HomeMy WebLinkAbout1985 Resolution No. 034I
I
RESOLUTJON NO.
SERIES or 1 985
A RE SOL UTJON DECLIIRJN G THE JN TEIJT or THE CJTY or EW;LEW OO D,
COLORT,D O TO !SSU E BONDS TO PROV JDE FlNI\N CJN G FOR A HJ LTJFI\HILY
PROJE CT TO EE Ut)D EP Tl\l :EN B\' S . BUD BR I\D\' A!I D/011 I\SS J GI/S
1
115
DtS CR J BED HERE JN; PRESCRIB!NG CER TAIN TERMS I\ND CONDITION S or
SUCH BO •IDS; AND CONTAINJNG OTHER PR OVJ SJ ON S REL ATJN G TO THE
SUBJECT.
WHEREIIS, pursuant to the County and Munici pa lity
Developffient Revenue Bonds Ac t , Colorado Rev ised Statutes, T i tle
29, l\rticle 3, Sections 29-3-101 et seq. (the "Act"), the City of
Englewood , Colorado, (the ''iss uer '') is auth o ri zed to issue
r e v en u e bonds for the purpose of providi n g finan ci ng for
re s 1d e nt1al projects located ~ith 1n the b oundar1es of the 1 s~ue r
and int ende d to be occupied by p e rsons of low and middle income,
as d e t e r mined by the 9 ove rn in~ body o! the I ssuer; ~n d
i-HtR EAS, Sec tion 1 03 1bll(l(Al of th e Jnt e rn a l Reven u e
Code,-, a !: am ended ( the "Co d e"), provid es th a t the in terest on
o~11g2tions i ss ued b y or o n be ~a lf of a state or a po litical
subd iv is i on thereof s ubsta ntially all o f the proceed s of which
a re to b e u sed to provid e projects f o r re si de ntial r en t a l
proper ty sha ll be exempt from fe de ral incomE tax a ti on if, among
other requirements , a t lea s t twtnty perc~nt (20~} of the units
thereof ~i ll be o~~up1ed by individuals o f low or moderate
income, within the meaning of the Code Section 103(bl(l2)1C) at
all times during th e qualified project period set forth in Code
S e c tion l03 1bl(l2l(Bl; and
WHEREIIS, it is proposed th a t the Issuer issue its
r evenue bonds in one or more series f or t he purpo se of providing
financino for a multifamily rental re si d entia l project cons1st1ng
of a pproximately 400 apartment units and to renovate certain
existing structures for r etai l and commerci~l purposes t~ b e
l oca t e d o n approximately 6 .S acres of re a l estate loca ted at West
Girard ~venu e and South El a ti Street, wit hin the boundarie s o f
t he J s ,uer (the "ProJ ec t "l , which will b e owned by S. Bud Brady
and/or ~ss ians {the •·o~ner '') but only in th e event that all
ma tter s ,e l a ting t o th ~ plans and specifications of the ProJects,
Jts zon1n s end ell o ther real estate c oncern~ be s ct 1sf acto ry in
a ll re ~pec t s t o C it y; and
-2-
WHE REAS, th e Owner ha s indicated its willina~ ss to
enter ir.to contractual arrangements with the l s~u~r Providin9
assur a nce satisfactory lo the l ssuer that at least twenty percent
(20 , )of the units of th e Project will be occ u p i e d by individuals
of low or middle inc ~me within the meani ng of Code Section
I03(b)(l 2 )(Bl ; and
WHEREAS, the Iss ue r wis hes to declare it s intention to
authorize an issue of its rev enue bonds 1n one or more se ries for
the purpose of paying the co s t of financ ing th e Project, whe n so
reque sted by the Own e r, upon such terms and conditions as are
contained herein, and as may then b e agreed upon by the Jssuer,
the Owner, and the purchaser for the bond s;
NOW , THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
TH E CITY OF EN GLEWO OD, COLORADO, THAT:
S e ct i o n l . In order to ben e fit th e res idents of the
I ssuer and to indu ce th e Owner to locate the Pro j ect within the
bound a ries of the Issuer, the Issuer h e r eby decla r~s it s intent
t o issue its multifami.y housing revenue bonds 1n one or more
ser 1e~ (the ''Bond s'') in an approx i mate aggreg a te principa: amount
of $So,ooo,ooo, which a mount 1s estimated to be sufficient : (a)
to fund a loan to provide f inanci ng for th e a c qui sition and
c ons truction of th e Projec t; a nd (b) to fun d certa1n reser v es;
and (cl to pay certain costs incurred in connection with the
Issuance of the Bonds. The Bon ds will be issued by the City only
subsequent to the approval in all respects of the plans and
specifications of t he Project by th e City and only in the event
that all matters relating to such plan s and specifications for
the Project, its zo ning and all other real estate concerns be
satisfactory in all respects to the City .
Sectjon 2. The Bon ds sha ll be special limited
obligations of the I ss uer payable solely from th e revenues
derived from or in connection with the loan to provide f ina ncing
for the Project.
Section 3 . Th e governing body of th e I ss uer her~by
finds, d e termines , recite s and declares that the Bonds s hall not I
consti tute th e debt or in debtedn ess of the l ssuer, the State of
Colorado o r any other political ~ubdivisi o n of the State, and
sha ll not con s t 1 ~u te n o r give r 1se to a p e cuni a ry liahility of
th e Issuer or a c h a roe a o a insl th e Issu e r's o encra l credit or
taxing pow ers, n ~r shall ·the Bo nd s ever b ~ d ~emed l o be an
o b lioation o r a tr eement o f any off icer, director, a gen t or
e mpl~y ee of th e · l~sutr i n s u c t1 pers o n's indiv1d u 3 } capac1ty, and
none of such per s ons s t,a ll be su ~ject t o Bny per s o n~) lia b il i ty
by r e as on o f i s s uance of tt1t BDnd s .
I Se ct ion i , The i ss u a nc e of the Bonds s hall be su b ject
t o: (a } the ex e cution by the Owr1er and th e I s suer of
c o ntractual arran9e men t s providing assur an ce satisf ac tory to the
Issuer that at le ast twenty percent (20~l of the r esi dential
un1 ts in the Projec t will be occupi ed by persons of low or
mo d e rate income ~ithin the meaning of Code S e ction 10 3 (b)(l21(C)
a t all times dur ing the gualified project p e riod set f orth in
Code Section l0 3(bl(l 2l(Bl; (bl th e receipt of an unqu a lified
a pproving opinion of Mudge, Rose, Guthrie, Alexander t Fer d on, as
Bond Counsel; (cl the un guali f ied obligation of the Owner to pay
all expenses and f ee s of the Issuer in con ne ction herewith; and
ldl the issuance of the Bonds within twelve (121 months of the
d a te h e r e of.
Section 5. Th e gover ning body of the l ssuer h e reby
find s, d e termines, recites and decl ares th a t the issuan ce of the
Bonds to provide financ i n g f o r th e Project will promote th e
public rurposes set forth in the Act, 1nclud1ng, with out
l imi tati ~n, a s sisting per s on s of l ow and mid d le income t o obtain
decent , sa f e and san1tary h o us1ng at rent a l they c an affo rd .
S ec tion 6 . The gove r ning bo dy of th e I s s u er hereby
fin d s , det e rmines , rec1te s and decla r es the I ss u er's 1ntent that
this Reso lut ion constitute a n official indi cati o n of the prese n t
i ntention of th e I ss uer to issue th e Bonds a s h e rein provided;
that the adoption of this Resolution ;s an d c on stitutes the
t akin9 of affirmot1ve official action of the I s s u er acting by a n d
th rough its governing body toward the issuance of the Bonds
within the meaning of Section 1 .103-B(al(Slliii l, Title 26 1 Code
of F ederal Regulations, as amended, and applicabl e r ul ings of the
Inte rn a l Revenue Service thereunder; and that the adoption of
thi s Reso lut ion is intended to induce the Owner to u nder take and
locate the Proje c t within the bounda r ies of the lssu er for the
benefit of th e residents of the Jssuer ; all to th e end that the
Bonds ma y gualify for the exemption provi s ions o f Cod e Sectio n
l0 3(bll4llal and that th e interest on t h e Bonds ~i ll th e refore be
excludable fr om the oro ss incoffi es of th e h o ld e r s thereof und e r
th e provis ions of Code Secti~n l03lal(l l .
Se c tio n 7, ~11 actions not in cons istent ~1th the
pr o v isions o f th e Re s ol u t1on heretofor e t aken by l hE g o ver ning
body o1 th £ I ssuer or o ff 1 c ~r s of th t I ss uer 1n furtherance of
th e u nderta 1 1n9s her ein d es cribed ar ~ h e r e by rati11 ed , approved
a~d c o nfi r me d .
:;_e_c;tjon 8 , 1111 prior •~ts, orders or resolutions , or
parts thereof of the Jssuer in conflict vith this Resolution are
hereby repealed, except that th i s repealer shall not be construed
to revise an act, order or resolut ,on, or part thereof,
heretofore repealed .
section 2~ lf any section, paragraph, clause or
provision of this Resolution shall be adjudged to be Invalid or
unenforceable, the invalidity or unenforceabillty of such
section, paragraph, clause or provision shall not affect eny of
the remaining section s , paragraphs, clauses or provis i ons o f this
Resolution, it being the intention that the various parts hereof
are severable.
1\DOPTED 1\ND APPROVED THE ~ day of (,,t;,,,,_w~ 1 198 5' ;"7
I, Gary R. Higbee, ex officio City clerk-Treasurer o f
the City of Englewood, Colorado, hereby certify that the abo ve
and foregoing is a true, accurate, and complete copy of
Resolution No , $, Seri es of 19BS.