HomeMy WebLinkAboutResolution-1977-0543
INTRODUCED BY COUNCILMAN
MERKL
RESOLUTION NO.
Series of 1977
543
TITLE: RESOLUTION ESTABLISHING A POLICY AND CRITERIA FOR THE CONSIDERATION
OF REQUESTS FOR INDUSTRIAL REVENUE BOND FINANCING AND FOR THE
ISSUANCE OF SUCH BONDS BY THE CITY OF WHEAT RIDGE AND
RELATED MATTERS THERETO.
WHEREAS, the County and Municipalities Development Revenue Bond Act
passed by the State Legislature in 1967, as revised by Article III, Chapter
29, C.R.S. 1973, authorizes municipalities to issue Revenue Bonds for indus-
trial facilities and for various other projects as set forth in the Act in
order that municipalities may have a means of encouraging selected industry,
developing trade, enhancing employment opportunities, and assisting in main-
taining a balanced and stable economy within the municipalities; and
\~EREAS, it is the desire of the City Council to establish policies
and criteria which will be followed by the City in reviewing and evaluating
applications for the City's issuance of Industrial Revenue Bonds; and
WHEREAS, it is the desire of the City Council that all applicants know
the policy and criteria which the City shall follow in reviewing and analyzing
all requests for issuance of Industrial Revenue Bonds;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
\lliEAT RIDGE, COLORADO, THAT THE FOLLOWING POLICIES AND CRITERIA SHALL BE
UTILIZED BY THE CITY COUNCIL IN THE REVlffi, AND ANALYSIS OF ALL APPLICATIONS
FOR INDUSTRIAL REVENUE BONDS:
SECTION I. GENERAL REQUIREMENTS
1. The proposed industrial facility shall not be in conflict with
the City's Comprehensive Plan.
2. The property on which the industrial facilities are planned to
be located must lie within the corporate boundaries of the City of Wheat
Ridge, and said property must carry the zoning classification which permits
said industrial uses.
3. The proposed industrial facility, and the plans therefor, shall
be reviewed by the City staff in relation to the off-site improvements,
including, but not limited to, streets, curb, gutter, sidewalks, utility
easements, water and sewer line services, and traffic control devices needed
in order to provide the necessary services for said proposed facility, and
a report thereon shall be submitted to the City Council prior to the City
Council's rendering any final decision.
Resolution No.
543
, Series of 1977
Page -2-
4. All applications for Industrial Revenue Bond financing shall be
given prompt and careful attention pursuant to the guidelines and criteria
established in this Resolution. All applications shall be submitted to the
City Administrator whose responsibility shall be to coordinate the processing
and review of all applications, and to cause a full report, with recommendations,
to be submitted to the City Council at the earliest opportunity.
5. The plans for the proposed project shall be in strict compliance
with the appropriate zoning and subdivision regulations unless variances are
granted by the appropriate Board or Commission.
SECTION II. FINANCIAL AND LEGAL l',EQUIREMENTS
1. A legal opinion from a qualified Municipal Bond counsel acceptable
to the City Council stating that the applicant's proposal falls within the
meaning and intent of the Revenue Bond Act.
2. Acceptable evidence that the proposed bond issue can be sold
through a qualified underwriter or to an experienced investor or group of
investors.
3. The application shall contain the following information:
(a) History of the applicant, including a description of its
operations:
(b) Historical financial statistics for the past five (5) years,
including
(1) Net sales,
(2) Gross profit,
(3) Net income,
(4) Cash flow,
(5) Net worth,
(6) Earnings available for debt service,
(7) Net fixed assets,
(8) Working capital,
(9) Current ratio of assets to liabilities; this ratio must
be approximately two (2) to one (1) or as determined adequate
by City, considering the nature of the operation to be financed,
(10) Long term debt and amortization schedule for such debt;
(c) A financial report from Dun & Bradstreet, or comparable firm,
if available, concerning the financial status of the company;
(d) The industrial firm's net earnings before income tax and
depreciation must be at least equal to three (3) times the maximum
of the debt service on the Industrial Revenue Bonds;
(e) Bond redemption and interest repayment schedule, using esti-
mated interest rates at the time of issue shall be required;
(f) A resume of the principals and key personnel of the firm,
including Directors and Officers, if applicant is a corporation;
Resolution No.
:>4.3
, Series of 1977
Page -3-
(g) A complete list of assets to be purchased or constructed, and
estimated life of such assets;
(h) A report of any litigation pending against the company;
(i) The maximum amount to be borrowed shall not exceed the estimated
construction cost of the facility;
(j) Any other matters specifically desired by the City Council not
set forth above.
SECTION III. OTHER CRITERIA
1. The City shall reserve the right to control the timing of the sale
of any Bonds, and the City's discretion as to the best time for sale shall be
absolute.
2. All costs, fees, and expenses pertaining to the issuance of the
Industrial Revenue Bonds shall be borne by the requesting party. City may
also include its costs for legal review and administration of the application.
3. Applicants must show that the intended industrial facilities will
not be in direct competition to any existing retail establishment
currently located within the corporate limits of the City of Wheat Ridge.
4. Applicant must indemnify the City against all lawsuits or costs
if project does not proceed or is abandoned.
5. The Inducement Resolution adopted by the City shall set forth a
time limit on the effectiveness of such Resolution.
6. The project must comply with all Environmental Protection Agency
(EPA) standards.
7. The project must show creation of meaningful employment benefits
to the City.
BE IT FURTHER RESOLVED that at such time when the applicant has
satisfied all of the above stated requirements, the City will review the
material and information submitted, and the City Council will make its final
decision, taking into consideration the findings and recommendations of a
qualified investment banking firm and its ability to sell the bonds in a timely
manner. Such decision shall be at the full and complete discretion of the
City Council of Wheat Ridge.
BE IT FURTHER RESOLVED that the City Council will, in performing its
review responsibilities, seek to protect and enlarge the good fiscal reputation
of the City of lfueat Ridge.
BE IT FURTHER RESOLVED that the City Council reserves the right to
modify or delete any of the requirements stated in this Resolution for good
and sufficient reason.
DONE AND RESOLVED by a vote of
day of November, A. D. 1977.
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ATTEST'
--... F If ~,/' vd<--:/( L~?...;
FRANK STITES, MAYOR
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