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HomeMy WebLinkAbout130 - 09/18/2001 - APPROVING AND AUTHORIZING THE CITY TO ENTER INTO AGREEMENTS IN CONNECTION WITH THE EXECUTION AND DEL ORDINANCE NO. 130, 2001 AN ORDINANCE AUTHORIZING THE CITY TO EXECUTE AND DELIVER A QUITCLAIM DEED TO FORT COLLINS CAPITAL LEASING CORPORATION AND ENTER INTO A LEASE AGREEMENT BETWEEN THE CORPORATION AND THE CITY AND APPROVING SAID DOCUMENTS, AND APPROVING AN ASSIGNMENT FROM THE CORPORATION TO ZIONS FIRST NATIONAL BANK AND A DEED OF TRUST FROM THE CORPORATION TO THE PUBLIC TRUSTEE OF LARIMER COUNTY, COLORADO, FOR THE BENEFIT OF THE BANK. WHEREAS, the City of Fort Collins, Colorado (the "City"), has need for and desires to provide certain real and personal property for City purposes; and WHEREAS, the City is authorized by Colo. Const. art. XX, § 6, its home rule charter (the "Charter") and Section 23-111 of the City code to sell, convey or otherwise dispose of City property; and WHEREAS, the City is authorized by Colo. Const. art. XX, § 6, the Charter and part 8 of article 15 of title 31, Colorado Revised Statutes, as amended (the "Act'), to enter into rental or leasehold agreements in order to provide necessary land, buildings, equipment and other property for governmental or proprietary purposes, and such agreements may include options to purchase and acquire title to such leased or rented property; and WHEREAS, the City currently owns certain real property (the "Golf Clubhouse Site") that it desires to convey to Fort Collins Capital Leasing Corporation, a Colorado nonprofit Corporation (the "Corporation"), by means of a Quitclaim Deed (the "Deed"); and WHEREAS, the Corporation has offered to acquire the Golf Clubhouse Site and certain other real and personal property (collectively, the "Leased Property") and lease the Leased Property to the City under a Lease Agreement, dated its date of execution and delivery (the "Lease"), between the Corporation, as lessor, and the City, as lessee; and WHEREAS, the Lease does not constitute a "multiple-fiscal year direct or indirect debt or other financial obligation" of the City within the meaning of Colo. Const. art. X, §20(4)(b) and may therefore be entered into without voter approval; and WHEREAS, the City has heretofore distributed to potential investors a request for proposal to provide lease/purchase financing (the "Request for Proposal'); and WHEREAS, in accordance with the Request for Proposal, the Corporation and the City accepted the proposal (the "Proposal') of Zions First National Bank, affiliate of Vectra Bank Colorado (the 'Bank") to provide such lease/purchase financing; and WHEREAS, in consideration of receiving from the Bank the amount set forth in the Proposal (the "Loan") to acquire the Golf Clubhouse Site and acquire, construct and install the other Leased Property, the Corporation will promise to repay the Loan and assign to the Bank all its rights under the Lease, including its rights to receive rental payments thereunder, pursuant to an Assignment, dated its date of execution and delivery (the "Assignment"), from the Corporation, as assignor,to the Bank, as assignee; and WHEREAS, in order to provide additional security to the Bank, the Corporation proposes to grant a first lien upon and security interest in the Leased Property to the Bank, pursuant to a Deed of Trust, Security Agreement and Financing Statement, dated its date of execution and delivery (the "Deed of Trust'), between the Corporation, as grantor, and the Public Trustee of Larimer County, Colorado, as grantee, for the benefit of the Bank, as beneficiary; and WHEREAS, the proceeds of the Loan are to be deposited in the Project Account (as defined in the Lease) and disbursed by the City, on behalf of the Corporation, to pay costs of acquiring the Golf Clubhouse Site and acquiring, constructing and installing the other Leased Property and for other municipal purposes, pursuant to the provisions of the Lease; and WHEREAS the forms of the Deed, the Lease, the Assignment and the Deed of Trust have been filed with the City Clerk. BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS, COLORADO: 1. The forms of the Deed, the Lease, the Assignment and the Deed of Trust are hereby approved, together with any revisions thereto as may be considered necessary or desirable by the Financial Officer in consultation with the City Attorney to carry out the purposes thereof. 2. The City Council (the "Council") hereby finds that the sale of the Golf Clubhouse Site to the Corporation pursuant to the Deed and the lease of the Leased Property as provided in the Lease are in the best interests of the City and its inhabitants. In addition, the determinations set forth in Section 6.5 of the Lease are incorporated herein by this reference as if set forth in full herein. 3. The Mayor and the City Clerk are hereby authorized and directed to execute and deliver the Deed and the Lease and the Mayor, the City Clerk and the City Manager are hereby authorized and directed to execute and deliver any other document, certificate or instrument that in the opinion of the City Attorney is necessary to effect the transactions contemplated thereby and not inconsistent therewith. 4. The City hereby waives any available defense of governmental immunity from liability in tort for any failure to surrender possession of the Leased Property as provided in the Lease. 5. If any section, 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, paragraph, clause or provision shall not affect any of the remaining provisions of this Ordinance. 6. 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 completion of the transactions described herein, including but not limited to the distribution of the Request for Proposal and the acceptance of the Proposal, is hereby ratified, approved and confirmed. 7. All ordinances, resolutions and orders, or parts thereof, of the City inconsistent herewith and with the documents approved hereby are hereby repealed to the extent only of such inconsistency. This repealer shall not be construed as reviving any ordinance, resolution or order, or part thereof. Any inconsistency between the provisions of this Ordinance and those of the Act is intended by the Council. To the extent of any such inconsistency the provisions of this Ordinance shall be deemed made pursuant to the Charter and shall supersede to the extent permitted by law the conflicting provisions of the Act. READ, AMENDED, FINALLY PASSED AS AMENDED ON SECOND READING AND ORDERED PUBLISHED BY NUMBER AND TITLE ONLY this 18th day of September, A.D. 2001. CITY OF FORT COLLINS, COLORADO By: f , Mayor (CITY) (SEAL) ATTEST: City Clerk