HomeMy WebLinkAbout2013-02 Approving the Redemption of all Outstanding Timber Ridge Affordable HousingRESOLUTION NO. 2
SERIES OF 2013
A RESOLUTION APPROVING THE REDEMPTION OF ALL
OUTSTANDING TIMBER RIDGE AFFORDABLE HOUSING
CORPORATION ADJUSTABLE RATE HOUSING FACILITY REVENUE
BONDS AND AUTHORIZING THE TOWN OF VAIL'S FUNDING OF THE
TIMBER RIDGE AFFORDABLE HOUSING DEVELOPMENT VIA
CAPITAL CONTRIBUTION AND A LOAN TO THE TIMBER RIDGE
AFFORDABLE HOUSING CORPORATION
WHEREAS, the Timber Ridge Affordable Housing Corporation ("TRAHC") is a
Colorado non-profit corporation controlled by the Town of Vail (the "Town") and is the
entity that currently holds the debt obligations for the Timber Ridge Apartments;
WHEREAS, on or about July 17, 2003, and in connection with the purchase of
the Timber Ridge Apartments, TRAHC issued $19,025,000 in adjustable rate housing
facilities revenue bonds, Series 2003A;
WHEREAS, the current outstanding balance of the adjustable rate housing
facility revenue bonds is $17,265,000;
WHEREAS, the Town and TRAHC desire to restructure the debt obligations for
the Timber Ridge Apartments by the redemption of all outstanding adjustable rate
housing facility revenue bonds;
WHEREAS, pursuant to the debt restructuring, the Town will fund the
outstanding principal balance due under the outstanding adjustable rate housing facility
bonds by: (1) payment of the TRAHC reserve funds currently on deposit with US Bank
pursuant to the bondholders letter of credit; (2) payment of a capital contribution to
TRAHC which shall represent an investment in the deed restrictions for the Timber
Ridge Apartments; and (3) issuance of a loan to TRAHC of the remainder of the
outstanding balance.
NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE
TOWN OF VAIL, COLORADO, THAT:
Section 1. Findinqs. The Town Council finds and determines as follows:
a. On or about July 17, 2003, and in connection with the purchase of the
Timber Ridge Apartments, TRAHC issued $19,025,000 in Adjustable Rate Housing
Facilities Revenue Bonds, Series 2003A (the "Revenue Bonds").
b. The current outstanding balance of the Revenue Bonds is $17,265,000.
c. In consideration for the issuance of the Revenue Bonds, TRAHC was
required to set aside a debt service reserve fund of $595,197 and an additional letter of
credit reserve of $615,296. The reserve funds are currently held in escrow at US Bank.
Resolution No. 2, Series of 2013
The Town and TRAHC desire to restructure the debt obligations for the Timber Ridge
Apartments by calling for the redemption of all outstanding Revenue Bonds and the
provision of substitute funding by the Town as follows:
d. Upon completion of the revenue bond redemption, the released Reserve
Funds shall be applied to the outstanding debt.
1. The Town shall make a capital contribution to TRAHC in the
amount of $8,000,000, which shall represent an investment in deed restrictions
imposed on the Timber Ridge Apartments.
2. The Town shall grant TRAHC a loan (the "TRAHC Loan") in the
principal amount of $8,000,000.
e. The terms of the TRAHC Loan shall be as follows:
1. The term shall commence on February 1, 2013 and all principal and
interest shall be due and payable in full no later than January 31, 2033.
2. The principal loan amount is $8,000,000, and shall be evidenced by
a Promissory Note and Deed of Trust.
3. Simple interest shall accrue annually on the then outstanding
principal loan balance at a rate of 1.5%.
4. Beginning August 1, 2013, semi-annual interest payments shall be
due and payable to the Town on August 1St and February 15t of each year of the
term in the amounts described in the schedule attached to the Promissory Note
as Exhibit A.
5. Beginning February 1, 2014, annual principal payments shall be
due and payable to the Town on February 1St of each year of the term. The
amount of the annual principal payment shall be at the discretion of TRAHC,
provided that such payment must comply with the loan's minimum debt service
limit.
6. The minimum annual debt service of principal and interest that shall
be due and payable to the Town shall be $465,966.
7. TRAHC may prepay the principal amount outstanding, in whole or
in part, at any time without penalty.
Section 2. Approval. The Town Council has reviewed and considered the
above findings and hereby approves the debt restructuring of the Revenue Bonds, as
described herein.
Resolution No. 2, Series of 2013
.
INTRODUCED, PASSED AND ADOPTED this 8th da f January, 2013.
Andrew P. Daly, Ma
ATTES :
L r ei onaldson, Town Clerk
Resolution No. 2, Series of 2013
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