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HomeMy WebLinkAboutResolution-1985-0949 RESOLUTION NO. 949 Series of 198~ TITLE: A RESOLUTION PROVIDING FOR THE ACQUISITION, CONSTRUCTION AND DEVELOPMENT OF A MULTIFMlILY HOUSING PROJECT LOCATED WITHIN THE BOUNDARIES OF THE ISSUER AND PROVIDING FOR THE FINANCING OF ALL OR A PORTION OF THE COST THEREOF BY THE ISSUANCE OF THE ISSUER'S INDUSTRIAL REVENUE BONDS AT SUCH TIME OR TIMES AS SHALL BE APPROPRIATE. WHEREAS, the City of Wheat Ridge (the "issuer") is duly organized and existing under and pursuant to the provisions of the Constitution and laws of the State of Colorado, and is authorized and empowered under the County and Municipality Development Revenue Bond Act (the "Act") to issue its revenue bonds to finance the cost of Multifamily Housing projects; and WHEREAS, Harcourt Development Company (the "Applicant") has advised the Issuer that (i) it has under consideration the acquisition, construction and development of one or more Multifamily Housing projects located within the boundaries of the Issuer (the "Project") and (ii) the cost of the Project and expenses incidental thereto is estimated not to exceed $30,000,000 (the "Bond Amount"); and WHEREAS, the Applicant has requested that the Issuer consider issuing its revenue bonds in an aggregate principal amount not to exceed the Bond Amount, as is necessary to pay the costs of the Project; and WHEREAS, the Applicant has further advised the Issuer that a determination by the Issuer to issue its revenue bonds under the Act will constitute a substantial inducement to proceed with the acquisition, construction and development of the Project; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Wheat Ridge that: 1. The Issuer finds and determines that the issuance of its revenue bonds under the Act to finance the acquisition, construction and development of the Project will serve the purposes provided in the Act. 2. There is hereby authorized to be issued, and the Issue hereby preliminarily determines subject to approval by Ordinance of all final documentation, to issue pursuant to the Act, its industrial revenue bonds (the "Bonds") in an aggregate principal amount agreed to by the Issuer and the Applicant, not to exceed the Bond Amount, as is necessary to pay the costs of the Project and to expend the Bond proceeds to finance all or a portion of the cost of the Project. 3. The Bonds are to be secured by and payable solely from revenues or other payments to be derived by the Issuer under the terms of a loan agreement (the "Loan Agreement") to be entered into between the Issuer and either the Applicant or a financial institution (the "Lender") which will relend the proceeds of that loan to the Applicant. The Loan Agreement shall provide that the Lender or Applicant will be obligated to make payments sufficient to pay the debt service on the Bonds, as and when the same shall become due and payable. The Bonds shall not be general obligations of the Issuer and neither the faith and credit nor the taxing power of the Issuer is or may be pledged to the payment of the Bonds. RESOLUTION NO. 949 Page -2- 4. The Bonds shall bear such dates, mature at such time or times, bear interest at such rate or rates and contain such other terms or provisions as shall be determined by subsequent action of the Issuer and approved by the Applicant. 5. Such rulings, approvals, consents, certificates of compliance, opinions of counsel and other instruments and proceedings satisfactory to the Applicant and the Issuer as to such matters with respect to the Bonds and the tax exemption of interest thereon, the project, the Loan Agreement and other necessary documents as shall be specified by the Applicant and the Issuer, shall have been obtained from such governmental, as well as non-governmental, agencies and entities as may have or assert competence or jurisdiction over or interest in matters pertinent thereto and to the Project, and shall be in full force and effect at the time of the issuance of the Bonds. 6. This resolution is an affirmative official action of the Issuer toward the issuance of the Bonds as contemplated herein. The Issuer intends to issue the Bonds provided all legal and financial requirements are met and a further determination is made by the Issuer or a representative that the project will serve a public purpose and that the financing of the Project is within the purview of the policy and authority of the Issuer and the Act, provided, however, no action of the City of Wheat Ridge shall be final until such time as the Wheat Ridge City Council, acting in its legislative capacity and possessed of its full legislative discretion, shall have enacted an Ordinance authorizing issuance of such bonds. 7. Miller & Schroeder Municipals, Inc. is named underwriter for the issuance of the Bonds. 8. wolfson & Frankel lS named bond Counsel for the issuance of the Bonds. 9. This resolution shall take effect immediately. DONE AND RESOLVED THIS 12th day of August 1985. ~< ; ,~LJ-c-t.-, Frank Stites, Mayor ATTEST: cJ" .dlf'/'A-d'lV Wanda Sang,