Loading...
HomeMy WebLinkAboutresolution.council.080-94 e e . RESOLUTION NO 8:) (Series of 1994) A RESOLUTION OF THE CITY OF ASPEN, COLORADO, DECLARING ITS OFFICIAL INTENT TO REIMBURSE ITSELF WITH THE PROCEEDS OF A FUTURE TAXABLE OR TAX-EXEMPT BORROWING FOR CERTAIN CAPITAL EXPENDITURES TO BE UNDERTAKEN BY THE CITY; IDENTIFYING SAID CAPITAL EXPENDITURES; AND PROVIDING CERTAIN OTHER MATTERS IN CONNECTION THEREWITH the City of Aspen (the "City"), in the County lof State of Colorado (the "State"), is a municipal duly organized and existing pursuant to constitution the State; and WHEREAS, pitkin and corporation and laws of WHEREAS, the City Council of the City (the "Council") is the governing body of the City; and WHEREAS, the City has Determined that it is in the best interest of the City to make certain capital expenditures on the Project defined in this Resolution; and WHEREAS, the City currently intends and reasonably expects, to participate in a taxable or tax-exempt borrowing to finance such capital expenditures, including an amount not to exceed $3,200,QOO (Three Million Two Hundred Thousand Dollars) for reimbursing the City for the portion of such capital expenditures incurred or tolbe incurred subsequent to the date which is 60 days prior to the date hereof but before such borrowing, within 18 months of the datelof such capital expenditures or the placing in service of the Project as hereinafter defined, whichever is later (but in no event more than 3 years after the date of the original expenditure of such moneys); and WHEREAS, the Council hereby desires to declare its official intent, pursuant to 26 C.F.R 1.150.2, to reimburse the City for such capital expenditures with the procees of the City's fut~re taxable or tax-exempt borrowing. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF APSEN, COLORADO, THAT: Section 1. Declaration of Official Intent. The presently intends and reasonably expects to finance certain property to be used for open space purposes by the City, which property is described as follows: City real r'eal "Cozy Point Ranch" as more fully described in exhibit 1 (Collectively, the "Project"). Section 2. Dates of Capital Expenditures. All of the cpa~tla expenditure covered by this Resolution were made not earlier than 60 days prior to the date of this Resolution. - - - Section 3. Issuance of Bonds or Notes. The City presen~ly intends and reasonably expects to particiapte in a taxable or tax- exempt borrowing within 18 months.of the date of the expenditure I of moneys on the Project or the date upon which tjhe Project is pla~ed in service or abandoned, whichever is late (but in no event more than 3 years after the date of the original expendiutre of such moneys), and to allocate an amount of not to exceed $3,200,QOO (Three Million Two Hundred Thousand Dollars) of the proceeds thereof to reimburse the City for its expenditures in connection with the Project. Section 4. Resolution Number. This is the first resolution of the City concerning all or a portion of this Project described in paragraph 1 hereof adopted on or after July 1, 1993. Section 5. Confirmation of Prior Acts. All prior acts and doings of the officials, agents and employees of the City which are in conformity wiuth the purpose and intent of this Resolution, and in furtherance of the Project, shall be and the same hereby are, in all respects ratified, approved and confirmed. Section 6. Repeal of Inconsistent Resolutions. All other resolutions of the Council, or parts of resolutions, inconsist~nt with this Resolution are hereby repealed to the extent of such inconsistency. Section 7. Effective Date of Resolution. shall take effect immediately upon its passage. This resolution CITY OF ASPEN, COLORADO ~ 5'. {~~ John S. Bennett, MaYOr: I, Kathryn S. Koch, duly appointed and acting City Clerk, do certify that the foregoing is a true and accurate copy of t)1.at resolution adopted by the City Council of the City of ASP!3n, Colorado at a meeting held October 11, 1994. Kathryn Koch, City e e e KUTAK ROCK ATLANTA BATON ROUGE KANSAS CITY LITTLE ROCK LOS :ANGELES NEW, YORK OKLAHOMA CITY OMAHA PHOENIX PITTSBURGH WASHINGTON A PARTNERSHIP INCLUDING PROFESSIONAL CORPORATIONS SUITE 2900 717 SEVENTEENTH STREET DENVER, COLORADO 80202-3329 303-297-2400 FACSIMILE 303-292-7799 September 27, 1994 Mr. Steve Barwick City of Aspen Municipal Building 130 South Galena Aspen, CO 81611 Mr. Steve Jeffers George K. Baum & Company Suite 2500 717 Seventeenth Street Denver, CO 80202 Re: City of Aspen-Reimbursement Resolution Gentlemen: Enclosed is a copy of a reimbursement resolution which could be adopted by the Aspen City Council to preserve the ability to finance capital expenditures made with respect to the open space project which we talked about yesterday. Before adoption, Steve would need to fill in the maximum amount you would expect to refinance, as well as a description of the property. The resolution should be adopted as soon as possible, but no later than 60 days from yesterday. Please note that your ability to "reimburse" yourself for capital expenditures is limited to the later of (i) 18 months from the date of each expenditure or (ii) the date the project is "put in service" (which is probably when you acquire an interest in the land), but not longer than 3 years. This would allow you to issue bonds and reimburse yourself for payments you have made under your lease purchase agreement or installment sale agreement within these timeframes. Under the reimbursement rules, you could only reimburse yourself for that portion of the payments that constituted "principal," and not for the "interest" component. However, in addition, you could, at any time, refinance the remaining principal amounts owing in the future on a lease purchase agreement or installment sale agreement, as long as you can, at that time, prepay all remaining amounts due. This would constitute a "refunding" and not a "reimbursement." The reimbursement resolution simply allows you to 02/52513, - . e KUTAK ROCK Mr. Steve Barwick Mr. Steve Jeffers September 27, 1994 Page 2 recover actual payments that you make, prior to refinancing, within the timeframes described above. Please call me if you have any questions. Very truly yours, ;Jtd,-- Robert D. Irvin 02/52513.