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HomeMy WebLinkAbout1984-180-11/20/1984-APPROVING A MULTI-FAMILY RESIDENTIAL HOUSING PROJECT FOR DRAKE LANDING ASSOCIATES, LTD., A COLORADO 4570A 11/08/84 CITY OF FORT COLLINS, COLORADO RESOLUTION NO. 84-180 A RESOLUTION APPROVING A MULTI-FAMILY RESIDENTIAL HOUSING PROJECT FOR DRAKE LANDING ASSOCIATES, LTD. , A COLORADO LIMITED PARTNERSHIP TO BE FORMED, AS OWNER, MAKING FINDINGS AND AUTHORIZING THE ISSUANCE OF REVENUE BONDS IN CONNECTION THEREWITH, AND AUTHORIZING REPRESENTATIVES OF THE ISSUER TO TAKE ACTION INCIDENTAL THERETO. WHEREAS , Drake Landing Developers , a Colorado joint venture, on behalf of Drake Landing Associates, Ltd. , a Colorado limited partnership to be formed (the "Company" ) , has requested of the City of Fort Collins , Colorado (the " Issuer") assistance in financing the acquisition, construction and installation of a multi-family residential rental housing project intended to be occupied by families or persons of low and middle income, to be owned by the Company and to be located within the boundaries of the Issuer (the "Project" ) ; and WHEREAS , Section 103 (b) ( 4) (A) of the Internal Revenue Code , as amended (the "Code") provides that interest on fully registered obligations issued by or on behalf of a state or political subdivision thereof , of which substantially all of the proceeds are used to provide projects for residential rental property shall be exempt from Federal income taxation if, among other requirements, at least 20 percent of the rental units are to be occupied by individuals of low or moderate income, within the meaning of Section 103 (b) (12) (C) of the Code during the qualified project period set forth in Section 103 (b) (12) (B) of the Code ; and WHEREAS, the Issuer desires to encourage the Company to proceed with the Project in order to further the purposes of the Colorado County and Municipality Development Revenue Bond Act (the "Act" ) ; and WHEREAS, no public official of the Issuer has exercised or will exercise any discretionary function on behalf of the Issuer with respect to the financing of the Project, has a personal financial interest in or will personally and financially benefit from the financing of the Project or has other conflicts of interest relating to the financing of the Project. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS , COLORADO , AS FOLLOWS : Section 1. Approval of the Project ; Findings. Based upon representat ions-Made "and- -'fnfarmation supplied by Drake Landing Developers , on behalf of the Company, the Issuer hereby approves the Project and makes thefollowing findings in connection therewith: A. - The Project constitutes a "project" for purposes of the Act in that_.it, . consists of land, , buildings and necessary real and personal properties, other---than inventories,....raw ,materials and other working_ capital , -suitable or to be used for or in connection with"a 'multi='family residential housing facility. B. The Project will promote the public purposes of the Act and the public health, welfare, safety, convenience and prosperity of the inhabitants of Colorado by providing more adequate residential housing facilities for low and middle income families or persons at rentals they can afford through the inducement o,f`. the Company to locate its residential rental property within the boundaries of the Issuer'. C. The Project is intended to be occupied by low and middle income families or persons as determined by the Issuer to lack the financial ability to pay rentals sufficient to induce private enterprise to build a sufficient supply of adequate, safe, and sanitary dwellings within the boundaries of the Issuer and at least 20 percent of the units in the Project are to be occupied by individuals of low or moderate income within the meaning of Section 103 (b) (12) (C) of the Code during the qualified project period set forth in Section- 103 (b) (12) (B) of the Code. Section 2. Authorization of Bond Financing . The Project is -hereby approved . The Issuer will issue its Multi-Family -'T4biising 'Revenue Bonds up to a maximum aggregate principal amount of $6, 500, 000 to finance the Project, such Bonds (a) to be issued in compliance with the Act , (b) to be subject to 1,such - terms 'and°' conditions as the, Company and the Issuer , by ordinance, shall approve , including contractual arrangement`s proyiding assurance -satisfactory-to the`-Issuer that the dwelling units in the Project will be occupied at all times by persons of low and middle income as determined by the City Council of the Issuer and , that at least 20 percent of the units in the Project will be occupied by individuals of low or moderate income within the meaning of Section 103 (b) (12) (C) of the Code at all times during the qualified project period set forth in Section 103 (b) (12) (B) of the Coder and `(c)' ` not to pledge the faith and credit or taxing powers of the Issuer, but to be payable solely from the revenues of the Issuer , derived -2- from payments to be made by the Company in respect of the financing of the Project. Section 3. Authorization of Issuer Representatives to Take Aeon 1n Connection Herewith. The Mayor , Director of Finance and the City Clerk of the Issuer are hereby authorized and directed to take all action necessary to accomplish the purposes of this resolution, including the negotiation of agreements in connection with the financing of the Project. Section 4. Effective Date. This resolution shall take effect immediately upon its adoption. INTRODUCED, READ, APPROVED AND ADOPTED this 20th day of November , 1984. (SEAL) CITY OF FORT COLLINS, COLORADO ATTEST: By: Mayor Z City Clerk -3-