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HomeMy WebLinkAboutResolution-1993-1340 RESOLUTION NO. 1340 SERIES 1993 WHEREAS, the City of Wheat Ridge, Colorado (the "City") is authorized by the County and Municipality Development Revenue Bond Act, Title 29, Article 3, Part 1, Colorado Revised Statutes, as amended (the "Act"), to finance one or more projects or parts thereof in order to provide more adequate solid waste disposal facilities upon such conditions as the City Council of the City may deem advisable; and WHEREAS, the City is further authorized by the Act to Issue its revenue bonds for the purpose of defraying the cost of financing any project; and WHEREAS, representatives of Coors Brewing (the "Company"), have met with officials of the City, and have advised the City of the interest of the Company in locating a glass container recycling plant and all related and subordinate facilities within the City (the "Project"), subject to the willingness of the City to finance the Project as an industrial development bond project, pursuant to the Act; and WHEREAS, the Company has represented to the City that the Project has been designed to qualify as a "project" within the meaning of the Act; and WHEREAS, the City has considered the Company's proposal and has concluded that the economic 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 development revenue bonds (the "Bonds") for the Project will benefit the health, welfare, safety, convenience, and prosperity of the inhabitants of the City; and WHEREAS, it is contemplated that one or more financing agreements (the "Financing Agreement") with respect to the Project will be executed prior to or contemporaneously with the issuance of the Bonds by the Company and the City providing for the payment by the Company of sums sufficient in amount to pay the principal of, premium, if any, and interest on the Bonds, all annual fees in lieu of taxes, all trustee's and paying agent's fees and any expenses of the City in connection with the Bonds as the same become due and payable; and WHEREAS, it is contemplated that the Bonds will be issued under and secured by one or more Indentures of Trust (the "Indenture") by and between the City and a trustee or trustees to be named; and WHEREAS, the City has determined that the Project will serve the purposes of the Act; and WHEREAS, the City Council has been advised by the law firm of Sherman & Howard, which is acting as bond counsel in connection with the Bonds, that the issuance of the Bonds does not require an election pursuant to Article X, Section 20( 4)(b) of the Colorado Constitution since pursuant to the Act and the decision of the Colorado Supreme Court in Allardice v. Adams County the issuance of the Bonds imposes no pecuniary obligation on the City; and WHEREAS, it is intended that this resolution shall constitute "some other similar official action" toward the issuance of the Bonds within the meaning of Sections 1.103-8(a)(5) and 1.103-18 of the regulations promulgated under Section 103 of the Internal Revenue Code of 1986, as amended. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WHEAT RIDGE, COLORADO: Section 1. In order to induce the Company to complete the Project within the City, the City shall take all steps necessary or advisable to effect the issuance of the Bonds in a maximum aggregate principal amount of $6,000,000. 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 or the construction of the Project. 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 Company, 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 may 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 approving the terms and conditions thereof. Section 3. The Company has agreed to provide for reimbursement of all expenses incurred or to be incurred by the City related to the Project. Section 4. Neither the Bonds, including interest and any premiums thereon, nor anythmg 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 commitments by the City made herein are subject to the condition that the City and the Company shall agree to mutually acceptable terms for the Bonds or other obligations provided for hereunder, in an amount not to exceed $6,000,000 and for the sale and delivery thereof. -2- Section 6. The City agrees to cooperate with the Company in applying to the State of Colorado for the required allocation of the "state ceiling" as defined in Section 24-32-1703, Colorado Revised Statute, as amended, to enable the Bonds to be issued as tax- exempt obligations. Section 7. If any section, paragraph, clause or provision of this resolution shall for any reason be held to be invalid and unenforceable, the invalidity or unenforceability of such section, paragraph, clause or provision shall not affect any of the remaining provisions of this resolution. Section 8. All bylaws, orders and resolutions, or parts thereof, inconsistent herewith are hereby repealed to the extent only of such inconsistency. This repealer shall not be construed as reviving any bylaw, order or resolution, or part thereof. Section 9. AIl action (not inconsistent with the provisions of this resolution) heretofore taken by the City Council of the City and the officers thereof with respect to the Project and the authorization, issuance and sale of the Bonds be, and the same hereby is, ratified, approved and confirmed. 1993. PASSED, ADOPTED, SIGNED AND APPROVED this 8th day of February, -- -- ~-) I IT c';:" ! Lce ,. oV j /Mayor J : [SEAL] Atte~t: .-~)Jn' ' ~ ......... -'~ ,.."--..',; ( / I, A . / " . , ;, ",vI.- City 'Clerk) -3-