HomeMy WebLinkAbout1982-025-02/02/1982-ADOPTING INDUSTRIAL DEVELOPMENT REVENUE BOND POLICIES AND GUIDELINES ti
RESOLUTION 82-25
OF THE COUNCIL OF THE CITY OF FORT COLIINS
ADOPTING INDUSTRIAL DEVELOPMENT REVENUE BOND
POLICIES AND GUIDELINES
WHEREAS, the City Council and City Manager have reviewed various
policies and guidelines in conjunction with the City issuing Industrial
Development Revenue Bonds, and
WHEREAS, the City of Fort Collins is committed to industrial develop-
ment in and around the City coupled with sound financial planning and
direction, and
WHEREAS, these policies and guidelines form the basis for various
decisions affecting the issuance of Industrial Development Revenue Bonds,
and
WHEREAS, City Council wishes to formally adopt these Industrial
Development Revenue Bond Policies and Guidelines
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT
COLLINS that the following Industrial Development Revenue Bond Policies and
Guidelines be, and the same hereby are adopted
I Policy
A General The City of Fort Collins desires to maintain a reason-
able level of economic growth and development in the City and
within the boundaries of its Urban Growth Area To this end, one
principal mechanism for implementing positive government action in
concert with the private sector is the use of Industrial Develop-
ment Revenue Bonds ( IDRB) pursuant to County and Municipality
Development Revenue Bond Act, Title 29, Article 3 of the Colorado
Revised Statutes
B Endorsement of the Use of Industrial Development Revenue Bonds
The City of Fort Collins en orses the concept of positive local
governmental action to stimulate balanced economic development in
close cooperation with private institutions This will include the
discriminate use of Industrial Development Revenue Bonds as one
means available to the City of Fort Collins to achieve these
purposes
C Economic Competition It is not the intent of the City of Fort
Collins, through t e implementation of this policy, to provide an
economically competitive advantage to any entity whether their
purpose for existence be for profit or non-profit
r
II Guidelines
A General Guidelines set forth herein are not intended as minimum
requirements, and each application will be considered on its
individual merits
B Benefits to the City Generally, an IDRB proposal should demon-
strate one or more of the following economic benefits to the City
1 Creation of additional jobs within Fort Collins
and within the boundaries of its Urban Growth
Area
2 Increase of tax base resulting in a net fiscal
benefit to the City
3 Stimulation of additional business investment
4 Provide facilities or benefits to Fort Collins
citizens for economic purposes in a manner that
compliments the City' s own programs or facil-
ities
C Other Considerations The City will encourage the submission of
proposals that are consistent with the following general guide-
lines
1 IDRB proposals should be consistent with
stated official policies and goals and object-
ives of the City of Fort Collins It is the
responsibility of the applicant to obtain such
information from the City administration
2 The City of Fort Collins will encourage the
submission of proposals that provide for
downtown revitalization, historic preservation
and energy conservation
D Facilities and Programs All facilities and programs that may be
financed under the Colorado statutes will be eligible for consider-
ation by the City Competitive impact resulting from the facility
or program will be considered and addressed in approving an IDRB
issue
III Financial Responsibility Applicants for IDRB issues must clearly
demonstrate financial responsibility sufficient to amortize the
proposed bond issue The plan for marketing the IDRB' s will determine
the general financial standards used by the City to evaluate the
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proposal The marketing plan for sale of the IDRB issue must be
filed with the application and kept current through the closing of the
IDRB issue
A Public Offering of Industrial Development Revenue Bonds The
following financial criteria will be used as guidelines for the
participation of the City in a public offering of IDRB' s
1 The financial statements of the applicant should
demonstrate sound financial position and oper-
ating results
2 And further, that the applicant should present
financial projections of the proposed project
based on a marketing survey or a feasibility
study, where applicable
B Private Placement
1 Description of private placement investors)
2 The debt to appraised value of the proposed
facility should not exceed 90% Exceptions
to this guideline should be allowed where the
applicant presents special circumstances for a
higher debt to appraised value ratio
C Other General Economic Considerations
1 Asset life span versus term of the bond issue
2 Management strength of applicant
3 Minimum size of bond issues
Generally , the City will not consider an
IDRB issue of less than $750 ,000 , unless
private placement has been pre-arranged
4 Efforts toward public/private partnership
projects
D Reimbursement to the City of all expenses
Whether or not the proposed project is approved by the City of Fort
Collins and Industrial Revenue Bonds issued, the proponent of
the project will be required to reimburse the City of Fort Collins
for any and all expenses incurred as a result of the application
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y .
for Industrial Development Revenue Bonds This reimbursement will
include, but not be limited to, the cost of time of all the person-
nel of the City, the expense of bond counsel and such consul -
tants as the City may employ to assist in the evaluation, and all
other expenses incurred by the City related to the proposal
E Fees charged by the City for the Issuance of Industrial Development
Revenue Bonds
If the proposed project is approved by the City of Fort Collins and
Industrial Development Revenue Bonds are issued, a fee will be
paid to the City by the applicant The amount of said fee shall be
the present value of the amount to be derived from applying 1/16 of
1% to the unpaid principal amount of the bonds at the end of each
bond year This feel will be in addition to the reimbursement of
any and all expenses incurred by the City Notwithstanding any
provision contained herein , this fee shall not exceed federal
arbitrage regulations The fee will be paid to the City at the
time of official closing on the sale of the bonds
F Monies Collected
The monies collected as a result of the provisions of Section
III , paragraphs D and E above are to be used for the encouragement
of economic development within the City limits of the City of Fort
Collins and including any other area allowable under applicable
laws and regulations
Passed and adopted at a regular meeting of the Council of the City of
Fort Collins this 2nd day of February, 1982
Mayor
ATTEST
City Clerk
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