HomeMy WebLinkAbout1989-154-09/05/2003-CONCERNING THE CITY OF FORT COLLINS, COLORADO INDUSTRIAL DEVELOPMENT REVENUE BONDS FOR THE CARSON, B RESOLUTION 89-154
OF THE COUNCIL OF THE CITY OF FORT COLLINS
CONCERNING THE CITY OF FORT COLLINS, COLORADO
INDUSTRIAL DEVELOPMENT REVENUE BONDS
FOR THE CARSON, BURGER & WEEKLY, INC. PROJECT
WHEREAS, on August 15, 1989, the Council of the City of Fort Collins
(the "City Council ") finally passed Ordinance No. 101, 1989, entitled "An
Ordinance Relating to the Issuance of Industrial Development Revenue Bonds
under the Provisions of the Colorado County and Municipality Development
Revenue Bond Act; Providing for the Issuance and Sale of City of Fort
Collins, Colorado, Industrial Development Revenue Bonds, Series 1989 (the
Carson, Burger & Weekly, Inc. Project) in the Principal Amount of
$1,400,000 for the Purpose of Loaning Funds to Lawcar, Inc. to Finance
Improvements Relating to Acquiring, Improving, Constructing, Installing and
Equipping a Manufacturing Facility in Fort Collins, Colorado; Approving and
Authorizing the Execution and Delivery of a Trust Indenture from the City
to Denver National Bank, as Trustee; Approving and Authorizing the
Execution and Assignment of a Loan Agreement and Note between Lawcar, Inc.
and the City; and Authorizing the Preparation and Execution of Certain
Related Documents and Instruments"; and
WHEREAS, the bond documents as drafted at the time of final passage
set forth terms that contemplated fixed interest rates on the Bonds; and
WHEREAS, after final passage, Lawcar, Inc. , a Colorado corporation
(the "Company") and Carson, Burger & Weekly, Inc. , a Kansas corporation
("CBW") and their underwriters determined to change the structure of the
Bonds to a variable interest rate structure.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT
COLLINS, COLORADO, as follows:
Section 1. That the variable interest rate structure as presented by
the Company and CBW includes the following features: (a) a provision for
the adjustment of such rate by First Interstate Bank of Denver, N.A. , as
Remarketing Agent, every February 1 and August 1, commencing on February 1,
1990; (b) the obligation of the City of Fort Collins (the "City") on any
interest payment date to direct, upon the request of the Company, a
conversion of the interest rate on the Bonds to a fixed rate for a term of
five (5) years or more; (c) the provision of liquidity and credit
facilities in the form of one (1) or more irrevocable letters of credit
issued by First Interstate Bank of Fort Collins, N.A. , and/or First
Interstate Bank of Denver, N.A. ; and (d) the inclusion of necessary
provisions in the documents related to the Bonds to implement such a
structure.
Section 2. That the interest rate structure as described in Section 1
hereof is within the purview of Ordinance No. 101, 1989, as adopted.
Section 3. That this Resolution is intended only to clarify the City
Council 's intent concerning Ordinance No. 101, 1989, and not to limit,
amend, modify, supersede or otherwise affect the terms of said Ordinance.
Section 4. That nothing contained in this Resolution shall constitute
a debt or indebtedness of the City within the meaning of any provision or
limitation of the state Constitution, statutes or the City's Charter, and
shall not constitute or give rise to a pecuniary liability of the City or a
charge against its general credit or taxing powers.
Section 5. 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 provisions shall not affect any of the
remaining provisions of this Resolution.
Section 6. That this Resolution shall take effect immediately upon
its introduction and passage.
Passed and adopted at a special meeting of the Council of the City of
Fort Collins held this 22nd day of August, A.D. 1989.
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mayor
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City Clerk