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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. 2 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 z Attest � ayor L/ \ + C: ,, Cie.v _UV- .t, g 3