HomeMy WebLinkAbout1989-146-08/01/1989-SETTING FORTH THE INTENTION OF THE CITY TO ISSUE INDUSTRIAL DEVELOPMENT REVENUE BONDS FOR THE ESAB A RESOLUTION 89- 146
OF THE COUNCIL OF THE CITY OF FORT COLLINS, COLORADO
SETTING FORTH THE INTENTION
OF THE CITY OF FORT COLLINS, COLORADO
TO ISSUE INDUSTRIAL DEVELOPMENT REVENUE BONDS
FOR THE ESAB AUTOMATION, INC. PROJECT
WHEREAS, representatives of ESAB Automation, Inc. , a Delaware
corporation (the "Company") have met with officials of the City of Fort
Collins, Colorado (the "City") , and have advised the City of the interest
of the Company in acquiring, constructing and equipping manufacturing
facilities on Innovation Drive south of Harmony Road in the Oak Ridge
Business Park, Fort Collins, Colorado, subject to the willingness of the
City to finance the project (the "Project") by the issuance of industrial
development 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 Project site is within the municipal boundaries of the
City; and
WHEREAS, the Company has represented to the City that the Project will
qualify as a project within the meaning of the Act; and
WHEREAS, the Project consists of the acquiring, constructing and
equipping manufacturing facilities within the City limits; and
WHEREAS, the Council has considered the proposal and has concluded
that the economic benefits to be derived therefrom by the City will be
substantial ; and
WHEREAS, the Council has determined the Project to be consistent with
the goals and objectives of the City; and
WHEREAS, the 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. In order to induce the Company to locate and undertake the
Project, the City shall , subject to the provisions hereof, take all
necessary and advisable steps to effect the issuance of industrial
development revenue bonds (the "Bonds") pursuant to the Act in the maximum
aggregate principal amount of Six Million Seven Hundred Thirty Thousand
Dollars ($6,730,000) or such lesser amount as shall be determined and
agreed upon by the Company 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 indebtedness
of the City within the meaning of any limitation of the Constitution or
statutes of the State of Colorado or the Charter of the City, nor give rise
to a 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 a
pledge of revenues derived from and payable by the Company pursuant to
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 or the preparation
of any documents 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
the Company. In addition to the costs and expenses to be borne by the
Company as described in the preceding sentences, if the Project is approved
by the City and the Bonds are issued, the Company shall pay to the City at
the time the Bonds are issued a fee equal to the present value of 1/16 of
1% of the unpaid principal amount of the Bonds at the end of each bond
year.
Section 3. Prior to any execution of a financing agreement, mortgage,
indenture of trust, bond purchase agreement or any other necessary
documents or agreements in connection with such Bonds, such documents
and/or agreements, including any credit enhancement required by the City,
shall be satisfactory to the City in form and substance and their execution
shall be authorized by ordinance of the Council pursuant to law.
Section 4. Prior to any further action by the Council , the Company
shall provide the City with the opinion of a recognized Bond Counsel
acceptable to the City supporting the legality of the financing of the
Project and the utilization of bond proceeds for said Project.
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 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 commitments of the City contained herein are subject
to the condition that within twelve (12) months of the date hereof, unless
otherwise extended by agreement between the City and the Company, the Bonds
to be issued pursuant hereto shall be issued and sold. In the event that
said Bonds to be issued pursuant hereto are not issued within twelve (12)
months, the City of Fort Collins, Colorado shall be under no obligation to
perform any of the terms and conditions contained herein. Nothing
contained herein shall constitute a warranty or representation by the City
that the Bonds will receive from the State of Colorado an allocation of a
portion of the private activity bond limit authorized for the State of
Colorado pursuant to Internal Revenue Code of 1986, as amended. The City
shall use its best efforts, however, to secure from the State of Colorado
such an allocation authorizing the issuance of the Bonds from the State of
Colorado private activity bond limit.
Section 7. All resolutions or parts thereof concerning the subject
matter hereof in conflict with this Resolution are hereby repealed to the
extent of such conflict. This repealer shall not be construed to revive
any resolution or part thereof heretofore repealed.
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Section 8. The agreements of the City set forth above are expressly
conditioned upon the ability and willingness of the City to issue the bonds
as tax exempt obligations under the Federal Income Tax laws existing on the
date of the issuance of the bonds. Nothing contained in this resolution
shall be construed as requiring the City to issue the bonds and the
decision to issue the bonds shall be in the complete discretion of the
City.
Section 9. If any section, paragraph, clause, or provision of this
Resolution with the exception of any section, paragraph, clause or
provision limiting the City's financial obligation 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 Resolution.
Section 10. This Resolution shall take effect immediately upon its
introduction and passage.
Passed and adopted at a regular meeting of the Council of the City of
Fort Collins held this 1st day of August, A.D. 89.'
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Moor
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City Clerk