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HomeMy WebLinkAbout2001-045-03/20/2001-SETTING FORTH THE INTENTION OF THE CITY OF FORT COLLINS, COLORADO TO ISSUE VARIABLE RATE ECONOMIC DEr RESOLUTION 2001-45 OF THE COUNCIL OF THE CITY OF FORT COLLINS SETTING FORTH THE INTENTION OF THE CITY OF FORT COLLINS,COLORADO TO ISSUE VARIABLE RATE ECONOMIC DEVELOPMENT REVENUE REFUNDING BONDS,SERIES 2001 (COMRIDGE PROJECT) WHEREAS,representatives of Comridge,a Partnership,a Colorado general partnership, which will become Comridge,LLP upon the filing of a Registration Statement with the Secretary of State (the “Company”),have met with officials of the City of Fort Collins,Colorado (the “City”), and have advised the City of the interest of the Company in issuing revenue refunding bonds in order to refund the outstanding principal balance of a prior issue of bonds of the City,which were used to assist in the financing of costs of manufacturing facilities located in the jurisdiction of the City,subject to the willingness of the City to finance the above-described refunding project (the “Project”)by the issuance of variable rate economic development revenue refunding bonds,pursuant to the Colorado City and Municipality Development Revenue Bond Act constituting Article 3,title 29,Colorado Revised Statutes,as amended (the “Act”);and WHEREAS,the City has heretofore issued its revenue bonds designated $3,500,000 City of Fort Collins,Colorado Industrial Development Revenue Bonds,Series 1984 (The Comridge Project)(the “Prior Bonds”),in order to assist the Company in the financing of costs of manufacturing facilities located within the jurisdiction of the City;and WHEREAS,the Company has requested the City to authorize and issue a series of revenue refunding bonds (the “Bonds”)for the purpose of refunding the outstanding principal balance of the Prior Bonds;and WHEREAS,the City Council of the City of Fort Collins,Colorado (the “Council”)has considered the proposal and has concluded that the benefits to be derived therefrom by the City and the Company will be substantial;and WHEREAS,the Council has determined the Project to be consistent with the goals and objectives of the City;and WHEREAS,the Council desires to indicate its intent to proceed with financing the Project through the issuance of the Bonds. NOW,THEREFORE,BE If RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS,COLORADO as follows: Section 1.The City shall,subject to the provisions hereof,take all necessary and advisable steps to effect the issuance of the variable rate economic development revenue refunding bonds (the “Bonds”)pursuant to the Act in the maximum aggregate principal amount not to exceed Two Million Seven Hundred Thousand Dollars ($2,700,000)or such lesser or greater amount as shall be determined and agreed upon by the Company and the City to finance the Project. r r The Bonds will not be general obligations of the City.Neither shall the Bonds,including interest thereon,constitute the debt or indebtedness of the City within the meaning of any limitation of the Constitution or statutes of the State of Colorado,nor give rise to a pecuniary liability of the City or a charge against its general credit or taxing powers.The Bonds shall be payable solely from and secured by a pledge of revenues derived from and payable by the Company pursuant to financing agreements with the City. Section 2.No costs or expenses,whether incurred by the City or any other party in connection with the issuance of the Bonds or the preparation of any documents by any legal or financial consultants retained in connection therewith,shall be borne by the City.All such costs or expenses shall be paid from the proceeds of the Bonds or otherwise borne by the Company.In addition to the costs and expenses to be borne by the Company as described in the preceding sentences,the Company shall pay to the City its administrative fees,and,if the Project is approved by the City and the Bonds are issued the Company shall pay to the city its issuance fee. Section 3.Prior to any execution ofafinancing agreement,mortgage,indenture of trust, bond purchase agreement or any other necessary documents and agreements in connection with such Bonds,such documents and/or agreements shall be submitted for approval to the City,and,if satisfactory to the City,their execution shall be authorized by ordinance of the Council pursuant to law. Section 4.Issuance of the Bonds that are the subject of this Resolution will be subject to review and a favorable recommendation of the City’s Finance Department as to the financial feasibility of the Project and the proposed bond financing. Section 5.Prior to any further action by the Council,the Company shall provide the City with the opinion of a nationally recognized bond counsel firm,supporting the legality of the financing of the Project and the utilization of bond proceeds for said Project.The opinion will fur her state that once issued,the Bonds will be tax exempt obligations of the City. Section 6.Nothing contained in this Resolution shall constitute the debt or indebtedness of the City within the meaning of any limitation of the Constitution or Acts of the State of Colorado or the Charter of the City,nor give rise to a pecuniary liability of the City or a charge against its general credit or taxing powers. Section 7.All commitments of the City contained herein are subject to the condition that within twelve (12)months of the date hereof,or such shorter period of time available under applicable laws,unless otherwise extended by agreement between the City and the Company,the Bonds to be issued pursuant hereto shall be issued and sold.In the event that such conditions are not met within twelve (12)months,or such shorter period of time available under applicable law, the City of Fort Collins shall be under no obligation to perform any of the terms and conditions contained herein. r Section 8.All orders,bylaws,and resolutions,or parts thereof,concerning the subject matter hereof in conflict with this Resolution are hereby repealed to the extent of such conflict.This repealer shall not be construed to revive any resolution,or part thereof,heretofore repealed. Section 9.The City,its officers,agents,attorneys,and employees shall be indemnified by the Company from any and all claims,including attorneys fees,from any claim whatsoever arising out of this transaction. Section 10.The agreements of the City set forth above are expressly conditioned upon the ability and willingness of the City to issue the Bonds as tax exempt obligations under the Federal Income Tax laws existing on the date of the issuance of the bonds.Nothing contained in this resolution shall be construed as requiring the City to issue the Bonds and the decision to issue the Bonds shall be in the complete discretion of the City. Section 11.If any section,paragraph,clause,or provision of this Resolution with the exception of any section,paragraph,clause or provision limiting the City’s financial obligation shall for any reason be held to be invalid or unenforceable,the invalidity or unenforceability of such section,paragraph,clause or provision shall not affect any of the remaining provisions of this Resolution. Section 12.This Resolution shall take effect immediately upon its introduction and passage. Passed and adopted at a regular meeting of the Council of the City of,F&t Collins,Colorado held this 20th day of March,A.D.2001. Mayor r ATTEST: City Clerk