HomeMy WebLinkAbout1988-174-11/15/1988-TABLED RESOLUTION 88-174
OF THE COUNCIL OF THE CITY OF FORT COLLINS
SETTING FORTH THE INTENTION OF THE
CITY OF FORT COLLINS, COLORADO TO ISSUE
MULTIFAMILY HOUSING REVENUE BONDS FOR THE
OAKBROOK II APARTMENTS PROJECT
WHEREAS, representatives of Group B-W Holdings, Inc. (the "Company")
have met with officials of the City of Fort Collins, Colorado (the "City") ,
and have advised the City of the interest of the Company in acquiring, in
cooperation with CMD Association for Senior Housing, a nonprofit 501(c) (3)
entity (the "Exempt Entity"), a multifamily residential rental housing
project known as the Oakbrook II Apartments and located at 3300 Stanford
Road, Fort Collins, Colorado (the "Project") , subject to the willingness of
the City to finance that portion of the acquisition cost of the Exempt
Entity's interest in the Project as a development revenue bond project,
pursuant to the Colorado County and Municipality Development Revenue Bond
Act constituting Article 3, Title 29, Colorado Revised Statutes, (the
"Act") ; and
WHEREAS, the Company has represented to the City that the Project will
qualify as a "project" within the meaning of the Act and that the bonds to
be issued therefor will be "qualified 501(c)(3) bonds" within the meaning
of the Internal Revenue Code of 1986, as amended; and
WHEREAS, at all times while the bonds proposed to be issued by the
City in connection with the Project are outstanding, the Project will be
continuously occupied by persons of low and moderate income; and
WHEREAS, the City Council has considered the proposal and has
concluded that the economic benefits to be derived therefrom by the City
will be substantial and that the financing of the Exempt Entity's cost of
acquiring its interest in the Project with bonds as aforesaid will meet the
public purpose of providing decent, safe and sanitary housing for persons
of low and moderate income residing within the City; and"
WHEREAS, the City also views this as an opportunity to alleviate its
concerns about fire protection and life safety issues in the Project,
especially considering the large number of elderly and handicapped
residents; and
WHEREAS, the City Council has determined the Project to be consistent
with the goals and objectives of the City; and
WHEREAS, the City Council desires to indicate its intent to proceed
with financing the Project through the issuance of such revenue bonds.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT
COLLINS, COLORADO as follows:
Section 1. That, in order to induce the Company and the Exempt Entity
to acquire the Project within the City and operate the Project for the
purpose of providing housing for persons of low and moderate income and to
make important and desirable fire protection improvements in the
Project,the City shall , subject to the provisions hereof, take all
necessary and advisable steps to effect the issuance of multifamily housing
revenue bonds (the "Bonds") pursuant to the Act in the maximum aggregate
principal amount of Four Million Dollars (E4,000,000) or such lesser amount
as shall be determined and agreed upon by the Company and the City to
finance the cost of acquiring the Exempt Entity's interest in the Project.
The City will issue the Bonds only on the express condition that the
Company and the Exempt Entity agree to promptly install in the Project
sprinkler systems certified by the Fire Marshal as sufficient to bring the
Project into compliance with the appropriate provisions of the City Code
relating to fire protection.
The Bonds will not be general obligations 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 Home Rule 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 by the Exempt
Entity pursuant to financing agreements with the City.
Section 2. That 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
the Company or the Exempt Entity.
Section 3. That, 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 as
to their form and substance, and, if satisfactory to the City, their
execution shall be authorized by ordinance of the City Council pursuant to
law.
Section 4. That, prior to any further action by the City Council , the
Company shall provide the City with the opinion of a recognized Bond
Counsel supporting the legality of the financing of the Project and the
utilization of loan proceeds for said Project.
Section 5. That 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 Home Rule
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. That all commitments of the City contained herein are
subject to the condition that, unless otherwise extended by agreement
between the City and the Company, within twelve (12) months of the date
hereof 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 twelve (12) months, the City of Fort Collins shall be under no
obligation to perform any of the terms and conditions contained herein.
Section 7. That all orders, bylaws and resolutions, or parts thereof,
in conflict with this Resolution are hereby repealed to the extent of such
conflict. This repealer shall not be construed to revive any order, bylaw
or resolution, or part thereof, heretofore repealed.
Section 8. That, 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 affect any of the
remaining provisions of this resolution.
Section 9. That this Resolution shall take effect immediately upon
its introduction and passage.
Passed and adopted at a regular meeting of the City Council held this
15th day of November, A.D. 1988.
Mayor
ATTEST:
City Clerk