HomeMy WebLinkAbout1985-188-10/15/1985-SETTING FORTH THE INTENTION OF THE CITY OF FORT COLLINS TO ISSUE INDUSTRIAL DEVELOPMENT REVENUE BOND RESOLUTION 85 - 188
OF THE COUNCIL OF THE
CITY OF FORT COLLINS , COLORADO
SETTING FORTH THE INTENTION
OF THE CITY OF FORT COLLINS , COLORADO
TO ISSUE INDUSTRIAL DEVELOPMENT REVENUE BONDS
FOR TULAKES ASSOCIATES
WHEREAS , representatives of Tulakes Associates , a general
partnership ( 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 constructing an office and
manufacturing building in the City, subject to the willingness of
the City to finance the project ( the "Project" ) by the issuance
of industrial development 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 Company has represented to the City that the
Project will qualify as a project within the meaning of the Act ;
and
WHEREAS , the Project consists of the acquisition and
development of land and the construction and equipping of an
office and manufacturing building designed to house non-polluting
businesses and manufacturers which will create additional jobs
within the City; and
WHEREAS , the Council has considered the proposal and has
concluded that the economic benefits to be derived therefrom by
the City will be substantial ; and
WHEREAS , the Council has determined the Project to be
consistent with the goals and objectives of the City ; and
WHEREAS , the 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:
Section 1 . In order to induce the Company to locate and
construct the Project within the City, the City shall , subject to
the provisions hereof , take all necessary and advisable steps to
effect the issuance of industrial development revenue bonds ( the
"Bonds" ) pursuant to the Act in the maximum aggreqate principal
amount of Nine Hundred Twenty Thousand Dollars ( $920 , 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 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 Company pursuant to financing agreements with the City.
Section 2. 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. In
addition to the costs and expenses to be borne by the Company as
described in the preceding sentences , if the Project is approved
by the City and the Bonds are issued , the Company shall pay to
the City at the time the Bonds are issued a fee equal to the
present value of 1/16 of 1% of the unpaid principal amount of the
Bonds at the end of each bond year.
Section 3. 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 . Prior to any further action by the 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 bond proceeds for said Project.
Section 5. 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 . All commitments of the City contained herein are
subject to the condition that within twelve ( 12) months of the
date hereof , 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 ,
the City of Fort Collins , Colorado 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 Bonds will receive from the
State of Colorado an allocation of a portion of the private
activity bond limit authorized for the State of Colorado pursuant
to Section 621 of the Deficit Reduction Act of 1984 of the United
States of America . The City shall use its best efforts , however ,
to secure from the State of Colorado such an allocation
authorizing the issuance of the Bonds from the 1985 State of
Colorado private activity bond limit .
Section 7. All resolutions or parts thereof concerning the
subject matter hereof 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 8 . 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 . 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 10 . 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 October , 1985.
Pfayor
ATTEST:
City Clerk
TULSc