HomeMy WebLinkAbout010 - 01/12/1999 - APPROPRIATING $550,000 IN THE SALES AND USE TAX FUND TO GUARANTEE PAYMENT OF FINANCING BY THE FORT EMERGENCY ORDINANCE NO. 10, 1999
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROPRIATING $550,000 IN THE SALES AND USE TAX FUND TO GUARANTEE
PAYMENT OF FINANCING TO BE OBTAINED BY THE FORT COLLINS HOUSING
AUTHORITY FOR THE CONSTRUCTION OF THE VIA LOPEZ PROJECT
WHEREAS,the provision of affordable housing serves an important public purpose for the
citizens of the City; and
WHEREAS, the Fort Collins Housing Authority ("the Authority") is authorized by state
statute to provide dwelling accommodations for persons of low income and,toward that end,to own
and develop real property and to borrow money and to secure such indebtedness by mortgages upon
property held by the Authority; and
WHEREAS, the Board of Commissioners of the Authority authorized the Authority, on
January 5, 1999, to obtain a commercial loan for the construction of the Via Lopez/San Cristo
Housing project(the"Project")which consists of thirty-three lots on five acres of land owned by the
Authority; and
WHEREAS, the purpose of the Project is to provide affordable home ownership
opportunities to residents of the City, including victims of the 1997 Spring Creek Flood, clients
enrolled in the Fort Collins Housing Authority Self-Sufficiency Program, other clients and tenants
of the Fort Collins Housing Authority,and those other members of the general public who meet the
Authority's income eligibility requirements; and
WHEREAS, the Authority has heretofore invested substantial sums to develop the real
property upon which the Project will be situated and has contracted for manufactured housing units
to be delivered to such property; and
WHEREAS, in order to complete the development of the Project, it is necessary for the
Authority to incur additional indebtedness in the form of one or more construction loans; and
WHEREAS, the First National Bank has agreed to provide such financing for the
construction of the Project upon terms and conditions that the Acting Executive Director and the
Finance Director of the Authority believe to be commercially reasonable; and
WHEREAS,the indebtedness to be incurred by the Authority will be secured by a first deed
of trust in the Project; and
WHEREAS,it is anticipated that the sale of the housing units in the Project will be more than
adequate to fully satisfy such indebtedness; and
WHEREAS, in order to further secure the above-referenced indebtedness, First National
Bank has required that guarantees of a portion of the indebtedness be provided by the City of Fort
Collins and the Fort Collins Housing Corporation; and
WHEREAS, ten manufactured housing units have been delivered to the Project site by the
manufacturer, and payment for such units is due immediately; and
WHEREAS, City Council believes that completion of the Project is critically important to
the low income residents of the City.
WHEREAS, $550,000 is available from prior year reserves in the Sales and Use Tax Fund
to provide the guarantee required by the lender; and
WHEREAS, under Article V, Section 9 of the City Charter, the Council, upon
recommendation of the City Manager, may appropriate by ordinance at any time during the fiscal
year such funds for expenditure as may be available from reserves accumulated in prior years,
notwithstanding that such reserves were not previously appropriated.
WHEREAS, the City Manager has recommended that the appropriation of $550,000 to
partially guarantee payment of the Housing Authority's indebtedness be authorized by this
Ordinance.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows:
Section 1. That the Council hereby finds that it is in the best interests of the citizens of
the City that the City guarantee a portion of the financing to be obtained by the Fort Collins Housing
Authority for the construction of the Project, so as to make available to low income residents of the
City affordable housing units,and the provision of such housing serves an important public service.
Section 2. That there is hereby appropriated from the Sales and Use Tax Fund prior year
reserves in the amount of$550,000, to be used as necessary to partially guarantee the payment of
such construction loans as the Authority may obtain from First National Bank for completion of the
construction of the Project.
Section 3. That the immediate adoption of this Ordinance is necessary as an emergency
measure to preserve and protect the viability of the Via Lopez/San Cristo Project, and that the
Council hereby determines that an emergency exists requiring immediate passage of this Ordinance
in order to preserve, protect and advance the general welfare of the residents of the City of Fort
Collins.
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Section 4. That,for the foregoing reasons,this Ordinance is enacted pursuant to Section
8 of Article II of the Charter of the City of Fort Collins as an emergency ordinance, and the same
shall be immediately effective upon its passage.
Introduced, considered favorably by five (5) members of the Council of the City of Fort
Collins and finally passed as an Emergency Ordinance and ordered published this 12th day of
January, A.D. 1999.
Mayor Pro Tern
ATTEST:
Uh k :`"
City Clerk
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