or provision of
this Ordinance shall for any reason be held to be invalid or unenforceable, the invalidity or
unenforceability of such section, subsection, paragraph, clause or provision shall not affect any
of the remaining provisions of this Ordinance, the intent being that the same are severable.
Section 7. Repealer. All orders, resolutions, bylaws, ordinances or regulations of the
City, or parts thereof, inconsistent with this Ordinance are hereby repealed to the extent only of
such inconsistency.
Section 8. Effective Date. As set forth in Article 11, Section 7 of the Charter, this
Ordinance shall take effect on the tenth day following its passage.
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Introduced, considered favorably on first reading, and ordered published this 18th day of
August, A.D. 2015, and to be presented for final passage on the 1 st day of September, A.D.
2015.
Mayor
VORT co ATTEST:
SEAL :
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�G%�ii�K.1� �L ••'COLORP�O
City Clerk
Passed and adopted on final reading on the 1st day of September, A.D. 2015.
Mayor
ATTEST:
City Clerk
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SEAL, y
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