HomeMy WebLinkAbout1979-31 Authorizing the Issuance and Sale by the Town of Vail of its $12,885,000 Single Family Mortgage Revenue Bonds, Series 1979w `1 L • E
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ORDINANCE NO. ~~
SERIES 1979
AN ORDINANCE AUTHORIZING TI3E ISSUANCE AND SALE BY THE TOWN
OF VAIL, COLOF.ADO, OF IT5 $12,885,000 SINGLE-FAMILY MORT-
GAGE REVENUE BONDS, SERIES 1979 (SECURED BY PLEDGE OF tdORT-
GAGE NOTES), TO FINANCE RESIDENTIAL FACILITIES FOR LOV7- AND
MIDDLE-INCOME FAMILIES OR PERSONS; RATIFYING CERTAIN ACTION
HERETOFORE TAKEN; AUTHORIZING THE EXECUTION AND DELIVERY BY
THE TOPIN OF API ORIGINATION AND SERVICE AGREEMENT, TRUST
INDENTURE, AtlENDATORY BOND PURCHASE AGREEt•SENT, CLOSING DOC-
UI~SENTS, AND SUCH BONDS IN CONNEC~'ION THERLV?ITH; MAKING
DETERMINATIONS AS TO "LOir~- AND MIDDLE-INCOME FAMILIES AND
PERSONS," AS TO THE SUFFICIENCY OF REVENUES AND AS TO OTHER
MATTERS RELATED TO THE RESIDEi~1TIAL FACILITIES; REPEALING
ACTION HERETOFORE TAKEN IN CONFLICT HEREWITH; AMID DECLARING
AN EMERGENCY.
it?HEREAS, the Tvwn of Vail, Colorado °(the "Town"), is a duly
created political subdivision of the State of Colorado (the "State")
organized and existing as a home rule municipality under the provi-
sions of the Constitution of the State and Charter of the Town; and
WHEREAS, the County and Municipality Development RevenuE
Bond Act, Article 3 of Title 29, Colorado Revised Statutes 1973, as
amended (the "Act"), authorizes the Town to finance any land, build-
ings or other improvement and all real or personal properties,
whether or not in existence, which shall be suitable or used for or
in connection with any residential facilities for low- and middle-
income families or persons intended for use as the sole place of res-
idence by the ocaners (the "Project"); and
~4IIEREAS, the Town is authorized by the Act to enter into
financing agreements with others for the purpose of providing
revenues tc pay the bonds authorized to be issued; and
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WFIEREAS, the Town is further authorized by the Act to issue
revenue bonds for the purpose of defraying the cost of financing the
Project, including the payment of principal and interest on the pro-
posed revenue bonds for not exceeding three years, the funding of any
reserve funds which the governing body of the Town (the "Town
Council") may deem advisable to establish in connection with the
retirement of the proposed revenue bonds and all incidental expenses
incurred in issuing such bonds, and to secure payment of such bonds
as provided in the Act; and
WHEREAS, the Town Council has determined and does hereby
redetermine that the Town is experiencing a serious shortage of hous-
ing for low- and middle-income families and persons; and
WHEREAS, the Toc~rn does hereby find and determined that the
making of Mortgage Loans under the terms of the 0 & S Agreement (as
herein defined) will further the purposes of the Act and will benefit
low- and middle-income persons and faimili-es; and
WHEREAS, tyre Town Council has determined that the public
health, welfare, safety, convenience, and prosperity of the Town and
its residents require the issuance by the Town of its Single-Family
Mortgage Revenue Bonds, Series 1979 (Secured by Pledge of Mortgage
Notes-) ir. the aggregate principal amount of $12,885,000 ("the Bonds")
°t~ :finance th-e -Project by making mortgage loans (the "Mortgage
Loans") therefor; and
WHEREAS, by a resolution duly adopted on July 11, 1978, and
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-an agreement duly executed pursuant thereto, and by a r~?l~:t~a-r~
adopted on Ap'r it 17 ;' `179 , the - toFm took official action toward the
issuance of the Bonds; and
--- -' -~'~ WHEREAS, pursuant to~~Ordinance No. 16, Series 1979, duly
°aopted(on May 1, I973;~ the Te~ti~ri entered into a bond purchase agree-
ment, dated May 1; 1979 (the "Bond Purchase Agreement") with
E. F. Hutto~z & Company, Inc. (tlie "Underwriter") for the purchase of
the Bonds; and
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WHEREAS, Ordinance No. 16, Series 1979, was duly published
on May 4, 1979, which publication gave public notice of the issuance
of the Bonds; and
WHEREAS, concurrently with the issuance of the Bonds, First
Denver Mortgage Company, a Colorado corporation, with its principal
office in Denver, Colorado ("FDMC"), will enter into an origination
and service agreement with the Town (the "O & S Agreement") providing
for the orig7nation and servicing of the Mortgage Loans by FDMC on
behalf of the Tocan; and
WHEREAS, there have been presented to the Town Council
(1) the proposed form of an agreement amending and supplementing the
Bond Purchase Agreement, (2) the proposed form of the 0 & S
Agreement, and (3) the proposed form of Trust Indenture (the
"Indenture") between the Town and The First National Bank of Denver
as Trustee (tt~e "Trustee").
NOW, THEREFORE, BE IT ORDAINED BY TIIE TOWN COUNCIL OF THE
TOWN OF VAIL, COLORADO:
Section 1. All action (not inconsistent e~ith the provi-
sions of this ordinance) heretofore taken by the To~~m Council and the
officers of the Town directed toward financing the Project and the
issuance and sale of the Bonds therefor be, and the same is hereby
ratified, approved, and confirmed.
Section 2. The Town shall finance the Project by issuing
the_ Bonds to make the rortgage Loans, to fund certain reserve funds
in`connection with the retirement of the Bonds and to pay incidental
issuance expenses. The proceeds of the Bonds shall be deposited with
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the Trustee for.dibursement. in accordance with the provisions and
conditions of the Indenture and the O & S Agreement.
Section 3. An issue of revenue bonds is hereby authorized
and created to finance the Project as aforesaid, designated as "Town
of Vail, Colorado, Single-Family Mortgage Revenue Bonds, Series 1979
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(Secured by Pledge of Mortgage Notes)," in the aggregate principal
amount of $12,885,000, issuable as coupon bonds registrable as to
principal only in the denomination of $5,000, and as fully registered
bonds in the denominations of $5,000 and any integral multiple there-
of, dated as of August 1, 1979 (except as provided in the Indenture
with respect to fully registered Bonds), and which shall bear inter-
est from such date payable on August 1, 1980, and semiannually there-
after on August 1 and February 1 of each year, at the rates per annum
set forth below, and maturing on August 1 in the designated years and
in the principal amounts as follows:,
Interest Rates
i~mo:~nts Maturing (Per Annum) Year Maturing
115,000 6.0 1982
125,000 6.1 1983
135,000 6.2 1984
145,000 6.3 1985
155,000 6.4 1986
165,000 6.5 1987
175,000 6.55 1988
190,000 6.6 . 1989
205,000 6.7 1990
220,000 6.8 1991
235,000 _ 6.9 1992
250,000 7.0 1993
• 270,000. __. 7.1 1994
295,000 _ 7.2 _
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~ 1995
-- 315,000 7.3
- 1996
340,000 7.35 1997
370,000 7.4 1998
400,000 7.4 1999
i;:._ :8,780,000 -. .. .._7.G2-5 2010
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The Bonds shall be payable, shall be subject to redemption
prior to maturity, and shall be in substantially the forms as pro-
vided in the Indenture. Pursuant to the Bond Purchase Agreement, as
amended, the Bonds shall be sold to the Underwriter at a private sale
at a purchase price equal to 97.3 of the principal amount of the
Bonds plus accrued interest from August 1, 1979, to the date of their
payment and delivery. The net effective interest rate on the Bonds
is 7.526~,.which rate is hereby determined to be the maximum net
effective interest rate on the Bonds.
Section 4. Pursuant to Section 29-3-103(10)(d) of the Act,
the Town Council of the Town hereby finds and determines that "low-
and middle-income persons and families" within the Town are persons
and families with a Maximum Household Income of not to exceed
$32,000, and that such persons and families lack the financial abil-
ity to pay prices or rentals sufficient to induce private enterprise
in the Town to build a sufficient supply of adequate, safe, and sani-
tary dwellings without the special assistance afforded by the Act.
The Maximum Purchase Price of a Single-Family Residence shall be
$99,000, and in no event may such purchase price exceed $90 per
square foot of occupied space; and after the Mortgage Loan Account,
as defined in the Indenture, shall have been fully loaned out at
least one-half of the total number of the Mortgage Loans originated
will have been made to persons and families with I4aximum Household
Incomes not to exceed $25,000. Both the Maximum Household Income and
the Maximum Purchase Price shall be adjusted annually iiz accordance
with the increase or decrease in the Consumer Price Index, using the
adjustment defined in the O & S Agreement.
Section 5. The following determinations and findings are
hereby made in accordance with Sections ?.9-3-113, 29-3-114, and
29-3-120 of the Act:
(a) The amount necessary in each year to pay the
principal. of and the interest on the Bonds is as follows,
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including those Bonds called for mandatory sin}:ing fund
redemption in the years 2000 through 2009, inclusive:
Annual Period
to and Interest Principal to be Annual Debt
Including for such Retired in such Service
August 1 Period Period Requirement
1980 940,688 0 940,b88
1981 953,93$ 0 953,93$
1982 953,93$' 115,000 1,068,938
1983 947,03$ 125,000 1,072,03Q
1984 939,412 135,000 1,074,412
1985 931,042 145,000 1,076,042
1986 921,90$ 155,000 1,076,90
1987 911,98$ 165,000 1,076,98$
1988 901,262 175,000 1,076,262
1989 889,800 190,000 1,079,800
1990
9 877,260
863
5 205,000
220
000 1,082,260
52
083
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19 2
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8
6
1992 848,56 235,000 3,5
1,0
1993 832,350 250,000 1,082,350
1994 814,850 270,000 1,084,850
1995 795,680 295,000 1,090,680
1996 774,440 315,000
000
40 1,089,440
44'
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1997 751,4 ,
3 ,
,
w~ 1998 4
726,
45 370,000 1,096,45$
~'~ 1999 ~~` _
699,07 - 400,000 1,099,07
~- 2000 669,47 430,000 1,099,47
2001 ~ 636,68$ 465,000 1,101,68Q
2002 601,23 505,000 1,106,23
_~. 2003 562,72 550,000 l,1I2,72~
_ 2004 520,78$ 595,000 1,115,78$
`}~~'~ 2005 475,41$ 645,000 1,120,41$
2006 426,23 700,000 1,126,23$
2007 372,862 760,000 1,132,862
"~~'' 2008 314,912- ~ -820,000 1,134,912
2009. = 252,38 890,000 1,142,38'8
2010 184,52 _
2,420,000 2,604,52
'~ (b) The Town Council has deemed it advisable to
establish for contingent use in connection with the retire-
ment of the Bonds, among other purposes, the trust funds
created and established by the Indenture designated as the
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Mortgage Reserve Fund, Capital Reserve Fund, and
Accumulation Reserve Account. Moneys on deposit in such
funds and account shall be used to provide a reserve for
the payment of the principal of, premium if any, and inter-
. est on the Bonds. Amounts shall be paid into such reserve
funds each year as provided irr, and in accordance with, the
Indenture.
(c) Tyre terms of the 0 & S Agreement under which the
Mortgage Loans are to be made provide that FDIviC shall cause
the properties which are the subject of the Mortgage Loans
~-o be maintained in good repair and carry all proper insur-
ance with respect thereto in the event that the owners or
occupants of such properties do not do so.
(d) Except as they are to be initially funded with
the proceeds of the Bonds, the revenues payable under the
0 & S Agreement are sufficient to pay, in addition f.o all
other requirements of tide 0 & S Agreement and this ozdi-
nance, all sums referred to in paragraphs (a), (b), and (c)
of this Section.
(e) The 0 ~ S Agreement requires the o4rners or occu-
pants of the properties whicYr are the subject of the
Mortgage Loans i.o pay the taxes which all taxing entities
are entitled to receive from such persons with respect to
such properties. .
(f) The 0 & S Agreement provides that b~ortgage Loans
shall only be made to purchasers of "Single-Family
Residences" which are part of an "Approved Project," desig-
nated by the Tosvn of Vail pursuant to standards established
by the Town in Resolution No. (~~, Series 1979, dated
July 31, 1979, as amended from time to time.
Section 6, The forms, term, and provisions of the 0 & S
Agreement, the Indenture, and the agreement amending and
supplementing the t3ond Purchase Agreement be and they hereby are
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approved and the Mayor is hereby authorized and directed to execute
and deliver, and the Town Clerk to affix the Town seal to and to
attest, such documents in substantially the forms heretofore filed
with the Town Clerk, with such omissions, insertions, endorsements,
and variations as to any recitals of fact or other provisions as may
be required by the circumstances, be required or permitted by this
ordinance or the Act, or be consistent with this ordinance and the
Act, and as may be necessary or appropriate to conform to the rules
and requirements of any governmental authority or any usage or
requirement of law with respect thereto.
Section 7. The forms, terms, and provisions of the Bonds,
as set forth in the Indenture, be and they hereby are approved; and
the I~iayor is hereby authorized and directed to execute the Bonds
(including any temporary bond s issued pursuant hereto) and the cou-
pons appertaining to coupon Bo~~ds and the Town Clerk is hereby autho-
rized and directed to attest the Bonds and each is authorized to
deliver tiie Bonds. The seal of the Town is hereby authorized and
directed to be affixed to the Bonds. The signatures of the Town
Clerk on the Bonds shall be manual, but the signature of the Mayor
and the seal of the To~~~ti upon the coupons and the Bonds may be by
facsimile.
Section 8. The I~layor is hereby authorized and directed to
execute and deliver to the Trustee the request and authorization of
the Town for the authentication and delivery of the Bonds by the
Trustee, in accordance with Section 2.07 of the Indenture.
Section 9. The First National Bank of Denver is hereby
appointed) ~as Trustee, paying agent, and bond registrar under the
Indenture.
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. Section 10. The officers of the To~~rn shall to}:e all action
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in conformity c;ith the Act necessary or reasonably required by the
Underwriter to effectuate the provisions of the Bond Purchase
Agreement, as amended, and shall take all action necessary or
desirable in conformity with the Act to carry out, give effect to,
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and consummate the transactions contemplated by this ordinance, the
0 & S Agreement, the Indenture, and the Bond Purchase Agreement, as
amended, including, without limitation, the execution and delivery of
any necessary closing documents (including a certification with
respect to the Official Statement) in connection with the sale and
delivery of the Bonds.
Section 11. The cost of financing the Project shall be
paid out of the proceeds of the Bonds, and none of the Bonds shall be
the general obligations of the Toran, nor shall any of the Bonds,
including interest thereon, constitute the debt or indebtedness of
the Town within the meaning of any provision or limitation of the
Constitution or statutes of_ the State of Colorado o~ of_ the charter
of the Town. Nothing contained in this ordinance or in the Bonds,
0 & S Agreement, Indenture, Band Purchase Agreement, as amended, or
any other instrument shall constitute or give rise to a pecuniary
liability or a charge upon the general credit or taxing po;ver.s of the
Town. TYie breach of any agreement contained in this ordinance or any
of the above-mentioned instrtunents shall not impose any pecuniary
liability upon the Town or any charge upon its general credit or
against its taxing powers, the Town having no power to pay out of its
general fund or otherwise contribute any part of the costs of financ-
ing the Project and no power to operate the proper. ties w'nich cornprise
the Project as a business or in any manner. The Town shall not con-
demn any land or other property for the properties comprising the
Project or contribute any land or other property to the properties
comprising the Project.
Section 12. After any of the Bonds are issued, this ordi-
nance shall be and remain irrepealable until the Bonds and the inter-
est thereon shall have been fully paid, canceled, and discharged.
Section 13. If any section, paragraph, clau:~n, or provi-
sion of this ordinance shall for any reason be held to be invalid or
unenforceable, the invalidity or unenforceability of such section,
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paragraph, clause, or provision shall not affect any of the remaining
provisions of this ordinance.
Section l~. All bylaws, orders, resolutions, and ordi-
nances, or parts thereof, inconsistent herewith and with the docu-
ments hereby approved, are hereby repealed to the extent only of such
inconsistency. This repealer shall not be construed as reviving any
bylatia, order, resolution, or ordinance, or part thereof.
Section 15. By reason of the introduction on April 25,
1979, in the United States House of Representatives of H. R. 3712,
the extreme market uncertainties created thereby, the consequent risk
that the Bonds cannat be ]_ater issued and sold to achieve the desired
results, and the urgent shor--cage of and need for residential housing
facilities for low- and middle-income families and persons in the
Town, the Town Council finds that this ordinance is necessary for the
immediate preservation of public prop4rty and the public health, vrel-
fare, peace and safety. An emergency is declared to exist, and this
ordinance shall be in full force and effect upon its final passage at
this meeting. This ordinance shall be published once within ten days
after passage in a ne~~rspaper of genera]_ circulation in the Town.
INTRODUCED, READ BY TITT_~E, FINALLY ADOPTED, AND ORDERED
PUBLISHED THIS 31ST DAY OF JULY 1979.
/ MAYOR ~ ~
`[SEAL] ~ _ ~ - - <
ATTEST:
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TOWN CLEkK
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