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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.