HomeMy WebLinkAboutResolution-1983-0830
RESOLUTION NO. 830
Series of 1983
TITLE:
RESOLUTION SUPERSEDING RESOLUTION NO. 829, SERIES
OF 1983, RESOLUTION ESTABLISHING A PUBLIC HEARING
FOR CONSIDERATION OF AN INDUCEMENT RESOLUTION
RELATING TO PROPOSED INDUSTRIAL DEVELOPMENT
REVENUE BONDS FOR A PROJECT TO BE UNDERTAKEN BY
PRIME RATE, INC.
WHEREAS, the legislature of the State of Colorado, in
the County and Municipality Development Revenue Bond Act,
Title 29, Article 3, C.R.S. 1973, as amended (the Act) has
found and declared it to be a public purpose for
municipalities to promote industry and develop trade or
other economic activity by inducing profit or non-profit
corporations, federal governmental offices, hospitals, and
agricultural, manufacturing, industrial, commercial, or
business enterprises to locate, expand, or remain in this
State, to mitigate the serious threat of extensive
unemployment in parts of this State, to secure and maintain
a balanced and stable economy in all parts of this State,
and to further the use of its agricultural products or
natural resources, and
WHEREAS, Prime Rate, Inc., a Minnesota corporation, has
advised this Council of its desire to form a limited
partnership with at least one general partner being Prime
Rate, Inc. (the Borrower), which limited partnership will
acquire land and construct and furnish thereon a 128 unit
motel in the City (the Project); the estimated total cost of
the Project to be $5,010,000, and
WHEREAS, the City is authorized by the Act to issue
revenue bonds for the purpose of defraying the cost of
financing, acquiring, improving, and equipping any "project"
including any land, building, or other improvement and all
real or personal properties, whether or not in existence,
suitable or used for or in connection with commercial
enterprises. The Borrower has requested that the City issue
its revenue bonds in the approximate principal amount of
$3,800,000 to finance the cost of the Project;
NOW, THEREFORE, BE IT RESOLVED by the City Council of
the City of Wheat Ridge, Colorado, that:
Section 1.
Public Hearing.
Section 103 of the Internal Revenue Code of 1954, as
amended by Section 215 of the Tax Equity and Fiscal
Responsibility Act of 1982, requires that the issuance of
the revenue bonds must be approved by the applicable elected
representative of the City after a public hearing following
reasonable public notice. Pursuant to that Section, this
Council shall conduct a public hearing on the proposal to
Resolution No. 830
Page -2-
undertake and finance the Project, which public hearing
shall be held on February 28, 1983, 7:30 p.m., in City
Council Chambers, Municipal Building, 7500 West 29th Avenue,
Wheat Ridge, Colorado.
The City Clerk shall cause notice of the public hearing
to be published twice in the official newspaper of the City,
such publications to be at the sole expense of Prime Rate,
Inc.; the first publication to be not less than fourteen
(14) days prior to the date fixed for the hearing, such
notice to be in substantially the following form:
NOTICE OF PUBLIC HEARING ON A PROPOSED PROJECT
AND THE ISSUANCE OF INDUSTRIAL DEVELOPMENT REVENUE BONDS
UNDER THE COUNTY AND MUNICIPALITY DEVELOPMENT
REVENUE BOND ACT, TITLE 29, ARTICLE 3, C.R.S. 1973
AS AMENDED
CITY OF WHEAT RIDGE, COLORADO
NOTICE IS HEREBY GIVEN that the City Council of the
City of Wheat Ridge, Colorado, will meet on February 28,
1983, at 7:30 o'clock P.M., at 7500 West 29th Avenue, in
Wheat Ridge, Colorado, for the purpose of conducting a
public hearing on a proposal that the City issue revenue
bonds or notes (whether bonds or notes, hereinafter, the
Bonds) under the County and Municipality Development Revenue
Bond Act, Title 29, Article 3, C.R.S. 1973, as amended, in
order to finance the cost of a project on behalf of a
limited partnership to be formed by Prime Rate, Inc., a
Minnesota corporation, with at least one general partner
being Prime Rate, Inc. (the Borrower). The proposed project
will consist of the acquisition of land and the construction
and furnishing thereon of a 128 unit motel in the City (the
Project). The estimated total amount of the proposed bond
issue is $3,800,000. The Bonds shall be special, limited
obligations of the City and the principal of and interest on
the Bonds shall be payable solely out of the revenues
derived from the financing of the Project. The Bonds and
interest coupons, if any, appurtenant thereto shall never
constitute the debt or indebtedness of the City within the
meaning of any provision or limitation of the State
Constitution, statutes, or Home Rule Charter, and shall not
constitute nor give rise to a pecuniary liability of the
City or charge against its general credit or taxing powers.
Such limitation shall be plainly stated on the face of each
Bond.
(continued)
Resolution No. 830
Page -3-
All persons interested may appear and express their
views with respect to the proposal to undertake and finance
the proposed Project.
Dated:
"
BY ORDER OF THE CITY COUNCIL
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Wanda Sang,
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Ci ty .)I.l.erk
The action of the City Clerk to cause the notice of
public hearing to be published on Thursday, February 10,
1983, in the official newspaper of the City, in order that
the first publication be not less than fourteen (14 days
prior to the hearing, is hereby ratified and approved.
Section 2.
Soecial Obligation.
In all events, it is understood, however, that the
principal of and interest on the revenue bonds issued to
finance the Project shall be payable solely out of the
revenues derived from the financing of the Project. The
bonds and interest coupons, if any, appurtenant thereto
shall never constitute the debt or indebtedness of the City
within the meaning of any provision or limitation of the
State Constitution, statutes, or Home Rule Charter, and
shall not constitute nor give rise to a pecuniary liability
of the City or charge against its general credit or taxing
powers. Such limitation shall be plainly stated on the face
of each bond.
Section 3. This resolution supersedes Resolution No.
829, adopted January 24, 1983.
DONE AND RESOLVED, this
14th day of February
1983.
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Frank Stites, Mayor
ATTEST:
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Wanda Sang, City 'cy'erk