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
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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.
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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
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