HomeMy WebLinkAbout1992-052-03/17/1992-ADVANCED ENERGY INDUSTRIES INC BONDS DB COMPANY IDRBS RESOLUTION 92-52
OF THE COUNCIL OF THE CITY OF FORT COLLINS, COLORADO
AMENDING RESOLUTION 92-44
SETTING FORTH THE INTENTION
OF THE CITY OF FORT COLLINS, COLORADO
TO ISSUE INDUSTRIAL DEVELOPMENT REVENUE BONDS
FOR THE DB COMPANY/ADVANCED ENERGY INDUSTRIES, INC. PROJECT
WHEREAS, representatives of DB Company, a Colorado limited
liability company (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, constructing,
and equipping manufacturing facilities, including land, building
and equipment, to be located on land adjoining East Prospect Road
immediately on the west side of the Poudre River or in the Oak
Ridge Business Park, and to be leased to Advanced Energy
Industries, Inc. , a Colorado corporation, 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 proposed project sites are within the municipal
boundaries of the City or within eight miles thereof; 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 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 adopted Resolution 92-44 on March 3 ,
1992 , indicating its desire to proceed with the financing of the
project; however, the Company has recently informed the City' s
staff and Council that a reserve fund of approximately $730, 000
may be required in connection with the sale of the bonds, which
will necessitate an increase in the amount of bonds to be issued
from $6 , 570, 000 to $7 , 300, 000; and
WHEREAS, the Council desires to amend Resolution 92-44 to
indicate its intent to proceed with financing the Project through
the issuance of such bonds in an aggregate principal amount not
to exceed $7 , 300, 000 .
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF
FORT COLLINS, COLORADO that Resolution 92-44 is hereby amended to
read in its entirety as follows:
Section 1 . In order to induce the Company to locate and
undertake the Project, 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
Seven Million Three Hundred Thousand Dollars ($7 , 300, 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 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 Fischer, Brown,
Huddleson & Gunn, P.C. , as 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 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
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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 Bonds
will receive from the State of Colorado the 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 (the "Code") . 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 . 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. 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 . 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. For purposes of complying with Section 147 (f) of
the Internal Revenue Code, this Council will conduct a public
hearing at a later date with respect to the Project and the use of
proceeds of the Bonds, notice of which hearing will be published
at least 14 days prior thereto for purposes of approving the
issuance of the Bonds in the maximum aggregate principal amount of
$7 , 300, 000 and the use of the proceeds to finance the costs of
acquiring, renovating and equipping a manufacturing facility to be
owned and operated by the Company and leased by the Company to
Advanced Energy Industries, Inc. for use in its manufacturing
operations.
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Section 11. This Resolution shall take effect immediately
upon its introduction and passage.
Passed and adopted at a regular meeting of the City Council
held this 17th day of March, 1992.
ATTEST:
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City Clerk A—kyor Pro Tem
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