HomeMy WebLinkAbout1995-047-04/18/1995-4470 SOUTH LEMAY AVENUE COURTNEY PARK APARTMENTS HOUSING REVENUE BONDS MULTIFAMILY REIMBURSE CAPITAL RESOLUTION 95- 47
DECLARING THE INTENT OF
THE COUNCIL OF THE CITY OF FORT COLLINS
TO ISSUE MULTIFAMILY HOUSING REVENUE BONDS
FOR COURTNEY PARK APARTMENTS; AND
DECLARING ITS INTENT TO REIMBURSE CERTAIN
CAPITAL EXPENDITURES BY ISSUING BONDS.
WHEREAS, Prime MFP Limited Partnership, an Illinois limited partnership (the
"Company"), has requested that the City of Fort Collins, Colorado (the "City"), issue tax-
exempt bonds (the 'Bonds") and loan the proceeds thereof to the Company to finance the costs
of acquiring and rehabilitating a 248-unit multifamily residential housing facility located at
4470 South Lemay Avenre within the City (the 'Project") to be owned and operated by the
Company; and
WHEREAS, the City desires to encourage the Company to proceed with the
Project in order to further the purposes of the County and Municipality Development Revenue
Bond Act, as amended (the "Act"); and
WHEREAS, no costs of the Project to be paid or reimbursed with proceeds of the
Bonds were paid by the Company more than 60 days prior to the date of this Resolution, other
than preliminary expenditures (not exceeding 20% of the aggregate issue price of the Bonds),
and such preliminary expenditures do not include costs of land acquisition or site preparation or
other costs of construction or acquisition of the Project.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY
OF FORT COLLINS, COLORADO, AS FOLLOWS:
Section 1. APPROVAL OF THE PROJECT: FINDINGS. Based upon the
information supplied by the Company, the City hereby approves the Project and makes the
following findings in connection therewith:
A. The Project constitutes a "project" for purposes of the Act in that
it consists of properties (other than inventories, raw materials and other working capital),
whether or not in existence, suitable or to be used for or in connection with residential facilities
for low- and middle-income families or persons intended for use as the sole place of residence
by the intended occupants; and
B. The Project will promote the public purposes of the Act and the
health, safety, welfare, convenience and prosperity of the inhabitants of the State of Colorado
by providing more adequate residential housing facilities for low- and middle-income families
and persons through the inducement of the Company to acquire and rehabilitate the Project in
the City.
Section 2. DECLARATION OF OFFICIAL INTENT TO FINANCE
CAPITAL EXPENDITURES. The City hereby approves the Company's request and the
issuance of the Bonds for the Project and declares its intention and reasonable expectation to use
the proceeds of the Bonds to pay the costs of the Project and to reimburse the Company for
expenditures for costs of the Project to the extent permitted by federal tax regulations and the
Act, such Bonds to be issued in compliance with the Act, and to be payable solely from the
revenues of the City to be derived from loan payments or other payments by the Company. The
City anticipates that the principal amount of the Bonds will not exceed $8,500,000.
Section 3. NO LIABILITY OF CITY. The Bonds shall be special, limited
obligations ofthe-City-and-shall-never constitute the debt or indebtedness-of the City within the-
meaning of any provision or limitation of the Constitution or statutes of the State of Colorado,
or the home rule charter of the City, and shall not constitute nor give rise to a pecuniary liability
or financial obligation of the City or a charge against the City's general credit or taxing powers,
nor shall the Bonds ever be deemed to be an obligation of any officer, agent or employee of the
City in such person's individual capacity, and no such person shall be subject to personal
liability by reason of the issuance of the Bonds.
Section 4. INDEMNITY AND COSTS. The Company will indemnify and
hold harmless the City and all of its officers, agents or employees as will be set forth in the
transaction documents. No costs are to be borne by the City in connection with this transaction.
Section 5. AUTHORITY. For purposes of the Act, the Bonds shall be issued
pursuant to an ordinance of the City Council hereafter to be adopted.
Section 6. INCIDENTAL ACTION. The proper officials of the City are
hereby authorized and directed to take or approve the taking-6f such_actions-as-may be necessary-
or appropriate on its part in order to accomplish he purposes of this Resolution and to preserve
the ability of the Company to finance its capital expenditures in accordance with the federal tax
regulations, including applying to the Colorado Department of Local Affairs for an allocation
of the private activity bond ceiling from the statewide balance or applying to the Colorado
Housing and Finance Authority for financing assistance.
Section 7. NO OBLIGATION OF CITY. 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 Internal Revenue Code of 1986, as amended, and the
regulations promulgated thereunder as existing on the date of the issuance of the Bonds.
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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 8. EFFECTIVE DATE: REPEAL. This Resolution shall take effect
immediately upon its adoption, and all prior resolutions or portions thereof inconsistent herewith
are hereby repealed.
PASSED AND AROPT_ED at a mar meeting-of-the,City Oouncil_held this 18th
day of April, 1995.
CITY OF.FO OLLINS GO ORADO
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Attest � ayor
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