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HomeMy WebLinkAbout1999-007-01/19/1999-SETTING FORTH THE INTENTION OF THE CITY TO ISSUE MULTI-FAMILY HOUSING REVENUE BONDS FOR THE CONCORDE RESOLUTION 99-7 OF THE COUNCIL OF THE CITY OF FORT COLLINS, SETTING FORTH THE INTENTION OF THE CITY TO ISSUE MULTI-FAMILY HOUSING REVENUE BONDS FOR THE CONCORDE CAPITAL CORPORATION PROJECT WHEREAS, representatives of Concorde Capital Corporation (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, and equipping a ranch and town home project (the "Project")to be near the corner of Redman and Conifer Streets,Fort Collins,Colorado, subject to the City's financing the Project by the issuance of multi-family housing 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 Project 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 benefits to be derived therefrom by the City will be substantial; and WHEREAS, the Council has determined that the Project is consistent with the goals and objectives of the City; and WHEREAS,the Company and the City staff are working with the State of Colorado,seeking to increase the City's private activity bond allocation sufficient to permit the issuance of multi- family housing revenue bonds for the Project; and WHEREAS, the Council desires to indicate its intent to proceed with financing the Project through the issuance of such revenue bonds, if the State of Colorado approves the necessary additional allocation for the City to use in connection with the Project. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS, COLORADO as follows: Section 1. That in order to induce the Company to undertake the Project, the City shall, subj ect to the provisions hereof,and,contingent upon the City obtaining sufficient additional private activity bond allocation from the State of Colorado,take all necessary and advisable steps to effect the issuance of multi-family housing revenue bonds (the "Bonds") pursuant to the Act in the maximum aggregate principal amount of Eleven Million Dollars ($11,000,000) 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,not 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. That 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 herewith shall be borne by the City. All such costs or expenses shall be paid from the proceeds of the Bond or otherwise borne by the Company. Section 3. That 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. That prior to any further action by the Council, the Company shall provide the City with an opinion of a qualified bond counsel, supporting the legality of the financing of the Project and the utilization of bond proceeds for said Project. Section 5. That 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 Colorado or the Charter of the City, not give rise to a pecuniary liability of the City or a charge against its general credit or taxing powers. Section 6. That 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 Bond will received from the State of Colorado any necessary allocation ofaportion 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 T That all resolutions or part thereof concerning the subject matter hereof in conflict with the 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. That 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. That if any section, paragraph, clause, of 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 10. That this Resolution shall take effect immediately upon its introduction and passage. Passed and adopted at a regular meeting of the City Counciield this 19th dayrâ–ºuary, A. D. 1999. Mayor ATTEST: -11. City Clerk