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
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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.
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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.
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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
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