HomeMy WebLinkAbout1993-168-11/02/1993-SETTING FORTH THE INTENTION OF THE CITY OF FORT COLLINS, COLORADO TO ISSUE INDUSTRIAL DEVELOPMENT RE RESOLUTION 93-168
OF THE COUNCIL OF THE CITY OF FORT COLLINS,
COLORADO SETTING FOR THE INTENTION OF THE
CITY OF FORT COLLINS, COLORADO TO ISSUE
INDUSTRIAL DEVELOPMENT REVENUE BONDS FOR THE
PHELPS-TOINTON MILLWORK, LLC PROJECT
WHEREAS, representatives of Phelps-Tointon Millwork, LLC, a Colorado limited
liability company (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 acquiring, constructing, renovating and equipping manufacturing
facilities to be located near or at 1001 Buckingham in Fort Collins, Colorado,
subject to the willingness of the City to finance the project (the "Project") by
the issuance of industrial development revenue bonds, pursuant to the Colorado
County and Municipality Development Revenue Bond Act constituting Article 3,
Title 29, Colorado Revised Statutes, as amended (the "Act") ; and
WHEREAS, the 1001 Buckingham site is within the municipal boundaries of the
City; and
WHEREAS, the Company has represented to the City that the Project will
qualify as a project within the meaning of the Act; and
WHEREAS, the Council has considered the proposal and has concluded that the
economic benefits to be derived therefrom by the—Zlity 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 such revenue bonds.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS,
COLORADO:
Section 1. In order to induce the Company to locate and undertake the
Project, the City shall , subject to the provisions hereof, take all necessary and
advisable steps to effect the issuance of industrial development revenue bonds
(the "Bonds") pursuant to the Act in the maximum aggregate principal amount of
One Million Five Hundred Thousand Dollars ($1,500,000) or such lesser amount as
shall be determined and agreed upon by the Company and the City to finance the
Project.
•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 statues 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.
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 or review
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, if the project is approved by the City and the Bonds are
issued, the Company shall pay to the City at the time the Bonds are issued a fee
equal to the present value of 1/16 of 1% of the unpaid principal amount of the
Bonds at the end of each bond year.
Section 3. Prior to any execution of a financing 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. Prior to any further action by the Council , the Company shall
provide the City with the opinion of Fischer, Brown, Huddleson & Gunn, P.C. , as
Bond Counsel , or other nationally recognized bond counsel supporting the legality
of the financing of the Project and the utilization of bond proceeds for said
Project.
Section 5. Nothing contained in this Resolution shall constitute the debt
or indebtedness of the City within the meaning_ of any limitation of the
Constitution or statutes of the State of Col orado'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 6. 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 law, 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 said Bonds to be issued
pursuant hereto are not issued 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.
Nothing contained herein shall constitute a warranty or representation by the
City that the Bonds will receive from the State of Colorado any necessary
allocation of a portion of the private activity bond limit authorized for the
State of Colorado pursuant to the Internal Revenue Code of 1986, as amended. If
an allocation for the Project is necessary, the City shall use its best efforts
to secure from the State of Colorado such an allocation authorizing the issuance
of the Bonds from the State of Colorado private activity bond limit.
Section 7. All 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 8. 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 9. 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 uneforcability of such section,
paragraph, clause or provision shall not affect any of the remaining provisions
of this Resolution.
Section 10. For purposes of complying with Section 147(f) of the Internal
Revenue Code, prior to the issuance of the Bonds, this Council will conduct a
public hearing with respect to the Project and the use of proceeds of the Bonds,
notice of which hearing shall be published at least 14 days prior thereto for
purposes of approving the issuance of the Bonds in the maximum aggregate
principal amount of $1,500,000 and the use of the proceeds to finance the costs
of acquiring, constructing and equipping a manufacturing facility in the City,
which facility shall be owned and operated by the Company and used by the Company
in the manufacturing of custom cabinetry products and wooden athletic lockers.
Section 11. This Resolution shall take effect immediately upon its
introduction and passage.
Passed and adopted at a regular meeting of the City Council held this 2nd
day of November, A.D. 1993.
ATTEST: Mayor
City Clerk