HomeMy WebLinkAboutResolution-1988-1100
RESOLUTION NO. 1100
Series of 1988
TITLE: A RESOLUTION AGREEING TO ISSUE PRIVATE ACTIVITY
BONDS TO FINANCE A PROJECT FOR LEAF INCORPORATED
WHEREAS, the City of Wheat Ridge (the "City"), State of
Colorado, is authorized by the County and Municipality
Development Revenue Bond Act, Title 29, Article 3, Part I, C.R.S.
1973, as amended (the "Act"), for the benefit of the inhabitants
of the State and for the promotion of their health, safety,
welfare, convenience, and prosperity, to finance one or more
projects, including any land, building or other improvements and
all necessary and appurtenant real or personal properties
suitable for manufacturing, industrial, commercial, agricultural,
or business enterprises, upon such conditions as the City Council
of the City may deem advisable; and
WHEREAS, the City is further authorized by the Act to
issue its revenue bonds or other obligations for the purpose of
defraying the cost of financing any such project; and
WHEREAS, representatives of Leaf Incorporated, (the
"User") met with officials of the City and have advised the City
of the User's Interest in expanding facilities and purchasing
equipment within the City (the "Project") subject to the
willingness of the City to finance the Project by the issuance of
private activity revenue bonds or other obligations pursuant to
the Act; and
WHEREAS, the User has represented to the City that the
Project has been designed to qualify as a "project" within the
meaning of the Act; and
WHEREAS, the City has considered the User's proposal and
has concluded that the economic benefit to the City will be
substantial due to an increase in employment and the promotion of
industry and development of trade and other economic activity
within the City; and
WHEREAS, the City has hereby determined that issuing its
private activity bonds for the Project will benefit the health,
welfare, safety, convenience, and prosperity of the inhabitants
of the City; and
WHEREAS, the City wishes to proceed with the financing of
the Project, subject to the conditions herein contained; and
WHEREAS, the proposed issuance of the private activity
bonds and the execution of related financing documents are not
prohibited by any ordinances or rules of the City;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF WHEAT RIDGE, COLORADO:
Section 1. In order to induce the User to complete the
Project within the City, the City shall take all steps necessary
or advisable to effect the issuance of private activity bonds or
other obligations (the "Bonds") in a maximum aggregate principal
amount of $10,000,000. This Resolution is and constitutes the
taking of affirmative official action by the City toward the
issuance of the Bonds. The Bonds and the financing documents
relating to said Bonds shall be subject to the terms and
conditions of a Memorandum of Agreement to be entered into
between the City and the User. No costs are to be borne by the
City in connection with the issuance of the Bonds.
Section 2. The terms and conditions of the Bonds and of
the financing documents relating to said Bonds or other
obligations will be mutually agreed upon by the City and the
User, and prior to their execution, such documents will be
subject to authorization by Ordinance of the City Council
pursuant to law and any ordinance or rules of the City and said
financing documents shall provide that the Bonds shall be secured
by a first encumbrance on the Project. The issuance of the Bonds
is subject to final approval by an ordinance duly enacted by the
City Council of the City of Wheat Ridge approving the terms and
conditions thereof, and no promise or inducement contained or
inferred herein shall be binding upon the City until such
Ordinance is adopted and effective.
Section 3. The User has agreed to provide for
reimbursement of all expenses incurred or to be incurred by the
City related to the User's Project.
Section 4. Neither the Bonds, including interest and any
premiums thereon, nor anything contained in this Resolution shall
constitute a debt or indebtedness of the City within the meaning
of the Constitution or statutes of the State of Colorado, nor
give rise to a pecuniary liability of the City or a charge
against its general credit or taxing powers. The Bonds shall be
payable solely from and secured by a pledge of the revenues
derived from and payable pursuant to the financing documents
referred to in Section 2 hereof.
Section 5. All commitments by the City made herein are
subject to the condition that on or before one year from the date
hereof, the City and the User shall have agreed to mutually
acceptable terms for the Bonds or other obligations provided for
hereunder, in an amount not to exceed $10,000,000, and for the
sale and delivery thereof.
Section 6. The form of the Financing Agreement
presented to the City Council shall be approved by the City
Attorney. The Mayor and the City Clerk of the City are
authorized to execute the Financing Agreement on behalf of the
City, with such changes as the City Attorney may approve. The
Mayor of the City, City Clerk, City Attorney, and other officers
and agents of the City are hereby authorized to initiate and
assist in the preparation of such documents as may be appropriate
to the Bonds.
Section 7. This Resolution shall be effective for a
period of one year from the date of its adoption.
DONE AND RESOLVED this
8th day of
August
, 1988.
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DAN WILDE, MAYOR
AT'rEST:
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WANDA SANG, CITY CLERK \ (