HomeMy WebLinkAbout1975-03 Approving a Commercial Development and Sports Facility Project for Vail Associates IncRESOLUTION NO. 3
Series of 1975
A RESOLUTION APPROVING A COr.4MERCIAL
DEVELOPMENT AND SPORTS FACILITY PROJECT
FOR VAIL ASSOCIATES, INC., MAKING FINDINGS
AND AUTHORIZING BOND FINANCING IN CONNECTION
THEREWITH, AND AUTHORIZING REPRESENTATIVES
OF THE TOWN TO TAKE ACTION INCIDENTAL
THERETO
WHEREAS, Vail Associates, Inc. (the "Company") has
requested the Town of Vail., Colorado, for assistance with a
project (the "Project"} consisting of the acquisition, construc-
tion and financing of certain commercial and sports facilities
and related equipment to be located within the Town or within
eight {8) miles thereof, as more fu11y described in a letter
of the Company dated March 18, 1975, submitted to this meeting
a copy of which. shall be filed with the records of the Town};
and
WHEREAS, the Town desires to encourage the Company to
proceed with the Project in order to further the purposes of
the County and Municipality Development Revenue Bond Act (the
Act};
NOW, THEREFORE, BE IT RESOLVED, BY THE TOWN COUNCIL
OF THE TOWN OF VAIL, COLORADO, AS FOLLOWS:
Section 1. Title.
This resolution shall be known as the "Resolution
Concerning a Commercial and Sports Project for Vail Associates,
Inc.".
Section 2. Approval of the Project; Findings.
Based upon the representations made and information
supplied by the Company, the Town hereby approves the Project
and makes the following findings in connection therewith:
A. The Project constitutes a "project" for purposes
of the Act in that it consists of properties, other than inven-
tories, raw materials and other working capital, suitable or to
be used for or in connection with a commercial enterprise; and
ow Clerk
Res. 3, 1975 Page 2
B. The Project will promote the public purposes of
the Act and the safety, welfare, convenience and prosperity
of the inhabitants of Colorado by promoting industry and
developing trade through the inducement of the Company to main-
tain and expand its operations, mitigating a threat of unem-
ployment and securing and maintaining a balanced and stable
economy in Colorado.
Section 3. Authorization of Bond Financing.
The Company's letter proposal dated March 18, 1975,
is hereby approved. The Town will issue its Commercial Devel-
ment and Sports Facility Revenue Bonds or Notes for the finan-
cing of the Project up to a maximum aggregate principal amount
of $5,000,000.00, such Bonds or notes to be issued in compliance
with the Act, to be subject to such terms and conditions as the
Company and the Town Council, by ordinance, shall approve, and
to be payable solely from the revenues of the Town derived from
the payments to be made by the Company in respect of the finan-
cing of the Project.
Section ~. Authorization of Town Representatives
to Take Action in Connection Herewith.
The Mayor, Town Manager and Finance Director of the
Town are hereby authorized and directed
necessary to accomplish the purposes of
ding the acceptance and delivery of the
dated March 18, 1975, and the negotiati~
tion with the acquisition, construction
Project and the sale of Bonds or Notes.
Section 5. Effective Date.
to take all action
this resolution, inclu-
Company's letter proposal
n of agreements in connec-
and financing of the
This resolution shall take effect upon its adoption,
o Clerk
Res. 3, 1975 Page 3
INTRODUCED, READ, APPROVED AND ADOPTED, this 18th
day o~ March, 1975.
ATTEST:
r
T ,
Mayor
Town C1
Qoldman, Saoha & Co. ~ b_ .,road Stree# ~ Ne~rk, NewYor~C 10004
Te1:21P-B7$-8000
a~~ma»ae 5
March 18, 1975
Town of Vail
P.O. BOX 100
Vail, Colorado 81b57
Re: Vail Associates, Inc.
Gentlemen:
Vail Associates, Inc. has requested that Goldman, Sachs & Ca.
consider the feasibility of selling approximately $ 5 , 000 , 000.00
principal amount of sports facility and commercial development revenue
bonds to be issued by the Town of Vail.
Having studied the financial aspects of the Company and the pro-
posed expenditures in the Project as outlined in the Company's letter
sent to you on this subject, it is our opinion that it is feasible to
market tax-exempt revenue bonds to finance these expenditures. Goldman,
Sachs & Co. is willing to act as sales agent or as investment banker
for the proposed financing and, accordingly, upon receipt of suitable
documents and opinions will act to place the bonds with institutional
investors, or will purchase the bonds for resale at appropriate market
prices.
Very truly yours,
GOI~DMAN, SACHS & CO. -
cc; Messrs. Paul Johnson
3. M. Gardner
New York ,' Boston', Chicago ' Qallas ~ Los Angeies ~ Philadelphia ' St. Louis ;San Francisco ~ Qetrcit ; Memphis
tee,
March 18 , 197' 5
Town of Vail
P .0 . Bax 144
Vail, Colorado $1657
RE: Commercial Development Project
Gentlemen:
The purpose of this letter is to request your approval of
a commercial development project under the Colorado County and
Municipality Development Revenue Bond Act. The proposal contem-
plates that the Town of Vail and this Company will enter into a
Financing Agreement providing for {1) the construction of improve-
ments to and expansion of the Vail skiing area and acquisition of
equipment related thereto (the "Project") and (2) the financing
of such Project.
The Project will be located in the Town of Vail or within
8 miles thereof. The Project will consist of new mountain facilities
and improvements to the existing recreational complex operated by the
Company. The Project will be available for use by the general public
without limitation or restriction. The aggregate cost of the projects
to be undertaken in the next three years is presently estimated at
5,440,444. A description of the Project is attached as Schedule A
hereto,
We propose that the Town and the Company enter into a
Financing Agreement with respect to the Project as permitted by the
Act. Under the Financing Agreement, either the Company or the Town
will acquire the necessary sites for the project. The purchase
orders and construction contracts will be awarded and administered
by the Company, and certain portions of the work mayy be done by
Company personnel. If financing is not undertaken by the Town,
or when the Company completes payments under the proposed Financing
Agreement, any title which the Town obtains will be transferred to
the Company. As required by the Act, the Financing Agreement will
provide that the Company will maintain and repair the Project, carry
all proper insurance with respect thereto and pay taxes, or the
equivalent, with respect to the Project to the taxing entities
entitled to receive same. The Company will also pay all expenses
incurred by the Town in connection with the Project not paid from
the proceeds of any bonds or notes issued by the Town.
AREA COLE 303 476-560! • BOX 7, VAIL, GOLORADO 81657
2~ of Vail
Mai.:h 1$, 1975
Page Two
In order to finance the Project, it is contemplated that
the Town will issue its commercial, development and sports facility
revenue bonds or notes in the amounts necessary to pay Project costs,
The bonds or notes may be secured by a mortgage, may be issued in one
or more series and might be sold privately, delivered pursuant to a
loan agreement with institutional investors, or Bald to the public by
a group of underwriters to be selected by the Company. Tn this
connection, we are presenting herewith a financial feasibility letter
of Goldman, Sachs & Co.
The net proceeds of the bonds or notes will be deposited in
a construction fund held by a bank or trust company designated by the
Company and satisfactory to the Town. The construction fund will be
used to pay costs of the Project, including casts of financing, interest
during construction, contractors' bills and reimbursement to the Company
for work done or moneys advanced by it. All payments will be made upon
appropriate requisitions by the C~~u~,any. If the construction fund is
not sufficient to pay the costs in full, the Company will pay the
balance.
The Company will make payments in respect of the Project in
installments corresponding in date and amount to the payments of
interest and principal on the Town's bonds or notes. In evidence
of its obligation to make such payments, the Company may choose to
deliver to the Town its Hates specifying equivalent principal and
interest payments. The Town's right to receive the installment pay-.
ments (and any notes issued by the Cv«s~any to evidence the same} will
be assigned directly to holders of the bonds ar notes of the Town, or
will be held by a corporate trustee under a trust indenture for the
benefit of the Town's bondholders. The Town's revenue bonds or notes
will be payable solely from the revenues from this Project represented
by the Company's payments.
The assistance provided by your undertaking of this Project
will encourage the continued growth and development of the Company's
operations at Vail. We ask that, in approving the Project, you find
that the Project will promote the purposes of the Act by creating and
developing business and employment opportunities and by assisting in
the maintenance of a balanced and stable economy within Colorado.
If the foregoing is satisfactory to you, please indicate your
approval of the Project and your undertaking of the financing thereof
by signing and returning the enclosed copy of this letter.
Very Truly Yours,
VATL ASSOCIATES, TNC.
APPROVED AND ACCEPTED: ,~,tlBY ~~ GLt/~~ -~=-c~~'y~1 //~
T Wig OF VAI ~ - ~~`0 L /
BY ,~ ,,,~
Date: Mar 8, 1975
Vail Associates, Inc.
Proposed Sports Facilities ~,
Industrial Revenue Bond Financing
Schedule - A
Lifts
Upper Northwoods, Eagles Nest Beginner, Golden Peak ~~2,
Four Bowls, Main Drain, China Bowl ~~1, China Bowl ~k2.
Equipment improvements, renovation, capacity upgrade.
Summer facilities.
Trails and Slopes
1Q0 acres in the Northwoods Ski Center.
50 acres on the front side of the mountain, and in Game Creek.
China Bowl clearing, catwalks.
Snowmaking facilities at Golden Peak, Mill Creek, Catwalk to
Lift ~~10, LionsHead extensions .
Children's Mountain program - Trails, equipment, shelters.
Ski patrol facility in the Northeast Bowl.
Equipment/Facilities
New snowcats and grooming equipment.
Ski patrol equipment replacement, trail markers, Northeast Bowl
equipment for expansion.
Northeast Bowl Restaurant facilities and equipment.
Midvail, Eagles Nest facilities decking and expansion.