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HomeMy WebLinkAbout1995-130-09/05/1995-I-25 AND PROSPECT ROAD INTENT TO ISSUE QUALIFIED SECTION 501(C)(3) REVENUE BONDS ROCKY MOUNTAIN AQUA RESOLUTION 95-130 OF THE COUNCIL OF THE CITY OF FORT COLLINS, COLORADO SETTING FORTH THE INTENTION OF THE CITY OF FORT COLLINS, COLORADO TO ISSUE QUALIFIED SECTION 501(c)(3) BONDS FOR THE ROCKY MOUNTAIN AQUARIUM FOUNDATION, INC. PROJECT WHEREAS,representatives of Rocky Mountain Aquarium Foundation,Inc.,a Colorado non- profit corporation and qualified Section 501(c)(3) organization ("RMAF") have met with officials of the City of Fort Collins, Colorado (the "City"), and have advised the City of the interest of RMAF in acquiring, constructing, and equipping aquarium facilities (the "Project") to be located near the intersection of I-25 and Prospect Road in the City, subject to the willingness of the City to finance the Project by the issuance of qualified Section 501(c)(3) 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 site is within the municipal boundaries of the City; and WHEREAS, RMAF 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 believes that the economic, recreational, education, and social benefits to be derived therefrom by the City may be substantial; and WHEREAS, the Council believes that the Project may be consistent with the goals and objectives of the City; and WHEREAS, the Council wishes to receive input and recommendations from various Boards and Commissions of the City with regard to the Project; and WHEREAS, the Council wishes to proceed with passage of the Resolution to indicate its preliminary intent to proceed with financing the Project through the issuance of such revenue bonds, subject to the terms and conditions stated below. Section 1. In order to induce RMAF 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 qualified Section 501(c)(3) bonds (the "Bonds") pursuant to the Act in the maximum aggregate principal amount of Eighteen Million Dollars ($18,000,000) or such lesser amount as shall be determined and agreed upon by RMAF and the City to finance the Project. The Bonds will not constitute any general obligation 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 statutes 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 to RMAF 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 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 RMAF. 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, RMAF shall provide the City with the opinion of Fischer, Brown, Huddleson & Gunn, P.C. as 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 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. Section 6. All commitments of the City contained herein are subject to the condition that within said twenty-four(24)months of the date hereof,or such shorter period of time available under applicable law, unless otherwise extended by agreement between the City and RMAF, 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 twenty-four (24) months, or such shorter period of time available under applicable law, the City of Fort Collins shah be under no obligation to perform any of the terms and conditions contained herein. The City has been informed by RMAF that the Bonds will not require any 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. 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 S. 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 unenforceability of such section, paragraph, clause or provision shall not atffect any of the remaining provisions of this resolution. Section 10. The Council will conduct a public hearing prior to the issuance of the Bonds with respect to the Project and the use of proceeds of the Bonds, notice of which hearing will be published at least 14 days prior thereto for purposes of approving the issuance of the Bonds in the maximum aggregate principal amount of$18,000,000. Section 11. Prior to issuance of the Bonds, the RMAP shall commission and complete a feasibility study of the Project. The study shall be performed by an independent third party as mutually agreed upon with the City. All costs of the study shall be paid for by RMAR Passed and adopted at a regular meeting of the City Council I its 5th day of S nber, A.D. 1995. 'Mayor ATTEST: City Clerk