HomeMy WebLinkAbout1983-217-12/20/1983-SETTING FORTH THE INTENTION OF THE CITY OF FORT COLLINS, COLORADO TO ISSUE INDUSTRIAL DEVELOPMENT RE RESOLUTION 83 - 217
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 JOHN Q HAMMONS
WHEREAS, representatives of John Q Hammons ( "Hammons") have
met with officials of the City of Fort Collins , Colorado ("the City") ,
and have advised the City of the interest of Hanons in constructing
a hotel and convention center in the City, subject to the willing-
ness of the City to finance the project (the "Project") as an
industrial development revenue bond project, pursuant to the
Colorado County and Municipality Development Revenue Bond Act
constituting Article 3, Title 29 , Colorado Revised Statutes 1973 ,
as amended (the "Act") and
WHEREAS , Hammons 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 develop-
ment of land and the construction and equipping of a hotel and
convention center building designed to meet transient housing and
conference facilities needs in the community which will create
additional jobs within the City and
WHEREAS , the City 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 City Council has determined the Project to be
consistent with the goals and objectives of the City, 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 In order to induce Hammons to locate and construct
the Project within the City, the Citv shall , subject to the pro-
visions 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
Nine Million Eight Hundred Thousand Dollars ($9 , 800 , 000 00) or such
lesser amount as shall be determined and agreed upon by Hammons 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 Hammons 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 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 Hammons In addition to the costs and expenses
to be borne by Hammons as described in the preceding sentences ,
if the Project is approved by the City and the Bonds are issued,
Hammons 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 or 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 Prior to any further action by the City Council ,
Hammons 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 loan proceeds for said Project
Section 5 Nothing contained in this resolution shall consti-
tute 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 Hammons, 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 con-
ditions contained herein
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Section 7 The Project for which this resolution is
adopted is "site-specific" , that is to say, the hotel and
convention center for which issuance of the Bonds shall be
approved is limited to a seven (7) acre site situate at the
south-east corner of the intersection of Prospect Road and
Center Avenue , known and numbered as 1600 Center Avenue, Fort
Collins, Colorado
Section 8 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 resolu-
tion, or part thereof, heretofore repealed
Section 9 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 10 This resolution shall take effect immediately
upon its introduction and passage
Passed and adopted at a regular meeting of the City Council
held this 20th day of December, 1963
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