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HomeMy WebLinkAbout2008-107-11/12/2008-DECLARING THE INTENT OF THE CITY OF FORT COLLINS, COLORADO TO ISSUE ECONOMIC DEVELOPMENT REVENUE BON RESOLUTION NO. 2008-107 A RESOLUTION DECLARING THE INTENT OF THE CITY OF FORT COLLINS, COLORADO TO ISSUE ECONOMIC DEVELOPMENT REVENUE BONDS TO PROVIDE FINANCING FOR A MANUFACTURING FACILITY FOR AMBIANCE INCORPORATED DB/A FORT COLLINS BREWERY; PRESCRIBING CERTAIN TERMS AND CONDITIONS OF SUCH BONDS; AND CONTAINING OTHER PROVISIONS RELATING TO THE PROPOSED ISSUANCE OF SUCH BONDS. WHEREAS, the City of Fort Collins, Colorado (the "City") has been duly and regularly organized and is now validly existing as a home rule municipal corporation under and by virtue of the Constitution and laws of the State of Colorado and its home rule charter; and WHEREAS, the City is authorized by the County and Municipality Development Revenue Bond Act, constituting Article 3, Title 29, Colorado Revised Statutes, as amended (the "Act"), to finance one or more manufacturing projects (which includes any land, building or other improvement and real and personal properties) to promote industry or other economic activity to mitigate unemployment and secure and maintain a balanced and stable economy; and WHEREAS, the City is further authorized by the Act to issue revenue bonds for the purpose of defraying the cost of financing any project, including the payment of principal and interest on such revenue bonds for not exceeding three years, the funding of any reserve funds which the governing body of the City may deem advisable to establish in connection with the retirement of such revenue bonds or the maintenance of the project and all incidental expenses incurred in issuing such revenue bonds, and to secure payment of such revenue bonds as provided in the Act; and WHEREAS, representatives of Out West Properties L.L.C. (the `Borrower"), have met with officials of the City and have advised the City of the Borrower's interest in the acquisition, construction, and equipping of a manufacturing facility for the production of craft beers, and have proposed that the City issue its economic development revenue bonds, in one or more series, to finance its new manufacturing facility of approximately 30,000 square feet (the "Project") to be located near the northwest comer of Lincoln Street and Lemay Street in the City. It is anticipated that the Project will include construction of a multi-purpose I brewery/office/restaurant facility which facility and property would be owned by the Borrower and operated and managed by Ambiance Incorporated d/b/a/Fort Collins Brewery, an affiliate of the Borrower; and WHEREAS, the Project constitutes a project under the Act, and the City wishes to declare its intention to authorize an issue of its economic development revenue bonds, in one or more series (the "Bonds"), for the purpose of paying the cost of financing the Project, upon such terms and conditions as are contained herein; and WHEREAS, the City has considered the Borrower's Project proposal and, upon the expectation that the Project will mitigate unemployment and promote trade and a balanced and stable economy within the City, the City wishes to declare its present intention to authorize the Bonds for the aforesaid purposes, all upon such terms and conditions as may be agreed upon by the City and the Borrower; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FORT COLLINS, COLORADO: Section 1. In order to benefit the residents of the City, the City hereby declares its intent to authorize the issuance of Bonds in an aggregate principal amount not to exceed $5,000,000, which amounts are estimated to be sufficient: (a) to finance a portion of the Project; and (b) to pay certain costs incurred in connection with the issuance of the Bonds. Section 2. The City Council of the City(the "Council") hereby find, determine, recite and declare that the Bonds shall not constitute the debt, multiple fiscal year obligation or indebtedness of the City, the State or any political subdivision of the State within the meaning of any provision or limitation of the State Constitution or statutes or home rule charter of the City and shall not constitute nor give rise to a pecuniary liability of the City or a charge against the City's general credit or taxing powers, nor shall the Bonds ever be deemed to be an obligation or agreement of any commissioner, officer, director, agent or employee of the City in such person's individual capacity, and none of such persons shall be subject to any personal liability by reason of the issuance of the Bonds. 2 Section 3. The Bonds shall be special, limited obligations of the City payable solely from the payments to be made by the Borrower (as described below) to the City under a Loan Agreement to be entered into by and between the City and the Borrower. Section 4. The Council hereby finds, determine, recite and declare that the issuance of the Bonds to finance the Project will promote the public purposes set forth in the Act, including, without limitation, trade, mitigation of unemployment and a balanced and stable economy. Section 5. The Council hereby find, determine, recite and declare the City's intent that this Resolution constitute an official indication of the present intention of the City to issue the Bonds as herein provided, subject to: (a) City or municipal zoning approval for the proposed site (which approval shall be subject to the City prescribed procedures); (b) the City's review and approval of the final form of financing documents (including any necessary credit enhancement for the Bonds); (c) the delivery of an approving opinion of bond counsel to the City and (d) the adoption of a final bond ordinance by the Council. Section 6. This Resolution expresses the City's intent and current expectations as of the date hereof with respect to the issuance of Bonds for the Project, however, future events or extraordinary circumstances beyond the control of the City may result in the Project being financed in a manner or from sources other than the Bonds. The performance of any action necessary to be taken by the City to issue the Bonds shall be in the absolute discretion of the City and passage of this resolution does not constitute a commitment on behalf of the City to issue the Bonds and the Borrower shall have no recourse against the City or any of its Council, officers, agents or employees if the Council in their sole discretion elect not to the issue the Bonds or otherwise finance the Project. Section 7. The appropriate officers of the City are hereby authorized to take such actions as contemplated by the Internal Revenue Code of 1986, as amended and by the Colorado Private Activity Bond Ceiling Allocation Act, constituting Article 32, Title 24, Part 17, Colorado Revised Statutes, as amended (the "Allocation Act") that may be necessary to assist the Borrower in obtaining volume cap allocation pursuant to the Allocation Act. 3 Section 8. All actions not inconsistent with the provisions of this Resolution heretofore taken by the Council or any officer or employee of the City in furtherance of the issuance of the Bonds are hereby ratified, approved and confirmed. Section 9. If any section, paragraph, clause or provision of this Resolution shall be adjudged to be invalid or unenforceable, the invalidity or unenforceability of such section, paragraph, clause or provision shall not affect any of the remaining sections, paragraphs, clauses or provisions of this Resolution. Adopted by the City Council of the City this November 12, 2008. THE CITY FORT COLLINS, COLORADO Mayor [Seal] City Clerk PUBFIM905390.1 4 PUBFIM905390.1