HomeMy WebLinkAbout1984-156-10/02/1984-SETTING FORTH THE INTENTION OF THE CITY TO ISSUE INDUSTRIAL DEVELOPMENT REVENUE BONDS FOR COMRIDGE P RESOLUTION 84-156
OF THE COUNCIL OF THE CITY OF FORT COLLINS
SETTING FORTH THE INTENTION
OF THE CITY OF FORT COLLINS, COLORADO
TO ISSUE INDUSTRIAL DEVELOPMENT REVENUE BONDS
FOR COMRIDGE PARTNERS
WHEREAS, representatives of Comridge Partners , a general
partnership (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 and developing land
and constructing and equipping an office and manufacturing
building in the City, 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 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 acquisition and devel-
opment of land and the construction and equipping of an office
and manufacturing building designed to house the corporate
offices and manufacturing operations of Comlinear Corporation , a
Colorado corporation, which will create additional jobs within
the City; 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:
Section 1. In order to induce the Company to locate and
construct the Project within the City , 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 Three Million Five Hundred Thousand Dollars
($3 , 500,000) 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
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. 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 finan-
cial 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 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 Council pur-
suant 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 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 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 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 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
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authorized for the State of Colorado pursuant to Section 621 of
the Deficit Reduction. Act of 1984 of the United States of
America. 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 1984 State of Colorado private
activity bond limit.
Section 7. All ordinances, 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, ordinance , bylaw or resolution,
or part thereof, heretofore repealed.
Section 8 . 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 9 . This resolution shall take effect immediately
upon its introduction and passage.
Passed and adopted at a regular meeting of the City Council
held this 2nd day of October, 1984.
ATTEST: M oQ Q _
P City C1
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