HomeMy WebLinkAboutResolution-1983-0870
RESOLUTION NO. 870
Series of 1983
TITLE:
A Resolution Agreeing to Issue Industrial Development Bonds
to Finance a Project for La Quinta Motor Inns, Inc.
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 improvements and all
necessary and appurtenant real or personal properties suitable
for manufacturing, industrial, commercial, argricultural, 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
iSEue its revenue bonds or other obligations for the purpose of
dL=raying the cost of financing any such project; and
WHEREAS, representatives of La Quinta Motor Inns, Inc., a
Texas corporation, the ("User") met with officials of the City
and have advised the City of the User's interest in acquiring and
developing land within the City as a site for constructing and equip-
pinq a motor inn thereon (the "Project") subject to the willingness
of the City to finance the Project by the issuance of industrial
development revenue bonds or other obliqations 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
meanlng of the Act; and
WHEREAS, the City has considered the User's proposal
and has concluded that the economlC 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
industrial revenue 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 Proj ect, subj ect to the conditions herein contained; and
WHEREAS, the proposed issuance of the industrial develop-
ment revenue bonds and the execution of related financiLg
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870
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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 industrial development
revenue bonds or other obligations (the "Bonds") in a maximum
aggregate principal amount of $4,600,000. This Resolution is and
constitutes the taking of affirmative official action by the City
toward the issuance of the Bonds. 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.
Section 3. The User has agreed to provide for reimburse-
ment 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 cont~ined in this Resolution
shall constitute a debt ur indebtedne~s of ~he City within the
meaning of the City Charter or the Constitution or statutes of the
State of Colorado, nor qiHe rise to a pecuniary liability of the
City or a charge against its general credit or ta}.ing powers.
The Bonds sha~l 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 $4,600,000, and for the sale
and delivery thereof.
Section 6. The form of the Financing Agreement presented
to the Ci~y 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 apfrove. The Mayor of the City, City
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870
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Clerk, Clty 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.
DG~E AND RESOLVED this 22nd day of November, 1983.
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Frank Stites, Mayor
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