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HomeMy WebLinkAbout2000-079-06/06/2000-AUTHORIZING THE EXECUTION OF AN ASSIGNMENT AGREEMENT WITH THE CITY OF LOVELAND AND ACCEPTANCE OF AN RESOLUTION 2000-79 OF THE COUNCIL OF THE CITY OF FORT COLLINS, COLORADO AUTHORIZING THE EXECUTION OF AN ASSIGNMENT AGREEMENT WITH THE CITY OF LOVELAND AND ACCEPTANCE OF AN ASSIGNMENT OF ALLOCATION WHEREAS,representatives of National Healthcare Associates,Inc. (the"Company")have met with officials of the City of Fort Collins, Colorado (the "City"), and have advised the City of the Company's interest in acquiring, constructing, and equipping a multifamily housing assisted living project (the "Project") to be located on approximately 3.02 acres of land east of Wheaton Drive and south of the Comfort Suites in the Oakridge Business Park in Fort Collins, Colorado, subject to the City's financing of the Project by the issuance of multifamily housing 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 Council on February 15,2000,adopted Resolution 2000-32, Setting Forth the Intention of the City to Issue Multi-Family Housing Revenue Bonds for the National Healthcare Associates Residence at Oakridge Assisted Living Project and Authorizing the Execution of an Assignment Agreement and a Delegation Agreement with Latimer County; and WHEREAS, in accordance therewith, the County has assigned to the City its allocation of the private activity bond volume cap for the State and its issuing authorities pursuant to the Colorado Private Activity Bond Ceiling Allocation Act,constituting Part 17 of Article 32 of Title 24,Colorado Revised Statutes, as amended (the "Allocation Act"); and WHEREAS,the Project has also received an allocation of$800,000 from the Colorado 2000 state-wide balance of private activity bond allocation; and WHEREAS, the City of Loveland ("Loveland") is authorized under the Act to finance projects as defined in the Act,including housing facilities for low-and middle-income persons and families; and WHEREAS, Loveland has been awarded an allocation for the year 2000 of the private activity bond volume cap for the State and its issuing authorities pursuant to the Allocation Act and is willing to assign a portion of that allocation, in the amount of $1,178,750, (the "Assigned Allocation")to the City in orderto assist with the financing of the Project,provided that Fort Collins assigns a like portion of its allocation to Loveland for its use in 2001; and WHEREAS,the Council believes that this reciprocal assignment of allocations is in the best interests of the City; and WHEREAS, it is necessary to evidence such assignments by the execution and delivery of Assignment Agreements by and between the City and Loveland in substantially the form attached hereto as Exhibits "A" and "B" and incorporated herein by this reference (the "Assignment Agreements"); and WHEREAS, the City is authorized to enter into intergovernmental agreements to provide any function,service or facility,such as a grant agreement,under Article II,Section 16 of the Charter of the City of Fort Collins and Section 29-1-203, C.R.S. NOW, THEREFORE,BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS, COLORADO that, for the purpose of financing the Project, the Mayor is hereby authorized to execute the above-referenced Assignment Agreements,in the forms shown on Exhibits "A" and "B", subject to such modifications thereto in form or substance as the City Manager, in consultation with the City Attorney,may deem necessary to effectuate the purposes set forth herein. Passed and adopted at a regular meeting of the City Council held this 6th day of June, A.D. 2000. Mayor ATTEST: City Clerk EXHIBIT "A" ASSIGNMENT AGREEMENT This ASSIGNMENT AGREEMENT (the "Assignment") dated the day of June, 2000,is by and between the CITY OF LOVELAND,COLORADO,a body corporate and politic(the "Assignor") and the CITY OF FORT COLLINS, COLORADO, a body corporate and politic (the "Assignee"); RECITALS: WHEREAS, the Assignor and the Assignee are authorized and empowered under the laws of the State of Colorado (the "State") to issue revenue bonds for the purpose of financing multi- family rental housing projects for low- and moderate-income persons and families; and WHEREAS, the Internal Revenue Code of 1986, as amended (the "Code"), restricts the amount of tax-exempt bonds("Private Activity Bonds")which may be issued in the State to finance such rental housing projects and for certain other purposes (the "State Ceiling"); and WHEREAS, pursuant to the Code, the Colorado legislature adopted the Colorado Private Activity Bond Ceiling Allocation Act,Part 17 of Article 32 of Title 24, Colorado Revised Statutes (the "Allocation Act"), providing for the allocation of the State Ceiling among the Assignee and other governmental units in the State, and further providing for the assignment of allocations from such other governmental units to the Assignee; and WHEREAS,pursuant to an allocation under Section 24-32-1706 of the Allocation Act,the Assignor has available for assignment to Assignee a portion its allocation of the 2000 State Ceiling for the issuance of a specified principal amount of Private Activity Bonds prior to September 15, 2000, in the amount of$1,178,750 (the "Loveland Allocation"); and WHEREAS, the Assignor has determined that, in order to increase the availability of adequate affordable housing by low- and moderate-income persons and families in the local area, it is necessary or desirable to provide for the utilization of all or a portion of the Loveland Allocation as set forth herein; and WHEREAS,the Assignor has determined that the Loveland Allocation can be utilized most efficiently by assigning it to the Assignee to issue Private Activity Bonds for the purpose of financing one or more multi-family housing projects for low- and moderate-income persons and families, and the Assignee has expressed its willingness to attempt to issue such Private Activity Bonds with respect to the Loveland Allocation; and WHEREAS, subject to the terms and conditions set forth herein, the Assignor desires to assign and transfer to the Assignee, and the Assignee desires to accept, the assignment of the Loveland Allocation in an amount equal to $1,178,750, which the Assignor and Assignee agree to commit and reserve for the issuance of such private activity bonds; and WHEREAS,the private activity bonds will be issued by the Assignee pursuant to the County and Municipality Development Revenue Bond Act, constituting Article 3 of Title 29, Colorado Revised Statutes,as amended(the"Act'),and such bonds will be used for a purpose which qualifies as a"project"as described in the Act; NOW,THEREFORE, in exchange for the agreements set forth herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 1. In accordance with action taken by the governing body of the Assignor on June 6, 2000, the Assignor hereby assigns and transfers to the Assignee, a portion of the Assignor's 2000 Allocation from the State Ceiling for private activity bonds in an amount equal to $1,178,750 (the "Assigned Allocation"). In addition,the Assignor hereby consents to the election by the Assignee, if the Assignee in its discretion so decides, to treat the Assigned Allocation as an allocation for a project with a carryforward purpose and/or to make a mortgage credit certification election, thus avoiding reversion of the Assigned Allocation to the statewide balance under the Allocation Act. 2. The Assignor represents that it has received no monetary consideration for the assignment set forth above. 3. The Assignee hereby: (a) Accepts the assignment of the Assigned Allocation from the State Ceiling described above; (b) Agrees to use reasonable efforts to use the Assigned Allocation to finance the multifamily assisted living project to be located east of Wheaton Drive and south of the Comfort Suites in the Oakridge Business Park in Fort Collins, Colorado, and to be known as The Residence at Oakridge(the"Project"),subject to the terms and conditions set forth herein. In the event Assignee is unable to finance the Project on or prior to September 15, 2000, Assignee agrees to use its best efforts to use an amount equal to the 2000 Allocation hereby assigned in connection with the issuance of Private Activity Bonds to finance one or more other multi-family housing projects located within Assignee's boundaries; and (c) Agrees to abide by each of the terms and conditions of this Assignment in connection with the use of the Assigned Allocation. 4. The parties acknowledge that nothing contained in this Assignment shall obligate the Assignee to finance the Project or to use the Assigned Amount to finance any other multi-family housing project located in the City of Fort Collins, and that the issuance of Private Activity Bonds for the benefit of the Project is subject to due compliance with all requirements of law, and contingent upon the determination by the State that a portion of the Statewide Balance of the State Ceiling shall be used to issue such bonds, and a determination by the Assignee that the allocation of authority available for the issuance of such bonds is sufficient, and further contingent upon the authorization of the issuance of such bonds and execution of such documents and agreements as may 2 be necessary to accomplish the same, by ordinance of the Assignee's City Council, in its sole discretion. 5. This Assignment is effective upon execution and is irrevocable. IN WITNESS WHEREOF,the Assignor and the Assignee have caused this instrument to be executed to be effective as of the date and year first written above. CITY OF LOVELAND, COLORADO [SEAL] By Mayor ATTEST: By City Clerk APPROVED AS TO FORM: By City Attorney CITY OF FORT COLLINS, COLORADO [SEAL] By Mayor ATTEST: By City Clerk APPROVED AS TO FORM: By Assistant City Attorney 3 EXHIBIT "B" ASSIGNMENT AGREEMENT This ASSIGNMENT AGREEMENT(the"Assignment")dated the day of , is by and between the CITY OF FORT COLLINS,COLORADO, a body corporate and politic(the "Assignor") and the CITY OF LOVELAND, COLORADO, a body corporate and politic (the "Assignee"); RECITALS: WHEREAS,the Assignor and the Assignee are authorized and empowered under the laws of the State of Colorado (the "State") to issue revenue bonds for the purpose of financing multi- family rental housing projects for low- and moderate-income persons and families; and WHEREAS, the Internal Revenue Code of 1986, as amended (the "Code"), restricts the amount of tax-exempt bonds("Private Activity Bonds")which may be issued in the State to finance such rental housing projects and for certain other purposes (the "State Ceiling"); and WHEREAS, pursuant to the Code, the Colorado legislature adopted the Colorado Private Activity Bond Ceiling Allocation Act,Part 17 of Article 32 of Title 24, Colorado Revised Statutes (the "Allocation Act"), providing for the allocation of the State Ceiling among the Assignee and other governmental units in the State, and further providing for the assignment of allocations from such other governmental units to the Assignee; and WHEREAS,pursuant to an allocation under Section 24-32-1706 of the Allocation Act, the Assignor has available for assignment to Assignee a portion its allocation of the 2001 State Ceiling for the issuance of a specified principal amount of Private Activity Bonds prior to September 15, 2001, in the amount of$1,178,750 (the "Fort Collins Allocation"); and WHEREAS, the Assignor has determined that, in order to increase the availability of adequate affordable housing by low- and moderate-income persons and families in the local area, it is necessary or desirable to provide for the utilization of all or a portion of the Fort Collins Allocation as set forth herein; and WHEREAS, the Assignor has determined that the Fort Collins Allocation can be utilized most efficiently by assigning it to the Assignee to issue Private Activity Bonds for the purpose of financing one or more multi-family housing projects for low- and moderate-income persons and families, and the Assignee has expressed its willingness to attempt to issue such Private Activity Bonds with respect to the Fort Collins Allocation; and WHEREAS, subject to the terms and conditions set forth herein, the Assignor desires to assign and transfer to the Assignee, and the Assignee desires to accept, the assignment of the Fort Collins Allocation in an amount equal to $1,178,750, which the Assignor and Assignee agree to commit and reserve for the issuance of such private activity bonds; and WHEREAS,the private activity bonds will be issued by the Assignee pursuant to the County and Municipality Development Revenue Bond Act, constituting Article 3 of Title 29, Colorado Revised Statutes,as amended(the"Act"),and such bonds will be used for a purpose which qualifies as a"project" as described in the Act; NOW,THEREFORE,in exchange for the agreements set forth herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 1. In accordance with action taken by the governing body of the Assignor on, June 6, 2000, the Assignor hereby assigns and transfers to the Assignee, a portion of the Assignor's 2001 Allocation from the State Ceiling for private activity bonds in an amount equal to $1,178,750 (the "Assigned Allocation"). In addition,the Assignor hereby consents to the election by the Assignee, if the Assignee in its discretion so decides, to treat the Assigned Allocation as an allocation for a project with a carryforward purpose and/or to make a mortgage credit certification election, thus avoiding reversion of the Assigned Allocation to the statewide balance under the Allocation Act. 2. The Assignor represents that it has received no monetary consideration for the assignment set forth above. 3. The Assignee hereby: (a) Accepts the assignment of the Assigned Allocation from the State Ceiling described above; (b) Agrees to use reasonable efforts to use the Assigned Allocation to finance a project to be sponsored by the Loveland Housing Authority(the"Project"), subject to the terms and conditions set forth herein. In the event Assignee is unable to finance the Project on or prior to September 15,2001,Assignee agrees to use its best efforts to use an amount equal to the 2001 Allocation hereby assigned in connection with the issuance of Private Activity Bonds to finance one or more other multi-family housing projects located within Assignee's boundaries; and (c) Agrees to abide by each of the terms and conditions of this Assignment in connection with the use of the Assigned Allocation. 4. The parties acknowledge that nothing contained in this Assignment shall obligate the Assignee to finance the Project or to use the Assigned Amount to finance any other multi-family housing project located in the City of Loveland, and that the issuance of Private Activity Bonds for the benefit of the Project is subject to due compliance with all requirements of law, and contingent upon the determination by the State that a portion of the Statewide Balance of the State Ceiling shall be used to issue such bonds, and a determination by the Assignee that the allocation of authority available for the issuance of such bonds is sufficient, and further contingent upon the authorization of the issuance of such bonds and execution of such documents and agreements as may be necessary to accomplish the same, by ordinance of the Assignee's City Council, in its sole discretion. 2 5. This Assignment is effective upon execution and is irrevocable. IN WITNESS WHEREOF,the Assignor and the Assignee have caused this instrument to be executed to be effective as of the date and year first written above. CITY OF FORT COLLINS, COLORADO [SEAL] By Mayor ATTEST: By City Clerk APPROVED AS TO FORM: By Assistant City Attorney CITY OF LOVELAND, COLORADO [SEAL] By Mayor ATTEST: By City Clerk APPROVED AS TO FORM: By City Attorney 3