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HomeMy WebLinkAbout1982-063-05/18/1982-SETTING FORTH THE INTENTION OF THE CITY TO ISSUE INDUSTRIAL DEVELOPMENT REVENUE BONDS FOR NEENAN BUI RESOLUTION 82- 63 OF THE COUNCIL OF THE CITY OF FORT COLLINS BEING A RESOLUTION SETTING FORTH THE INTENTION OF THE CITY OF FORT COLLINS TO ISSUE INDUSTRIAL DEVELOPMENT REVENUE BONDS FOR NEENAN BUILDING PARTNERSHIP WHEREAS, representatives of Neenan Building Partnership, a business enterprise whose partners are employees or officers of The Neenan Company, met with officials of the City of Fort Collins and have advised the City of Fort Collins of the interest of the partnership in building and owning a multi-use facility ( hereinafter referred to as the "Project") to house The Neenan Company, a corporation involved in the construction industry, and WHEREAS, the Project consists of the acquisition of land and the construction of a 17,500 square foot single level facility with the cap- ability of providing office space, warehouse space and light assembly areas, to be located in Seven Lakes Business Park in the City of Fort Collins, Colorado, and WHEREAS, the manufacturing facility is necessary for the expansion of The Neenan Company and that such expansion will insure that The Neenan Company will remain in the City of Fort Collins, and WHEREAS, Neenan Building Partnership desires to finance the cost of the development of the Project to house The Neenan Company as a revenue bond project pursuant to §29-3-101, et seq C R S , 1973, as amended, and WHEREAS, the City Council has considered the proposal and has con- cluded that the economic benefits to be derived therefrom by the City will be substantial , and WHEREAS, the City 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 That in order to induce Neenan Building Partnership to construct a manufacturing facility within the City to house The Neenan Company, the City shall , subject to the provisions hereof, take all neces- sary or advisable steps to effect the issuance of industrial development revenue bonds (the " Bonds" ) pursuant to the statutes of the State of Colorado in the maximum aggregate principal amount of $750,000 or such lesser amount as shall be determined and agreed upon by Neenan Building Partnership 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 pecun- iary liability of the City or a charge against its general credit or taxing powers The bonds shall be payable solely from and secured by the pledge of revenues derived from and payable by Neenan Building Partnership pur- suant to the 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, the preparation of any documents relating thereto, or in connection with services provided 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 Neenan Building Partner- ship Section 3 Prior to any execution of a financing agreement, mortgage and 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 Section 4 The following conditions shall be met by Neenan Building Partnership prior to further action by the City Council 1 An executed copy of a binding lease agreement between The Neenan Company and Neenan Building Partnership shall be submitted to the City Said lease agreement shall evidence the ability of Neenan Building Partnership to guarantee the payment of the principal amount of the bonds and interest due on the bonds from the revenues collected from the rental of the property to The Neenan Company 2 A recognized Bond Counsel ' s opinion supporting the legality of the financing of the project and utilization of the bond proceeds shall be submitted to the City 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 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, bylaw or resolution, or part thereof, heretofore repealed -2- Section 7 If any section, paragraph, clause or provision of this resolution 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 resolu- tion Section 8 All commitments of the City contained herein are subject to the condition that within twenty-four months of the date hereof, unless otherwise extended by agreement between the City and Neenan Building Partnership the bonds to be issued pursuant hereto shall be issued and sold In the event that said bonds are not issued and sold within twenty- four months, the City of Fort Collins shall be under no obligation to perform any of the terms and conditions contained herein Section 9 This resolution shall take effect immediately upon its introduction and passage INTRODUCED, READ, PASSED AND ADOPTED THIS 18th day of May, 1982 Mayor ATTEST _k� A. e City%J_Clerk -3-