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HomeMy WebLinkAboutordinance.council.059-78RECORD OF PROCEEDINGS ORDINANCE NO. ~ (Series of 1978) AN ORDINANCE AUTHORIZING THE ISSUANCE OF NOTES OF THE CITY OF ASPEN, COLORADO, IN THE PRINCIPAL AMOUNT OF $500,000.90, FOR THE PURPOSE OF ACQUIRING CERTAIN REAL PROPERTY, KNOWN AS THE ASPEN ONE PROPERTY; PRESCRIBING THE FORM OF SAID NOTES; PROVIDING FOR THE PAYMENT OF THE PRINCIPAL AND INTEREST ON SAID NOTES FROM THE REVENUES OF THE TWO PERCENT MUNICIPAL SALES TAX AND FROM OTHER SALES TAX REVENUES; PRESCRIBING OTHER DETAILS IN CONNECTION THEREWITH; AND DECLARING THAT AN EMERGENCY EXISTS REQUIRING IMMEDIATE ENACTMENT WHEREAS, by Ordinance No~ ~6, Series of 1970, and by Ordinance No. 15A, Series of 1972, the City Council has imposed a two percent (2%) municipal sales tax, the proceeds of which are to be used, among other purposes, for the acqui- sition of real property including open space; and WHEREAS, Section 10.5 of the Charter of the City of Aspen provides in part that the City may borrow money or otherwise extend its credit, without the requirement of an election, payable in whole or in part from the available proceeds of a municipal sales or use tax; and WHEREAS, the City has determined that it is necessary and in the best interest of the City and its inhabitants to acquire certain real property known as the Aspen One Property, located within the corporate limites of the City of Aspen and adjacent to the Roaring Fork River; and WHEREAS, the City Council has determined to issue notes in the principal amount of $500,000.00 for the purpose of acquiring the real property referred to above, both the principal of and interest on said notes to be payable from the proceeds of the two percent (2%) Municipal Sales Tax, and, if necessary, from the City share of the Pitkin County-~ide sales tax; and RECORD OF PROCEEDINGS WHEREAS, the City Council has determined that it is necessary to authorize the issuance of said notes and to provide details in connection therewith: NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO: Section 1. Note Details. That for the purpose of acquiring certain real property known as the Aspen One Property, located within limits of the City of Aspen and adjacent to the River, there are hereby authorized Notes of the in the principal amount of $500,000.00. Both the principal thereof and the interest thereon shall be payable solely and only out of the proceeds of the Municipal Sales Tax of two percent (2%), and if necessary, from the City share of the Pitkin County-wide sales tax, as more particularly set forth in this ordinance. ?hat the notes shall be dated December 29, 1978, of varying denominations, with no greater th~n seven percent (7%) annual rate of interest, non-assignable, with interest and principal payable on the date of maturity, and mature on April 1, as follows: Amount Maturity $150,000.00 1979 $150,000.00 1980 $200,000.00 1981 The interest and principal of the notes at the office of the Director of Finance, City Hall, Aspen, Colorado. of of the corporate Roaring Fork City of Aspen, shall be payable in Section 2. Form and Execution of Notes. The notes shall be signed with the facsimile signature the Mayor of the City, attested by the manual signature the City Clerk, countersigned by the manual signature of -2- RECORD OF PROCEEDINGS the Director of Finance, sealed with a facsimile of the official seal of the City. Should any officer whose manual or facsimile signature appears on said notes cease to be such officer before delivery of the notes to the purchaser, such manual or facsimile signature shall nevertheless be valid and sufficient for all purposes. The notes shall be in substantially the following form: -3- EXHIBIT $500,000.00 PROMISSORY NOTE DATE: FOR VALUE RECEIVED, the undersigned, City of Aspen, promises to pay to the order of at the office of Director of Finance, city Hall, Aspen, Colorado 81611, or such other place as the holder hereof shall designate, the principal sum of % of $500,000.00, together with interest thereon from the date hereof, at the rate of seven percent (7%) per annum. Principal and interest shall be payable as follows: % of $150,000.00 due April 1, 1979 together with accrued interest; % of $150,000.00 due April 1, 1980 together with accrued interest; and % of $200,000.00 due April 1, 1981 together with accrued interest. The undersigned shall have the right at any time to prepay this Note in whole or in part after January 1, 1979. If any payment hereunder is not made when due, the remaining unpaid principal and any accrued interest, shall, at the option of payee, immediately become due and payable in full. From and after the date of such default, the prin- cipal sum, and all interest then accrued, shall bear interest at the rate of eighteen percent (18%) per annum. If payments on this Note are not made when due, the undersigned agrees to pay all costs of collection, including reasonable attorneys' fees. The maker of this Note hereby waives notice of demand, presentment for payment, notice of non-payment and protest and any and all notice of whatever kind or nature, the exhaustion of legal remedies herein, all exemptions and any homestead rights. If more than one maker shall sign this Note, the obligations of all of said makers shall be joint and several, and the liability of each to Lender shall be absolute and unconditional and without regard to the liability of any other party hereto. The terms, conditions and obligations under this Note cannot be changed, modified or terminated except by a writing signed by the payee hereunder. This Note shall be construed according to the laws of the State of Colorado. This Note does not constitute a deed or indebtedness of the City of Aspen without means of any charter, constitution or statutor limitation and shall not be considered a general obligation of the City. This Note has been made in and is sub- ject to Ordinance __Series of 1978. The Deed of Trust securing this Note grants certain real estate located in Pitkin County, Colorado, to the Public Trustee of said County, together with all the privileges, improvements and appurtenances thereto. The terms of said Deed of Trust are by this reference made a part hereof to the extent and with the same force and effect as if fully set forth herein. If the property securing this Note is sold this entire indebtedness is accelerated and shall become due on such sale. Further this Note may not be assigned. IN WITNESS WHEREOF, this Note is executed and delivered the day and year first above written. Clti//°f Aspo~ i/~ ...,,~,~o,~.,.~,.,.,~,.,.;~o.,,~;...;. R E C O R D O F P R O C E E D I N G S Section 3. Disposition of Note Proceeds. Said notes shall be ~ssued for the purpose of acquiring certain real property in the City of Aspen, Colorado, adjacent to the Roaring Fork River. The proceeds of the notes herein authorized shall be used only for the purposes recited above. The issuance of said notes by the City shall constitute a warranty by and on behalf of the City for the benefit of each and every holder of said notes, that for a valuable consideration in full Section 4. Lien and Priority. said notes have been issued conformity with the law. ?he revenue from the two percent (2%) Municipal Sales Tax shall be pledged for the payment of the principal of and interest on the notes authorized herein. If the amounts required for the payment of the principal of and interest on the notes authorized herein are insufficient in any way, the City shall use whatever amounts as may be necessary received by the City from the County-wide sales tax, adopted by the Board of County Commissioners, by resolution, on the 7th day of October, 1968, for the purpose of paying such principal and interest. PROVIDED, ~tOWEVER, the notes authorized herein shall have a lien on such funds which is junior or subordinate to the lien of the bonds authorized in Ordinance No. 9, 8eries of 1978 (Sales Tax Refunding Revenue Bonds in the amount of $6,030,000.00) and Ordinance No. 27, Series of 1978 (Golf Course Revenue Bond in the amount of $900,000.00). Section 5. Sale of Real Property. Nothing in this ordinance shall prevent the City Council from authorizing the sale at a later date of all or any part of the real property acquired with the proceeds of these notes. In the event of the sale of all or part of the real property, the notes shall be paid in full. -5- RECORD OF PROCEEDINGS 3ection 6. Covenants of the City. The City hereby irrevocably covenants and agrees with each and every holder of the notes issued under the provisions of this ordinance, that so long as any of said notes remain outstanding: (a) (b) (c) It will not repeal either Ordinance 16, Series of 1970, or Ordinance No. 15A, Series of 1972, and that it will not amend either ordinance by decreasing the sales tax rate of 2% of gross receipts. It will administer, enforce and collect, or cause to be administered, enforced and collected, the sales tax authorized by said Ordinance No. 16, Series of 1970, and Ordinance No. 15A, Series of 1972, and shall deposit all of the revenue received from the imposition of the sales tax into separate funds as provided by said ordinances. It will keep such books and records showing the proceeds of the two percent (2%) Municipal Sales Tax and the share received by the City from the County-wide sales tax, in which complete entries shall be made in accordance with standard principles of accounting, and any holders of any note shall have the right at all reasonable times to inspect the records and accounts relating to the collection and receipts of such sales tax. It will, at least once each year, cause an audit of the records relating to the collection and receipts of the sales tax proceeds, and upon request, make available the report of the auditor or accountant, to any holder of such notes. Such audit may be made part of and included within the general audit of the City, and made at the same time as the general audit. Section 7. Additional Notes or Bonds. l~othing herein shall prevent the City from issuing additional notes on bonds payable from the two percent (2%) Municipal Sales Tax or the share received by the City from the County-wide sales tax, and having a lien upon such funds or amounts. Section 8. Severability. If any provision of this ordinance or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of the ordinance which can be given effect without the invalid provision or application, and to this end the provisions of this ordinance are declared to be severable. Section 9. Repealer. All ordinances or parts thereof in conflict with this ordinance are hereby repealed. Section 10. Ordinance Irrepealable. After said notes are issued, this ordinance shall be and remain irrepealable until said notes and the interest thereon shall have been fully paid, satisfied and discharged. Section 11. Emergency Provision. By reason of the fact that the City must complete the purchase of the real property at the earliest possible date, and that it is necessary to issue notes for the payment of such purchase, it is hereby that this ordinance is of the public property, declared that an emergency exists and necessary to the immediate preservation health, peace and safety, that it shall be in full force and effect upon final passage, and be published within ten (10) days after final passage, or as soon thereafter as possible. -7- RECORD OF PROCEEDINGS Section 12. i~ecording and Authentication. This ordinance, as adopted by the City Council, shall be numbered and recorded in the official records of the City. Its adoption and publication shall be authenticated by the signature of the Mayor, or Mayor Pro Tem, and the City Clerk, and by the certificate of publication. INTRODUCED AND APPROVED on first reading this /y~'~ay of ATTEST: ATTE ST: 'Kathryn ~_. Koch City Clerk Kathryn S~ Koch City Clerk FINALLY ADOPTED AND APPROVED this ~/~ day of ~ , 1978. /~ /- -~ ~ N~ ~ ,- S~acy S~ndley III ,/ Mayor ~/ / EXHIBI_" PROMISSORY NOTE $500,000.00 DATE: FOR VALUE RECEIVED, the undersigned, City of Aspen, promises to pay to the order of R. P. Fitzgerald, at the office of Director of Finance, City Hall, Aspen, Colorado 81611, or such other place as the holder hereof shall designate, the principal sum of 21.67% of $500,000.00, together with interest thereon from the date hereof, at the rate of seven percent (7%) per annum. Principal and interest shall be payable as follows: 21.67% of $150,000.00 due April 1, 1979 together with accrued interest; 21.67% of $150,000.00 due April 1, 1980 together with accrued interest; and 21.67% of $200,000.00 due April 1, 1981 together with accrued interest. The undersigned shall have the right at any time to prepay this Note in whole or in part after January 1, 1979. If any payment hereunder is not made when due, the remaining unpaid principal and any accrued interest, shall, at the option of payee, immediately become due and payable in full. From and after the date of such default, the prin- cipal sum, and all interest then accrued, shall bear interest at the rate of eighteen percent (18%) per annum. If payments on this Note are not made when due, the undersigned agrees to pay all costs of collection, including reasonable attorneys' fees. The maker of this Note hereby waives notice of demand, presentment for payment, notice of non-payment and protest and any and all notice of whatever kind or nature, the exhaustion of legal remedies herein, all exemptions and any homestead rights. If more than one maker shall sign this Note, the obligations of all of said makers shall be joint and several, and the liability of each to Lender shall be absolute and unconditional and without regard to the liability of any other party hereto. The terms, conditions and obligations under this Note cannot be changed, modified or terminated except by a writing signed by the payee hereunder. This Note shall be construed according to the laws of the State of Colorado. This Note does not constitute a deed or indebtedness of the City of Aspen without means of any charter, constitution or statutor limitation and shall not be considered a general obligation of the City. This Note has been made in and is sub- ject to Ordinance Series of 1978. The Deed of Trust securing this Note grants certain real estate located in Pitkin County, Colorado, to the Public Trustee of said County, together with all the privileges, improvements and appurtenances thereto. The terms of said Deed of Trust are by this reference made a part hereof to the extent and with the same force and effect as if fully set forth herein. If the property securing this Note is sold this entire indebtedness is accelerated and shall become due on such sale. Further this Note may not be assigned. IN WITNESS WHEREOF, this Note is exegu2ce~l and delivered the day and year first above written. /. ~ ~ ~ RECORD OF PROCEEDINGS STATE OF COLORADO ) ) ss COUNTY OF PITKIN ) CERTIFICATE I, Kathryn S. Koch, City Clerk of Aspen, Colorado, do hereby certify that the above and foregoing ordinance was introduced, read in full, and passed on ~ ~ reading at a regular meeting of the City Council of the City of Aspen on /~ '~_~~ /~ , 197 ~' and published in the Aspen Times a weekly newspaper of general circul- ation, published in the City of Aspen, Colorado, in its issue of ~~~~ , 197 ~, and was finally adopted and approved at a~meeting of the City Council on ~~~-~f , 197~, and ordered published as Ordinance No. ~____, Series of 197_~, of said City, as provided by law. IN WITNESS WHEREOF, I have hereunto set my the seal of said City of Aspen, Colorado, this day of __~f~/~/7~ , 197~. SEAL hand and Kathyrn S~ Koch, City Clerk Deputy City Clerk