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HomeMy WebLinkAbout1984-093-06/05/1984-SETTING FORTH THE INTENTION 0F THE CITY TO ISSUE INDUSTRIAL DEVELOPMENT REVENUE BONDS FOR THE UNIVER RESOLUTION 84- q3 OF�E COUNCIL OF THE CITY OF FORT COLLINS SETTING FORTH THE INTENTION 0 THE CITY OF FORT COLLINS, COLORADO TO IS E INDUSTRIAL DEVELOPMENT REVENUE BONDS FO THE UNIVERSITY SQUARE INN PROJECT WHEREAS, Haro H. Miller and Peter L. Bloch (the "Developer" ) have me with officials of the City of Fort Collins, Colorado (the "City") and have advised the City of the interest of the Developer in co structing a motel and related facilities in the City to be known as the University Square Inn, subject to the willingness of the City to finance the project (the "Project") as an industr 1 development revenue bond project, pursuant to the Colorado ounty and Municipality Development Revenue Bond Act constituti g Article 3 , Title 29, Colorado Revised Statutes, as amended the "Act") ; and WHEREAS, the Developer has epresented to the City that the Project will qualify as a project within the meaning of the Act; and WHEREAS , the Project consists o the development of land and the construction and equipping of a mo el and related facilities which will create additional jobs and conomic activity within the City; and WHEREAS, the City Council has consid red the proposal and has concluded that the economic benefits t be derived therefrom by the City will be substantial; and WHEREAS , the City Council has determine the Project to be consistent with the goals and objectives of the City; and WHEREAS, the City Council desires to indicat its intent to proceed with financing the Project through the iss ance of such revenue bonds. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF HE CITY OF FORT COLLINS: Section 1. In order to induce the Developer to loc to and construct the Project within the City, the City shall, subject to the provisions hereof, take all necessary and advisable ste s to effect the issuance of industrial development revenue bonds the "Bonds") pursuant to the Act in the maximum aggregate princi 1 amount of Seven Million Dollars ($7 , 000 ,000 . 00) or such lesse amount as shall be determined and agreed upon by the Developer 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 Failed -�c-, -Pass (9151SLf 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 Developer 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 Developer. In addition to the costs and expenses to be borne by the Developer as described in the preceding sentences, if the Project is approved by the City and the Bonds are issued, the Developer shall pay to the City a fee 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 City Council pursuant to law. Nothing contained in this resolution shall constitute an obligation of the City to allocate to the Developer any portion of any federal or state limitation or ceiling similar to that contemplated by the Tax Reform Act of 1983 (H.R. 4170) which is being considered by the 98th Congress and which might affect this and future Bond issues. Section 4. Prior to any further action by the City Council, the Developer 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 Developer, 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. 2 - ' i w 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 5th day of June A.D. 1984 Mayor ATTEST: City Clerk US1 : 1 3 -