HomeMy WebLinkAboutOrdinance-1985-0635INTRODUCED BY COUNCILMEMBER Merkl
ORDINANCE NO. 635
Series of 1985
TITLE: ORDINANCE AUTHORIZING THE ISSUANCE AND SALE OF THE CITY
OF WHEAT RIDGE 1985 FLOATING RATE MULTIFAMILY HOUSING
REVENUE BONDS (WHEAT RIDGE HOUSING LIMITED PARTNERSHIP
PROJECT) FINANCING OF COSTS OF A MULTIFAMILY RENTAL
PROJECT, AND AUTHORIZING THE EXECUTION AND DELIVERY OF
VARIOUS DOCUMENTS PERTAINING TO THE LOAN AND OF A TRUST
INDENTURE SECURING THE PAYMENT OF THE BONDS (HARCOURT
DEVELOPMENT COMPANY PROJECT).
WHEREAS, the City of Wheat Ridge (the "issuer"), by virtue
of the laws of the State of Colorado, is authorized and empowered
(a) to issue its revenue 'ponds, for the purpose of assisting in
the financing of costs of acquiring, constructing, installing,
equipping or improving a multifamily rental facility located
within the boundaries of the Issuer, (b) to enter into agreements
and to provide for revenues sufficient to pay the principal of
and premium, if any, and interest on such revenue bonds (c) to
secure the revenue bonds by a trust indenture as provided for
herein and (d) to enact this ordinance and enter into the Basic
Documents, all as hereinafter defined, upon the terms and
conditions provided herein and therein;
NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF WHEAT RIDGE, COLORADO, as follows:
Section 1. Definitions. All terms defined in the
Indenture, the form of which is attached hereto, shall have the
meanings therein when used herein.
Section 2. Determination of Legislative Authority. The
City Council does hereby determine that (a) the Project is a
"project" as defined in the Act; (b) the utilization of the
Project is in furtherance of the purposes of the Act and will
benefit the people of the Issuer's jurisdiction by creating jobs
and employment opportunities and improving the economic welfare
of the people of the Issuer's jurisdiction; and (c) the provision
of loan assistance to finance the costs of acquiring,
constructing, installing, equipping or improving the Project,
including the financing thereof, will require the issuance, sale
and delivery of the Bonds in the aggregate principal amount
specified before.
Section 3. Authorization of Bonds. It is determined to be
necessary to, and the issuer shall, issue, sell and deliver as
provided and authorized herein and in the Indenture and pursuant
to the authority of the Act, Bonds in the aggregate principal
amount not to exceed $25,000,000, for the purpose of assisting
the Company in the financing of costs of acquiring, constructing,
installing, equipping or improving the Project for the Project
Purposes.
Section 4. Terms and Provisions of Bon
(a) Generally. The Bonds shall be issued in fully
registered form, substantially as set forth in the Indenture;
shall be exchangeable for fully registered Bonds of authorized
denominations as provided in the Indenture; shall be numbered in
the order of their authentication; shall be subject to optional
and mandatory redemption in such amounts, upon such conditions,
and at such time and prices as are provided in the Indenture; and
shall be dated as of October 1, 1985. Each Bond shall bear
interest from the most recent Interest Payment Date to which
interest has been paid or duly provided for or, if no interest
has been paid, from April 1, 1985 (or from the Delivery Date, is
so provided by the Indenture).
(b) Interest Rate and Principal Maturities. The Bonds
shall bear interest at such rate of interest, not to exceed a
rate of (or if the Bonds bear interest at a floating rate, not to
exceed an initial rate of) 12% per annum, payable on each
Interest Payment Date and shall mature on April 1, of such year
(not later than 30 years after April 1, 1985) as shall be
specified by the Mayor or Treasurer.
Interest on the Bonds shall be payable by check or draft as
provided in the Indenture and principal shall be payable upon
presentation and surrender of the bonds at the corporate trust
office of the Trustee, in both cases without deduction for the
services of any paying agent.
(c) Execution. The Bonds shall be signed in their official
capacities by the Mayor and the Treasurer provided that any or
all of such signatures may be facsimiles, and shall bear the seal
or a facsimile seal of the Issuer.
Section 5. Sale of Project Bonds. The Bonds shall be sold
and awarded to the original Purchaser, in accordance with the
Bond Purchase Agreement between the Issuer and the Original
Purchaser in substantially the form attached hereto, if any, with
modifications not inconsistent herewith, at a purchase price (not
less than 96.75% of the aggregate principal amount of the Project
Bonds) to be specified by the original purchaser plus (unless the
Indenture indicates the Bonds are to bear interest from the
Delivery Date) any accrued interest on the principal amount of
the Bonds from April 1, 1985 to the date of delivery of and
payment therefrom. The Mayor and Treasurer and the City Council
are authorized and directed to make the necessary arrangements
with the original Purchaser to establish the date, location,
procedure and conditions for the delivery of the Bonds to the
original Purchaser and to take all steps necessary to effect due
execution, authentication and delivery to the Original Purchaser
of the Bonds under the terms of this ordinance, the Indenture and
the Bond Purchase Agreement, if any.
Execution by the appropriate officers of the Indenture shall
be conclusive specification of all matters authorized hereby.
Section 6. Arbitrage Covenant of Issuer. In addition to
other covenants and representations of the Issuer contained in
this Ordinance and the Indenture, the Issuer further covenants,
represents and agrees that it will restrict the use of the
proceeds of the Bonds in such manner and to such extent, if any,
as may be necessary in the opinion of bond counsel delivered to
the Issuer, after taking into account reasonable expectations at
the time of the delivery of and payment of the Bonds, so that the
Bonds will not constitute arbitrage bonds under Section 103(c) of
the Code. The Treasurer or any other officer having
responsibility for issuing the Bonds is authorized and directed,
alone or in conjunction with any of the foregoing or with any
other officer, employee, consultant or agent of the issuer or
with the Company or any officer, employee, consultant or agent of
the Company to give an appropriate certificate of the Issuer, for
inclusion in the transcript of proceedings for the Bonds, setting
forth the reasonable expectations of the Issuer regarding the
amount and the use of the proceeds of the Bonds and the facts,
estimates and circumstances on which they are based, such
certificate to be premised on the reasonable expectations and the
facts, estimates and circumstances on which they are based as
provided by the company, all as of the date of delivery of and
payment for the Bonds.
Section 7. Documents. In order to provide for the issuance
and sale of the Bonds and the consummation of the transactions to
be consummated thereby, the Mayor and the Treasurer or the City
Clerk of this City Council, as appropriate, are hereby authorized
and directed to execute, acknowledge and deliver, in the name and
on behalf of the issuer, the Issuer Documents in substantially
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the forms submitted to this City Clerk, which instruments are
hereby approved, with such changes therein not inconsistent with
this ordinance and not substantially adverse to the Issuer as may
be permitted by the Act and approved by the officers executing
the same on behalf of the Issuer. The approval of such changes
by said officers, and that such are not substantially adverse to
the Issuer, shall be conclusively evidenced by the execution of
such instruments.
Section 8. Other Documents. The Mayor, the Treasurer and
the City Clerk of this Legislative Authority, as appropriate, are
further authorized and directed to execute the Bond Purchase
Agreement, if any, such certifications, financing statements,
assignments and instruments as are, in the opinion of bond
counsel, necessary or appropriate to perfect the assignments set
forth in the Indenture and to consummate the transactions
contemplated by this Ordinance and provided for in the Basic
Documents.
Section 9. Compliance with Open Meeting Requirements. It
is found and determined that all formal actions of this
Legislative Authority concerning and relating to the adoption of
this Ordinance were adopted in an open meeting of this City
Council, and that all deliberations of this City Council and of
any of its committees that resulted in these formal actions, were
in meetings open to the public, in compliance with all legal
requirements.
Section 10. Special Obligations. The Bonds are special
obligations of the Issuer, and the principal of and premium, if
any, and interest on the bonds are payable solely from the
Revenues as defined and as provided in the Indenture (being,
generally, the payments and other amounts payable under the
Agreement) and are not otherwise an obligation or pledge of any
moneys raised by taxation and do not represent or constitute a
debt or pledge of the faith and credit of the Issuer.
Section 11. Conditions. The Bonds are issued subject to
the following conditions:
1. Not less than 1/3 of the units constructed in the
project shall be available for rental by families with children
of all ages; and
2. The maximum density of the project shall be 15 units per
acre.
Section 12. Safety Clause. The City Council hereby finds,
determines, and declares that this ordinance is promulgated under
the general police power of the City of Wheat Ridge, that it is
promulgated for the health, safety, and welfare of the public,
and that this ordinance is necessary for the preservation of
health and safety and for the protection of public convenience
and welfare. The City Council further determines that the
ordinance bears a rational relation to the proper legislative
object sought to be attained.
Section 13. Severability. If any clause, sentence,
paragraph, or part of this ordinance or the application thereof
to any person or circumstances shall for any reason be adjudged
by a court of competent jurisdiction invalid, such judgment shall
not affect application to other persons or circumstances.
Section 14. This ordinance shall take effect one (1) day
after final publication.
INTRODUCED, READ, AND ADOPTED on first reading by a vote of
7 to 0 on this 9th day of September , 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
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7:30 o'clock p.m., in the Council Chambers, 7500 West 29th
Avenue, Wheat Ridge, Colorado
READ, ADOPTED, AND ORDERED PUBLISHED on second and final
reading by a vote of 6 to 1 this 23rd day of September
, 1985.
SIGNED by the Mayor on this 23rd day of September ,
1985.
Frank Stites, Mayor
ATTEST:
Lj'aa~~ Z"
Wanda Sang, City erk
1st Publication: 9/12/85
2nd Publication: 9/26/85
Wheat Ridge Sentinel:
APPROVED AS TO FORM BY
OFFICE OF CITY.ATTORNEY:
Effective Date: 9/27/85
John E. Hayes
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