HomeMy WebLinkAbout1985-220-11/19/1985-SETTING FORTH THE INTENTION OF THE CITY TO ISSUE INDUSTRIAL DEVELOPMENT REVENUE BONDS FOR REFUNDING RESOLUTION 85-220
OF THE COUNCIL OF THE CITY OF FORT COLLINS
SETTING FORTH THE INTENTION
OF THE CITY OF FORT COLLINS, COLORADO
TO ISSUE INDUSTRIAL DEVELOPMENT REVENUE BONDS
FOR REFUNDING OF
CITY OF FORT COLLINS, COLORADO
INDUSTRIAL DEVELOPMENT REVENUE BONDS SERIES 1983
(OLD TOWN FORT COLLINS PROJECT I)
WHEREAS, the City of Fort Collins, Colorado (the "City" ) issued and
sold its City of Fort Collins, Colorado Industrial Development Revenue
Bonds Series 1983 (Old Town Fort Collins Project I) (the "1983 Bonds")
under an Indenture of Trust, dated as of December 1, 1983, between the City
and United Bank of Fort Collins, National Association, as Trustee (the
"Indenture") ; and
WHEREAS, the proceeds from the sale of the 1983 Bonds were loaned to
Old Town Partners I, a Wisconsin Limited Partnership (the "Partnership"),
for the purpose of financing a project consisting of the acquisition,
construction and equipment of a parcel of land, buildings and other
improvements thereon, suitable for retail and office space (the "1983
Project"), pursuant to the Colorado County and Municipality Development
Revenue Bond Act as set forth in Article 3, Title 29, Colorado Revised
Statutes 1973, as amended (the "Act") ; and
WHEREAS, the aggregate principal amount outstanding on the 1983 Bonds
is $7, 105,000; and
WHEREAS, the 1983 Bonds are subject to redemption prior to maturity
under the terms of the Indenture on any December 1 or June 1 on or after
December 1, 1985 and before November 30, 1988 or any time on or after
December 1, 1990 and before November 30, 1993; and
WHEREAS, the Partnership has advised the City of the benefits to be
derived from refunding, paying and discharging the 1983 Bonds in order to
reduce the net effective interest rate, reduce the total interest payable
by issuing bonds at a lower net interest cost or having a lower net
effective interest rate; reduce the total principal and interest payable
thereon in any particular year or years or effect other economies ; or any
combination of the foregoing ; and
WHEREAS, the Partnership desires to have the City refund the 1983
bonds by the issuance of refunding bonds pursuant to §29-3-116, C.R.S.
1973, as amended ; and
WHEREAS, the City Council of the City (the "City Council " ) desires to
indicate its intent to proceed with refunding of the 1983 Bonds through the
issuance of refunding bonds.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FORT
COLLINS, COLORADO:
Section 1. In order to refund, pay and discharge the 1983 Bonds, the
City shall , subject to the provisions hereof, take all necessary or
advisable steps to effect the issuance of refunding bonds (the "1985
Refunding Bonds" ) pursuant to the Act in the maximum aggregate principal
amount of Eight Million Dollars ($8,000,000.00) or such lesser amount as
shall be determined and agreed upon by the Partnership and the City. The
1985 Refunding Bonds will not be general obligations of the City. The 1985
Refunding Bonds, including interest thereon, shall not 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 1985 Refunding Bonds
shall be payable solely from and secured by a pledge of revenues derived
from and payable by the Partnership pursuant to financing agreements with
the City.
Section 2. No cost or expenses, whether incurred by the City or any
other party in connection with the issuance of the 1985 Refunding Bonds,
the preparation of any documents relating thereto, or in connection with
services provided 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 1985 Refunding Bonds or
otherwise borne by the Partnership.
Section 3. Prior to the execution of a financing agreement, mortgage
and indenture of trust, bond purchase agreement or any other necessary
documents and agreements in connection with such 1985 Refunding 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 City Council pursuant to law.
Section 4. 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 5. Prior to further action by the City Council , the applicant
shall furnish a recognized bond counsel opinion supporting the legality of
the refunding of the 1983 Bonds and utilization of the proceeds of the 1985
Refunding Bonds.
Section 6. All 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 resolution, or part
thereof, heretofore repealed.
Section 7. All commitments of the City contained herein are subject
to the condition that within thirty-six (36) months of the date hereof,
unless otherwise extended by agreement between the City and the
Partnership, the bonds to be issued pursuant hereto shall be issued and
sold. In the event that said bonds are not issued and sold within
thirty-six (36) months, the City of Fort Collins shall be under no
obligation to perform any of the terms and conditions contained herein.
Section 8. If any section, paragraph, clause or provision of this
resolution with the exception of any section, paragraph, clause or
provision of this resolution 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. This resolution shall take effect immediately upon its
introduction and passage.
Section 10. 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.
Passed and adopted at a regular meeting of the City Council held this
19th day of November, A.D. 1985.
hliyor
ATTEST:
City Clerk