HomeMy WebLinkAbout1988-127-08/16/1988-AMENDMENTS BONDS IDRB LOAN AGREEMENT OPERA HOUSE PROJECT SUPPLEMENTAL INDENTURES RESOLUTION 88-127
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING THE EXECUTION AND DELIVERY OF
THIRD AND FOURTH SUPPLEMENTAL
INDENTURES AND THIRD AND FOURTH AMENDMENTS TO
LOAN AGREEMENT AND OTHER DOCUMENTS RELATING
TO THE CITY'S INDUSTRIAL DEVELOPMENT REVENUE
BONDS (THE OPERA HOUSE PROJECT) SERIES 1986
WHEREAS, pursuant to the Colorado County and Municipality Development
Revenue Bond Act, as amended (the "Act") , Ordinance No. 196, 1986 adopted
by the City Council (the "Council ") of the City of Fort Collins, Colorado
(the "City") on December 16, 1986, and an Indenture of Trust dated as of
December 15, 1986, as supplemented by First and Second Supplemental
Indentures (collectively, the "Indenture") , between the City and United
Bank of Fort Collins National Association, as Trustee (the "Trustee") , the
City issued its Industrial Development Revenue Bonds (The Opera House
Project) Series 1986, in the aggregate principal amount of $5.800.000 (the
"Bonds") , and pursuant to a Loan Agreement dated as of December 15, 1986,
as amended by First and Second Amendments to Loan Agreement (collectively,
the "Loan Agreement") , between the City and Historical Opera House
Properties, Ltd. , a Colorado limited partnership (the "Partnership") , the
City loaned the proceeds of the Bonds to the Partnership for the purpose of
financing the Project (as defined in the Loan Agreement) ; and
WHEREAS, Bankers Trust Company ("Bankers") in order to secure payment
of the Bonds, previously delivered its Restated Irrevocable Letter of
Credit dated December 23, 1986 (the "Bankers Letter of Credit") , which
expires September 12, 1988; and
WHEREAS, the Partnership has requested that certain provisions of the
Indenture and the Loan Agreement be amended (a) by a Third Supplemental
Indenture (the "Third Supplemental Indenture") and a Third Amendment to
Loan Agreement (the "Third Amendment to Loan Agreement") in order to
facilitate the extension of the Bankers Letter of Credit and (b) by a
Fourth Supplemental Indenture (the "Fourth Supplemental Indenture") and a
Fourth Amendment to Loan Agreement (the "Fourth Amendment to Loan
Agreement") in order to facilitate the conversion of the interest rate on
the Bonds to a Fixed Rate under the Indenture, the provision for amortizing
principal of the Bonds, and the replacement of the Bankers Letter of Credit
with other security for the Bonds, including a mortgage on the Project and
standby purchase agreements or letters of credit (the "Substitute
Security") to be provided by United Bank of Fort Collins National
Association and other banks.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT
COLLINS, COLORADO AS FOLLOWS:
Section 1. Approval of Documents and Execution Thereof• Changes. The
Mayor and City Clerk are hereby authorized and directed to execute a Third
Supplemental Indenture and a Third Amendment to Loan Agreement and affix
the seal of the City thereto. Upon provision of the Substitute Security
and confirmation of a limited remarketing to accredited or sophisticated
investors, both of which shall be satisfactory to the City Attorney and the
Finance Director, the Mayor and the City Clerk are hereby authorized and
directed to execute a Fourth Supplemental Indenture and a Fourth Amendment
to Loan Agreement and affix the seal of the City thereto. It is the
purpose and intent of this Resolution to approve changes or additions to
the Bonds and related documents to the extent necessary to effect the
extension of the Bankers Letter of Credit for the Bonds until the revised
conversion date, and thereafter the naming of a successor trustee to be
designated by the Partnership, the removal of Bankers and the Bankers
Letter of Credit, the inclusion of the Substitute Security, the
amortization of principal of the Bonds, the conversion to a Fixed Rate and
the provision of permanent financing for completion of the Project on terms
acceptable to the owner of the Bonds. The Third and Fourth Supplemental
Indentures and the Third and Fourth Amendments to Loan Agreement are to be
executed in substantially the forms of Second and Third Supplemental
Indentures and Amendments to Loan Agreement previously submitted to the
Council and approved by Resolution No. 88-99 adopted June 14, 1988,
provided that such documents may be further completed, corrected or revised
as deemed necessary or convenient by the parties thereto in order to carry
out or assist in carrying out the purposes of this Resolution. The
execution of any instrument by the appropriate officers of the City herein
authorized shall be conclusive evidence of the approval by the City of such
instrument in accordance with the terms hereof.
Section 2. Incidental Action. The Mayor and the City Clerk are
further authorized and directed to execute such other documents,
instruments or certificates as are deemed necessary or desirable by bond
counsel in order to effectuate the execution and delivery of the Third and
Fourth Supplemental Indentures and the Third and Fourth Amendments to Loan
Agreement and the revised forms of the Bonds contained therein. The
approval hereby given to the forms of such documents includes the approval
of such additional details therein as may be necessary and appropriate for
their completion and such modifications thereof. deletions therefrom, and
additions thereto as may be approved by the City Attorney prior to the
execution of the documents.
Section 3. Effective Date: Repeal . This Resolution shall take effect
immediately upon its adoption, and all prior resolutions or parts thereof
inconsistent herewith are hereby repealed.
Passed and adopted at a regular meeting of the Council of the City of
Fort Collins this 16th day of August, A.D. 1988.
Mayor
TTEST:
City Clerk