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HomeMy WebLinkAboutResolution-1989-1139 RESOLUTION NO. 1139 Series of 1989 TITLE: A RESOLUTION AGREEING TO ISSUE QUALIFIED 501(c)(3) BONDS TO FINANCE A PROJECT FOR BAPTIST HOME ASSOCIATION 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 1, 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 improvemen~s and all necessary and appurtenant real or personal properties sui table for hospital, heal thcare or nursing home faci1i ties, upon such conditions as the City Council of the City may deem advisable; and WHEREAS, its revenue defraying the the City is further authorized by the Act to issue bonds or other obligations for the purpose of cost of financing any such project; and WHEREAS, representatives of Baptist Home Association, a 501(c)(3) organization, (the "User") met with officials of the City and have advised the City of the User's interest in renovating their existing nursing home facilities, refinancing certain outstanding obligations secured by their existing facilities and constructing additional nursing home and/or retirement housing facilities within the City (the "Project"), subject to the willingness of the City to finance the Project by the issuance of qualified 501(c)(3) revenue bonds or other obligations pursuant to the Act; and WHEREAS, the User has represented Project has been designed to qualify as meaning of the Act; and to the City that a "project" ,,.,i thin the the 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 other economic activity within the City; and WHEREAS, the Ci ty has hereby determined qualified 50l(c)(3) bonds for the Project health, welfare, safety, convenience, and inhabitants of the City; and that issuing ',.,ill benef it prosperity of its the the WHEREAS, the City wishes to proceed with the financing of the Project, subject to the conditions herein contained; and WHEREAS, the proposed bonds and the execution of prohibited by any ordinance Issuance related or rules of the qualified 501(c}(3) financing documents are not 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 qualified 501(c)(3) 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 Ci ty 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 condi tions 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 commi tments by the City made herein are subject to the conditions 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. -2- Section 6. The form of the Financing Agreement to be 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 Ci ty, 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 the Financing Agreement and 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 27th day of February, 1989. ~~~ Dan Wilde, Mayor ATTES':l;: ./ I j;J/, / 1,-; / Wanda Sang, City -~~ -;r. c: J cler~l RHL/D-005 -3-