HomeMy WebLinkAbout1988-099-06/14/1988-BONDS INDUSTRIAL DEVELOPMENT REVENUE OPERA HOUSE PROJECT CITY OF FORT COLLINS, COLORADO
RESOLUTION 88- 99
RESOLUTION AUTHORIZING THE EXECUTION AND
DELIVERY OF SECOND AND THIRD SUPPLEMENTAL
INDENTURES AND SECOND AND THIRD AMENDMENTS TO
LOAN AGREEMENT AND OTHER DOCUMENTS RELATING
TO THE CITY" S INDUSTRIAL DEVELOPMENT REVENUE
BONDS (THE OPERA HOUSE PROJECT) SERIES 1986.
WHEREAS, pursuant to the Colorado County and
Municipality Development Revenue Bond Act, as amended (the
"Act" ) , Ordinance No . 196, 1986 adopted by the City Council (the
"Council" ) of the City of Fort Collins, Colorado (the "City" ) on
December 16, 1986, and an Indenture of Trust dated as of
December 15 , 1986, as supplemented by the First Supplemental
Indenture of Trust dated as of December 23 , 1987 (collectively,
the "Indenture" ) , between the City and United Bank of Fort
Collins National Association, as Trustee (the "Trustee" ) , the
City issued its Industrial Development Revenue Bonds (The Opera
House Project) Series 1986, in the aggregate principal amount of
$5, 800, 000 (the "Bonds" ) , and pursuant to a Loan Agreement dated
as of December 15, 1986, as amended by the First Amendment to
Loan Agreement dated as of December 23 , 1987 (collectively, the
"Loan Agreement" ) , between the City and Historical Opera House
Properties, Ltd. , a Colorado limited partnership (the
"Partnership" ) , the City loaned the proceeds of the Bonds to the
Partnership for the purpose of financing the Project (as defined
in the Loan Agreement) ; and
WHEREAS, Bankers Trust Company ( "Bankers" ) in order to
secure payment of the Bonds, previously delivered its Restated
Irrevocable Letter of Credit dated December 23 , 1986 (the
"Bankers Letter of Credit" ) , which expires July 8, 1988; and
WHEREAS, the Partnership has requested that certain
provisions of the Indenture and the Loan Agreement be amended (a)
by a Second Supplemental Indenture (the "Second Supplemental
Indenture" ) and a Second Amendment to Loan Agreement (the "Second
Amendment to Loan Agreement" ) in order to facilitate the
extension of the Bankers Letter of Credit and (b) by a Third
Supplemental Indenture (the "Third Supplemental Indenture" ) and a
Third Amendment to Loan Agreement (the "Third Amendment to Loan
Agreement" ) in order to facilitate the conversion of the interest
rate on the Bonds to a Fixed Rate under the Indenture, the
provision for amortizing principal of the Bonds, and the
replacement of the Bankers Letter of Credit with other security
for the Bonds, including a mortgage on the Project and standby
purchase agreements or letters of credit (the "Substitute
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Security" ) to be provided by United Bank of Fort Collins National
Association and other banks , the proposed forms of the Second and
Third Supplemental Indentures and the Second and Third Amendments
to Loan Agreement having been submitted to the Council and filed
in the Office of the City Clerk and are there available for
public inspection ; and
WHEREAS , pursuant to Article XI and X I I of the
Indenture , the City is authorized to enter into the Second and
Third Supplemental Indentures and the Second and Third Amendments
to Loan Agreement .
NOW , THEREFORE , BE IT RESOLVED BY THE COUNCIL OF THE
CITY OF FORT COLLINS , COLORADO AS FOLLOWS :
Section 1 . Approval of Documents and Execution
Thereof; Changes . The forms of the Second and Third Supplemental
Indentures and the Second and Third Amendments to Loan Agreement ,
including the forms of the Bonds , are hereby approved . The
Mayor and City Clerk are hereby authorized and directed to
execute the Second Supplement Indenture and the Second Amendment
to Loan Agreement and affix the seal of the City thereto . Upon
provision of the Substitute Security and confirmation of a
limited remarketing to accredited or sophisticated investors ,
both of which shall be in form satisfactory to the City Attorney ,
the Mayor and the City Clerk are hereby authorized and directed
to execute the Third Supplemental Indenture and the Third
Amendment to Loan Agreement and affix the seal of the City
thereto . It is the purpose and intent of this Resolution to
approve changes or additions to the Bonds and related documents
to the extent necessary to effect the extension of the Bankers
Letter of Credit for the Bonds until the revised Conversion date ,
and thereafter the naming of a successor trustee to be designated
by the Partnership , the removal of Bankers and the Bankers Letter
of Credit , the inclusion of the Substitute Security , the
amortization of principal of the Bonds , the conversion to a Fixed
Rate and the provision of permanent financing for completion of
the Project on terms acceptable to the owner of the Bonds . The
Second and Third Supplemental Indentures and the Second and Third
Amendments to Loan Agreement are to be executed in substantially
the forms hereinabove approved , provided that such documents may
be completed , corrected or revised as deemed necessary or
convenient by the parties thereto in order to carry out or assist
in carrying out the purposes of this Resolution . The execution
of any instrument by the appropriate officers of the City herein
authorized shall be conclusive evidence of the approval by the
City of such instrument in accordance with the terms hereof .
Section 2 . Incidental Action . The Mayor and the City
Clerk are further authorized and directed to execute such other
documents , instruments or certificates as are deemed necessary or
desirable by bond counsel in order to effectuate the execution
and delivery of the Second and Third Supplemental Indentures and
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the Second and Third Amendments to Loan Agreement and the revised
forms of the Bonds contained therein. The approval hereby given
to the forms of such documents includes the approval of such
additional details therein as may be necessary and appropriate
for their completion and such modifications thereof, deletions
therefrom, and additions thereto as may be approved by the City
Attorney prior to the execution of the documents.
Section 3 . Effective Date; Repeal. This Resolution
shall take effect immediately upon its adoption, and all prior
resolutions or parts thereof inconsistent herewith are hereby
repealed.
PASSED AND ADOPTED this 14th day of June, 1988.
CITY OF FORT COLLINS,
COLORADO
By:
(CITY) Mayor
(SEAL)
ATTEST:)t �L
_ .s.�—
City Cleri
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