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.
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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;:
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Wanda Sang, City
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cler~l
RHL/D-005
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