HomeMy WebLinkAbout1991-163-12/17/1991-$7,000,000 ESCROW DEPOSIT AGREEMENT INDUSTRIAL DEVELOPMENT REVENUE OLD TOWN PROJECT I REFUNDING BOND RESOLUTION NO. 91- 163
A RESOLUTION AUTHORIZING THE EXECUTION OF AN
ESCROW DEPOSIT AGREEMENT PROVIDING FOR THE
DEFEASANCE OF THE CITY OF FORT COLLINS,
COLORADO, INDUSTRIAL DEVELOPMENT REVENUE
REFUNDING BONDS (OLD TOWN FORT COLLINS
PROJECT I) , SERIES 1986, DATED OCTOBER 1,
1986, IN THE AGGREGATE PRINCIPAL AMOUNT OF
$7, 000, 000 AND THE RELEASE OF CERTAIN LIENS
ENCUMBERING THE PROJECT FINANCED THEREBY.
WHEREAS, the City of Fort Collins, Colorado (the
"City") , has heretofore issued its Industrial Development Revenue
Refunding Bonds (Old Town Fort Collins Project I) , Series 1986,
dated October 1, 1986, in the aggregate principal amount of
$7 , 000, 000 (the "Bonds") for the purpose of refinancing Old Town
Fort Collins Project I (the "Project") for Old Town Partners I
Limited Partnership, a Wisconsin limited partnership (the
"Original Developer") ; and
WHEREAS, the Bonds are secured by a Refinancing
Agreement, dated as of October 1, 1986 (the "Refinancing
Agreement") , between the City and the Original Developer; and
WHEREAS, the Bonds are collaterally secured by Surety
Bond No. 1667111-1R issued by Continental Casualty Company, an
Illinois insurance company (the "Surety") ; and
WHEREAS, following default by the Original Developer in
the payment of its obligations under the Refinancing Agreement,
the Project was acquired through foreclosure by Fort Collins Old
Town I, an Illinois corporation (the "Corporation") , a subsidiary
of the Surety; and
WHEREAS, the Corporation has entered into a contract
with a prospective purchaser for the sale of the Project which
requires that the Bonds be defeased and that certain liens
encumbering the Project be released; and
WHEREAS, there has been filed with the City Clerk the
form of an Escrow Deposit Agreement, dated as of December 1, 1991
(the "Agreement") , among the City, United Bank of Denver National
Association, as trustee (the "Trustee") , and the Corporation,
providing for the defeasance of the Bonds and the release of
certain liens encumbering the Project.
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT
COLLINS, COLORADO, THAT:
1. The Mayor and the City Clerk are hereby authorized
to execute the Agreement on behalf of the City in substantially
the form heretofore filed with the City Clerk with such changes
thereto as may be necessary to accomplish the purposes thereof as
approved by the City Attorney and the City's bond counsel.
2 . All action not inconsistent with the provisions of
this Resolution heretofore taken by the City or its officers
directed toward the authorization and execution of the Agreement
is hereby ratified, approved and confirmed.
3 . All resolutions, bylaws, orders and other
instruments, or parts thereof, inconsistent herewith are hereby
repealed to the extent only of such inconsistency. This repealer
shall not be construed to revive any resolution, bylaw, order or
other instrument, or part thereof, heretofore repealed.
4. If any section, subsection, paragraph, clause or
other provision of this Resolution shall for any reason be held
to be invalid or unenforceable, the invalidity or
unenforceability thereof shall not affect any of the remaining
sections, subsections, paragraphs, clauses or provisions of this
Resolution.
5. This Resolution shall take effect immediately upon
its adoption.
READ, PASSED AND ADOPTED this 17th day of December,
1991.
CITY OF FORT COLLINS, COLORADO
By.
(CITY)
Mayor-
(SEAL)
ATT�EST:
i,City Clerk
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