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HomeMy WebLinkAbout117 - 09/20/1983 - AUTHORIZING THE ISSUANCE OF LEMAY/HARMONY SPECIAL IMPROVEMENT DISTRICT NO. 78 (PHASE 1) SPECIAL ASSE CERTIFIED RECORD OF PROCEEDINGS OF THE COUNCIL OF THE CITY OF FORT COLLINS , COLORADO RELATING TO AN ORDINANCE AUTHORIZING THE ISSUANCE OF ITS LEMAY/HARMONY SPECIAL IMPROVEMENT DISTRICT NO. 78 (PHASE 1) SPECIAL ASSESSMENT BONDS DATED OCTOBER 1 , 1983 IN THE AGGREGATE PRINCIPAL AMOUNT OF $1 ,885,000 ORDINANCE NO. 117 , 1983 AN ORDINANCE AUTHORIZING THE ISSUANCE OF CITY OF FORT COLLINS , COLORADO, LEMAY/HARMONY SPECIAL IMPROVEMENT DISTRICT NO. 78 (PHASE 1) , SPECIAL ASSESSMENT BONDS , DATED OCTOBER 1 , 1983, IN THE AGGREGATE PRINCIPAL AMOUNT OF $1 , 885,000 ; PRESCRIBING THE FORM OF SAID BONDS; PROVIDING FOR THE PAYMENT OF SAID BONDS AND THE INTEREST THEREON; AND AUTHORIZING THE APPROPRIATE OFFICERS OF THE CITY TO ENTER INTO AN ESCROW AGREEMENT IN ORDER FURTHER TO SECURE SAID BONDS . WHEREAS , the Council (the Council) of the City of Fort Collins, Colorado (the City) , has heretofore created Lemay/Harmony Special Improvement District No. 78 (the District) and authorized the construction and installation of street and utility improvements (the Improvements) therein, all in accordance with the Charter of the City (the Charter) and Chapter 16 of the Code of the City (the Code) ; and WHEREAS , the Improvements will be constructed and installed in two phases as follows: PHASE 1 A. Construction and surfacing of Lemay Avenue to a width of 36 feet from Harmony Road to Fossil Creek Parkway. B. Construction and surfacing of Southridge Greens Boulevard adjacent to the property of the Archidiocese of Denver and Fox Ridge II. C. Construction and surfacing of the remainder of Southridge Greens Boulevard to its terminus in Southridge Greens, including all utility improvements; construction and surfacing of Front Line Drive from Southridge Greens Boulevard to Mail Creek Ditch; and construction and surfacing of -2- Greenridge Parkway from Southridge Greens Boulevard to its terminus in Southridge Greens. D. Installation of a water transmission main running from Fossil Creek Parkway to Lemay Avenue and continuing south on Lemay Avenue for approximately 781. 38 lineal feet and a 14" waterline in Southridge Greens Boulevard from the intersection of Lemay Avenue and Southridge Greens Boulevard running east approximately 980 lineal feet. E. Installation of all utilities crossing Southridge Greens Golf Course . F. Installation of offsite sewer line from Southridge Greens Boulevard to Trilby Road. PHASE 2 G. Construction and surfacing of the south half of Harmony Road to 3,682 feet east of Lemay Avenue and to 1,960 feet west of Lemay Avenue. H. Widening of Lemay Avenue from Harmony Road to 1,000 feet south of Harmony Road to a width of 70 feet from flow line to flow line, including all construction and surfacing therefor and installation of curb, gutter, sidewalk and other like improvements. I. Construction and surfacing of Oak Ridge Drive from Lemay Avenue to Wheaton Drive; construction and surfacing of Wheaton Drive from Harmony Road to Boardwalk Drive; construction and surfacing of McMurry Drive from Lemay Avenue to Wheaton Drive; and construction and surfacing of Boardwalk Drive from -3- Lemay Avenue to Wheaton Drive, including all utility improvements therefor. J. Placement of a 20" water line on Lemay Avenue from Harmony Road to the southernmost property line of Lake Sherwood Joint Venture property; and WHEREAS , the construction and installation of the Improvements in the District has conferred and will confer general benefits on the City and special benefits on the assessable property within the District; and WHEREAS , the Council has determined that the portion of the cost of the construction and installation of the Phase 1 Improvements to be assessed against the property within the District will not exceed $1 , 885, 000 and that special assessment bonds of the City for the District should be issued in said amount; and WHEREAS, Everitt Development, Inc. and Bucain Corporation, including their respective related companies- (the Developers) , the owners of certain real property within the District to be assessed for the cost of the Phase 1 Improvements , have agreed to furnish collateral security for the payment of a portion of the principal of and interest on said bonds; and WHEREAS , a form of escrow agreement (the Escrow Agreement) , dated as of October 1 , 1983, among the City, the Developers, and United Bank of Fort Collins National Association (the Escrow Agent) , providing for the custody and application of such collateral security, has been filed in the office of the City Clerk; and WHEREAS , a proposal for the purchase of said bonds on terms favorable to the City -has been received from Boettcher & Company, Denver , Colorado (the Purchaser) , and associates, which the Council has determined, and does hereby determine, to accept; and WHEREAS, it is necessary to authorize the issuance of said bonds and to provide for the repayment thereof. BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS, COLORADO, AS FOLLOWS: 1. In order to defray .the cost of constructing and installing the Phase 1 Improvements within the District, together with all necessary and incidental costs and expenses permitted by the Charter and the Code , the City shall issue its Lemay/Harmony Special Improvement District No . 78 (Phase 1) , Special Assessment Bonds, dated October 1 , 1983, in the aggregate principal amount of $1,885, 000 (the Bonds) , consisting of 377 fully registered bonds in the denomination of $5,000 each, numbered consecutively from 1 to 377, inclusive. The Bonds shall mature on October 1, 1998, and shall bear interest as herein set forth. Pursuant to the recommendations of the Committee on Uniform Security Identification Procedures, CUSIP numbers may be printed on the Bonds. 2. The following numbered Bonds in the following principal amounts shall bear per annum interest from October 1, 1983, to October 1 , 1998, except if redeemed prior thereto , at the following rates : -5- Bonds Numbered Principal Per Annum (both inclusive) Amounts Interest Rates 1 to 26 $130,000 8.000% 27 to 53 135, 000 8. 500 54 to 80 135,000 _ 9.000 81 to 107 135, 000 9. 250 108 to 134 135,000 9.500 135 to 161 135,000 9. 750 162 to 188 135,000 10.000 189 to 215 135, 000 10. 000 216 to 242 135,000 10.250 243 to 269 135,000 10. 250 270 to 296 135,000 10.375 297 to 323 135, 000 10. 375 324 to 350 135,000 10. 500 351 to 377 135, 000 10. 500 Said interest shall be payable April 1, 1984, and semiannually thereafter on the lst day of October and the 1st day of April of each year . If upon presentation at maturity the principal of any Bond is not paid as provided herein, interest shall continue thereon at the same interest rate until the principal thereof is paid in full. 3. The maximum net effective interest rate for the Bonds is 18% . The actual net effective interest rate on the Bonds is 10. 36308% . 4. The principal of and interest on the Bonds shall be payable in lawful money of the United States of America to the registered owners of the Bonds by the Finance Director of the City, who is hereby designated the paying agent for the Bonds. The principal shall be paid to the registered owner of each Bond upon presentation and surrender of the Bond at maturity or upon prior redemption. Except as hereinafter provided, the interest shall be paid to the registered owner of each Bond determined as of the close of business on the regular record date, which shall -6- be the fifteenth (15th) day of the calendar month next preceding the interest payment 1date, irrespective of any transfer of ownership of the Bond subsequent to the regular record date and prior to such interest payment date, by check or draft mailed to such registered owner at the address appearing on the registration books of the City maintained by the City Clerk as registrar. Any interest not paid when due and any interest accruing after maturity shall be paid to the registered owner of each Bond entitled to receive such interest determined as of the close of business on the special record date, which shall be fixed by the City for such purpose , irrespective of any transfer of ownership of the Bond subsequent to such special record date and prior to the date fixed by the City for the payment of such interest, by check or draft mailed as aforesaid. Notice of the special record date and of the date fixed for the payment of such interest shall be given by sending a copy thereof by first-class, postage prepaid mail, at least-..ten (10) days prior to the special record date, to the Purchaser and to the registered owner of each Bond upon which interest will be paid determined as of the close of business on the day preceding such mailing at the address appearing on the registration books of the City. 5. Whenever there are available in the Lemay/Harmony Special Improvement District No. 78 (Phase 1) , Special Assessment Bonds, Bond and Interest Fund (the Bond Fund) hereinafter described sufficient funds derived from special assessments exceeding six months' interest on the unpaid -7- principal of the Bonds then outstanding , it shall be the duty of the Finance Director"to call in and pay a suitable number of Bonds. Notice of such call shall be given by publishing a copy thereof for five (5) days in The Coloradoan, Fort Collins, Colorado , if then in business and publishing , and if not, then in some other official newspaper published in the City, and by sending a copy thereof by first-class, postage prepaid mail, within ten (10) days after said publication to the Purchaser and to the registered owners of each of the Bonds being redeemed determined as of the close of business on the day preceding the first publication of such notice at the addresses appearing on the registration books of the City. Said notice shall specify by number the Bonds so called . Bonds so called shall be redeemed in regular numerical order at a price equal to the principal amount of each Bond so redeemed plus accrued interest thereon as hereinafter provided. If any Bond shall have been duly called for redemption, then such Bond shall become due and payable upon such redemption date, and interest shall cease to accrue thereon after the expiration of thirty (30) days from the first publication of the aforesaid notice. Failure to publish or mail any notice as aforesaid or any defect in any notice published or mailed with respect to any Bond shall not affect the validity of the redemption proceedings with respect to any other Bond. Any Bonds redeemed prior to maturity by call for prior redemption or otherwise shall not be reissued and shall be cancelled the same as Bonds paid at or after maturity. -8- 6. The Bonds shall be executed in the name and on behalf of the City with the facsimile signature of the Mayor of the City, shall bear a facsimile of the seal of the City, shall be attested by the facsimile signature of the City Clerk of the City, and shall be countersigned with the manual signature of the Finance Director of the City. Should any officer whose manual or facsimile signature appears on the Bonds 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. 7. Upon their execution and prior to their delivery the Bonds shall be registered for the purpose of payment of principal and interest in the office of the City Clerk as registrar. Thereafter , the Bonds shall be transferable only upon the registration books of the City at the office of the City Clerk by the registered owner thereof or by his or its duly authorized attorney-in-fact or legal representative. The City Clerk shall accept a Bond for registration or transfer only if the registered owner is to be an individual, a corporation, a partnership, or a trust . Bonds may be transferred upon surrender of the Bonds together with written instruments of transfer duly executed by the registered owners or their duly authorized attorneys-in-fact or legal representatives with guaranty of signatures satisfactory to the City Clerk, containing written instructions as to the details of the transfer of such Bonds , along with the social security numbers or federal employer identification numbers of such transferees -9- and , if such transferee is a trust, the names and social security numbers of the settlor and the beneficiaries of the trust. Transfers shall be made without charge , except that the City Clerk may require payment of a sum sufficient to defray any tax or other governmental charge that may hereafter be imposed in connection with any transfer of Bonds. No registration of any Bond shall be effective until entered on the registration books. Concurrently with the entry of the required information on the registration books the City Clerk shall enter the required information on the registration panel pertaining to each Bond . The City Clerk shall not be required to transfer ownership of any Bond during the five (5) days prior to the first publication of any notice of redemption or to transfer ownership of any Bond selected for redemption on or after the date of the first such publication. The City may deem and treat the person in whose name any Bond is last registered upon the books of the City as the absolute owner thereof for the purpose of receiving payment of the principal of and interest on such Bond and for all other purposes , and all such payments so made to such person or upon his order shall be valid and effective to satisfy and discharge the liability of the City upon such Bond to the extent of the sum or sums so paid, and the City shall not be affected by any notice to the contrary. 8. The Bonds and the registration panels pertaining thereto shall be in substantially the following form: -10- [Form of Bond] (Text of Face) UNITED STATES OF AMERICA STATE OF COLORADO COUNTY OF LARIMER CITY OF FORT COLLINS LEMAY/HARMONY SPECIAL IMPROVEMENT DISTRICT NO. 78 (PHASE 1) SPECIAL ASSESSMENT BOND No. R- $5, 000 The City of Fort Collins, in the County of Larimer and State of Colorado, for value received, hereby promises to pay to the registered owner hereof whose name , address , and identification number appear on the registration panel attached hereto, solely out of the special funds hereinafter described , but not otherwise, the principal sum of FIVE THOUSAND DOLLARS in lawful money of the United States of America, on the 1st day of October, 1998, and likewise to pay interest thereon from the date hereof to the maturity date hereof, except if redeemed prior thereto, at the rate of and hundredths per centum ( 8) per annum, payable April 1, 1984, and semiannually thereafter on the 1st day of October and the 1st day of April of each year. If upon presentation at maturity the principal of this Bond is not paid as provided herein, interest shall continue hereon at the same interest rate until the principal hereof is paid in full . The principal of and interest on this Bond are payable to the registered owner hereof by the Finance Director of the City. -11- The principal shall be paid to the registered owner hereof upon presentation and surrender of this Bond at maturity or upon prior redemption. Except as hereinafter provided , the interest shall be paid to the registered owner hereof determined as of the close of business on the regular record date , which shall be the fifteenth (15th) day of the calendar month next preceding the interest payment date , irrespective of any transfer of ownership hereof subsequent to the regular record date and prior to such interest payment date , by check or draft mailed to such registered owner at the address appearing on the registration books of the City maintained by the City Clerk as registrar. Any interest hereon not paid when due and any interest hereon accruing after maturity shall be paid to the registered owner of this Bond determined as of the close of business on the special record date , which shall be fixed by the City for such purpose , irrespective of any transfer of ownership of the Bond subsequent to such special record date and prior to the-date fixed by the City for the payment of such interest, by check or draft mailed as aforesaid . Notice of the special record date and of the date fixed for the payment of such interest shall be given by sending a copy thereof by first-class, postage prepaid mail , at least ten (10) days prior to the special record date, to Boettcher & Company, Denver , Colorado , and to the registered owner of each Bond upon which interest will be paid determined as of the close of business on the day preceding such mailing at the address appearing on the registration books of the City. -12- Whenever there are available in the Lemay/Harmony Special Improvement District NNo. 78 (Phase 1) , Special Assessment Bonds, Bond and Interest Fund hereinafter described sufficient funds derived from special assessments exceeding six months' interest on the unpaid principal of the Bonds of this issue then outstanding, it shall be the duty of the Finance Director of the City to call in and pay a suitable number of Bonds. Notice of such call shall be given by publishing a copy thereof for five (5) days in The Coloradoan, Fort Collins, Colorado, if then in business and publishing , and if not, then in some other official newspaper published in the City , and by sending a copy thereof by first-class postage prepaid mail, within ten (10) days after said publication, to Boettcher & Company , Denver, Colorado, and to the registered owners of each of the Bonds being redeemed determined as of the close of business on the date preceding the first publication of such notice at the address appearing on the registration books of the City. Said notice-shall specify by number the Bonds so called. Bonds of this issue so called shall be redeemed in regular numercial order at a price equal to the principal amount of each Bond so redeemed plus interest thereon as hereinafter provided . If this Bond shall have been duly called for redemption, this Bond shall become due and payable upon such redemption date , and interest shall cease to accrue hereon after the expiration of thirty (30) days from the first publication of the aforesaid notice . Failure to publish or mail any notice as aforesaid or any defect in any notice published or -13- mailed with respect to any Bond shall not affect the validity of the redemption proceedings with respect to any other Bond. This Bond is one of a series of special assessment bonds in the aggregate principal amount of $1,885, 000 issued for the purpose of defraying the costs of constructing and installing Phase 1 street and utility improvements in and for Lemay/Harmony Special Improvement District No. 78 by virtue of and in full conformity with the Constitution of the State of Colorado, the home rule Charter of the City, and Chapter 16 of the Code of the City and pursuant to and under the authority of an Ordinance duly adopted by the Council of the City prior to the issuance of this Bond. This Bond is not, and shall not be considered or taken to be , a general obligation or indebtedness of the City within the meaning of any requirement of or limitation imposed by law. This Bond and the interest hereon are payable solely from, and as security for such payment there is exclusively pledged, a special fund designated as the Lemay/Harmony Special Improvement District No. 78 (Phase 1) , Special Assessment Bonds, Bond and Interest Fund , into which there shall initially be deposited accrued interest and capitalized interest on the Bonds and any proceeds of the Bonds remaining in the Capital Projects Fund of the City after the cost of the aforesaid Phase 1 improvements has been paid in full and into which there shall thereafter be deposited moneys collected on account of assessments hereafter to be levied against the property within Lemay/Harmony Special Improvement District No . 78 and specially benefited by the -14- construction and installation of the Phase 1 improvements therein. As collateral security for the payment of a portion of the principal of and interest on the Bonds of this issue the owners of certain real property within the District to be assessed for the cost of the aforesaid Phase 1 improvements have deposited in escrow with United Bank of Fort Collins National Association for a period not exceeding three years from the date hereof irrevocable letters of credit with instructions that said letters of credit be delivered to the City and drawn to pay principal or interest on the Bonds of this issue if under specified circumstances said owners or their related companies or successors in title fail to pay when due any assessments levied against their respective properties. Bonds of this issue, together with bonds of other special or local improvement districts of • the City, are additionally secured by moneys deposited in the special Surplus and Deficiency Fund of the City. Whenever there is a deficiency in the Bond and Interest Fund for the payment of principal or interest on .this Bond , the deficiency is to be paid by transferring moneys from the special Surplus and Deficiency Fund to the Bond and Interest Fund. The Ordinance authorizing the issuance of this Bond provides that whenever three-fourths (3/4) of the Bonds of this issue have been paid and cancelled and for any reason the remaining assessments are not paid in time to redeem the remaining Bonds and to pay the interest thereon, and there are not sufficient funds in the special Surplus and -15- Deficiency Fund to do so , then the City shall pay the remaining Bonds when due and tle interest thereon, levy additional ad valorem taxes therefor, and reimburse itself by collecting the unpaid assessments due. The City covenants with the registered owner of this Bond that it will levy and collect the assessments against the property specially benefited and deposit the same into the Bond and Interest Fund and that it will diligently enforce the lien of any unpaid assessment against the property charged therewith. The City further covenants with the holder of this Bond that it will keep and perform all of the covenants of this Bond and of the Ordinance authorizing the issuance hereof . Reference is hereby made to said Ordinance for a description of the provisions, terms, and conditions upon which this Bond is issued and secured, including , without limitation, the nature and extent of the security for this Bond , the collection and disposition of the special assessments and moneys charged with and pledged to the payment of this Bond , the special funds referred to above, and the nature and extent of the security and pledge afforded thereby for the payment of this Bond , the rights, duties and obligations of the City and its Council, and the rights and remedies of the registered owner of this Bond . It is hereby recited, certified and warranted that the total issue of Bonds of the City for Lemay/Harmony Special Improvement District No. 78, including this Bond, does not exceed any limitation imposed by law; that every requirement of law relating to the creation of said District, the construction and -16- installation of the aforesaid Phase 1 improvements, the preparation for levying of the aforesaid assessments, and the issuance of this Bond has been fully complied with by the proper officers of the City; that all acts, conditions and things required by law to be done precedent to and in the issuance of this Bond have been properly done; and that this Bond does not contravene any constitutional or statutory provision of the State of Colorado or provision of the City Charter or ordinances. For the payment of this Bond and the interest hereon, the City pledges the exercise of all of its lawful corporate powers. REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS BOND SET FORTH ON THE REVERSE HEREOF. IN TESTIMONY WHEREOF, the City of Fort Collins, Colorado, has caused this Bond to be executed in the name and on behalf of the City with the facsimile signature of the Mayor of the City, to be sealed with a facsimile of the seal of the City, to be attested by the facsimile signature of the City Clerk of the City, and to be countersigned with the manual signature of the Finance Director of the City, all as of the lst day of October, . 1983. CITY OF FORT COLLINS, COLORADO (CITY) By: (Facsimile Signature) (SEAL) Mayor Attest: (Facsimile Signature) City Cler Countersigned: (Manual Signature) Finance Director -17- (Text of Reverse) This Bond is transferable only upon the registration books of the City at the office of the City Clerk by the registered owner hereof or by his or its duly authorized attorney-in-fact or legal representative , upon surrender hereof together with a written instrument of transfer duly executed by the registered owner or his or its duly authorized attorney-in-fact or legal representative with guaranty of signature satisfactory to the City Clerk, containing written instructions as to the details of the transfer, along with the social security number or federal employer identification number of the transferee and , if the transferee .is a trust, the names and social security numbers of the settlor and beneficiaries of the trust. Transfers shall be made without charge, except that the City Clerk may require payment of a sum sufficient to defray any tax or other governmental charge that may hereafter be imposed in connection with any transfer of Bonds. Upon such transfer the City Clerk i will enter the date of registration and the name, address, and social security number or federal employer identification number of the new registered owner of this Bond on the registration panel attached hereto. The City Clerk shall not be required to transfer ownership of any Bond during the five (5) days prior to the first publication of any notice of redemption or to transfer ownership of any Bond selected for redemption on or after the date of the first such publication. The City may deem and treat the person in whose name this Bond is last registered upon the books of the City as the absolute owner hereof for the purpose -18- of receiving payment of the principal of and interest on this Bond and for all other purposes, and all such payments so made to such person or upon his order shall be valid and effective to satisfy and discharge the liability of the City upon this Bond to the extent of the sum or sums so paid , and the City shall not be affected by any notice to the contrary. -19- (Registration Panel) This Bond No. _; which bears interest at the rate of — _% per annum, is registered in the office of the City Clerk of the City of Fort Collins, Colorado, as registrar, in the name of the owner listed below, and the principal of and interest on this Bond shall be payable only to such owner. Name , Address , and Date of Identification Number of Signature of Registration Registered Owner City Clerk [End of Form of Bond] -20- 9. The proceeds of the Bonds, excluding accrued interest and capitalized interest, shall be deposited into the Capital Projects Fund of the City (the Capital Projects Fund) , and thereafter said proceeds shall be used gnly to pay or reimburse the City for the costs and expenses of constructing and installing the Phase 1 Improvements. In the event that less than all of the proceeds of the Bonds are expended to pay such costs and expenses, any remaining sums shall be transferred upon completion of the Phase 1 Improvements to the Bond Fund and used for the purpose of calling in and paying the principal of and interest on the Bonds. Accrued interest and capitalized interest shall be deposited into the Bond Fund and applied for the payment of interest first due on the Bonds. 10. The Bonds and the interest thereon shall be payable solely from, and there is hereby created , the Bond Fund , into which there shall initially be deposited accrued interest and capitalized interest on the Bonds and any proceeds of the Bonds remaining in the Capital Projects Fund after the cost of the Phase 1 Improvements has been paid in full and into which there shall thereafter be deposited all moneys collected on account of assessments to be levied against the property within the District and specially benefited by the construction and installation of the Phase 1 Improvements therein. The moneys in the Bond Fund shall be used for the purpose of paying the principal of and interest on the Bonds and for no other purpose whatsoever until the Bonds, both principal and interest, have -21- been fully paid and discharged , and as security for such payment the Bond Fund is hereby exclusively pledged. 11. The Bonds shall be collaterally secured by the irrevocable letters of credit deposited in escrow with the Escrow Agent pursuant to the Escrow Agreement. The Mayor , the City Clerk, and the Finance Director are hereby authorized and directed to execute the Escrow Agreement and to perform all such acts as the City is required thereunder to perform for the benefit of the registered owners of the Bonds. 12. The Bonds, together with bonds of other special or local improvement districts of the City , shall be additionally secured by moneys deposited in the special Surplus and Deficiency Fund of the City (the Surplus and Deficiency Fund) . Whenever there is a deficiency in the Bond Fund for the payment of principal or interest on the Bonds, the deficiency shall be paid by transferring moneys from the Surplus and Deficiency Fund to the Bond Fund . Whenever three-fourths (3/4) of the Bonds have been paid and cancelled and for any reason the remaining assessments are not paid in time to redeem the remaining Bonds and to pay the interest thereon, and there are not sufficient funds in the Surplus and Deficiency Fund to do so , then the City shall pay the remaining Bonds when due and the interest thereon, levy additional ad valorem taxes therefor , and reimburse itself by collecting the unpaid assessments due. 13. The Bonds, when executed and registered as provided herein and in the Code, shall be delivered by any one of the officers of the City to the Purchaser upon payment to the City -22- of the purchase price therefor. The proceeds derived from the sale of the Bonds shall be used exclusively for the purposes stated herein; provided, however that any portion of such proceeds may be temporarily invested pending such use in securities or obligations which are lawful investments for the City with such temporary investments to be made consistent with the covenant hereinafter made concerning arbitrage bonds. Neither the Purchaser nor. the registered owner of any Bond shall be in any way responsible for the application of the proceeds of the Bonds by the City or any of its officers. 14. The City covenants that it will make no investment or other use o.f the proceeds of the Bonds at any time during the term thereof which, if such investment or other use had been reasonably expected on the date the Bonds are issued, would have caused the Bonds to be arbitrage bonds within the meaning of Section 103(c) of the Internal Revenue Code of 1954, as amended, and the regulations promulgated thereunder , unless , under any provision of law hereafter enacted, the interest paid on the Bonds shall be excludible from the gross income of a recipient thereof for federal income tax purposes without regard to whether or not the Bonds are arbitrage bonds or shall be exempt from all federal income taxation. 15. The Council shall cause the assessments to be levied and collected as provided by law for the benefit of the registered owners of the Bonds. All assessments made , together with all interest thereon and penalties for default in payment thereof , shall be a lien in the several amounts assessed against -23- each property from the date of the publication of the assessing ordinance and shall be a first and prior lien over all other liens excepting general tax liens. The Council will further cause the lien of any unpaid assessment to be diligently enforced against the property charged therewith. 16. So long as any of the Bonds remain outstanding , the City will keep or cause to be kept by Larimer County, Colorado (the County) , true and accurate books of records and accounts showing full and true entries covering the collection and disposition of the assessments and any delinquencies in the collection thereof , covering deposits and disbursements in each of the special funds herein described, covering the payment of the Bonds, both principal and interest , and covering disbursements to defray the costs and expenses of the Phase 1 Improvements. If any such books covering collection and disposition of the assessments and any delinquencies in the collection thereof are kept by the County, the City shall arrange to receive from the County notice of any delinquency in the payment of any assessment levied against any lot or tract of land located within the District owned by one of the Developers on or after the date of the Escrow Agreement to enable the City promptly to exercise any rights and duties it may have under the Escrow Agreement. The City will permit inspection and examination of all such books and notices maintained or received by the City at any reasonable time by the Purchaser or the registered owner of any Bond. -24- 17. The registered owner of any Bond shall have the right and power for the equal benefit and protection of all registered owners of Bonds similarly situated: a. By mandamus or other suit, action, or proceeding at law or in equity to enforce his rights against the City and to require and compel the City to perform and carry out its duties, obligations, or other commitments under this Ordinance and under its covenants and agreements with the registered owners of the Bonds; b. By action or by suit in equity to require the City to account as if it were the trustee of an express trust; c . By action or by suit in equity to have appointed a receiver , which receiver may take possession of any accounts and may collect, receive, and apply all revenues or other moneys pledged for the payment of the Bonds in the same manner as the City itself might do; d. By action or by suit in equity-to enjoin any acts or things which might be unlawful or might be in violation of the rights of the registered owners of the Bonds; and e. . To bring suit upon the Bonds. No right or remedy conferred by this Ordinance upon the registered owner of any Bond or any trustee therefor is intended to be exclusive of any other right or remedy, but each such right or remedy is cumulative and is in addition to every other right or remedy and may be exercised without exhausting and without regard to any other remedy conferred by this Ordinance or by any other law. The failure of the registered owner of any -25- Bond so to proceed as provided herein shall not relieve the City of any obligation to 'perform or to carry out any duty, obligation, or other commitment. 18. This Ordinance is, and shall constitute , a legislative measure of the City, and after the Bonds are issued , sold , and outstanding , this Ordinance shall constitute a contract between the City and the registered owners of the Bonds, and shall be and remain irrepealable until the Bonds and the interest thereon shall have been fully paid , satisfied and discharged . - 19. Pursuant to the Uniform Facsimile Signature of Public Officials Act, part 1 of article 55 of title 11, Colorado Revised Statutes 1973, as amended, the Mayor and the City Clerk of the City shall forthwith, but in any event prior to the delivery of the Bonds to the Purchaser, file with the Colorado Secretary of State their manual signatures and an impression of the seal of the City, certified by them under oath, using a Facsimile Signature Certificate for this purpose . 20. The officers of the City are hereby authorized and directed to enter into such agreements and take all action necessary or appropriate to effectuate the provisions of this Ordinance and to comply with the requirements of law, including without limiting the generality of the foregoing: a. The printing of the Bonds, including the printing upon each of the Bonds of a copy of the approving legal opinion of Ballard , Spahr, Andrews & Ingersoll , bond counsel, duly certified by the City Clerk; and -26- b. The execution of such certificates as may be required by the Purchaser relating to the signing of the Bonds, the tenure and identity of the City officials, if in accordance with the facts, the absence of litigation, pending or threatened , affecting the validity of the Bonds, the exemption of the interest on the Bonds from federal income taxation, and receipt of the Bond purchase price and of the Bonds, using a Signature Certificate, a General and No-Litigation Certificate , a Certificate as to Amount and Use of Bond Proceeds, and a Delivery Certificate for these purposes; and c .. The preparation of a Preliminary Official Statement and a final Official Statement relating to the Bonds; and d . The making of various statements, recitals, certificates and warranties provided in the form of Bond set forth in this Ordinance; and e . The payment of the interest on the Bonds as the same shall become due and the principal of the Bonds at maturity or upon prior redemption without further warrant or order. 21. All action heretofore taken by the City and by the officers thereof not inconsistent herewith directed toward the creation of the District, the construction and installation of the Phase 1 Improvements therein, and the authorization and sale of the Bonds is hereby ratified, approved and confirmed. -27- 22. All acts, orders, resolutions, ordinances, or parts thereof, taken by the City and in conflict with this Ordinance are hereby repealed , except that this repealer shall not be construed so as to revive any act, order, resolution, ordinance, or part thereof , heretofore repealed . 23. If any paragraph, clause or provision of this Ordinance is judicially adjudged invalid or unenforceable , such judgment shall not affect, impair or invalidate the remaining paragraphs, clauses or provisions hereof , the intention being that the various paragraphs, clauses or provisions hereof are severable. INTRODUCED, READ, APPROVED ON FIRST READING, AND ORDERED PUBLISHED ONCE IN FULL THIS 6th day of September, 1983. CITY OF FORT COLLINS , COLORADO By: 7/V (CITY) 01� (SEAL) Attest: AXMI%J�Ay-\ City C er c The foregoing Ordinance will be presented for final passage at a regular meeting of the Council , to be held at Council Chambers, City Hall, 300 LaPorte Avenue, Fort Collins, Colorado, on Tuesday, the 20th day of September, 1983, at 5: 30 p.m. -28- READ, FINALLY PASSED ON SECOND READING, AND ORDERED PUBLISHED ONCE BY NUMBER AND TITLE ONLY this 20th day of September, 1983. CITY OF FORT COLLINS, COLORADO By: (CITY) M r (SEAL) Attest: City C1 t -29- Council Member Elliott moved that the foregoing Ordinance heretofore introduced and read by title be approved on first reading . Council Member Ohl son seconded the motion. The question being upon the approval on first reading of the Ordinance , the roll was called with the following results : Council Members voting "AYE" : John Knezovich Gerald Horak E. John Clarke William Elliott Kelly Ohlson Barbara Rutstein Ed Stoner Council Members voting "NAY" . None The Mayor thereupon declared that , a majority of the Council Members having voted in favor thereof , the motion was carried and the Ordinance duly approved on first reading . Thereupon the Mayor ordered said Ordinance published once in full together with a notice giving the date when said Ordinance will be presented for final passage in The Coloradoan, a newspaper of general circulation published in the City , at least seven (7) days before presentation for final passage . -30- After consideration of other business to come before the Council, the meeting was adjourned. ay (CITY) Ci of Fort Collins, Colorado (SEAL) Attest: AA City Clerk City of Fort Collins, Colorado -31- STATE OF COLORADO ) COUNTY OF LARIMER ) ss. CITY OF FORT COLLINS ) The Council of the City of Fort Collins, Colorado, held a regular meeting at Council Chambers , City Hall , 300 LaPorte Avenue , Fort Collins, Colorado , on Tuesday, the 20th day of September , , 1983 , at the hour of 5 : 30 p.m. The following persons were present: Council Members : John Knezovich, Mayor Gerald Horak, Assistant Mayor E. John Clarke Kelly Ohlson Barbara Rutstein Ed Stoner City Manager : John E. Arnold Deputy / City Clerk : The followingMolly Davis persons were absent: t: William Elliott The Mayor informed the Council that Ordinance No. 117 1983, which was introduced, approved on first reading , and ordered published once in full at a regular meeting of the Council, held on September 6, 1983, was duly published in The -32- Coloradoan, a newspaper of general circulation published in the City, in its issue of September 11 , 1983. Council Member Rutstein then read said Ordinance by its title. Thereupon, Council Member Rutstein moved the final passage of Ordinance No. 117 , 1983. Council Member 0h1son seconded the motion, and. the question being upon the final passage of said Ordinance , the roll was called with the following result: Council Members voting "AYE" : John Knezovich Gerald Horak E. John Clarke ) x Ix)= x)M X 14kb(+X Kelly Ohlson Barbara Rutstein Ed Stoner Council Members voting "NAY" : None The Mayor thereupon declared that a majority of the Council Members having voted in favor thereof , the motion was carried and the Ordinance finally passed . Thereupon the Mayor ordered said Ordinance published by number and title only together with a notice of the final passage of the Ordinance in The Coloradoan, a newspaper of general circulation published in the City , within five (5) days after said final passage'. -33- After consideration of other business to come before the Council the meeting was adjourned. /R-ayo r of Fort Coll ' , Colorado (CITY) C (SEAL) Attest: City C1 c City of Fort Collins, Colorado -34- STATE OF COLORADO ) COUNTY OF LARIMER ) ss. CITY OF FORT COLLINS ) I . Wanda M. Krajicek, City Clerk of the City of Fort Collins , Colorado, do hereby certify that the attached copy of Ordinance No. 117 , 1983, is a true and correct copy; that said Ordinance was introduced and approved on first reading by the Council of the City of Fort Collins, Colorado, at a regular meeting thereof , held at Council Chambers, City Hall, 300 LaPorte Avenue, Fort Collins, Colorado, the regular meeting place thereof , on Tuesday, the 6th day of September , 1983 ; that said Ordinance was finally passed on second reading by said Council at a regular meeting of thereof , held at Council Chambers, City Hall, 300 LaPorte Avenue, Fort Collins, Colorado, the regular meeting place thereof , on Tuesday, the 20th day of September, 1983; that a true copy of said Ordinance has been authenticated by the signatures of the Mayor of said City and myself as City Clerk thereof , sealed with the seal of the City, and numbered and recorded in a book marked "Ordinance Record" kept for that purpose in my office; and that said Ordinance was duly published once in full together with a notice giving the date when said Ordinance would be presented for final passage and once by number and title only together with a notice of the final passage thereof in The Coloradoan, a newspaper of general circulation published in the City, in its issues of Septemberll, 1983, and September 25 , 1983, as evidenced by the certificates -35- of the publisher attached hereto at pages 37 and 38. I further certify that the foregoing pages 1 through 34, inclusive, constitute a true and correct copy of the record of the proceedings of said Council at its aforesaid meetings, insofar as said proceedings relate to said Ordinance ; that said proceedings were duly had and taken, that the meetings were duly held; and that the persons were present at said meetings as therein shown. IN WITNESS WHEREOF, I have hereunto set my hand and. the seal of the City of Fort Collins, Colorado , this26thday of September, 1983. (CITY) City Clerk (SEAL) City of Fort Collins, Colorado Deputy Ci Clrrk City of Fort Collins, Colorado -36- STATE OF COLORADO ) COUNTY OF LARIMER ) ss. ) CITY OF FORT COLLINS ) (Attach affidavit of publication in full of Ordinance and notice giving date when Ordinance to be presented for final passage. ) -37- ORDINANCE NO. 117 , 1983 AN ORDINANCE AUTHORIZING THE ISSUANCE OF CITY OF FORT COLLINS , COLORADO, LEMAY/HARMONY SPECIAL IMPROVEMENT DISTRICT NO. 78 (PHASE 1) , SPECIAL ASSESSMENT BONDS, DATED OCTOBER 1, 1983, IN THE AGGREGATE PRINCIPAL AMOUNT OF $1 , 885, 000 ; PRESCRIBING THE FORM OF SAID BONDS; PROVIDING FOR THE PAYMENT OF SAID BONDS AND THE INTEREST THEREON; AND AUTHORIZING THE APPROPRIATE OFFICERS OF THE CITY TO ENTER INTO AN ESCROW AGREEMENT IN ORDER FURTHER TO SECURE SAID BONDS . READ, FINALLY PASSED ON SECOND READING, AND ORDERED PUBLISHED ONCE BY NUMBER AND TITLE ONLY this 20th day of September, 1983. CITY OF FORT COLLINS, COLORADO (CITY) Ma o (SEAL) Attest: /� -39- STATE OF COLORADO ) COUNTY OF LARIMER ) ss. CITY OF FORT COLLINS ) The Council of the City of Fort Collins, Colorado, held a regular meeting at Council Chambers , City Hall , 300 LaPorte Avenue, Fort Collins , Colorado , on Tuesday, the 6th day of September , .1983 , at the hour of 5 : 30 p.m. The following persons were present: Council Members : John Knezovich, Mayor Gerald Horak, Assistant Mayor E. John Clarke William Elliott Kelly Ohlson Barbara Rutstein Ed Stoner City Manager : John E. Arnold City Clerk : Wanda M. Krajicek The following persons were absent: None Council Member Elliott. introduced the following Ordinance , which was read .by title , copies of the full Ordinance having been available in the office of the City Clerk at least forty-eight (48) hours prior to the time said Ordinance was introduced for each Council Member and for inspection and copying by the general public: -1-