HomeMy WebLinkAboutOrdinance-1985-0633IN7RODIICED BY COUNCILMEMBER ,TILDE
ORDINANCE 110. h33
All ORDINANCE AUTHORIZING THE ISSUAI
INDUSTRIAL DEVELOPMENT REVENUE BOND
CORPORATION PROJECT), SERIES 1985,
AMOUNT OF $11200,000; AND APPROVING
ORIZING THE EXECUTION OF CERTAIN
THERETO.
ICE AND SALE OF AN
(WADSWORTH BUILDING
IN THE PRINCIPAL
THE FORM AND AUTH-
DOCUMENTS RELATING
WHEREAS, the City of Wheat Ridge, in the County of Jefferson
and State of Colorado (the City), is a political subdivision of
the State of Colorado (the State) and a home rule city, duly
organized and existing pursuant to the Constitution and laws of
the State and the City's home rule charter (the Charter); and
WHEREAS, Section 12.1 of the Charter authorizes the City to
issue revenue bonds and other- like securities; and
WHEREAS, Section 1.3 of the Charter provides that the City
has all powers that may be granted to municipalities by the
statutes of the State and that such powers may be exercised in
the manner prescribed in the Charter or, if not provided for
therein, in such manner as shall be provided by ordinance of the
City Council of the City (the City Council); and
WHEREAS, the City is authorized by the County and
Municipality Development revenue Bond Act, constituting Title 29,
Article 3, Colorado Revised Statutes (the Act), to finance,
acquire, own, lease, improve, and dispose of properties to the
end that the City may be able to promote industry and develop
trade or other economic activity by inducing profit or nonprofit
corporations, federal governmental offices, hospitals, and agri-
cultural, manufacturing, industrial, commercial, or business
enterprises to locate, expand, or remain in the State of
Colorado, to mitigate the serious threat of extensive unemploy-
ment in parts of the State, to secure and maintain a balanced and
stable economy in all parts of the State, and to further the use
of its agricultural products or natural resources; and
WHEREAS, the City is further authorized to issue revenue
bonds for the purpose of defraying the costs of financing,
refinancing, acquiring, improving, and equipping any such pro-
ject; and
WHEREAS, the City has heretofore adopted its Resolution No.
724, Series of 1980 wherein is set forth the City's policy and
criteria for the consideration of requests for industrial revenue
bond financing and for the issuance of such bonds by the City;
and
WHEREAS, by Resolution No. 943 duly adopted on April 22,
1985 (the Inducement Resolution), the City agreed to issue its
industrial development revenue obligations in a maximum aggregate
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principal amount not exceeding $2,700,000 in accordance with the
provisions of the Act for the purpose of financing the acquisi-
tion of certain real property and the building and equipping of
one or nore buildings thereon to be used as a bank facility (the
Project) located or to be located in the City for International
Bancorp, a Colorado corporation and regulated bank holding com-
pany, or its assigns; and
WHEREAS, International Bancorp has created a wholly owned
subsidiary incorporated as Wadsworth Building Corporation, a
Colorado corporation (the Borrower), for the purpose of accom-
plishing the acquisition and construction of the Project and has
assigned all of International Bancorp's rights and obligations in
the financing of the Project to the Borrower; and
WHEREAS, pursuant to the Tax Equity Fiscal Responsibility
Act of 1982, the City Council held a public hearing on the
issuance of the bond following reasonable public notice on
Monday, September 9, 1985; and
WHEREAS, the Borrower has requested that the City proceed to
issue its S1,200,000 Industrial Development Revenue Bond (Wads-
worth Building Corporation Project), Series 1985, (the Bond) for
the purpose of financing the Project located or to be located in
the City; and
WHEREAS, the following documents have been submitted to the
City Council and filed in the office of the City Clerk (the
Clerk) and are there available for public inspection:
(a) a Loan Agreement, to
delivery of the Bond (the Loan
and entered into among the City,
Bank of Lakewood (the Bank); and
be dated as of the date of
Agreement), proposed to be made
the Borrower and First Rational
(b) a Deed of Trust to be dated as of the date of delivery
of the Bond (the Deed of Trust), proposed to be made and entered
into between the Borrower- (as grantor), the Public Trustee of the
County of Jefferson, State of Colorado (the Public Trustee) and
the Bank (as beneficiary); and
(c) a Bond Purchase Agreement (the Bond Purchase Agreement)
dated August 12, 1985 made and entered into among the City, the
Borrower and the Bank; and
(d) a Placement Agent Agreement (the Placement Agent
Agreement) dated August 12, 1985 between the City and
International Bank (the Placement Agent); and
WHEREAS, the City Council desires to issue at this time the
City of Wheat Ridge, State of Colorado Industrial Development
Revenue Bond (Wadsworth Building Corporation Project) Series
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1985, to be dated as of the date of issuance and delivery
thereof, in the maximum aggregate principal amount of 51,200,00
(the Series 1985 Bond or the Bond); and
WHEREAS, it is necessary to issue the Series 1985 Bond by
ordinance (the ordinance or the Bond Ordinance) and to approve
the form and authorize the execution of the aforementioned docu-
ments thereby; NOW THEREFORE,
BE IT ORDAINED BY THE CITY C0014CIL OF THE CITY OF WHEAT
RIDGE:
Section. 1. Aporovals and Authorizations. The forms of Loan
Agreement, Bond Purchase Agreement and Placement Agent Agreement
are hereby approved. The Mayor and the Clerk are hereby
authorized and directed to execute the Loan Agreement, Bond
Purchase Agreement and Placement Agent Agreement and affix the
seal of the City thereto and further to execute and authenticate
such other documents, instruments or certificates as are deemed
necessary or desirable by bond counsel in order to issue and
secure the Series 1985 Bond. Such documents are to be executed
in substantially the fora hereinabove approved, provided that
such documents may be completed, corrected or revised as deemed
necessary by the parties and approved by the City Attorney's
office in order- to carry out the purposes of this Bond Ordinance.
Copies of all of the documents shall be delivered, filed and
recorded as provided therein.
The proper officers of the City are hereby authorized and
directed to prepare and furnish to bond counsel certified copies
of all proceedings and records of the City relating to the Series
1985 Bond and such other affidavits and certificates as may be
required to show the facts relating to the authorization and
issuance thereof as such facts appear from the books and records
in such officers' custody and control or as otherwise known to
them. All such certified copies, certificates and affidavits,
including any heretofore furnished, shall constitute representa-
tions of the City as to the truth of all statements contained
therein.
The approval hereby given to the various documents referred
to above includes an approval of such additional details therein
as may be necessary and appropriate for their completion, includ-
ing interest rates and any numbers derived therefrom or deletions
therefrom and additions thereto as may be approved by bond
counsel and the City Attorney prior to the execution of the
documents. The execution of any instrument by the appropriate
officers of the City herein authorized shall be conclusive
evidence of the approval by the City of such instrument in
accordance with the terms hereof.
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Section 2. Bond Details. The City shall issue its City of
Wheat Ridge, State of Colorado Industrial Development Revenue
Bond (Wadsworth Building Corporation Project) Series 1985, to be
dated as of the date of issuance and delivery thereof, consisting
of one bond, numbered R-1, in the denomination of 51,200,000 for
the purpose, in the form and upon the terms set forth in this
Bond ordinance and the Loan Agreement.
The Series 1985 Bond shall be payable in the manner and to
the persons set forth in the Loan Agreement and shall bear inter-
est at the rate of nine percent (995) per annum.
The Bond shall be amortized and paid in quarterly install-
ments of interest only during the first year following the first
allowable advance of principal of the Bond commencing on December
1, 1985; commencing October 1, 1986, principal and interest on
the Bond shall be amortized and paid monthly on the first day of
each month on a 30-year basis for the period from September 1,
1986 through September 11 2016. The interest is always paid one
month in arrears, thus the first payment of principal and inter-
est is October 1, 1986. The interest payable on the Bond during
the first year following the first advance of principal of the
Bond shall not exceed One Hundred Nine Thousand Five Hundred
Dollars ($109,500). The principal of and interest on the Bond
for the period from September_ 1, 1986 through September 1, 2016,
shall not exceed the amounts set forth on Exhibit A attached
hereto and made a part hereof by this reference. In the event of
a Determination of Taxability, as defined below, the Bond shall
bear interest at the rate of 14% per annum from the effective
date of such Determination of Taxability. The Bond is subject to
mandatory redemption on any date in full at a redemption price
equal to one hundred percent (1000) of the aggregate amount of
principal outstanding plus accrued interest to the date of
redemption from and after_ the date the Project shall have been
damaged or destroyed or there occurs condemnation of all or sub-
stantially all of the Project or the taking by eminent domain of
such use or control of the Project as in each case renders the
Project unsatisfactory to the Borrower for its intended use and
the Borrower has not elected, as expressed in a certificate
delivered to the Bank within one hundred twenty (120) days after
the occurrence of such event of damage, destruction or condemna-
tion, to rebuild or restore the Project. The Bond is also
subject to mandatory prepayment prior to maturity at the option
of the Bank at par, plus accrued interest on September. 1, 1990
and on any interest payment date thereafter as provided in the
Loan. Agreement.
Determination of Taxability shall mean the issuance of a
statutory notice of deficiency by the Internal Revenue Service,
or a ruling of the National office or any District Office of the
Internal Revenue Service, or a final decision of a court of
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competent jurisdiction which holds in effect that the interest
payable on the Bond is includable in the gross income of the
owner(s) of the Bond for federal income tax purposes.
Section 3. Fora and Execution of Series 19,95 Bond. The
Series 1985 Bond shall be signed by the manual signature of the
Mayor , sealed with a manual impression of the seal of the City,
and attester] and countersigned by the manual signature of the
Clerk, should any officer whose manual signature appears on the
Bond cease to be such officer before delivery of the Bond to the
purchaser, such manual signature shall nevertheless be valid and
sufficient for all purposes.
The Series 1985 Bond shall be in substantially the following
form (any blanks in the forms will he completed on the date of
delivery of the Bond):
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UNITED STATES OF AMERICA
STATE OF COLORADO
COUNTY OF JEFFERSON
CITY OF WHEAT RIDGE
INDUSTRIAL DEVELOPrIENT REVENUE BOND
(WADSWORTH BUILDING, CORPORATION PROJECT)
SERIES 1985
No. R-1 $1,2001000
The City of Wheat Ridge, State of Colorado, a home rule city
and body corporate and politic (the City), for value received,
hereby promises to pay to the order of First National Bank of
Lakewood (the Bank), or its assigns, from the source and in the
manner hereinafter provided, the maximum aggregate principal sum
of ONE MILLION TWO HUNDRED THOUSAND DOLLARS ($1,200,000), or so
much thereof as is borrowed and remains unpaid from time to time
(the Principal Balance), with interest on the Principal Balance
from the date of issuance and delivery hereof to the Bank at the
rate of nine percent (90) per annum. Interest only on the Bond
shall be paid quarterly during the first year following the first
allowable advance of principal of the Bond pursuant to the Loan
Agreement commencing December 1, 1985 and the Principal Balance
of the Bond and the interest thereon shall be amortized and paid
on a 30-year basis for the period from September 1, 1986 through
September 1, 2016 payable monthly on the first day of each month
commencing on October 1, 1986 pursuant to the payment schedule
attached hereto as Exhibit I which is incorporated herein by this
reference. In the event of a Determination of Taxability, as
defined in the Loan Agreement described hereinafter, the Bond
shall bear interest at the r-ite of 14% per annum from the
effective date of such Determination of Taxability and the pay-
ment schedule attached hereto shall be modified to reflect the
change in interest rate. The principal of and interest on this
Bond are payable in lawful money of the United States at the
principal office of the Bank in Denver, Colorado. Payments shall
be applied first to interest due on the Principal Balance and
thereafter to reduction of the Principal Balance.
This Bond is the single bond of a series (the Series 1985
Bond), issued under the County and Municipality Development
Revenue Bond Act, constituting Title 29, Article 3, Colorado
Revised Statutes (the Act) and the home rule charter of the City,
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and in conformity with the provisions, restrictions and limita-
tions thereof. Both principal and interest are payable solely
from revenues payable to the City under the provisions of a Loan
Agreement, dated and executed as of the date of delivery of the
Series 1985 Bond (the Loan Agreement) among the City, the Bank
and Wadsworth Building Corporation (the Borrower). This Bond
does not constitute a charge against the general credit or taxing
powers of the City and does not grant to the Bank or any subse-
quent owner of this Bond any right to have the City levy any
taxes or appropriate any funds for the payment of the principal
hereof or interest hereon, nor is this Bond a general obligation
of the City or the individual officers or agents thereof.
The Series 1985 Bond is issued for the purpose of funding a
loan from the City to the Borrower to enable the Borrower to
acquire certain real property and to construct and equip a build-
ing thereon for use as a bank facility (the Project), pursuant to
the Loan Agreement and a Bond ordinance of the City finally
passed and adopted prior to the delivery of the Series 1985 Bond.
The Series 1985 Bond is secured by the Loan Agreement, that
certain promissory note dated as of the date of delivery of the
Bond (the Note), payable by the Borrower to the order of the City
and endorsed to the Bank, the Bond Ordinance and a Deed of Trust
(the Deed of Trust) dated as of the date of delivery of the Bond,
from the Borrower (as grantor) to the Public Trustee of the
County of Jefferson, State of Colorado (the Public Trustee) for
the benefit of the Bank (as beneficiary), to which Loan Agree-
ment, Mote, Bond Ordinance and Deed of Trust and amendments
thereof, reference is hereby made for a description and limita-
tion of the revenues and property pledged and mortgaged to secure
the payment of the Series 1985 Bond, the nature and extent of the
security thereby created, the rights of the Borrower, the rights,
duties and immunities of the Bank, and the rights, immunities and
obligations of the City thereunder. Certified copies of the Bond
ordinance and executed counterparts of the Loan Agreement and
Deed of Trust are on file at the office of the Bank and at the
office of the City Clerk.
The series 1985 Bond is subject to mandatory redemption on
any date in full if all or substantially all of the Project shall
have been damaged or destroyed or there occurs condemnation of
all or substantially all of the Project or the taking by eminent
domain of such use or control of the Project as in each case
renders the Project unsatisfactory to the Borrower- for its
intended use and the Borrower has not elected, as expressed in a
certificate delivered to the Bank within 120 days after the
occurrence of such event of damage, destruction or condemnation,
to rebuild or restore the Project. Upon the occurrence of any of
the events specified in this paragraph, the Series 1995 Bond
shall be redeemed at a redemption price equal to 100% of the
outstanding Principal Balance of the Series 1985 Bond so redeemed
plus accrued interest to the date of redemption without premium.
The Bond is also subject to mandatory prepayment prior to
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maturity at the option of the Bark at par, plus accrued interest
on September 1, 1990 and on any interest payment date thereafter
as provided in the Loan. Agreement.
Installments of principal are subject to optional redemption
prior to maturity at the option of the City (on the request of
the Borrower), on any interest payment date, in inverse numerical
order of payment, at a redemption price equal to 100% of such
principal amount and accrued interest to the date of redemption,
without premium.
In case an Event of Default as defined in the Loan Agreement
occurs, the outstanding Principal Balance of the Series 1985 Bond
may he declared or may become due and payable prior to the stated
maturity hereof in the manner and with the effect and subject to
the conditions provided in the Loan Agreement.
It is hereby certified and recited and the City Council of
the City has found: That the Project is an eligible "project"
defined in Section 29-3-103(10) of the Act; that the issuance of
the Series 1985 Bond and the acquisition and construction of the
Project will promote the pubic welfare and carry out the purposes
of the Act; that all acts, conditions and things required to be
done precedent to and in the issuance of this Bond have been
properly done, have happened and have been performed in regular
and due time, form and manner as required by law; and that this
Bond does not constitute a debt of the City within the meaning of
any constitutional, statutory or charter limitation.
IN WITNESS WHEREOF, the City of Wheat Ridge, in the State of
Colorado, has caused this Bond to be signed in its behalf by the
manual signature of the Mayor and attested and countersigned by
the manual signature of the City Clerk, and sealed with a manual
impression of the corporate seal of the City, all as of the
day of September 1985.
(S E A L)
ATTESTED AND COUIITERSIGPIED:
CITY OF WHEAT RIDGE
STATE OF COLORADO
([Manual Signature)
By: (Do Not .Sign)
City Clerk
(Manual Signature)
By: (Do Not Sign)
Mayor
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section 4. Determinations.
and declared that:
It is hereby found, determined
(a) The Project, as more fully described in the Loan Agree-
merit referred to in Section 1 hereof, constitutes a "project"
authorized by and described in Section 29-3-103(10) of the Act;
(b) Based upon the information supplied by the Borrower in
Exhibit "B" attached hereto and made a part hereof by this
reference, the public purpose of the Project is and, in the judg-
ment of the City Council, the effect thereof will be to promote
the public welfare by: creating or additional employment oppor-
tunities and mitigating a serious threat of extensive
unemployment in parts of the State; and promoting industry and
developing trade or economic activity by inducing a commercial
business enterprise to locate, expand, or remain in this State;
and to secure and maintain a balanced and stable economy in all
parts of this State; and to further the use of the State's
agricultural products or natural resources; and expanding the tax
base by increasing sales, property, or other tax revenues to the
city.
Furthermore, the City will benefit from the financing of the
Project in the following ways: the creation of meaningful
employment benefits; the creation of meaningful new tax revenues;
the creation of other facilities or services which benefit the
community; or meet a stated policy goal of the City Council that
will result in a meaningful benefit to the City.
(c) PIo reserve fund will be established in connection with
the retirement of the Bond or the maintenance of the Project;
(d) The Borrower has agreed to pay the costs of maintaining
the Project in good repair and keeping it properly insured;
) The Borrower has agreed to pay all property taxes on
the Project;
( f ) The Project has been approved by the Inducement
Resolution of the City Council as tending to further the purposes
and policies of the Act;
(g) The issuance and sale of the Bond, the execution and
delivery of the Loan Agreement, Bond Purchase Agreement and
Placement Agent Agreement and the performance of all covenants
and agreements of the City contained in the Loan Agreement, Bond
Purchase Agreement and Placement Agent Agreement and things
required under the laws of the State of Colorado to make the Loan
Agreement, Bond Purchase Agreement and Placement Agent Agreement
and Bond valid and binding obligations of the City in accordance
with their terms, are authorized by the Act;
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(h) There is no litigation pending or, to the best of its
knowledge, threatened against the City relating to the Project or
to the Bond, Loan Agreement, Bond Purchase Agreement or Placement
Agent Agreement or questioning the organization, powers or auth-
ority of the City;
(i) The execution and delivery of the Bond and the Loan.
Agreement, Bond Purchase Agreement and Placement Agent Agreement
and the performance of the City's obligations thereunder have
been fully authorized by all requisite action and do not and will
not violate any law, any charter provision, any order of any
court or other agency of government, or any indenture, agreement
or other instrument to which the City is a party or by which it
or any of its property is bound, or be in conflict with, result
in breach of, or constitute (with due notice or lapse of time or
both) a default under any such indenture, agreement or other
instrument;
(j) Under the provisions of the Act, and as provided in the
Loan Agreement, the Bond is not to be payable from nor charged
upon any funds other than amounts payable by the Borrower pur-
suant to the Loan Agreement, and the property pledged by the
Borrower under the Deed of Trust; the City is not subject to any
liability thereon; neither the Bank nor any subsequent owner of
the Series 1985 Bond shall ever have the right to compel the
exercise of the taxing power of the City to pay the Series 1985
Bond or the interest thereon, nor to enforce payment thereof
against any property of the City; the Series 1985 Bond shall not
constitute a charge, lien or encumbrance, legal or equitable,
upon any property of the City; and the Series 1985 Bond issued
under the Loan Agreement shall recite that the Series 1985 Bond,
including interest thereon, shall not constitute nor give rise to
a charge against the general credit or taxing powers of the City
and that the Series 1985 Bond does not constitute an indebtedness
of the City within the meaning of any constitutional or statutory
limitation;
(k) Neither the Mayor nor any member of the City Council
having acted upon this ordinance in his official capacity (i) has
a direct or indirect interest in the Project, Loan Agreement,
Deed of Trust or Series 1985 Bond, (ii) owns any interest in the
Project or the Borrower, (iii) is a partner or employee of the
Borrower, (iv) will be involved in supervising the completion of
the Project on behalf of the Borrower, or (v) will receive any
commission, bonus or other remuneration for or in respect to the
Project, the Loan Agreement, the Series 1985 Bond, or the Deed of
Trust; and
(1) The City, pursuant to the Loan agreement, hereby
preserves the option to issue, at its discretion, upon request of
the Borrower, and only with the terms set forth therein, such
Additional Bonds as are necessary to complete the Project,
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provide funds for improvements to the Project and to refund or
advance refund the Principal Balance of the Bond then outstand-
irg.
Section 5, filature of obligation. Under the provisions of
the Act, and as provided in the Loan Agreement, the Series 1985
Bond shall be a special, limited obligation of the City payable
solely from, and secured by a pledge of, the revenues derived
from the Loan Agreement and shall be further secured by the Note
and the lien of the Deed of Trust upon the Project. The City
will not pledge any of its property or secure the payment of the
Series 1985 Bond with its property. The Series 1995 Bond shall
never constitute the debt or indebtedness of the City within the
meaning of any provision or limitation of the State Constitution
or statutes and shall not constitute nor give rise to a pecuniary
liability of the City or a charge against its general credit or
taxing powers. In entering into the Loan Agreement, the City
will not obligate itself, except with respect to the Project and
the application of the revenues therefrom and Bond proceeds
therefor. The City will not pay out of its general fund or
otherwise contribute any part of the Costs of the Project (as
said term is defined in the Loan Agreement).
Section 6. Election Under Internal Revenue Code. The City
shall do all acts necessary to complete the election for the
application of the Ten [Million Dollar small issue exemption pur-
suant to Section 103(b)(6)(D) of the Internal Revenue Code of
1954, as amended, and all regulations thereunder.
Section 7. Bond ordinance Irrepeal3ble. After the Series
1985 Bond is issued, this Bond Ordinance shall constitute an
irrevocable contract between the City and the Bank or subsequent
owners of the Series 1935 Bond and shall be and remain irrepeal-
able until the Series 1985 Bond, both principal and interest,
shall be fully paid, cancelled and discharged.
Section 8. Ratification. All action heretofore taken by
the City and by the officers thereof not inconsistent herewith
directed toward the financing of the Project and the issuance and
sale of the Series 1985 Bond is hereby ratifier], approved and
confirmed.
Sectior: 9. Charter and Statutorv Limitations Poet. The City
Council hereby determines that the provisions and limitations of
the City's Charter and any other applicable law imposed on the
issuance of the Bond have been met.
Sectior. 10. Repealer. All acts, orders, resolutions,
ordinances, or parts thereof, taken or adopted by the City and in
conflict with this Bond Ordinance are hereby repealed, except
that this repealer shall not be construed so as to revive any
act, order, resolution, ordinance, or part thereof, heretofore
repealed.
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Section 11. Severability. If any paragraph, clause or
provision of this Bond Ordinance is judicially adjudged invalid
or unenforceable, such judgment shall not effect, impair or
invalidate the remaining paragraphs, clauses or provisions.
Section 12. Effective Date. This Ordinance shall take
effect one day after final publication.
* * * * * * * * * *
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INTRODUCED, READ AND ADOPTED on first reading by a vote of ,7
to 1 on the 12th day of August 1985, ordered published in
full in a newspaper of general circulation in the City of Wheat
Ridge and Public Hearing and consideration on final passage set
for September 23, 1985 at 7:30 o'clock p.m., in Council Chambers,
7500 West 29th Avenue, Wheat Ridge, Colorado.
READ, ADOPTED AND ORDERED PUBLISHED IN FULL on second and final
reading by a vote of to I this 23rd day of September
1985.
SIGNED by the Mayor on this 24th day of September 1985.
i
FRAUK STITES, R-NYOR
ATTEST:
Wanda Sang, City Perk
1st Publication: August 22 1985
2nd Publication: q~,ntrmhpr 26 , 1985
Wheat Ridge Sentine
Effective Date: Sentprnb2r 27_ 1985.
APPROVED AS TO FORM BY OFFICE OF CITY ATTOR14EY:
s
JOHt HAYES, CITY ATT RIIEY
a