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HomeMy WebLinkAbout2001-15 Declaring the Intent of th Town of Vail to Issue Multifamily Housing Revenue BondsRESOLUTION NO. IS SERIES OF 2001 A RESOLUTION DECLARING THE INTENT OF THE TOWN OF VAII., COLORADO TO ISSUE MULTIFAMILY HOUSING REVENUE BONDS TO PROVIDE FINANCING OF A MULTIFAMILY RESIDENTIAL FACILITY FOR LOW AND MIDDLE INCOME PERSONS AND FAMILIES; PRESCRusiNG CERTAIN TERMS AND CONDITIONS OF SUCH BONDS; AND CONTAINING OTHER PROVISIONS RELATING TO r alp PROPOSED ISSUANCE OF SUCH BONDS. WHEREAS, the Town of Vaii, Colorado (the "Town"), is a legally and regularly created, established, organized and existing home rule town under the provisions of Article XX of the Constitution of the State of Colorado (the "State"} and the Hoare Rule Charter of the Town (the "Charter"); and WHEREAS, the Town is authorized by the County and Municipality Development Revenue Bond Act, constituting Article 3, Title 29, Colorado Revised Statutes, as amended {the "Act"), to finance one or more projects (which includes any land, building or other improvement and real and personal properties) to the end that residential facilities for low and middle income families or persons intended for use as the sole place of residence by the intended owners ar occupants may be provided which promote the public health, welfare, safety, convenience and prosperity; and WHEREAS, the Town is further authorized by the Act to issue revenue bonds for the purpose of defraying the cost of financing any project, including the payment of pxincipal and interest on such revenue bands for not exceeding three years, funding any reserve funds which the Town deems advisable, maintenance of the project and all incidental expenses incurred in issuing such revenue bonds, and to secure payment of such revenue bonds as provided in the Act; and WHERAS, representatives of Coughlin & Company, Inc., as managers or partners of a to be formed limited liability company or other partnership entity and its successors or assigns (the Developer"), have met with officials of the Town and have advised the Town of the Developer's interest in the acquisition, construction, improvement and equipping of a multifamily rental housing project, consisting of approximately ld2 units containing complete facilities for living, and have proposed that the Town issue its multifamily housing revenue bonds, in one or more series, to finance the Middle Creek project (the "Project"), which Project is to be located on land leased from the Town of Vail, within the boundaries of the Town, to be owned and operated by the Developer; and WHEREAS, the Project constitutes a project under the Act, and the Town wishes to declare its intention to authorize an issue of its multifamily housing revenue bonds, in one or more series {the Bonds"}, for the purpose of paying the cost of financing the Project, upon such terms and conditions as are contained herein; and WHEREAS, the Town has considered the Developer's Project proposal and, upon the expectation that the Project will provide more adequate residential rental housing for low and middle income persons and families within the Town, the Town wishes to declare its present intention to authorize the Bonds for the aforesaid purposes, all upon such terms and conditions as may be agreed upon by the Town and the Developer. NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF VAIL, COLORADO: Section 1. In order to benefit the residents of the Town, the Town hereby declares its intent to authorize the issuance of tax-exempt Bonds in an aggregate principal amount of $15,000,000, which amount is estimated to be sufficient: (a) to finance a portion of the Project; and (b) to pay certain costs incurred in connection with the issuance of the Bonds. Section 2. The Town Council of the Town (the "Council") hereby finds, determines, recites and declares that the Bonds shall not constitute the debt, multiple fiscal year obligation or indebtedness of the Town, the State or any political subdivision of the State within the meaning of any provision or limitation ofthe State Constitution or statutes and shall not constitute nor give rise to a pecuniary liability of the Town or a charge against the Town's general credit or taxing powers, nor shall the Bonds ever be deemed to be an obligation or agreement of any officer, director, agent or employee of the Town in such person's individual capacity, and none of such persons shall be subject to any personal liability by reason of the issuance of the Bonds. Section 3. The Bonds shall be special, limited obligations of the Town payable solely from the payments to be made by the Developer (as described below) to the Town under a Loan Agreement to be entered into by and between the Town and the Developer. Section 4. T'he Council hereby Ends, determines, recites and declares that the issuance of the Bonds to finance the Project will promote the public purposes set forth in the Act, including without limitation, assisting persons or families of low and middle income in obtaining decent, safe and sanitary housing. Section 5. The Council hereby finds, determines, recites and declares the Town's intent that this resolution constitute an official indication of the present intention of the Town to issue the Bonds as herein provided, subject to: (a) the Developer either obtaining a binding final commitment of credit enhancement for the Bonds from a credit enhancement entity which is acceptable to the Town or obtaining a commitment far the purchase of the Bonds on a private placement basis by qualifed institutional buyers or accredited investors which are acceptable to the Town; (b) the delivery of an approving opinion of bond counsel to the Town; (c) the delivery of a market study, a~,~,~«isal, survey, title insurance, environmental audit and plans and specifications, all as may be xequired and are acceptable to the provider of credit enhancement and the Town, as applicable; (d) successful negotiation and approval of a Loan Agreement and related financing documents in forms satisfactory to Council; and (e} the adoption of a final bond ordinance by the Council. Section 6. The appropriate officers of the Town are hereby authorized to take such actions as contemplated by the Internal Revenue Code of 1986, as amended and by the Colorado Private Activity Band Ceiling Allocation Act, constituting Article 32, Title 24, fart 1?, Colorado Revised Statutes, as amended (the "Allocation Act") that may be necessary to assist the Developer is applying for volume cap allocation from the state wide pool pursuant to the Allocation Act. Section 7. All actions not consistent with the provisions of this resolution heretofore taken by the Council or any officer or employee of the Town in furtherance of the issuance of the Bonds are hereby ratified, approved and confirmed. 2- Section S. If any section, paragraph, clause or provision of this resolution shall be adjudged to be invalid or unenforceable, the invalidity or unenforceability of such section, paragraph, clause or provision shall not affect any of the remaining section, paragraphs, clauses or provisions of this resolution. INTRODUCED, READ, APPROVED AND ADOr i ~,D this 1 Sth day of December, 2001. V Mayor SEAL) AttesC: K Lore i Donaldson, Tov-m Clerk