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HomeMy WebLinkAboutResolution-1981-0746 P.ESOLVTIOl-l NO. 746 Series of 1981 TITLE: RESOLUTION OF INTENT TO }I.UTHORI ZE THE ISSUANCE OF CITY OF WHEP,T RIDGE, COLORADO, SINGLE FAMILY LORTGAGE REVENUE BONDS lJHEREAS, the City of Hheat Rid~e,Colorado, Dursuant to the County and Municipality Development Revenue Bond Act, $29-3-101, et seq., Colorado Revised Statutes, 1973, as a~ended, is authorized to issue revenue bonds to finance residential facilities for low and ~iddle income families or persons intended for use as the sole place of residence by the owners or intended occupants; and ~lliEREAS, the City Council of the City of Nheat Ridge deems it necessary and advisable to provide more adequate residential facili- ties for low and middle income families or persons intended for use as the sole place of residence by the intended occupants; and vlliEREAS, the City is desirous of implementing a project either alone or in cooperation with one or more eliaible (as determined by said state law) governmental entities to finance single family residences for low and middle income families and persons, thereby promoting the public health, welfare, safety, convenience and prosperity, and has determined to implement such project through the issuance of single family mortgage revenue bonds; and WHEREAS, the City wishes to provide for the implerrentation of the project and wishes to declare its intention to authorize the issuance of one or more series of bonds either as a single governmental entity or in cooperation with one or more eligible governmental enti- ties for the purpose of paying the cost of the project upon such terms and conditions as may be agreed upon by the City and such other entities. NO\'l, THEREFORE, BE I'I' RESOLVED BY TEE CITY COUNCIL OF THE CITY OF l',;}1EAT RIDGE, COLORADO: Section 1. Boettcher and Company is hereby authorized and selected to assist in the implementation of the project to finance single family residential mortgages within the City or within the areas of one or more eligible governmental entities cooperating with the City of vllieat Ridge in this project. Section 2. The City may enter into cooperative agree~ents with one or more eligible governmental entities to implement the project. Section 3. In order to induce Boettcher to make the project available for sale to the qualified purchasers and in order to induce the qualified purchasers to purchase the residential units of the project, the City shall take all steps necessary or advisable to effect the issuance of industrial development revenue bonds, in one or ~ore series, in the maximum aggregate principal amount of $5,000,000 or such lesser amount as shall be agreed upon by the City, Boettcher, and other said governmental entities to finance all or a portion of the cost of the project, as authorized and approved by the City as required by law. No costs are to be borne by the City in connection with such transaction. The City shall be under no obligation to use, and shall not use, any of its funds in relation to this ~atter, and shall not be liable to Boettcher for any expenses related hereto. Section 4. Prior to the execution of the necessary financing documents as shall be agreed upon in connection with the project and such bonds, such documents shall be subject to authorization by the City Council pursuant to law. Resolution No. 746 Series of 1981 Page 2 Section 5. The bonds and the interest thereon shall never constitute the debt or indebtedness of the City within the meaning of any provision or limitation of the State Constitution or statutes of the State of Colorado, v,Jheat Ridge Home Rule Charter, or v;heat nidge ~unicipal Code, and shall not give rise to a pecuniary liability of the City or a charge against its general credit or taxing powers, but shall be secured and payable solely from the revenues and other amounts derived from or related to the mortgage loans (including insurance with respect thereto) purchased or originated under the project, certain reserve funds and certain funds derived pursuant to origination or purchase or service agreement which the City may enter into with financial institutions pursuant to the project. Section 6. Nothing contained in this Resolution, nor any action taken pursuant thereto, shall create a financial obligation or cost to be borne by the City or shall constitute the debt or indebtedness of the City within the meaning of any provision or liIT.itation of the State Constitution, statutes of the State of Colorado, Home Rule Charter, or Municipal Code, or give rise to a pecuniary liability of the City or a charge against its general credit or taxing powers. Section 7. All commitments by the City herein are subject to the condition that on or before months from the date of this Resolution, the City and Boettcher, (and)or other governmental entities shall have agreed to acceptable terms for such bonds and for the sale and delivery thereof, and the City shall have made a clear determination of the economic feasibility of the project and the financing thereof, with the cooperation and assistance of Boettcher. Section 8. Upon passage of this Resolution, Boettcher shall pay the City the sum of $ as reimburseIT.ent for the City's administrative expenses and costs related to the project. In addition, Boettcher shall reimburse the City for all of its attorney's fees related to this project. Section 9. If any article, section, paragraph, sentence, clause, or phrase of this Resolution is held to be unconstitutional or invalid for any reason, such decision shall not affect the validity or constitutionality of the remaining portions of this Resolution. The City Council hereby declares that it would have passed this Resolution and each part or parts hereof irrespective of the fact that anyone part or parts be declared unconstitutional or invalid. DONE AND RESOLVED this 26th day of October, 1981. '\- FRAHK "d'L. t.. J~/ t._ STITES, MAYOR ATTEST: - / .,. ",.r_ / ,/' CAROL F~ HAMPF, CITY CLERK