HomeMy WebLinkAboutminutes.council.19920817Aspen City Council Special Meeting August 17, 1992
Mayor Bennett called the meeting to order at 5:06 p.m. at the
Pitkin County Library with Councilmembers Reno, Richards, Pendleton
and Peters present.
ORDINANCE #54, SERIES OF 1992 - Issuing $3.6 Million Bonds for
Purchase of the Red Brick School
Councilman Peters moved to read Ordinance #54, Series of 1992;
seconded by Councilwoman Pendleton. All in favor, motion carried.
ORDINANCE #54
(Series of 1992)
AN ORDINANCE AUTHORIZING THE ISSUANCE BY THE CITY OF
ASPEN, COLORADO, OF ITS GENERAL OBLIGATION BONDS, SERIES
1992A, IN THE PRINCIPAL AMOUNT OF $3,600,000 FOR THE
PURPOSE OF PROVIDING FUNDS FOR THE ACQUISITION AND
REHABILITATION OF A BUILDING TO BE OWNED BY THE CITY AND
USED FOR ARTS, NONPROFIT AND OTHER COMMUNITY USES IN THE
CITY OF ASPEN, COLORADO, AND PAYING ALL NECESSARY
INCIDENTAL AND APPURTENANT COSTS AND EXPENSES IN CONNEC-
TION THEREWITH; PRESCRIBING THE FORM OF SAID BONDS;
PROVIDING FOR THE SALE OF SAID BONDS AND APPROVING A
BOND PURCHASE AGREEMENT; PROVIDING A PLEDGE OF THE FULL
FAITH AND CREDIT OF THE CITY AS SECURITY FOR SAID BONDS;
PROVIDING OTHER DETAILS IN CONNECTION WITH SAID BONDS,
APPROVING THE FORM OF THE OFFICIAL STATEMENT was read
by the city clerk
Dallas Everhart, finance director, said because of potential
savings in issuing these and reissuing two other outstanding bonds,
there will be a reissuance ordinance at the next regular Council
meeting. Steve Jeffers, George K. Baum, told Council these bonds
could be marketed in January. The Bruce amendment does not require
a vote on refundings done for interest cost savings. The bond
closing is scheduled for October 15th. Everhart told Council the
savings in the Truscott bonds would be $10,000 for the next 6 years
and $12,000 annually after that. There would also be savings in
the bond issuance costs to do these 2 issues simultaneously.
Mayor Bennett said Council can delay second reading of this
ordinance until all the election confusion is cleared up.
Councilman Peters asked the term of the Truscott housing bonds.
Jeffers said there are currently 3 payments; this would consolidate
the payments into one due December 1st.
Councilman Peters moved to adopt Ordinance #54, Series of 1992, on
first reading; seconded by Councilwoman Richards.
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Aspen City Council Special Meeting August 17, 1992
Councilman Reno asked if all the arrangements with the Arts Council
are in place. Mayor Bennett said the city will not go forward
without a written contract and signed pledges from the tenants who
indicated interest. Councilwoman Pendleton agreed she does not
want to consider second reading until the city has firm contracts.
Jed Caswall, city attorney, told Council the city has received
pledges from some but not all of the prospective tenants. These
are non-binding pledges. Caswall told Council the Arts Council
will not sign anything that binds them to pay the city. The draft
agreement does not put them on the line for any money to the city.
Councilman Peters said Council needs to have individual discussions
with all the users to discuss lease arrangements, what is expected
and when the building will be finished. Mayor Bennett said the
Arts Council may not be the right entity for this. Caswall noted
the Arts Council has no money or assets; it is ridiculous for them
to sign any financial commitment with the city. Councilwoman
Pendleton reiterated she wants to see agreements before second
reading. Everhart reminded Council the bond documents require 90
percent of the users be non-profit organizations and registered as
such. Caswall said the attachment will set out parameters and
tenant eligibility.
Councilwoman Pendleton said it is important the city do this right
and that everyone is on the same wave length on what is to be done
to the building. Councilman Reno said he is not comfortable going
forward because there are no agreements; there are less and less
guarantees. It seems like the city will be guaranteeing this
venture rather than the partners. Councilwoman Richards said she
thought the agreement with the Arts Council was to facilitate
getting tenants into the building and to give the them some time to
form a tenants' association, which may be a non-profit group to
deal with the City Council. Councilwoman Richards suggested the
city may want to put out RFPs for private management companies.
Lee Ambrose told Council he has had many years of experience in
development and management of tenants. Ambrose said the security
for these leases is going to be non-existent given the nature of
the potential tenants. Ambrose said the city will have to look
very carefully at the viability. Ambrose volunteered to help
Council review the leases or management agreement.
Councilman Peters said his goal is to get this off the ground in a
reasonable fashion and to have this work. Mayor Bennett suggested
Council accept Ambrose's advise on what the document should look
like and on helping find an entity to sign this agreement.
Council woman Pendleton said she will not vote for second reading
unless the arts groups take some risk. Councilwoman Richards
suggested a citizen oversight committee.
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Aspen City Council Special Meeting August 17, 1992
Roll call vote; Councilmembers Richard, yes; Peters, yes; Pendle-
ton, yes; Reno, yes; Mayor Bennett, yes. Motion carried.
Councilman Peters moved to adjourn at 5:32 p.m.; seconded by
Councilwoman Pendleton. All in favor, motion carried.
Kathryn S. Koch, City Clerk
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