HomeMy WebLinkAbout2022 Ordinance No. 007
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BY AUTHORITY
ORDINANCE NO. 07 COUNCIL BILL NO. 05
SERIES OF 2022 INTRODUCED BY COUNCIL
MEMBER NUNNENKAMP
AN ORDINANCE APPROVING LOAN AGREEMENT WITH
ENGLEWOOD DOWNTOWN DEVELOPMENT AUTHORITY
WHEREAS, the Englewood Downtown Development Authority (“EDDA”) and
the City of Englewood (“City”) entered into an Intergovernmental Agreement as approved
by City of Englewood Ordinance No. 29, Series of 2021, and EDDA Resolution No. 2,
Series of 2021; and
WHEREAS, Article IV of the IGA authorized the City to provide $150,000.00 in
funding to the EDDA (“City Contribution”) as compensation payable by the City for the
services provided by the EDDA; and
WHEREAS, pursuant to Article IV Section 2 on p. 4 of the IGA, the Parties “may
negotiate by separate agreement a mechanism by which the City Contribution shall be
considered a loan to the EDDA, repayable from sales tax TIF the EDDA collects or from
other sources…”; and
WHEREAS, pursuant to Article VI Section 1 on p. 5 of the IGA, “Subject to annual
appropriations by the City, this Contract shall be automatically renewable…”; and
WHEREAS, in order to provide funding for EDDA operations until the receipt of
its first tax increment financing (“TIF”) payment from Arapahoe County, the EDDA
requires a second payment from the City in the amount of $150,000; and
WHEREAS, in the November 2022 election qualified electors authorized the
EDDA to incur debt, allowing it to enter into loan agreements such as this one in the
November 2022 election; and
WHEREAS, the EDDA therefore sought a loan from the City in the amount of
$150,000 for 2022, and as consideration for that loan, has agreed to enter into a Loan
Agreement for the re-payment to the City of $150,000 previously provided to the EDDA
in 2021 and an additional $150,000 provided to EDDA in 2022; and
WHEREAS, the City and the EDDA believe it is in each parties’ best interest in
enter into a Loan Agreement regarding the repayment of the City Contribution to the City.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF
THE CITY OF ENGLEWOOD, COLORADO, AS FOLLOWS:
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Section 1. The City Council of Englewood, Colorado, hereby approves the Loan
Agreement with Englewood Downtown Development Authority, a copy of which is
attached hereto as Exhibit 1.
Section 2. The Mayor and City Clerk are hereby authorized to sign and attest the
Loan Agreement attached as Exhibit 1, for and on behalf of the City Council of the City of
Englewood, Colorado.
Introduced, read in full, and passed on first reading on the 7th day of February, 2022.
Published by Title as a Bill for an Ordinance in the City’s official newspaper on the
10th day of February, 2022
Published as a Bill for an Ordinance on the City’s official website beginning on the
9th day of February, 2022 for thirty (30) days.
Read by Title and passed on final reading on the 22nd day of February, 2022.
Published by Title in the City’s official newspaper as Ordinance No. 07, Series of
2022, on the 24th day of February, 2022.
Published by title on the City’s official website beginning on the 23rd day of
February, 2022 for thirty (30) days.
This Ordinance shall take effect thirty (30) days after publication following final
passage.
Othoniel Sierra, Mayor
ATTEST:
Stephanie Carlile, City Clerk
I, Stephanie Carlile, City Clerk of the City of Englewood, Colorado, hereby certify
that the above and foregoing is a true copy of the Ordinance passed on final reading and
published by Title as Ordinance No. 07, Series of 2022.
Stephanie Carlile
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Exhibit A
lewood
LOAN AGREEMENT
WITH ENGLEWOOD DOWNTOWN DEVELOPMENT AUTHORITY
THIS AGREEMENT,dated January 26,2022 (the "Effective Date"),by and between Englewood
Downtown Development Authority (“EDDA”)and the City of Englewood,a Colorado municipal
corporation (“City”),1000 Englewood Parkway,Englewood,Colorado 801 10 (each a "Party"and
collectively the “Parties”).
WHEREAS,the Parties entered into an Intergovernmental Agreement as approved by
City of Englewood Ordinance No.29,Series of 2021,and EDDA Resolution No.2,Series of
2021,which authorized the City to provide certain services to the EDDA and $150,000 in funding
(the "City Contribution")to the EDDA (herea?er the “IGA”);
WHEREAS,pursuant to Article IV Section 2 on p.4 of the IGA,the Parties “may
negotiate by separate agreement a mechanism by which the City Contribution shall be considered
a loan to the EDDA,repayable from sales tax TIF the EDDA collects or from other sources...”;
WHEREAS,pursuant to Article IV Section 1 on p.5 of the IGA,“Subject to annual
appropriations by the City,this Contract shall be automatically renewable...”;
WHEREAS,in order to provide for sufficient funding for EDDA operations until the
receipt of its first tax increment ?nancing (“TIF”)payment from Arapahoe County,the EDDA
requires a second payment from the City in the amount of $150,000;
WHEREAS,in the November 2022 election quali?ed electors authorized the EDDA to
incur debt,allowing it to enter into loan agreements such as this one;and
WHEREAS,the EDDA therefore seeks a loan from the City in the amount of at least
$150,000 for 2022,and as consideration for that loan,has agreed to enter into this Agreement for
the re-payment to the City of $150,000 previously provided to the EDDA in 2021 as described
herein.
NOW,THEREFORE,in consideration of the mutual covenants and agreements contained herein,
the Parties hereto agree as follows:
I.LOAN AMOUNT
The Parties recognize and agree that the $150,000 previously paid to the EDDA by the City in
2021 shall constitute a loan and shall be repaid to the City by the EDDA as described herein.In
addition,no later than thirty days after execution of this Agreement,the City shall loan to the
1000 Englewood Parkway,EnglewoocL Colorado 80110-2373
(303)762-2300 vwnv.englewondco.gov
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RESOLUTION NO.2
SERIES OF 2022
A RESOLUTION OF THE ENGLEWOOD DOWNTOWN
DEVELOPMENT AUTHORITY APPROVING A LOAN AGREEMENT
WITH THE CITY OF ENGLEWOOD
WHEREAS,by adoption of Resolution No.19,Series of 2021,on December 8,2021,the
Authority approved a loan agreement with the City of Englewood;
WHEREAS,the City of Englewood has not yet acted to approve or accept such agreement,
and,in the interim,the Authority's understanding of its 2022 funding needs has changed;and
WHEREAS,to allow for greater potential funding ?exibility the Authority desires to
replace its prior approval with approval of the version of the agreement attached hereto.
NOW,THEREFORE,BE IT RESOLVED BY THE BOARD OF DIRECTORS OF
THE CITY OF ENGLEWOOD DOWNTOWN DEVELOPMENT AUTHORITY AS
FOLLOWS:
Section 1.The loan agreement with the City of Englewood is approved in substantially the
form attached hereto as Exhibit A,and the Chair is authorized to execute the same on behalf of
the Authority.This approval replaces the Authority's prior approval granted through Resolution
No.19,Series of202l.
ADOPTED AND APPROVED this 26"‘day of January,2021.
Erika Zierke,Chair
ATTEST:
T
Meryl Icove,Secretary
I,Meryl Icove,secretary for the City of Englewood Downtown Development Authority
hereby certify the above is a true copy of Resolution No.2,Series of2022.
Meryl Icove,Secretary
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EDDA an additional $150,000,for a total outstanding principal loan sum of $300,000 (the
“Loan”).The Loan shall accrue interest at the rate of 1 percent per year,beginning on the date of
the second $150,000 payment made by the City to the EDDA.
Further,should additional funds be allocated and budgeted by City Council in any year through
2026 for loans to EDDA,the City Manager shall have authority to distribute those ?mds to
EDDA upon EDDA’s request.Upon acceptance by EDDA,the Parties agree that those funds
shall be added to the total outstanding principal Loan amount,subject to interest accrual from the
date of such additional payment by the City to the EDDA and subject to repayment as provided in
Section II below.
To the extent allowed under applicable law,the Parties recognize and agree that a loan sum made
in a single calendar year and repaid within that calendar year is not classi?ed as TABOR—
quali?ed debt for the purposes of EDDA’s authorized maximum debt.
II.REPAYMENT OF LOAN
The EDDA’s receipt of income,and accordingly,its ability to repay the Loan on an established
schedule is unknown to the Parties at this time because the amount of TIF funds anticipated to be
remitted to EDDA is not yet calculated.To ensure the EDDA has suf?cient cash on hand to
accomplish its goals and objectives as set forth in the IGA,the EDDA shall pay all accrued
interest on the Loan to the City no later than the 315‘day of December of each year,starting
December 31,2022.No later than December 3 l,2028,the EDDA shall re-pay the entire Loan
plus interest to the City.
III.RIGHT TO PREPAY WITHOUT PENALTY
The EDDA shall have the right to prepay any balance due hereunder without penalty.In the case
of such prepayment,all payments made shall ?rst apply to interest accrued to the date of
payment,then principal.
IV.DEFAULT
If for any reason the EDDA fails to make any payment on time,the EDDA shall be in default of
this Agreement In an event of default,the City may demand immediate payment of the entire
remaining unpaid balance of the Loan,plus accrued interest,without prior notice of default or
opportunity to cure.If the EDDA fails to pay the entire Loan plus interest within 30 days of such
a demand,in addition to other remedies that may be available to the City under applicable law,
the EDDA agrees to present to City Council no more than 30 days afterward regarding EDDA’s
?nances,assets,and liabilities.
V.CONTRACT BINDING
It is agreed that this Agreement shall be binding on and inure to the bene?t of the Parties hereto,
their heirs,executors,administrators,assigns,and successors.
1000 Englewood Parkway,Englewood,Colorado 801 10-2373
(303)762-2300 \v\\\v.englcwoodco.rlov
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IN WITNESS WHEREOF,the Parties have each caused this Agreement to be executed as of the
Effective Date.
CITY OF ENGLEWOOD,COLORADO
By:
Mayor
ATTEST
City Clerk
ENGLEWOOD DOWNTOWN
DEVELOPMENT AUTHORITY
Erika Zierke,Chair
ATTEST
Secretary
I000 Englewood Parkway,Englcwuod,Colorado 80110-2373
(303)762-2300 wwwenglcwondco.pov
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