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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 • i t 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 i • • E 6 .rav 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 ~CSO~uTI o -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 _2_ 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 ,, _ 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 -3- ~• • i x ~. (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 _ ~ ~ 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 _4_ d.. . - ' • • • t a ~ «: 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 $25,000. Both the Maximum Household Income and the Maximum Purchase Price shall be adjusted annually iiz accordance with the increase or decrease in the Consumer Price Index, using the adjustment defined in the O & S Agreement. Section 5. The following determinations and findings are hereby made in accordance with Sections ?.9-3-113, 29-3-114, and 29-3-120 of the Act: (a) The amount necessary in each year to pay the principal. of and the interest on the Bonds is as follows, -5- .t .s ~ ~ • f, a . ~ , W including those Bonds called for mandatory sin}:ing fund redemption in the years 2000 through 2009, inclusive: Annual Period to and Interest Principal to be Annual Debt Including for such Retired in such Service August 1 Period Period Requirement 1980 940,688 0 940,b88 1981 953,93$ 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 1 1 19 2 , , , , 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' 091 1 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 -6- n~ i ~: i ~ r ~~ ~ ~ • x. K 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 -7- 1 • • • ~- 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. . - ~= . Section 10. The officers of the To~~rn shall to}:e all action t-_ . 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, _g_ } ~~• • ~ • • .: 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, -9- ` • ~.. • 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: // /~ TOWN CLEkK -10- i r ~r~,„ i' .iYtG, .: