HomeMy WebLinkAbout1985-067-04/16/1985-SETTING FORTH THE INTENTION OF THE CITY TO ISSUE INDUSTRIAL DEVELOPMENT REVENUE BONDS FOR JOHN P. CA RESOLUTION 85- 67
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 JOHN P. CAVANO, JR.
WHEREAS, representatives of John P. Cavano, Jr. (the "Developer" )
have met with officials of the City of Fort Collins, Colorado (the "City" ) ,
and have advised the City of the interest of the Developer in constructing
an office building, subject to the willingness of the City to finance the
project (the "Project" ) as an industrial development revenue bond project,
pursuant to the Colorado County and Municipality Development Revenue
Bond Act constituting Article 3, Title 29, Colorado Revised Statutes,
1973, as amended (the "Act" ); and
WHEREAS, the Developer 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 development of land and the
construction and equipping of an office building proposed to be leased in
whole by Engineering Professionals, Inc. , a Colorado corporation, for use
as its corporate offices creating additional jobs within the City; and
WHEREAS, the City Council has considered the proposal and has con-
cluded that the economic benefits to be derived therefrom by the City will
be substantial ; and
WHEREAS, the City Council has determined the Project to be consistent
with the goals and objectives of the City; and
WHEREAS, the City 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 Developer 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 aggregate principal amount of Four Hundred and Sixty Thousand
Dollars ($460,000.00) or such lesser amount as shall be determined and
agreed upon by the Developer and the City to finance the Project, and the
City hereby grants to the Project $460,000.00 of its initial allocation of
the State of Colorado ceiling on the issuance of "private activity bonds"
for 1985 pursuant to the State of Colorado Governor' s Executive Order
No. D0062-84, dated December 21, 1984, or superseding legislation of the
State of Colorado, which allocation is subject to relinquishment pursuant
to the terms of the Executive Order unless a purchase commitment for the
Bonds is received within 91 days of the date hereof.
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
Developer 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 connec-
tion 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
Developer. In addition to the costs and expenses to be borne by the
Developer as described in the preceding sentences , if the Project is
approved by the City and the Bonds are issued, the Developer shall pay to
the City, at closing, a fee equal to 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 or trust, bond purchase agreement or any other necessary docu-
ments and agreements in connection with such Bonds, such documents and/or
agreements shall be submitted for approval to the City, and, if satisfac-
tory to the City, their execution shall be authorized by ordinance of the
City Council pursuant to law.
Section 4. Prior to any further action by the City Council , the
Developer shall provide the City with the opinion of a recognized Bon
Counsel supporting the legality of the financing of the Project and the
utilization of loan 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 Developer, the
Bonds to be issued pursuant hereto shall be issued and sold. In the event
that said Bonds to be issued pursuant hereto ar not issued within twelve
(12 ) months the City of Fort Collins shall be under no obligation to
perform any of the terms and conditions contained herein.
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Section 7 . 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 8. All ordinances, orders, bylaws, and 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
order, ordinance, bylaw, or resolution, or part thereof, heretofore re-
pealed.
Section 9. 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 10. This resolution shall take effect immediately upon its
introduction and passage.
Passed and adopted at a regular meeting of the Council of the City of
Fort Collins this 16th day of April , A. D. 1985.
May4X�—_Y/ .&t e+
ATTEST:
City Clerk
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