HomeMy WebLinkAbout1984 Ordinance No. 0360,.0 ll,1-.NC E NO . JJ,
S!:;:i ES OF 1 9B4
BY J..UTHORITY
COUNCIL B I LL NO . ~
INTRODU CE D BY COU NC I L~'.EM BER
NEAL
AN ORD l NhNC E AUT HOR I ZI NG TH E I SSUANCE hND S AL E OF
~9 ,500 ,000 CI':'Y OF E NGLEW OOD , COLORhDO , INDUSTRI AL
DEV ELOPM ENT RE VE!s'J E BOK DS ( K I NG SOOP ER S PLAZA
?i':l J ECT) S:O:R !ES 1 9 B.;, T O F JN.;NCE P RO PERT Y S t.:I U .BLE
FOR USE FOR COMM::l:C I AL OR B US INE S S ENTE RPRISE S;
f-.<.TIFYING CERThl N ACT IONS HERETOFOR E TAKEN; AU T HOR -
IZ:NG T r.E EXECUT I ON ANcl DELIVERY EY THE CITY OF A
: I N.L.NC I NG AGR EEMEN T, INDENTU RE or T RU ST, BOND
P URC n hS E AGREEME NT , INDUC EME NT LETTER, F!N.L.L OFF I -
Ci AL STAT:0:!•'.EN T, SAID BOND S AND C LOSING DOCU!·'.:O:NTS IN
CONN ECTION TH EREvl l TH; AND REPEAL ING AC TIOI, HERE:TO-
FO:'(E T AKE N I N CONFLICT HE REWITH.
\-1:i EREAS , t he Ci t y o f Eng le,;ood, Co l o rado ( th e "I ssu er ")
i s a lega l l y and r e g u l ar ly created, establi shed mun icipal
corpor at ion dul y orga n i ~e d a n d e xi sting as a home -ru le city
pursuant to Art i cle XX of t he Constitut ion of th e Sta te of
Colo r a d o ; and
WH ERE.Z..~. the prov ision s of t he Coun t y and Munic ipalit y
Developmen t Re v e n u e Bo n~ Act, c ons titu ti ng Artic l e 3, Tit l e
29, Co l o ~ado Re vised Statute s (t he ''Act''), author i ze mu ni ci -
paliti e s t o fin a nce, r efi n a:ice, a cquir e, ow n , l e a s e, i rrprov e
an d dlE?CS e o ! o ne or mo re p=oj ects, !nclu di n g any l a·.d,
b~ildi:ig o= othe 1 .mpr cve~e~t a nd a l l real o r p ers~na l
pr opert ie s su i tab le or used for or i n c o nnection wi t h c o m-
me rc ial or bus :ness e~te~p r 1ses (in c lucii~g , ~i~1o u t lim i ta -
t ion , ent erp r iEcs engaged i n s elli ng any products of agri -I
culture, industr y, commerce, manuf.icturing or business ),
up on such c ond it i ons as the mun ic ipa l i ty ma y dee m adv isable;
a,id
WSE REAS , s u ch mu nic ipalities are furth er au thorized by
the Act t o issue r evenue b o nds for the p u rpose of defraying
the cost of fin anci n g any su ch projec t; an d
WHERE AS, s ue~ mu nicipa l it i es may author!ze the us~r Qf
the pro ject, or an agent of t~e u s er or a tru s tee, to di s -
bur se t he pr oceed s of su ch b onds to pay c e rtain costs
auth o rize d by the Act und er certa in c ondi tions set f o r t h
ther ei n, i ncludi ng t he c o nd i ti on t hat the u s er the reof ag ree
to pay t o s uch munic ipality a n amo un t s uffici ent to pa y ,
~he n due, t he p ri ncipal, intere st and pre mium , if an y , on
such b ond s , and an y ot · er expenses i ncu rred by the munici -
pali t y in c onn ection t h•r e wi t h , s uch b o nds t o be p a ya ble
sol ely from the re v e n ues deriv ed f rom pa,'TTlent s t o t h e mun i c-
ipa l i ty by th e user of the proje ct ; a n d
WHE RE .~S . En glewo od Re dev elopers, Ltd., a Col o rado
l imi ted partne rsh ip, organized and e xi s t ing under the laws
of the State of Colorado (the "Part ne r s h i p"), ha s presented
to t h e Is su er a p~opasa l wh e r eby the I ssuer will, pursuant
~o th e Act, issu e the re venu e b onds hereina!te ciescribed
and 1 0211 the proce eds t he r efrom t o the Pa r tnershi p t o
finance t h e ~cguisition, constructi on and improvi n g of a
commerci a l faci li ty cons i sting of a retai l grocer y stor e,
relat ed c onve .1ie n ce s hops and a park i n g structur e, h aving an
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are a of app r oximately 100,000 square feet, proposed to be
loca ed i n an are a surrounded by Fl oyd, Broadway , Gi rard and
Bnnnock streets, all within the City, as well as all real
esta:e, fixtures a11d equipment n e cess a ry or c onvenient
the r efor (collectively, the "Project"), which Proje ct wil l
be locatec ,·ithin t :ie bounda rie s of th e Issuer and gu ali f ies
as a 11p rojec t'1 ~i thin t~e meaning of th~ hct in that such
:acil i ties are suitabl~ f or commercial or business enter-
p:-ises; and
w:.;E;;E AS , the Partnership has given its assurance to t he
City that the Partnership will pay, or re imbu:-se the City
fer payrrtent o:, r.ny and all legal fees and expense s and
adr..in1str a tive c o£ts and e>:pens~s heretofore incur re d or
here afte r to be incu rre d by the City re lated t o the Project
an d its financing, and that such agreement to pay or rei m-
bu rs e ~he City is not contingent upon commencem ent or c om -
pletion of the Proje c t or the fin anc ing; and
WnEREAS, the Partnership has represented to the City
that the Project ,·ill be designed to q ualify as a "p:-oject"
within the mean i n g of th e Act; and
hnER EAS , the City considers that the Project , if
loc &~ed ~ith ~n t~= City, ~~11 a~sist the City in promo~ing
e conomic d evelopment an d ad1icion~l e mp l oyrn~nt ~ithin the
City; and
W-rlEiEAS , the City has considered t he Partne r ship's
pr oposa l and has conc luded that the economi c and other
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b~nef!ts to the City will be substan t i al and that it wishes
to proceed with the development and financing of th e Proj-
ec:; and
W!:EREi,S, the "City o f Englewood, Colorado, Industrial
Development Revenue Bond s (King Soopers Plaza Project}
Series 1984," in the aggregate principal am ount of
59,500,000 (the "B o nds"}, w1ll be ic·ued , s old and de livered
by tl1e Issuer to Boettcher & Company, Inc. of Denver,
Co lorado (the "Original Purchaser"), to provide funds to
finance the Proj ect, and to pay certain inci de ntal costs
incurred in connection wi th the issuance of the Bonds; and
WHEREAS, there hav e been presented to the C ity Council
of the Issuer: (a) a pro posed form of Financing Agreement to
be dated as of Septembe r 1, 1984 (the "Financi ng Agree -
ment 11
), betwei:?n the Issuer ar. .. ,e Partnership, (b) a pro-
p osed form of Indenture of Trust to be dated a ~f September
1, 1984 (the "Indenture"), between the Issuer and Denver
National Bank, as trustee (the "Tru stee"), (c} a proposed
form of Bond Purchase Ag reeme nt, to be ddted as of the date
of the final adoption of t his Ord inance (the "Bon:! Purchase
Agreement ''), between the Issuer and the Origi nal Pu rchase r,
(d) a proposed fcrm of Inducement Letter to be d a ted as of
the date of t he final adoption o! this Ordinance (the "In-
d u cement Letter"}, amon g the Partnership, the I ssuer and the
Original Purchase r, (e} the Preliminary Official Statement
to be used by the Original Purchaser in connecti on with the
ricing, macketing and sale o! the Bonds (the "Prel imi n ary
Official Statement") and (f) a proposed f orm of final Offi-
cial Sta:ernent (the "final Official Statement") to be dated
as cf the date of the final adoption of this Ordinance.
MOW, TnEREFORE, BE IT OF-DAINED BY THE CI TY COUNCIL OF
Tic!S CJTY OF E:-GLEWOOD, COL ORADO TH~.T:
Se c :!cn l. All action (n ot inccn1 iste n : with the
peovisions of this Ordinance) heretofore ta ken by t h e City
Counc il and the efforts o! th e Iss~er directed towa r d
f:nancing the Project, the issuance and sale of the Bonds
theref o r, and loaning t he proceeds th e reof to the Pa rtner-
ship there!or be, a nd th e same hereby are, ratified,
a p pr oved and confirmed. Th e distribution and use of the
?reliminary Offici al Statement a~d the proposed distributi on
and use of the final Official Statement in connection with
the sale of the Bond s is hereby a cknowledged; provided,
however , that neithe r the Issuer no r any officer or empl oyee
thereof has or assu me s any responsibility for the accuracy
or completeness of the information contained in t he Prelimi -
nary Official Statement or the final Offic ial Statement.
Secti on 2. The Js3uer shall f inance the Project,
111cl ud1ng the paying o! inci dental i s su ~n c e expe~ses and , if
neces s a:-y, a p :,:-•_1("'ln o ! the inte rest to accru e on '":he Bonds,
by d epo siti~g t he proceejs of the Bonds with the Tru stee,
the pro c e ,:d s o f which ~ill b e disbursed by the Trust ee for
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su c h purposes i n ac co rdan ce wi th the provisi o n s and condi-
t io ns of t he Indent ure .
Section 3. To d efray t he co st of financi ng the Proj-
e ct , the p ay ing o f inci denta l i ssua nce eKpen ses, and, if
11eces sary, a portion of the intere st to acc rue on the Bonds ,
th e :·e i s h ereby au th orized and cre ated an i ssu e of rev enue
be ~1 E design a ted as t he ''City of En gl ew ood, Col o ~a do, Indu s-
trial Devel opmen t Re v e nue Bonds (Kin g So opers Plaz a Project)
S e ries 1 9 64," in the aggregate principa l amount of
$9,500 ,000, t o be dated a s of Sep~emb er l , 1984. The Bonds
s hall b ear interest f r om their date payable semiannuall y
c or,:ne nci ng o n I•ia r ch 1, 1985 and o n ea c h Septerr,ber l a nd
Via rch l the~ea fter u n til maturity or prior r ed empti on at the
ra tes , and the Bonds shall ma ture on the da tes and in th e
am o'Jn ts se t f o rth in t he Supplem enta l Resol uti on to be
adopt ed by the Issuer on Augu st 27, 19 84 (the "Sup;:,l emer:•.-1 ,l
Resolut i on"). Pro-vided , h owever , that t he net effect ive
intere st rates on the Bond s s ha ll not exceed 11.00% p er
anr.um.
The Bonds shall b e subject t o redemp t ion as set f orth
in t he Indenture, and shall be issuable s o lely as fully
reg:s t ered bonds, all 1n acco rda11ce with the p~ovi si ons o f
t! e Indenture .
The Bonds s hall be in subs tantia lly t h e fo rm provided
!o e i n the Ind en t ur e . The Bonds shall b e sold to the Orig -
i na l Purchaser f or a purchase price s et fo rth in the Supple-
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men tal Re s o lut i on, all in accordsnce with the Bo n d Purc h ase
Agr~eme n t.
Section 4 . The fo l lowing dete rmi nations a nd fin d i ng s
a re here~y made In ac c ordanc e wi t h the Act,
(a ) The I ssuer is a u th ori :ed by the Act to e n te r
into the F inancing Agreement for the public purposes
expressed in th ~ Act, and to ass i gn i t s interes: t h e re
in to the Trustee pursu a n to the I n de n ture ;
(b) The ;ssuer ha s made the n e ce s s ary arra nge •
men t s ~ith the Partners~i p f or the est ab lishment ~ith in
t he boundaries cf th~ l~suer of t he Pr o j ect , c o ns i sting
of certa in property mor e full y described in th e Fin a nc -
in g Ag ree me~t. ~hich wil l be o! a cha r a c t er de scribed
in, and ~!11 acc onp lisl, c erta!n pub l i c pu r p oses cont e m-
plated by , the Ac t ;
(c) I n auth o ri z ing the f inanc i ng of t he P r oj ect
and th~ issu a nce of t he Bonds , t he p u r pose of the
Issuer is, and i n its j udgment the effec t t hereof wi l l
b e, t o creRte n e ~ or a dditional emp l oyme n t o ppo r tun i -
ties, to p r omot e indust ry and d e ve lop t ra de o r o ther
economic activity by indu c ing t he Pa rtn e rshi p to
locate, expanj or remain i n t h e Sta~e of Colo r ado, to
mitig ate ~h ~ se~ious th~eat o f ex:e~si ve u nemp l oyme~t
i~ parts o f t h e S tate o: Co lorad o , t o sec u re and mai n-
tai r. a ba l anced a n d stable e concrr.y a nd to f ur t he r t h e
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use o f the agricultural p roduc t s and natur a l resourc es
of the S t a te o f Co l orado;
(d) The Bo nds eha l l be l imited obligat i ons of the
Issue r . Th e p:--incip al o:, premi um , i f any, and in':.er -
est sh a ll be payable s ol ely o ut of the revenues deriv e d
from the F i na ncing Agreement. The Bonds and interest
th e re on El1a!l not constitute a ge neral o b li gati on or an
indebtedn ess of the Issuer within t he meaning of any
prov ision o ~ limitation of the Constituti on or statutes
of the Sta te o f Colorado, or the Ch arter o f the Ci t y ,
an d shall ne v er consti t u t e n o r g i ve r i se to a pe c un i ar y
liab :l:ty o : the Issu er o r a charg e ag ai n st it s gen eral
cre dit or tax i ng powers. Neither the faith and credit
no r the taxing power of the I ssu er, t he S ~a te o f
Colorado or any other political subdi vision the reo f , is
pledged to the payme nt of the princ ipal of t h e Bo nd s o r
the interest the r e o n or other costs incidenta l theret o;
(e) The am o unt necessary i n each year t o pay the
principal of and the interest on t h P Bond s will be set
forth in the Suppl ement al Resolution a s Exhibi t A a n d
incorpo rated herein by reference, and t h e Financ i ng
Agreem er.t req~i res su ch pa y;nents t o b e ma de by the
Partnershi p ; t here i s t o be no r eserve fu n1 es~ab lishe d
for th e retirement o f the Bo ~ds o r t he ma inten anc e of
the Pro ject; and since the Financin g Ag r eement provides
t hat th e Par tnership shall mainta i n the PrrJ e=t a nd
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carry c ertain i nsura nce ~ith respoct t hcre t 0 1 no d e ter-
min atio~ of the ef tim&ted c ost o f maintai ning or insur -
ing the Project ne ed b e ma je; a n d
(f ) Th e reve n ues of t he Par t nersh ip will be
suf fic ient to, and t h a t th e :inancl n g Agreeme n t pro-
vides t hat the Partnersh i p shall, pay al l t a xes which
may b e due and o~i~g ~ith re s?ect to the Pr o ject.
Section 5. Th e f o =ms, terms a nd p r ovisions o f the
lnCucement Le t te!·, the Financing Agreement , th e lnde~tu re,
the fina l Offic ial Sta ~e me ~ and the Bond Purch as e Ag reement
be , and they hereby ar e, approveci, a nd the Issuer shal l
enter into t he lnducemen~ Lette r, the Fina ncing Agreement,
t he Inde nture a nd t he Bo nd P~rchase Agreement, and shall
execute the fi nal Off i cial Statement , substan tially in t he
f o~ms o: e ach c: such d ocum ents pre se~ted at this mee ting
but with such mi n o r chan ges therein as are c ons i stent here -
with and as the of ficers of t he I ssuer executing su ch d o cu-
ments shall app r ove, their ex ecution thereof be ing d eemed
c o nclusi\"e of th ei r a;,;,roval of a ny such change s ; ,,nd t he
Mayor of the Issuer is hereby a u thorized a nd directed to
ex ecute a nd deliver such do cuments and the Ex Offici o City
Clerk/Treasurer j r he re by a~~ho ri=ed and di rected t o affix
the s e al o: the ls s~er t o, a nd to at~est, s u ch d ocume ~~s in
s ubs tantiall y the f o rm s of ea ch of such d o cuments presented
at this me eting .
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Se ction 6 . Th e f orm , terms a nd provisions of the
Bond s, in sub stan ~i ally t he f orm con ta i ned in the Indenture,
be a nd t he y he r e by ar e , approve d; and the Mayor is h ereby
au~h o r i ze d a:1d directed t o cause his fa cs i mile si gna t ure to
be a~fixed to the Bond s ; the Ex Off i ci o Ci ty Cle rk/T reas ur er
is hereby authori ze d and directed t o a ttest t he Bonds wi t h
hi s f acsi~ile sign~ture , and ea c }1 is a~thorized t o de live r
t he Bo n ds in the form conta i ned i n the Indent ure bu t with
such min or chang es ther e in as are c ons istent ~ith the Inden -
ture and this Ordinance and as t h e officers o f th e I ssuer
executing the Bo nd s s hall approve, their e xecut i on the reof
be i ng deeme d conclusive of t he i r a pproval of a n y such
change s. Th e seal o f the I ssuer i s hereby au thorized a n d
d irected to b e affi xed t o or imprinted on the Bo nd s.
Se c t ion 7 . The Mayor of t he Is su er is h ereby auth o r -
~ .ed t o approve the app ointment of Denv er Nation a l Ba nk , a
na tional banking a ssoc i a tion with its princ i pal of fice
located a t Denve r, Co lorado, as Trus t ee, bond registrar a n d
pay ing a gent, the exe c uti on of the Indenture b y the I ssuer
be ing c onc l usi ve evi de nce o f the approval of th e Tru ste e.
Se c tion 8 . The o ffi cers of t h e Issu er shall take all
action which they de em ne ces sary or reas on ab ly required in
confor~ity ~!th the he~. t o f inanc e th e c onstruction and
im?rov e ment of t h e Pro ject which is h er e by auth o rized,
i n cluding the paying o! incidental ~s suance expenses from
t he p r o ceeds o f the Bonds , and for carrying out, givin9
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effect t o and c o nsummati n g t he t ransactions contempl a ted by
thi s Ordin anre , t.he Jnduceme nt Le t t er, t he Fi nanci ng Agree-
ment, th e I n d e nture, t h e final Official Sta temen t a n d the
Bond Pu rchase Agreement, inc lud ing wi thout l i mitation the
exe cu tion and d eliv e ry of any c lo sing doc ume nts to be
delive r ed i n con:1ect ion .·:th the sa le and d el ive ry o f the
Bonds.
Section 9 . T he co s t of fin a ncing the Pro ject, includ-
i n g the p aying o f incidenta l i ssu a nce expe ns es, will be paid
out of t he proc e ed s of the Bonds . The Bonds together with
interest payab l e thereon a re speci al, limited obligations of
the Issue r payable sol ely a s prc,v i•:ied in the Jnd e •,tur e. The
Bonds or intere st payable thereon s ha ll neve r constitute the
d ebt or i ndebt edness of the I ssuer, the S ~-•'=-~ ,.,f Co lorado or
any politi cal subd i vision thereof wi t hi n t h• r,,e3n i n g of a ny
provis i on or limitation of the Const iL~ti on or statutes of
the State of Colorado, or the Chart er o f the City , n o r sha ll
anyth ing contained in t h i s Or di nan c e or in t he I nducement
Letter, the Bor:d s , the F i n anc i ng Agreement, the Ind enture,
the Bond Purchase Agr eemen t , t he f inal Officia l Statement or
any other instr~ment con stitute or give r ise to a pecuni ary
liabili ty of, ~r a charge a gainst t he ge ne ral credi t or
t aK ing p o we r of, t he Issue r , nor shall the breach o f any
agreement co nt ained in t h is Ordinance, or any of t he
above -menti o ned documents or in st rume nts i mpo s e any pecuni -
a ry Jia~il1ty up on the I ssue r, t h e J ssuer havi n g no power to
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p Ry o u t o f i ts g enera l f u n d, or o therw i s e contri b u te any
p a ,·t of t h e c ost s of f i nan c ing the Proj ect , no r s ha ll t he
i ssue r c o ndemn an y a dd iti onal l and or oth e r prope rty fo r t he
tro Je c t no r c o nt r ibute an y l h n d e r o the r p r o pe r ty to the
Pr o j ec t .
Se ction 10 . Af t e r any o f th e Bo nds ar e issued, t his
O~d:~anc e sh a ll b e and r e main irrepea l ab le u ntil t h e Bon d s
a nd i n t ere s t t he reon s h all have been f ul l y pai d , cancel l ed
and di s cha r g ed .
Se c t ion 11. If any se ction , pa r ag raph, clau se o r
prov isi o n o f this Ordin a nce sha ll for a ny re aso n b e held to
b ~ invali ~ o r unenfor c eable, the inv a l i d ity o r u ne nfo rce -
abil i ty o f s u c h section , parag ra p h, cl aus e or p rovision
s h all n ot a :fect any of th e r e maining pcovis i o ns of th i s
Ordinan c e .
Sec t ion 1 2. Al l by l a ws , o r d e rs , reso lution s and
ordinanc e s, o r part s thereof , i n c ons i ste nt herewith and wi t h
t h e d o c uments h ereby a pp rov e d, a r e here b y r epealed t o t h e
e x t en t on ly o f s u c h incon siste n cy . Th is repea l er sha ll n o t
b e c ons trued as r ev i vin g any b ylaw , o r d e r , re s olu tion or
o r d1n anc e , or p a rt there o f .
Se ct ion 1 3 . lm n,e dia te ly upo n it s f in a l pc..ssa ge , t h is
O~di ~a nce s ~&l l b e r e c o rde d i n t he City b ook o f o r di nanc e s
k e pt f or t h a t purp ose, sha ll be a u t h e nticated b y the signa -
t ure s o f t h e M•y o r and t h e Ex -Of fic i o Ci t y Cl erk/T reasure r,
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and sha ll I~ published in the S nglewood Sentinel , a l egal new s -
paper o f gene r a l circulation in the City .
Introd uced , read in full, and pa ssed o n f i r st reading the
6t h day of Au gust , 198 4.
Pu b lished a s a Bi ll for a n Ordin ance on the 8th day of
Au g ust, 1984.
Re ad by titl e and p assed on fina l readi ng the 2 7 t1 1 day of
Au gust , 1984.
Published by t it le as Ord ina nce No . J.iIL__, Series of
1984 , th e 29th da y of Aug ust, 1 984.
At t est :
1 , Ga r y R. Higbe e , ex offi cio City Cle rk-Treas ure r of t he
Ci t y of Engle1<ood, Co l o rado , hereby certify the above and fore -
going is a true , accurate, and complete copy of the Ordi nance
passed on final r ead in g and published by t i t le as Ordin ance
No . _..J...0i_, Szries of 19 84.
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