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HomeMy WebLinkAboutResolution-1980-0724 INTRODUCED BY COLlNCILMEMBER MERKL RESOLUTION NO. 724 , Series of 1980 TITLE: RESOLUTION RESCINDING RESOLUTION NO. 543, SERIES OF 1977, AND RE-ESTABLISHING A POLICY AND CRITERIA FOR THE CONSIDERATION OF REQUESTS FOR INDUSTRIAL REVENUE BOND FINANCING AND FOR THE ISSUANCE OF SUCH BONDS BY THE CITY OF WHEAT RIDGE AND RELATED MATTERS THERETO WHEREAS, the County and Municipalities Development Revenue Bond Act passed by the State Legislature in 1967, as revised by Article III, Chapter 29, C.R.S. 1973, authorizes municipalities to issue Revenue Bonds for industrial facilities and for various other projects as set forth in the Act in order that municipalities may have a means of encouraging selected industry, developing trade, enhancing employment opportunities, and assisting in maintaining a balanced and stable economy within the municipalities; and WHEREAS, it is the desire of the City Council to establish policies and criteria which will be followed by the City in reviewing and evaluating applications for the City's issuance of Industrial Revenue Bonds; and WHEREAS, it is the desire of the City Council that all applicants know the policy and criteria which the City shall follow in reviewing and analyzing all requests for issuance of Industrial Revenue Bonds; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WHEAT RIDGE, COLORADO, THAT THE FOLLOWING POLICIES AND CRITERIA SHALL BE UTILIZED BY THE CITY COUNCIL IN THE REVIEW AND ANALYSIS OF ALL APPLICATIONS FOR INDUSTRIAL REVENUE BONDS: SECTION I. GENERAL REQUIREMENTS 1. The proposed facility shall not be in conflict with the City's Comprehensive Plan. 2. The property on which the facilities are planned to be located must lie within the corporate boundaries of the City of Wheat Ridge, and said property must carry the zoning classifications which permit the requested uses. 3. The proposed facility, and the plans therefor, shall be reviewed by the City staff in relation to the off-site improvements, including, but not limited to, streets, curb, gutter, sidewalks, utility easements, water and sewer line services, and traffic control devices needed in order to provide the necessary services for said proposed facility, and a report thereon shall be submitted to the City Council prior to the City Council's rendering any final decision. 4. All applications for Industrial Revenue Bond financing shall be given prompt and careful attention pursuant to the guidelines and criteria established in this Resolution. All applications shall be submitted to the City Administrator whose responsibility shall be to coordinate the processing and review of all applications, and to cause a full report, with recommendations, to be submitted to the City Council at the earliest opportunity. The applicant should request an initial informal discussion with City Council before undertaking more formal procedures. 5. The plans for the proposed budget shall be in strict compliance with the appropriate zoning and subdivision regulations unless variances are granted by the appropriate Board, Commission or City Council. Resolution No. 724 , Series of 1980 Paoe 2 SECTION II. FINANCIAL AND LEGAL REQUIREMENTS 1. A legal opinion from a qualified Municipal Bond counsel acceptable to the City Council stating that the applicant's proposal falls within the meaning and intent of the Revenue Bond Act shall be provided. 2. Acceptable evidence that the proposed bond issue can be sold through a qualified underwriter or to an experienced investor or group of investors as required. 3. The application shall contain the following information: (a) History of the applicant, including a description of its operations; (b) Historical financial statistics for the past five (5) years, including (1) Net sales, (2) Gross profit, (3) Net income, (4) Cash flow, (5) Net worth, (6) Earnings available for debt service, (7) Net fixed assets, (8) Working capital, (9) Current ratio of assets to liabilities; this ratio must be approximately two (2) to one (1) or as determined adequate by the City, considering the nature of the operation to be financed. (10) Long term debt and amortization schedule for such debt; (c) A financial report from Dun & Bradstreet or other firm concerninq the financial status of the company; (d) The industrial firm's net earnings before income tax and depreciation must be at least equal to three (3) times the maximum of the debt service on the Industrial Revenue Bonds; (e) Bond redemption and interest repayment schedule, using estimated interest rates at the time of issue shall be required; (f) A resume of the principals and key personnel of the firm, including Directors and Officers, if applicant is a corporation; (g) A complete list of assets to be purchased or constructed, and estimated life of such assets; (h) A report of any litigation pending against the company; (i) The maximum amount to be borrowed shall not exceed the estimated amount necessary to complete the facility; (j) Any other matters specifically desired by the City Council not set forth above. SECTION III. OTHER CRITERIA 1. The City shall reserve the right to control the timing of the sale of any bonds, and the City's discretion as to the best time for sale shall be absolute but will consider the recommendations of bond consultants. 2. All costs, fees, and expenses pertaining to the issuance of the Industrial Revenue Bonds shall be borne by the requesting party. City may also include its costs for legal review and administration of the application. Reso 1 ut i on No. 724 , Seri es of 1980 Page 3 3. Applicant must indemnify the City against all lawsuits or costs if project does not proceed or is abandoned. 4. The Inducement Resolution adopted by the City shall set forth a time limit on the effectiveness of such Resolution. 5. The project must comply with all Environmental Protection Agency (EPA) standards and other governmental regulations which are applicable. 6. All Industrial Revenue Bond issues must comply with applicable Internal Revenue Service regulations. 7. The project must show that the City will benefit by one or more of the following: the creation of meaningful employment benefits; the creation of meaningful new tax revenues; the creation of other facilities or services which benefit the community; or meet a stated policy goal of the City Council that will result in a meaningful benefit to the City. BE IT FURTHER RESOLVED that at such time when the applicant has satisfied all of the above stated requirements, the City will review the material and infor- mation submitted, and the City Council will make its final decision, taking into consideration the findings and recommendations of a qualified investment banking firm and its ability to sell the bonds in a timely manner. Such decision shall be at the full and complete discretion of the City Council of Wheat Ridge. BE IT FURTHER RESOLVED that the City Council will, in performing its review responsibilities, seek to protect and enlarge the good fiscal reputation of the City of Wheat Ridge. BE IT FURTHER RESOLVED that the City Council reserves the right to modify or delete any of the requirements stated in this Resolution for good and sufficient reason. BE IT FURTHER RESOLVED that Resolution No. 543, Series of 1977, is hereby rescinded. DONE AND RESOLVED by a vote of 5 December, 1980. to 1 on this 15th day of '--- / / r' /~ (,,, ,j, .;; ...I'A:.~ L,,;t. FRANK STITES, MAYOR ATTEST: ~- / r _ /) CAROL F. HAMPF, CITY CLERK