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HomeMy WebLinkAbout1994-140-09/06/1994-MULTI-FAMILY HOUSING REVENUE BONDS TAX-EXEMPT BONDS WOODLANDS APARTMENTS WOODLANDS PARTNERSHIP RESOLUTION 94-140 OF THE COUNCIL OF THE CITY OF FORT COLLINS DECLARING THE INTENT OF THE COUNCIL OF THE CITY OF FORT COLLINS TO ISSUE MULTI-FAMILY HOUSING REVENUE BONDS FOR WOODLANDS APARTMENTS; AND DECLARING ITS INTENT TO REIMBURSE CERTAIN CAPITAL EXPENDITURES BY ISSUING BONDS WHEREAS, Woodlands Partnership (the "Company") has requested that the City of Fort Collins, Colorado (the "City") issue tax-exempt bonds and loan the proceeds of such bonds to the Company to finance the costs of constructing a 120- unit multifamily residential housing facility located on 8.2 acres at the northeast corner of South Shields Street and West Harmony Road 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") ; WHEREAS, no costs of the Project to be paid or reimbursed with proceeds of the proposed 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 tax-exempt bonds to be issued to finance the Project) , and such preliminary expenditures shall 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 Pro.iect: 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, 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 occupants; and b. The Project will promote the public purposes of the Act and the health, welfare, safety, 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 construct the Project in the City of Fort Collins, Colorado. Section 2. Declaration of Official Intent to Finance Capital Expenditures. The City hereby approves the Company's request and the issuance of bonds for the Project and declares its intention and reasonable expectation to use proceeds of tax-exempt bonds (the "Reimbursement Bonds") to reimburse the Company for expenditures for costs of the Project to the extent permitted by federal tax regulations and the Act, such bonds and Reimbursement 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 maximum principal amount of bonds issued to finance the Project, including Reimbursement Bonds, will not exceed Seven Million Dollars ($7,000,000) . Section 3. No Liability of City. Bonds issued by the City for the Project shall be special , limited obligations of the City and shall never constitute the debt or indebtedness of the City within the meaning of any provision or limitation of the State Constitution, statutes, 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 such 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 such 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. Full Authority: No Action to Contest. For purposes of the Act, the bonds for the Project 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 of such actions as may be necessary or appropriate on its part in order to accomplish the 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. 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 and the Reimbursement 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 and the Reimbursement Bonds. Nothing contained in this Resolution shall be construed as requiring the City to issue the bonds and the Reimbursement Bonds, and the decision to issue the bonds and the Reimbursement Bonds shall be in the complete discretion of the City. Section 8. Effective Date: Reveal . This Resolution shall take effect immediately upon its adoption, and all prior resolutions or portions thereof inconsistent herewith are hereby repealed. Passed and adopted at a regular meeting of the Co of the Cit rt Collins held this 6th day of September, A.D. 1994. " yor ATTEST: CityCity Clerk