HomeMy WebLinkAbout1998-015-01/20/1998-SETTING FORTH THE INTENTION OF THE CITY TO ISSUE MULTI-FAMILY HOUSING REVENUE BONDS FOR THE RICHARDS RESOLUTION 98-15
OF THE COUNCIL OF THE CITY OF FORT COLLINS,
SETTING FORTH THE INTENTION OF THE CITY TO ISSUE MULTI-FAMILY
HOUSING REVENUE BONDS FOR THE RICHARDS LAKE TOWN HOMES PROJECT
WHEREAS,representatives of Wintergreen Homes VI LLC(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, construction,and equipping a town home project(the"Project")to be
located north and west of the intersection of County Roads 52 and 11 in the Richards Lake PUD,
Fort Collins, Colorado, subject to the City's financing the Project by the issuance of multi-family
housing revenue bonds,pursuant to the Colorado County and Municipality Development Revenue
Bond Act constituting Article 3, Title 29, Colorado Revised Statutes, as amended(the "Act"); and
WHEREAS,the Richards Lake PUD and the Project are within the municipal boundaries of
the City; and
WHEREAS, the Company has represented to the City that the Project will qualify as a
"project"within the meaning of the Act; and
WHEREAS,the Council has considered the proposal and has concluded that the benefits to
be derived therefrom by the City will be substantial; and
WHEREAS, the Council has determined that the Project is consistent with the goals and
objectives of the City; and
WHEREAS,the Company and the City staff are working with Larimer County and the State
of Colorado, seeking to increase the City's private activity bond allocation sufficient to permit the
issuance of multi-family housing revenue bonds for the Project; and
WHEREAS,the Council desires to indicate its intent to proceed with financing the Project
through the issuance of such revenue bonds, if Larimer County assigns its private activity bond
allocation and the State of Colorado approves the necessary additional allocation for the City to use
in connection with the Project.
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 to undertake the Project, the City shall,
subject to the provisions hereof, and, contingent upon the City's obtaining sufficient additional
private activity bond allocation through assignment of the same from Larimer County and additional
allocation of the same by the State of Colorado,take all necessary and advisable steps to effect the
issuance of multi-family revenue bonds(the"Bonds")pursuant to the Act in the maximum aggregate
principal amount of Four Million Two Hundred Fifty Thousand Dollars ($4,250,000) or such lesser
amount as shall be determined and agreed upon by the Company and the City to finance the Project.
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 statues of the State of Colorado or the Charter of the City,not 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 Company
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 herewith shall be borne by the City. All such costs or
expenses shall be paid from the proceeds of the Bond or otherwise borne by the Company.
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, and, if
satisfactory to the City,their execution shall be authorized by ordinance of the Council pursuant to
law.
Section 4. That prior to any further action by the Council, the Company shall provide the
City with an opinion of a qualified bond counsel, supporting the legality of the financing of the
Project and the utilization of bond 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 Charter of the City, not 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
within twelve (12) months of the date hereof, or such shorter period of time available under
applicable law, unless otherwise extended by agreement between the City and the Company, 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, or such shorter period of time available
under applicable law, the City of Fort Collins shall be under no obligation to perform any of the
terms and conditions contained herein. Nothing contained herein shall constitute a warranty or
representation by the City that the Bond will received from the State of Colorado any necessary
allocation of a portion of the private activity bond limit authorized for the State of Colorado pursuant
to the Internal Revenue Code of 1986,as amended. If an allocation for the Project is necessary, the
City shall use its best efforts to secure from the State of Colorado such an allocation authorizing the
issuance of the Bonds from the State of Colorado private activity bond limit.
Section 7. That all resolutions or part thereof concerning the subject matter hereof in conflict
with the Resolution are hereby repealed to the extent of such conflict. This repealer shall not be
construed to revive any resolution or part thereof,heretofore repealed.
Section 8. That the agreements of the City set forth above are expressly conditioned upon
the ability and willingness of the City to issue the bonds as tax exempt obligations under the Federal
Income Tax laws existing on the date of the issuance of the bonds. Nothing contained in this
resolution shall be construed as requiring the City to issue the bonds and the decision to issue the
bonds shall be in the complete discretion of the City.
Section 9. That if any section, paragraph, clause, of 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 10. 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 20th day of January,
A.D. 1998.
Mayor Pro TAM
ATTEST:
UL i& • . .
City Clerk