HomeMy WebLinkAbout1985 Resolution No. 026•
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RF.SOLUT l ON NO. d-&
SE RIES OF 1985--
A RF.SOLtrrION DOCLARING TH B H(!'ENT OF 1'HE Cl'rY OF ENGLa-1000 ,
COWRADO, TO ISSUE BONDS TO ••ROVIDE FlNANC ING l?OR A MUL'r!FAM ILY
RESIDENTIAL PROJOC'l' TO BE UN,>~RTAKEN BY HG , A TEXAS LIMITED
PAR'rNERSHIP, 'lliE t',\NAGHIG Q:NERAL PARTNER OF WHICH WILL BE HAMEUEN,
LTD,, AS DESCRIBED HERE IN FvR PERSONS OF LOW AND MIDDL E INCCt1E ;
PRESCRIBlNG CER'rAlN TERMS AND COND!'r!ONS OF SUCH BONDS ; AND
CON'rA!N ING CY rH ER PROVl ~ION!, RE [)IT!NG TO 'lllE SUBJOC'l'.
WHER F.AS , purs uant to the County and i'\J nicipal i ty Developnent
Reven ue Bor.ds /let , Colorado Revised Statutes , Title 29 , Article 3 ,
Sections 29 -3-10 1 et seq . (the "/let"), the City of E)iglewoocl ,
Co l o rado , (the 11 lssue r 11
) is autho ri zed t o issue revenue bonds for
the purpose of providing fi nancing for residen t ial projects loca t ed
wi t h i n the boundaries of the Issuer and inte nded to be occupied by
persons of low and midd l e incane , as determined by the governing
body of the Issuer ; and
WHEREAS , Section 10 3 (b ) (4) (A ) of the Internal Reve nue Cod e ,
as amended (the "Code"), prov ides that the inte r est on obligations
i ssued by or on beha lf of a str1 t e or a pol it ical sutxHvision
ther eof substantially all of t he proceeds of wh ich are to be used
t o prov ide projects fo r r eside ntial rental property shall be exempt
frcro feder al inc ane taxat i on if , among other requiranents , at least
t wenty p.,rcent (2 0%) of the units t hereof will be occ upied by
individuals of l ow or mod e r ate incane , wi t hin the rreaning of t he
Code Section 10 3 (b) (12) (C) at a ll times during the qualified
project peri od set forth in Co:l e Sect i o n 103 (b ) (12) (B); and
WHEREAS , it is proposed that the I ssue r i ssue its revenue
bond s in one or more seri es for t he purpo se of providing f i nancing
for a multi famil y r e ntal resident i a l project cons i sting of
approximate ly 63 8 apartment uni ts for ren ta l to l ow and mode rat e
i ncane tenants to be located on approximately 25. 542 acres o f real
esta te located no r t h of Hamp::len Av e nue nea t t he inte rsec ion of
Gilpin Street and HamE>J e n Avenue , as more fully d escr ibed in the
proposal of the Owner r eferred to below , withi n the boundaries of
the Issuer (the "Project"), wh ich wi ll be owned by Che rry Hills
Court Ven t ur e , a COlo rado limited partnership (the "o..mer ") the
mana~ing general partner of wh ich will be Cherry Hills Co ur t , Ltd .,
whi ch i s canprised o f certain princ i pals of Tramne ll Crow
Resident ia l Can[>ani e s and the Cha s ewood Canpany but only in t he
ev e nt that all matte rs rel ating to the pl ans ar.:::1 spec ifications of
the Pr oject , its zon i ng and al l othe r rea l estate concerns be
s at isfactory in all respects t o Ci t y; and
WHEREAS, the Own er has indicated i t s willingness to enter
into con t ractual arrangene nts with the Iss ue r providing assur ance
satisfactory to the Issuer that the d""'lling units o f the Project
will be occupied at all times by persons of low and middle incane ,
as d1etermined by the governing body of the Issuer , and that at
l e,,s!; t""'nty perc ent (20 %) of the un its of the Project will De
occ:.pied by irxlividuals of low or middle income within the meaning
of C.-.:le Section 103(b) (12) (B); a nd
WHEREAS , the Owner has indicated i ts will i'l9ness to enter
i nto contractua l arrangenents with the Issuer providing assurance
satisfactory to the Issuer t hat the d""'lling uni ts of t he Proiect
will be occupied at all times by persons of low a nd middle income ,
as determined by the govern ing body of the Issue r , a nd tha t at
l east t""'nty percent (20 %) of the units of the Pr oject will be
occupied by i nd iv iduals of low or mi 'd le incane withi n the mea ning
of Cod e Se,ct ion 10 3 (b) (12) (B); and
WHEREAS , the Issce>r wishes to declare its inte ntion t o
authorize an i s sue of i ts re ve nue bonds in on e o r more series for
t he purpose of paying the cost of f inancing the Project , when so
r cques c.ed by the Own ec , upon such terms and conditions as are
c onta i ned herei n , and as may then be agr,aed upo n by t he Issuer , the
Owner , and the purchaser for the bonds;
NO,;, 'll!EREFORE , BE IT RESOLVED BY 1'HE Cl'rY COUl>CI L OF THE
Cl'l'Y OF ENGL El'/00D, COf,ORAIJO , THAT:
Section l. In order to bene fit the residen t s of the Issuer
and t o-induce the Owner t o l ocate the Project within t he boundaries
of the Issue r, the Issue r he reby declares its intent tu issue its
mul tifamily hou sing revenu e bonds in one or mor e series (the
"BoOOs") i n an approximate agg reg ate pr inc ipal anount o f
$35 ,000 ,00 0 , wh i ch amoun t i s estimated to be sufficient: (a) t o
fu nd a loan t o prov ide fi nancing for the acquisition and construc-
tion o f the Pr ojec ~; and (::,) to pay c ertain costs incur red in
conn ection wi th the i ssua nce of the Bond s . nie Borxls will be
i ssued by the Ci ty on ly subsequent to the approval in a ll r espec ts
of t he plans and specif i cations of the ?rojec:t by the City and only
i n the event that all ma tters re lat i n~, to such plans and SlX'Cifica-
tions for the Project , its zo ning and a ll othe r r eal estate
concerns be satisfactory i n all respects to the City .
Secllon 2 . 'lh e Bonds shall be special limited obi igations of
the Issue r pa yable solely fran the r evenues der ived fran c,r in
connect ion with the loan to prov i de f i ndncing fo r t he Project .
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Section 3. '!he governi ng body of the Issue r hereby finds ,
determines , recites and declares that the ilonds shall not consti-
tute t he debt or indebtedness of the Issuer, the State of Colorado
or any other political subd ivision of the Sta t e , "nd shall not
constitute nor g,ve rise to a pecuniary lia bility of the Iss ue r or
a cha rg e against the Issuer's general credit or taxing [X)WE!ts , nor
shall the Bonds ever !:ie deaned to be an obliga tion or agr eenent of
any officer, director , agent or employee of the I ssuer in such
person 's ind i vidual capac ity , and none of suc h persons shall be
subject t o a ny t=,ersonal liabilit y by reason of issua nce of the
Bonds.
Section 4. '!he issua nce of the Bonds s hall be subject to:
(a) the e xecution by the <>,,ne r and the lss•Je r of c ontractual
arrangane nts provid h g assurance satisfactory to the Issuer that
the dwelling un its of the Proj ect will be occupio..<l a~ all times by
persons of low and ,n iddle inc ane as dete rmined by the governing
body of the Issue r, and that at least twe nty percent (20%) of the
uni ts in t he Pr oject will be occupied by persons of low or moderate
inccme with in the mea ning of Code Sect ion lO3(b) (12) (C) at a ll
times dur i ng the qua li fied pro ject period set forth in Code Section
103 (b) (12 ) (B ); (b) the r ecei pt of a n unql1 a lified approving opinion
of Ku tak Rock & <:anpbell , as Bo nd Cou n:;el; (c) the unqu al i fied
obligation of t he <>,,ne r to pa y a ll exp,nses and f ees of the Issuer
in c onnection herewith; and (d) the iGsua nce of the Bond s withi n
twe l ve (12) ,ro nths of t he date hereof.
Secti on 5 . '!he governi ng body o f the I ssue r hereby finds ,
determTiies,"recites and decl a r es that l.le issuance of the Bond s t o
provide f i na nc ing for the Pr oject wi 11 pranote the public purposes
set fo rth in the Act , i.1cluding , witho ut l imitat ion, assisting
pers·,ns of low a nd middl.; incane to obt~in dEa-cent , s afe and
s an ita ry hou sing at ren tal t hey can a:tord .
Section 6 . !he governing body of the I ssuer her e by finds ,
de t e rmTries,-rec i t ~s and declare s the Issuer's intent that this
111,solution const ·.t ute an off ici al ind ica tion of the present
inte ntio n of th,. Issuer to issue t he Bonds as here in prov ided ; tha t
the adoption 0r thi s Resolu t ion is and constitutes the taking of
affirmative off i cial ac tion of the I ssuer ac ting by and through its
govern ing bod y toward the i s suance of the Bonds withi n the meani ng
of Secti on l.1O 3-B(a) (5 ) (iii), Title 26 , Code of Federal
J:egulati ons , as aone nded , and app licable rul ings of t he Internal
Revenu e Ser •,i ce thereunde r; ard that the ado ption of t his
Resol ution is intended to induce the <>,,ne r to und e rtake and l ocatt!
the Project within the boundar i e s of the Iss ue r fo r the bene fit o f
the residents of the I s s uer ; a ll t o the e nd that the Bonds may
qu al ify for the e xanption prov isions of Code Sect ion 1O3(io) (4) (a )
arxl that the interest on the Bonds will therefore be excludable
fran the gross incanes of the holders thereof under the provisions
of COde Section 103 (a) (1).
Section 7. All ac tions not i11consi s tent with the provisions
of the Resolution heretofore taken by the governing body of the
Issuer or officers of the Issuer in furtherance of the undertakings
herein described are hereby ratified, approved and confinned.
Section 8. All prior acts , orders or resolutions, or parts
thereoTofttie'Issuer in conflict with this Resolution are hereby
repealed, except that this repealer shall no t be construed to
revise an act, order or reso lution, or part thereof, heretofore
repealed .
Section 9. If any section , paragraph , clause or provision of
this Resolution shall be adjudged to be invalid or unenforceable,
the i nvalidity or unenforceability o f such section , paragra ph,
clause or provision shall not affect any of the ranaining sections,
paragraphs , clauses or provisions of this Resolution , it being the
intention that the various parts hereof are severable .
ADOPTED AND APPROVED the 1st day of July , 1985.
I, Gary R. Hig bee , ex officio City Cler~-T r easurer of the
City of Englewood, Colorado, he reby cer tify that the above an:l
frreg oing is a true , accurate, and canplete copy of Resolution No.s1J.c..., Serie s of 198 5.
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