HomeMy WebLinkAbout1982 Ordinance No. 040.ORDINANCE NO . 4 0
SERIES OF 1982---.--
BY AUTHOR ITY
COUNCIL BILL NO, 43
INTRODUCED BY COUNCIL
M™BER 81 1.0
AN OROINi\NCE AUTHORIZ ING THE ISSUANCE OF A CITY OF ENGLEWOOD, CO LORADO,
INDUSTRIA L DEVELOPMENT REVENU E BOND (ARAPAHOE CRTHOPAEDIC PROF ESSIONAL
CORPORATION PROJECT), SE RIE S A, IN THE PRINCUIPAL AMOUNT OF $42 8,000; AN D
APPROVI NG THE FORM AND IIU'l'II ORIZI~ 11\E EJIP.CU'\'J ON OF CE\ITl\!N OOCUM EN'l'S
RE U\Tli-1:i THE RETO .
WHEREAS , the City of Englewood, Colorado (the Issuer), is
a u thorized by part l of article 3 of title 29, Colorado Revised
St atutes 197 3 , a s ame nded (the Act), to issue revenue bond s for
t he pu rpose of financing p ro jects to the end that business
en t erpri ses will locate , e xpand or remain in the Issuer, to
enter into financing agreements with others for the purpose of
p r oviding reve nu es to pay suc h bonds, and furth e r to s ecure the
payment o f such bonds ; a nd
'11\E\lEAS , 1,y H<::col ut i on No, 30 , duly adop t ed o n Jun e 28 , 1982
(t he Inrl uce me nt Re s o lution), the Issuer committed itself to
issue su c h bo nds in a c co rda nce with the provisions of t~e Act
for th e purpos e of fi n anc ing a medical clinic (the Project) for
Nancy M. Mag i ll and Ch a r l e s D, Magill (the Borrowe rs ), to be
lo c ated wit hin t he Issuer and leased to Arapahoe Ortho paedic
Professio na l Co r poration (the Tenant); and
WHE RE /I S , t he fol l owing d ocum e nts have be en submitte d to the
Ci ty Coun cil (t he Cou ncil) and fil ed in th e o ffice of the Citv
~l er • (t he Cl e r k) an d are there availab le for public inspection:
(a) a Loan Agre ement , t o b e dat e d as of Octobe r 2 1 , 1982
(t he Lo an Agree me nt), betwe en the Issuer and the Borrowers;
-1-
I
I
(bl a Trust Inde ntur e , to be dated as of Oc tober 21, 1982
(the Indenture), between the I ss uer a nd i he Co lorado N~tional
Bank of Denver, as Trustee (the Tru s tee); and
(c) a Mortgage and Securi ty Agreement, to be dated as o f
October 21, 1 982 (the Mortgage and Security Agreement), be tween
Nancy M. Mag il l, as mortgago r and debtor, and the Trustee, as
mor tgag e e an d secured party; and
WHEREAS, the Cou nci l desires to authorize at this time the
issuance of a City of En glewood, Colorado, Industrial
Development Reven ue Bo nd (Arapahoe Orthopaedi c Pro fessi o na l
Corporation Project), Se ries A, date d October 21, 1982, in t he
p rincipa l amount of $428 ,000 (the Bon d ); an d
WHERE AS, it is necessa ry to i ss ue the Bond by ordina nce and
to approve the form and a uthorize the execu tion of the
afvrementio ned documents the r eby.
DE IT ORD/\INED DY 'l'IIE CI'fY CO UN CIL OF 'l'IIE CITY OF ENGLEWOO D,
COLORADO:
Sect ion 1 . Approvals an d Auth orizations. The for ms of Loan
Agreemen t (including the form of Note attached there to),
Indenture (including the form of Bond con t ai ne d therein), and
Mortgage and Security Ag ree me nt are hereby approved. The Mayor
and t he Clerk are hereby au t horized and dir ected to execute , as
appr opr iate, the Loan Agreement , the Indenture and the Bond and
affix the seal of the Issuer t hereto and further to execute and
authenticate such othe r documents , in s truments or certi~icate3
as are de emed necessary or desi rab le by bond counsel in order to
lSsue and secu re the Bond . Such docume nts are to be executed in
-2
substantially the form h~~einabove approved, provided that such
do~u ments may be completed, corrected or revi s ed as de ... '1,ll>d
necessary by the I>artiei: theret.o in order to carry 04t the
purposes of this Bond Ordinance. Copies of all of the dcc uments
shall be delivered, rec orded, and filed as provided there l n.
When executed, the Loan Agreement shall be assignl!d to tl.e
Trustee as p rovided in the Indenture.
The proper officers of tbe Issuer are hereby authorized and
directed to prepare '!nd furnish t,, bond counsel certified copies
of all proceeding s and r ~cords of the Issuer r e lating to the
Bond an d such other affidavits and certificates as may be
requir ed to she w th e facts relating to the a uthorization and
i ssuance there~f a s such facts appear from the books and records
in s uch office r s' cust ody and c ontrol .
Th e appro val her e by given to the variou s docum e nt s referred
to above incl udes th e a pproval of s uc h a dditi o nal deta il s
th e r ein as may be nec essary and appropriate for the ir c ompl e,ion
and such modifications thereof, deletions therefrom, and
addi t ion s theceto as may be mutually approved by bond counsel
a nd the City Attorney p rior to the e xecution of t he documents .
Th e execut ion of any instrument by the appropriate of fice rs of
t he Issuer her ein authorized shall be conclu sive evidence of the
ap proval by the Jssuer o f s uch in s trument in accordance with the
te~ms hereof.
~~ct i on 2. I ssua nce of Bond. The Issuer shall issue the
Bond fo r the pur pose , in the form and manner, and up0n the terms
se t forth in this Bond Ordinanc e , the Loan Agreement, the
Indenture, and th e f orm of Bond set forth in the Indenture.
-3-
I
I
The maximum net effective in terest rat e aut horized fo r th e
Bond i s fi f tee n percent (15\) per a nnu m. The a ctual n•ct
effecti ve interest rate f or th e Bond is f ourtee n an d on e-half
percent (14 ,5\) per a nnum,
Section 3. Determinations. It is hereby found, deter mine d
a nd declared that:
(a) the finan c i ng of the Project wil l promote the p ublic
heal th, welfare , safety, convenienc e and prosperity a n d promote
and develop trade or other economic activity by i nd ucing
busi ness ente r pri ses to loc a t e , e x pand , o r remain in the I ssuer
and the State o f Co lo r ado in order to mit igate th e s er ious
th r eat of e xtensive unemp loy me n t and to secu re and mai nt ai n a
b alanced and stable economy for the Issuer and the State of
Colorado ;
(b) the amounts necessa ry in each year to pay th e principal
o( and interest o:. the Bond a re as f ollows :
'/EAA PRINCIPAL IN'fEREST TOTAL
19 83 $ 8,000 $60,508.50 $68,508 .50
1984 10 ,000 60,900.00 70 ,900.00
1985 15 ,000 59 ,450.00 74,450.00
1986 15,000 5 7,275.00 72,275 .00
1987 15,0 0 0 55,100 .0 0 70 ,100.00
1988 20,0 00 52,925.0 1 72 ,9 25 .0 0
1989 20 ,000 50 ,02 5.0(1 70,025 .00
1990 25 ,000 47 ,125 .0 72,125 .00
1991 30 ,00 0 43 ,500.0l 73,500.00
1992 35 ,000 39,1 50 .00 74,150.00
1993 35 ,000 34,075 .00 69,075.00
19 94 40 ,000 29 ,000.0 0 69 ,000 .00
19 95 45 ,000 23 ,200.00 6 8,200.00
1996 55 ,0 00 16,675.00 71,675.00
1997 60,000 8,700 .00 68,700.00
(C) the amount necessary to be paid each year into any
r eserve fund s which the Cou ncil may deem advisable to establish
-4-
in connection with the retirement of the Bond and the
m?inte na nc e of the Project is $0;
(d) che Loan Agreement provide s that the Borrowers shall
maint ain the Project and carry all ~rope ~ insurance with respect
the ~etor
(e) th e Loan Agreement requires that the Borrowers pay the
taxes which the taxing entities specified in Section 29-3-120(3)
of the Act are entitled to receive from the Borrowers with
respect to the Projecti
(f) t he payments r e quired i n I ne Loan Agreement to be made
are s ufficient to pay the principal of, and interest on, and any
premium due in connection with the redemption or prepayment of
t ~e Bo nd when due ano to pay all other costs required in the
Lo a n Ag reemen t to be pa id,
Sect i o n 4, Natu re of Obligation. Under the provisions of
the /,ct, and as provided in th e Lo an Agr eement, the Indentur e
and t he Bond, the Bond shall be a special, limited obligation of
t he Issuer payable solely from, and s ecured by a pledge of, the
rev e nue s derived from the Loan Ag r eement and shall be further
secu r ed by the lien of the Indentur e upon said revenues and by
the lien and security interest of the Mortgage and Security
Agree men t upon the Pr oject and the other prope~ty described
th e rein, The Issuer wi ll not pledge a ny of its p ro pe rty or
secu re the paym ent of the -Oond with its property . The Bond
shall never constitute the d ebt or indebtedness of the Jssuer
within the me aning of any provision or limitation of the state
constitution o r statutes or the home rule charter of the I ss uer
-5-
I
I
an d shal l not constitute nor give rise to a pecuni ary liability
of the Issue r or a charge against its gene ral c r edit o r taxing
power s , In entering into the Loan Agreement and the. Ind entu r e ,
the Iss ue r will not fin ancia lly obli~ate itself, e xc e pt wi th
respect to the application of the revenues derived from the Loan
Agre e ment and the proceeds of the Bond, The Issuer will not pay
ou t of its general fund or otherwise contribute any part of the
cost of the Project .
Section 5. Bond Ordinance Irrepealable. After the Bon d is
issued, this Dond Or dinance shal l c on s titut e a n ir rev ocabl e
c on tract between the I ssue r a nd t he holder of the Bond and shal l
be a nd remain i cc epe ala b l e until the Uond, bo t h p rincipal and
interest , shal l be f ully paid, c ancelled and discharged in
accordance with the I ndentu re.
Sect ion 6 . Ra ti f ication. All a ct ion heret ofor e taken by
the I ssuer and by th e off icers the r eo f no t incons i z t e nt herewith
di r ec ted towa r d th e financ ing of th e Pr oject and the iss uanc e of
the Bond is he reby r atified , approve d and confirmed.
Section ,. Repeale r . All act s , o rders , resolutions,
o r dinan ces, or p arts t hereof; t ake n by th e Is suer and in
conflic t with this Bood Ordi nance ace he reby repealed, except
that t hi s repealer s hall not be co nstrued so as.to revive any
ac t, orde r, resolution, ordinance , or par t thereo f, h e r etofor e
repealed .
Se ction 8 . Sevecab ili t y . I f any paragraph , clause ~c
provis i o n of this Bond Ordinance, excep t Sec t ion 4 hereof, is
-6-
judicially adjudged invalid or unenforceable, such judgment
shall not affect, impair or invalidate the remaining paragraphs,
clause s or provisions hereof:
I nt r od uced , read in full , and pa s sed on first readi ng on the 7th dayday
of September , 1982 .
1982 .
Published as a Bi 11 fo r a n Or dina nc e on the 8th day of Se ptembe r,
Read by title and passed on f ina l read i ng on the 20t h da y of
Se pLcmber , 19 8 2 .
Published by t itle as Or d inance No . .-1/0 , Series of 198 2, on t he
22nd day of Sept embe r , 19 8 2. ----
I , Ga r y R, Hi gbee , ex o ff i cio City Clerk-Tr e asurer of t he City of
Englewood , Colo r ado , hereby ce rt ify that the above a nd foreg o ing is a t:ue ,
accu r ate and com plete copy o f the Ord ina nce pa ssed on fi na l readi ng an d
published by title as Ordina nce No .£.Q_, Se ri es of 198 2.
-7 -
I