HomeMy WebLinkAbout1982-064-05/18/1982-SETTING FORTH THE INTENTION OF THE CITY OF FORT COLLINS TO ISSUE INDUSTRIAL DEVELOPMENT REVENUE BOND j�
RESOLUTION 82- 64
OF THE COUNCIL OF THE CITY OF FORT COLLINS
BEING A RESOLUTION SETTING FORTH THE INTENTION
OF THE CITY OF FORT COLLINS TO ISSUE INDUSTRIAL
DEVELOPMENT REVENUE BONDS FOR TULAKES ASSOCIATES
WHEREAS, representatives of Tulakes Associates, a general partnership
whose general partners are Paul D Reader and Gerald C Issacson, President
and Vice President of Ion Tech, Inc respectively, met with officials
of the City of Fort Collins and have advised the City of Fort Collins of
the interest of the partnership in building and owning a manufacturing
facility (hereinafter referred to as the "Project") to house Ion Tech,
Inc , a manufacturer of capital equipment used for a high technology
micro-fabrication of semi-conductors and optical films, and
WHEREAS, the Project consists of the acquisition of land and the
construction of a 15,500 square foot manufacturing facility, including
fixtures and equipment, to be located in Seven Lakes Business Park in the
City of Fort Collins, Colorado, and
WHEREAS, the manufacturing facility is necessary for the expansion of
Ion Tech, Inc and that such expansion will insure that Ion Tech, Inc
will remain in the City of Fort Collins, and
WHEREAS, Tulakes Associates desires to finance the cost of the devel-
opment of the Project to house Ion Tech, Inc as a revenue bond project
pursuant to §29-3-101, et seq C R S , 1973, as amended, 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 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 That in order to induce Tulakes Associates to construct a
manufacturing facility within the City to house Ion Tech, Inc , the City
shall , subject to the provisions hereof, take all necessary or advisable
steps to effect the issuance of industrial development revenue bonds (the
"Bonds" ) pursuant to the statutes of the State of Colorado in the maximum
aggregate principal amount of $800,000 or such lesser amount as shall be
determined and agreed upon by Tulakes Associates 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
r
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 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 the pledge of revenues derived from and payable
by Tulakes Associates pursuant to the 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, the preparation
of any documents relating thereto, or in connection with services provided
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 Tulakes Associates
Section 3 Prior to any execution of a financing agreement, mortqage
and 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 City Council pursuant to law
Section 4 The following conditions shall be met by Tulakes Asso-
ciates prior to further action by the City Council
1 An executed copy of a binding lease agreement between
Tulakes Associates and Ion Tech, Inc shall be submitted
to the City Said lease agreement shall evidence the
ability of Tulakes Associates to guarantee the payment
of the principal amount of the bonds and interest due on
the bonds from the revenues collected from the rental of
the property to Ion Tech, Inc
2 A recognized Bond Counsel ' s opinion supporting the
legality of the financing of the project and utilization
of the bond proceeds shall be submitted to the City
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 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, bylaw
or resolution, or part thereof, heretofore repealed
-2-
r
Section 7 If any section, paragraph, clause or provision of this
resolution 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 resolu-
tion
Section 8 All commitments of the City contained herein are subject
to the condition that within twenty-four months of the date hereof, unless
otherwise extended by agreement between the City and Tulakes Associates,
the bonds to be issued pursuant hereto shall be issued and sold In the
event that said bonds are not issued and sold within twenty-four months,
the City of Fort Collins shall be under no obligation to perform any of the
terms and conditions contained herein
Section 9 This resolution shall take effect immediately upon its
introduction and passage
INTRODUCED, READ, PASSED AND ADOPTED THIS 18th day of May, 1982
Mayor
ATTEST
City Clerk
-3-