HomeMy WebLinkAbout2014 Ordinance No. 067•
ORDINANCE No.&f_
SERIES OF 2014
CORmAclJ HO, IO I -Z.D \ Li
BY AUTHORITY
COUNCIL BILL NO. 68
INTRODUCED BY COUNCil,
MEMBER OLSON
AN ORDINANCE AUTHORIZING THE EXECUTION AND DELIVERY OF A FIRST
SUPPLEMENT TO FINANCING AGREEMENT, WI-IlCH RELATES TO THE CITY'S PRIOR
ISSUANCE AND SALE OF THAT CERTAIN $6,724,000 REVENUE BOND (DENVER
AREA COUNCil,, BOY SCOUTS OF AMERICA PROJECT) SERIES 2008.
WHEREAS, upon approval as set forth in Ordinance No. 08-56, as adopted by City Council
("City Council') of the City of Englewood, Colorado (the "City') on October 6, 2008, the City
issued and sold that certain $6,724,000 Revenue Bond (Denver Area Council, Boy Scouts of
America Project) Series 2008 (the "Bond"), to BOKF, NA, a national banking association dba
Colorado State Bank and Trust and successor in interest to Colorado State Bank and Trust, N.A.
(the "Lender'), pursuant to the terms, provisions, and conditions as set forth in that certain
Financing Agreement, dated October 9, 2008 (the "Financing Agreement'), by and among the
City, the ~ender, and Denver Area Council, Boy Scouts of America, a Colorado nonprofit
corporation (the "Borrower'); and
WHEREAS, representatives of the Lender and the Borrower have informed representatives of
the City as to the following matters, on which the Lender and the Borrower have agreed: (1) the
Borrower desires to cause a partial redemption of the Bond; and(2) upon the partial redemption
of the Bond, the Lender and Borrower desire that (a) the Bond payment schedule be re-amortized
and (b) the mandatory redemption date of the Bond be extended, all upon and in accordance with
the terms, provisions, and conditions to be set forth in that certain First Supplement to Financing
Agreement (the "First Supplement'); and
WHEREAS, the form of the First Supplement has been presented to City Council at this
meeting; and
WHEREAS, the First Supplement must be executed and delivered by the City to be effective,
and the Lender and the Borrower have requested that the City execute and deliver the First
Supplement; and
WHEREAS, City Council has considered the request of the Lender and the Borrower and
concluded that the City should execute and deliver the First Supplement;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCil, OF THE CITY OF
ENGLEWOOD, COLORADO, THAT:
Section 1 Approval and Authorization of First Supplement. The First Supplement (attached
as Exhibit 1) is approved and authorized. The Mayor is authorized and directed to execute, and
the City Clerk is authorized and directed to affix the seal of the City and to attest, the First
Supplement in substantially the form and content as presented to City Council on this date, but
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with such changes, modifications, additions, and deletions therein as deemed necessary,
desirable, or appropriate to the Mayor, upon consultation with the City's counsel and Director of
Finance, the execution thereof by the Mayor to constitute conclusive evidence of the City's
approval of any and all changes, modifications, additions, and deletions from the form thereof
presented to City Council on this date.
Section 2 Authority to Execute and Deliver Additional Documents . The officers, employees,
and agents of the City shall, as permitted by the City's home rule charter and other applicable
law, execute and deliver such other documents, instruments, and certificates, and take such
action, as required by the First Supplement or as otherwise appropriate to consummate the
transactions contemplated thereby.
Section 3 Prior Action. All action consistent with the provisions of this Ordinance taken by
City Council and the officers of the City prior to the date hereof is ratified and approved.
Section 4 Repealer. All ordinances, codes, or parts thereof inconsistent with this Ordinance
are repealed or otherwise modified.
Section 5 Severability. If any provision of this Ordinance is held to be invalid or
unenforceable, the invalidity or unenforceability of such provision will not affect the remaining
provisions of this Ordinance.
Introduced, read in full, and passed on first reading on the 3rd day of November, 2014.
Published by Title as a Bill for an Ordinance in the City's official newspaper on the 7th day of
November, 2014. •
Published as a Bill for an Ordinance on the City's official website beginning on the 5th day of
November, 2014 for thirty {30) days.
Read by title and passed on final reading on the 17 day of November, 2014.
Published by title in the City's official newspaper as Ordinance No.~ Series of 2014, on
the 21st day of November, 20 14.
Published by title on the City's official website beginning on the 19th day of
November, 2014 for thirty (30) days.
~> 1> ~-·--,
Ran ~. Penn, Mayor ·
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I, Loucrishia A. Ellis, City Clerk of the City of Englewood, Colorado, hereby certify that the
above and foregoing iS)l)5lle copy of the Ordinance passed on final reading and published by
title as Ordinance No~ Series of 2014.
FIRST SUPPLEMENT
TO FINANCING AGREEMENT
by and among
CITY OF ENGLEWOOD, COLORADO,
BOKF,NA,
and
DENVER AREA COUNCIL, BOY SCOUTS OF AMERICA
Relating to:
$6,724,000 City of Englewood, Colorado
Revenue Bond (Denver Area Council, Boy Scouts of America Project) Series 2008
December 18, 2014
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This FIRST SUPPLEMENT TO FINANCING AGREEMENT (this "First Supplement"), dated
December 18, 2014, is by and among the following parties:
The City:
City of Englewood, Colorado, a municipal corporation and political subdivision duly
organized as a home rule city under the provisions of Article XX of the Constitution, the
laws of the State of Colorado, and its home rule Charter;
The Lender:
BOKF, NA, a national banking association dba Colorado State Bank and Trust and
successor in interest to Colorado State Bank and Trust, N .A.; and
The Borrower:
Denver Area Council, Boy Scouts of America, a Colorado nonprofit corporation.
Recitals
A. The City, the Lender, and the Borrower each executed and delivered that certain Financing
Agreement, dated as of October 9, 2008 {the "Financing Agreement"), by which the City issued
its $6,724,000 Revenue Bond (Denver Area Council, Boy Scouts of America Project) Series 2008
(the "Bond'').
B. The City sold the Bond to the Lender and loaned the sales proceeds therefrom to the Borrower
pursuant to the terms, provisions, and conditions as set forth in the Financing Agreement (the
"Loan"). Pursuant to the Financing Agreement, the City assigned all Loan Payments to the
Lender to effect repayment of the Bond, and the Borrower made and delivered that certain Note,
dated October 9, 2008, in the original principal amount of $6,724,000.00, payable to the Lender
(the "Promissory Note"), to evidence repayment of the Loan to the Lender.
C. The Lender currently owns the Bond, and the outstanding principal balance of the Bond and the
Promissory Note as of the date hereof equals $6,724,000.00.
D. The Lender and the Borrower have notified the City as to the following matters, on which the
Lender and the Borrower have agreed: (1) the Borrower desires to prepay the Loan in part in the
principal amount of $[4,324,000.00], and therefore cause a partial redemption of the Bond in the
same principal amount, such that immediately following such prepayment and redemption the
outstanding principal balance of the Bond and the Loan will equal $[2,400,000.00]; and (2) upon
the Borrower's partial prepayment of the Loan, and partial redemption of the Bond, and subject to
the tenns, provisions, and conditions as set forth in this First Supplement, the Lender shall (a) re-
amortize the Bond and the Loan on the basis of the $[2,400,000.00] outstanding principal balance
and remaining maturity, (b) extend the date on which the Lender may demand redemption of the
Bond, and ( c) subject to satisfaction of the Loan to Value covenant as set forth in Section 4 and as
further set forth in Section 6, release of the Deed of Trust (Elbert County).
E. The City, the Lender, and the Borrower execute and deliver this First Supplement to set forth the
tenns, conditions, and provisions upon which they will consummate the foregoing transactions .
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Agreement
The City, the Lender, and the Borrower agree as follows:
Section 1. Definitions. Capitalized terms used but not defined in this First Supplement have the
respective meanings ascribed to them in the Financing Agreement.
Section 2. Amendment to Section 3.9. From and after the date on which all conditions precedent as set
forth in Section 5 are either satisfied or waived as provided in Section 5 (the "Effective Date"), the
reference in Section 3.9 of the Financing Agreement to "October 9 , 2018" will be deleted and replaced
with "October 9, 2024".
Section 3. Prepayment/Redemption and Re-Amortization.
a. On the Effective Date, the Borrower shall prepay the Loan in part, and cause partial
redemption of the Bond, in the principal amount of $[4,324,000.00].
b, The City and the Lender each waive any prior notice of prepayment and redemption
required of the Borrower under the Financing Agreement in connection with the
$[4,324,000.00] prepayment on the Effective Date.
c. In conjunction with such prepayment and redemption, (i) Schedule I, Bond Payment
Dates, attached to the Bond, will be revised and replaced with the amortization/payment
schedule attached hereto as Exhibit A-1 and (ii) the Lender shall execute the prepayment
schedule attached hereto as Exhibit A-2, which will be attached to the Bond.
d. For the sake of clarity, the Lender has agreed to re-amortize the Bond and the Loan
pursuant to the terms, provisions, and conditions set forth in this First Supplement as a
negotiated exception to the Financing Agreement and the Bond, which provide that
partial prepaymen ts the Loan and resulting redemptions of the Bond will not alter the
amount of monthly payment installments. Unless the Lender otherwise agree s,
subsequent prepayments of the Loan and resulting redemptions of the Bond after the
Effective Date will not alter the amount of monthly payment installments.
Section 4. Loan to Value. From and after the Effective D ate, the Borrower must maintain Loan to
Value equal to or less than 75%. "Loan to Value" means the quotient, expressed as a percentage, equal to
the outstanding principal balance of the Loan divided by the Appraised Value. "Appraised Value" means
the Bank's most recent appraised value of the land and the improvements encumbered by the deed of trust
lien granted by the Borrower for the benefit of the Lender pursuant to the Deed of Trust (Jefferson
County) (the "Appraised Property"). If at any time and for any reason, including a re-appraisal of the
Appraised Property, the Loan to Va lue is greater than 75%, the Borrower shall prepay the Loan in an
amount necessary to satisfy the Loan to V aloe covenant as set forth in this Section 4. The Lender shall
notify the Borrower in writing of any failure to satisfy the Loan to Value covenant as set forth in this
Section 4 following the Lender's receipt, review, and approval of any re-appraisal of the Appraised
Property.
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Section 5. Conditions Precedent The obligation of the City and the Lender to execute and deliver this
First Supplement, and the effectiveness of the amendments and modifications to be provided hereby, is
subject to the satisfaction in full of all of the following conditions precedent, or waiver thereof by the City
or the Lender, as appropriate:
a. the City and the Lender will have received from the Borrower an executed original of this
First Supplement;
b. the City and the Lender will have received an opinion of nationally recognized bond
counsel to the effect that the amendments and modifications provided by, and the
transactions as contemplated by, this First Supplement will not of themselves (i) result in
a sale or exchange (i.e., a reissuance) of the Bond for federal income tax purposes,
(ii) adversely affect the exclusion from gross income of interest on the Bond for federal
income tax purposes, or (iii) cause interest on the Bond to be treated as a matter of tax
preference for purposes of the alternative minimum tax under Code Section 57(a)(S);
c. the Lender will have received an appraisal of the Appraised Property sufficient to satisfy
the Loan to Value covenant as set forth in Section 4 of this Financing Agreement as of
the Effective Date (and subsequent to the partial prepayment of the Loan, and the
resulting partial redemption of the Bond, as contemplated by this First Supplement);
d. the Borrower will have prepaid the Loan in part, and therefore caused a partial
redemption of the Bond, in the principal amount of$[4,324,000.00];
e. the Borrower will have paid the Lender's amendment fee of $2,500;
r. no Event of Default will have occurred and be continuing, and no event or occurrence
will have occurred and be continuing that with notice, the lapse of time, or both would
result in an Event of Default;
g. the Borrower will have paid or reimbursed the Lender for all reasonable fees, costs, and
expenses incurred by the Lender through the Effective Date in the amendment,
modification, and administration of the Financing Agreement and the Bond, including the
fees, costs, and expenses of the Lender's outside legal counsel; and
h. the Lender will have received such other documents, instruments, and items as the
Lender may reasonably request.
Section 6 . Release of Deed of Trust (Elbert County). On or promptly after the Effective Date, the
Lender shall cause the Release of Deed of Trust attached hereto as Exhibit B to be filed with the Clerk
and Recorder of Elbert County, Colorado, by which the Lender shall release the Deed of Trust {Elbert
County). The Lender shall provide a stamped-filed copy of the Release of Deed of Trust to the Borrower.
The parties have not endeavored to delete each reference to the Deed of Trust (Elbert County) in the
Financing Agreement, the Promissory Note, and the other Borrower Documents, but each acknowledges
that from and after the Effective Date the collateral encumbered by the Deed of Trust (Elbert County) will
no longer secure payment and perfonnance of the Secured Obligations (as such tenn is defmed in the
Deed of Trust (Elbert County)) .
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Section 7. Certification; Representations and Warranties.
a. The Borrower certifies, as of the date hereof, that no Event of Default, or any event or
occurrence that with notice, the lapse of time, or both would result in an Event of Default,
has occUJTed and is continuing. If the Effective Date is other than the date hereof, the
Borrower shall make the foregoing certificate to the City and the Lender in writing as of
the Effective Date.
b. The Borrower re-states, as of the date hereof, for the benefit of the City and the Lender,
the Borrower's representations and warranties as set forth in Section 2.2(c) and (g) of the
Financing Agreement. If the Effective Date is other than the date hereof, the Borrower
shall make the foregoing certificate to the City and the Lender in writing as of the
Effective Date.
c. The Borrower has the full legal right, power, and authority to execute, deliver, and
perform this First Supplement, and the Borrower has duly authorized its execution,
delivery, and performance hereof. No consent or authorization of, filing with, or notice
to any other person is a condition precedent to the Borrower's execution, delivery, and
performance of this First Supplement except as have been obtained or made and remain
in full force and effect. This First Supplement has been duly executed and delivered by
the Borrower and constitutes the legal, valid, and binding agreement of the Borrower
enforceable against the Borrower in accordance with its terms except as enforceability
may be limited by (i) applicable bankruptcy, insolvency, reorganization, fraudulent
conveyance, moratorium, or other similar laws affecting or relating to the enforcement of
creditor's rights generally or (ii) general principles of equity. The Borrower's execution,
delivery, and performance of this First Supplement do not (A) violate or conflict with the
Borrower's articles of incorporation, bylaws, or any other governance document with
which the Borrower must comply, (B) violate any applicable law, regulation, or rule
applicable to the Borrower or its property or assets, (C) violate or result in a breach or
default under the terms, conditions, or provisions of any material agreement or instrument
to which the Borrower is a party or by which the Borrower or its property or assets are
bound, or (D) result in the creation or imposition of any lien, security interest, or other
encumbrance upon its property or assets except as provided in the Borrower Documents.
Section 8. Miscellaneous.
a. In consideration of the Lender's covenants and agreements as provided by this First
Supplement, the Borrower waives and releases the City and the Lender from any and all
claims and defenses, known or unknown, with respect to the Financing Agreement, the
Promissory Note, and each of the other Borrower Documents and the transactions
contemplated thereby.
b. The Borrower ratifies and affinns its obligations under, and acknowledges, renews, and
extends its continued liability under, the Financing Agreement, the Promissory Note, and
each of the other Borrower Documents and agrees that the Financing Agreement, the
Promissory Note, and each of the other Borrower Documents remain in full force and
effect as they may be amended or modified hereby.
c. The execution, delivery, and performance of this First Supplement by the Lender does
not and will not operate as (i) a modification of, or waiver of any right, power, or remedy
of the City or the Lender under, the Financing Agreement, the Promissory Note, or any
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d.
e.
other Borrower Document, except as specifically set forth herein, or (ii) a waiver by the
City or the Lender of any Event of Default or any event or occurrence that with notice,
the lapse of time, or both would result in an Event of Default. The amendments and
modifications set forth in this First Supplement are limited to the specifics hereof.
This First Supplement is a Borrower Document.
This First Amendment, as an amendment of the Financing Agreement, is subject to, and
will be governed by, those terms and provisions as set forth in Article VIlI of the
Financing Agreement.
{Signature Page Follows.}
s
Signature Page
to First Supplement to Financing Agreement
Re: $6,724,000 City of Englewood, Colorado
Revenue Bond (Denver Area Council, Boy Scouts of America Project) Series 2008
The City, the Lender, and the Borrower have each caused this First Supplement to be executed and
delivered by an authorized officer or representative as of the date first set forth above.
[SEAL]
Attest:
Loucrishia A. Ellis, City Clerk
CITY OF ENGLEWOOD, COLORADO
By:
Randy P. Penn
Mayor
LENDER:
BOKF,NA
By:
Kristen M. Sundin
Senior Vice President
BORROWER:
DENVERAREACOUNCIL,BOYSCOUTSOF
AMERICA
By: ----------------Print Name : ____________ _
Title: ______________ _
Exhibit A-I
to First Supplement to Financing Agreement
Re: $6,724,000 City of Englewood, Colorado
Revenue Bond (Denver Area Council, Boy Scouts of America Project) Series 2008
December 18, 2014
Revised Amortization/Payment Schedule
SCHEDULE I
BOND PAYMENT DATES
(Revised December 18. 2014)
[TO BE PROVIDED. REVISED AMORTIZATION/PAYMENT SCHEDULE SHOULD SHOW
PAYMENTS MADE THROUGH THE EFFECTIVE DATE AND THE REVISED
AMORTIZATION/PAYMENT SCHEDULE FOR THE REMAINDER OF THE TERM.]
**Revised as of December 18. 2014 in accordance with the terms. provisions, and conditions as set forth
in that certain First Supplement to Financing Agreement. dated December 18. 2014, by and among the
following parties: City of Englewood, Colorado, a municipal corporation and political subdivision duly
organized as a home rule city under the provisions of Article XX of the Constitution. the laws of the State
of Colorado, and its home rule Charter; BOKF, NA, a national banking association dba Colorado State
Bank and Trust and successor in interest to Colorado State Bank and Trust. N.A.; and Denver Area
Council, Boy Scouts of America, a Colorado nonprofit corporation.
Exhibit A-1 -Page 1
ExhibitA-2
to First Supplement to Financing Agreement
Re: $6,724,000 City of Englewood, Colorado
Revenue Bond (Denver Area Council, Boy Scouts of America Project) Series 2008
December 18, 2014
Evidence of Prepayment
PREPAYMENTS OF PRINCIPAL
Payment Date Principal Amount Balance or Principal Signature
Prepaid Amount Unpaid
December 18. 2014 $(4,324.000 .00] $(2,400,000.00] By:
Kristen M. Sundin
BOKF,NA
Senior Vice President
Exhibit A-2 -Page 1
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ExhihitB
to First Supplement to Financing Agreement
Re: $6,724,000 City of Englewood, Colorado
Revenue Bond (Denver Area Council, Boy Scouts of America Project) Series 2008
December 18, 2014
Form of Release of Deed of Trust
See next page.
Exhibit B -Page 1
Original Note and Deed ofTru.tt Returned to:
WHEN RECORDED RETURN TO:
Preplll'cd/Rcccivcd by:
Original Note retained by Beneficiary (not paid in full). Original Deed of
Trust to be rclUmed to Grantor/Borrowcr.
Current Holder
Dinsmore &. Shohl LLP, 180 I Broadway, Suite 1700, Denver, Colorado
80202, Attn: Erich T. KClllledV
REQUEST FOR FULL III / PARTIAL □
RELEASE OF DEED OF TRUST AND RELEASE av DOLDER OFTID: EVIDENCE OF DEBT wnu PRODUCTION OF
EVIDENCE OF DEBT PURSUANT TOI 31-39-101(1) (a). COLORADO REVISED STAnrrES
December 18 2014 Date
-=0en---ver-Area-:----':::C-oun~cil;;-. ,-=B::-oy--::S,-co_u_lS_o-:f:-:Am---cn""'·,-ca----------Original Grantor (Borrower)
-,;,104...=S;;..S....;,W'=cst~6;.:;lh'e'A""'v,;,;en~ue,----------------ClllTCllt Address of Original Grantor,
Denver, Colorado 80215 Assuming Party, or CUITellt Owner I Check here if current address is llllknown
Colorado State Bank and Trust, N.A. Original Beneficiary (Lender) _________ ......_ _____________ _
.....;:;Octo..;;.;.;;.;;_hcr;;;;..;;.9..a2;;.;0....;,0;;..8 __________________ Date of Deed ofTrust
Date of Recording 1111dlor Re-Recording of Deed
October IS 2008 ofTrust
~49:::7~6::::so==-~-------------------Rccordinglnformation
Coumy Rq>1. No. and/or Fibn No. and/or BootlPe&e No. mdlor Tom:m Rq. No.
TOTiiEPUBUC1RUS1EEOF Elbert COUNTY(lbcCountyofthePublicTrus1eewboistheappropriatc
grantee to whom the above Deed ofTrust should 8J'811I ID interest in the propcny dcscnlx:d in the D=I ofTrust.)
PLEASE EXECUTE AND RECORD A RELEASE OF THE DEED OF TRUST DESCRIBED ABOVE. Tbe indebtedness
secured by the Deed of Trust bas been fully or partially paid and/or lhe pUJJ!OSC of the Deed of Trust has been fully or partialJy
satisfied in regard to the property l:IIClllllbcred by the Deed of Trust as described 1hc:rein as to a full release or, in the event of a partial
release, OD!y that portion of the rca.1 property described as : (IF NO LEGAL DESCRJl'TION /8 U8TED THIS WILL /IE DEEMED A
FULL RELEASE}
BOKF, NA. a national banking association dba Colorado State Bank and Trust and succasor In Interest
to Colorado State Bank and Trust, N.A, 1600 Broadway. 4th Floor, Denver, Colorado 80202
Name IIIIIAddrca DfCum:at Holda Dflbc Evidence DfDcbtSealral byDood DfTIIISI (La>der)
Kristen M. Sundin, Senior Vice President, BOKF, NA, a national banking association
dba Colorado State Bank and TIJIS!i 1600 Broadway. 4th Ploor1 Denver, Colontdo 80202
N11111:, Tade IIKIA<ldr<ss oC011iccr, Aa=t, or A1tmney of Om.at Holder
State of Colorado , County of _,,D....,cn,...v_er=-=---=-----
Thc foregoing Request for Release was acknowledged before me
OD December I 8, 2014 (date) by• (Nowyscal)
DIiie Commission Expires
-.:;,lfr:lppl=.!:uca11=1c,.:.....,=tillo::1• ::".o::c'r-:::offi='==-~-==-=or---= boldor NowyPublic WillleSS my bml and official seal
RELEASE OF DEED OF TRUST
WHEREAS, the Grantor(s) DB1Ded above, by Deed of Trust, granted certain real property descnlied in the Deed ofTrust to the
Public Trustee of the County referenced above, in the State of Colorado, lo be held in trust lo secure the payment of the indebtedness
ref med to therein; and
WHEREAS, the indcblcdoess secured by the Deed of Trust has been fully or pmtially paid and/or the pwposc of the Deed of Trust
has been fully or partially satisfied aca,rding to the written request of the cwnnt holder of the evidence of debt;
NOW TIIEREFORE, in consideration of the premises and the payment of the statutory sum, receipt of which is hereby
acknowledged, I, as the Public Toistee in the COUDty DBIDed above, do hereby fully and absolutely release, cancel and forever
discharge the Deed of Trust or that portion of the real property described above in the Deed of Trust, together wilh all privileges and
appurt=mces thereto belonging.
(Public Tnisuc we oaly;
use oppn,prillC Jabd)
(Pl,blic Tnat<c'1 Seal)
Publie Trwtcc ow:
Deputy Public TIIISICC
{If applicable: Nowy Seal)
((f opp/ta,~. NmM and,i.ddru: "f Ptm111 Cnatlnf N,w u/1,fll Duaiprlon oz &quired by§ 38-JJ./06.S, Colo,adt, Rr,ucd S/sJtutu.)
Exhibit B -Page 2
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COUNCIL COMMUNICATION
Date Agenda Item Subject
November 3, 2014 9 a iv A bill for an ordinance authorizing and
approving a First Supplement to the
Private Activity Bonds Issued in 2008 for
capital improvements at various Boy
Scouts of America
Initiated By Staff Source
City of Englewood, Finance and Administrative Frank Gryglewicz, Director
Services Department
COUNCIL GOAL AND PREVIOUS COUNCIL ACTION
City Council discussed the request to issue Private Activity Bonds at the August 25, 2008 Study Session.
Council agreed to allow staff to move forward on the issuance of these bonds for the Boy Scouts of
America (BSA). Council approved Ordinance 56, Series of 2008 on October 6, 2008.
City Council discussed a request to approve a First Supplement to the Financing Agreement at the October
20, 2014 Study Session. Council requested staff prepare a bill for ordinance approving the First
Supplemental to Financing Agreement for their consideration at an upcoming regular Council meeting.
-RECOMMENDED ACTION
Staff recommends the City Council approve the attached bill for an ordinance approving the First
Amendment to Financing Agreement.
BACKGROUND, ANALYSIS, AND ALTERNATIVES IDENTIFIED
The BSA used the City's tax exempt status to issue debt that pays tax-exempt interest over the life of bonds
if strict restrictions are adhered to. The tax exempt status lowers the cost of borrowing, and therefore may
provide an incentive to non-profit organizations to take on projects or provide services that might not
otherwise be undertaken. Although the issuer uses the tax exempt status of the City of Englewood, the City
does not take on any responsibility for the repayment of debt or pledge its credit.
This bill for an ordinance approves the First Amendment To Financing Agreement. Essentially, the Boy
Scouts of America have received funds from a donor that will allow them to do a partial redemption of the
Bond. Upon the partial redemption of the Bond, the Lender (Colorado State Bank and Trust, N.A.) and the
BSA desire to:
• The Bond payment schedule be re-amortized
• The mandatory redemption date of the Bond be extended
Both the re-amortization and extension of the mandatory redemption date will be in accordance with the
terms, provisions, and conditions to be set forth in the First Supplement to the Financing Agreement.
FINANCIAL IMPACT
The City of Englewood will not see any financial impact from this action as the debt service is solely the
responsibility of the Boy Scouts of America.
LIST OF ATTACHMENTS
Proposed Bill for an Ordinance