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HomeMy WebLinkAboutordinance.council.036-79RECORD OF PROCEEDINGS 100 Leaves O D NA CE NO. 6 (Series of 1979) AN ORDINANCE AUTHORIZING THE ISSUANCE OF NOTES OF THE CITY OF ASPEN, COLORADO, IN THE PRINCIPAL AMOUNT OF $265,304.20, FOR THE PURPOSE OF ACQUIRING CERTAIN REAL PROPERTY, KNOWN AS THE ASPEN ICE GARDEN; PRESCRIBING 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. 16, Series of 1970, and by Ordi- nance 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 acquisition of real property including recreational property; 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, pay- able in whole or in part from the available proceeds of a munici- pal sales or use tax; and WHEREAS, the City has determined that it the best interest of the City and its inhabitants tain real property known as the Aspen Ice Garden the corporate limits of the City of Aspen; and is necessary and in to acquire cer- located within WHEREAS, the City Council has determined to issue notes in the principal amount of $265,304.20 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 revenue accruing from the operation of the Ice Garden and from the proceeds of the two percent (2%) Municipal Sales Tax, and, if necessary, from the City share of the Pitkin County-wide sales tax; and WHEREAS, the City Council has determined that it is to authorize the issuance of said notes and necessary to provide details in connection therewith: RECORD OF PROCEEDINGS 100 Leaves -- .... NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO: Section 1. Note Details. (a) That for the purpose of acquiring certain real property (b) known as the Aspen Ice Garden, located within the cor- porate limits of the City of Aspen, there are hereby authorized Notes of the City of Aspen (Series A Revenue Notes), in the principal amount of $150,000.00. Both the principal thereof and the interest thereon shall be payable solely and only out of the revenue accruing from the operation of the Ice Garden and from the pro- ceeds 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. That the notes shall be dated June 15, 1979, of varying denominations, with no greater than seven and one-half percent (7 1/2%) annual rate of interest, with interest and principal payable on and to mature on September 1, as Amount $75,000.00 $75,000.00 The interest and principal the date of maturity, follows: Maturity 1980 1981 of the notes shall be payable at the office of the Director of Finance, City Hall, in Aspen, Colorado. That for the purpose of acquiring certain real property known as the Aspen Ice Garden, located within the cor- porate limits of the City of Aspen, there are hereby authorized Notes of the City of Aspen (Series B Revenue Notes), in the principal amount of $115,304.20. The principal thereof shall be payable solely and only out of the revenue accruing from the operation of the Ice Garden and from the proceeds of the Municipal Sales Tax RECORD OF PROCEEDINGS 100 Leaves~ of two percent (2%), and, if necessary, from the City share of the Pitkin County-wide sales tax, as more par- ticularly set forth in this ordinance. That the notes shall be dated June 15, 1979, of varying denominations, with no interest, with principal payable on the date of maturity, and to mature on January 1, as follows: Amount Maturit~ $12,811.58 1980 $12,811.58 1981 $12,811.58 1982 $12,811.58 1983 $12,811.58 1984 $12,811.58 1985 $12,811.58 1986 $12,811.57 1987 $12,811.57 1988 The principal of the notes shall be payable at the office of the Director of Finance, City Hall, in Aspen, Colorado. Secton 2. (a) Form and Execution of Notes. The notes shall be signed with the facsimile signature of the Mayor of the City, attested by the manual signature of the City Clerk, countersigned by the manual signature of the Director of Finance, sealed with a facsimile of the official seal of the (b) 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. RECORD OF PROCEEDINGS 100 Leaves (c) The Series A Revenue Notes shall be in substantially the following form: 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 princial sum of $ together with interest thereon from the date hereof, at the rate of seven and one-half percent (7 1/2%) per annum. Principal and interest shall be payable as follows: due September 1, 1980, together with accrued interest and the remainder due September 1, 1981, together with accrued interest. 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 principal 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 indebted- ness of the City of Aspen and shall not be considered a general obligation of the City. This Note has been made in and is subject to Ordinance No. __, Series of 1979. IN WITNESS WHEREOF, this Note is executed and delivered the day and year first above written. ATTEST: Mayor tity Clerk REGORD OF PROGEEDING$ ATTEST: Finance Director (d) The Series B Revenue Notes shall be in substantially the following form: 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 $ , payable as follows: Nine (9) equal annual installments, the first payment being due and payable on January 1, 1980, and the last payment being due and payable on January 1, 1988. If any payment hereunder is not made when due, the remaining unpaid principal shall, at the option of payee, immediately become due and payable in full. If payments on this Note are not made when due, the under- signed 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 and shall not be considered a general obligation of the City. This Note has been made in and is subject to Ordinance NO. __, Series of 1979. ATTEST: City Clerk IN WITNESS WHEREOF, this Note is executed and delivered the day and year first above written. Mayor / · ATTEST: Finance Director -5- RECORD OF PROCEEDINGS 100 Leaves Section 3. Disposition of Note Proceeds. Said notes shall be issued for the purpose of tain real property in the City of Aspen, Colorado, acquiring cer- by the acquisi- tion of all of the capital stock of the corporation known as the Aspen Ice Garden, Inc. The proceeds of the notes herein auth- orized shall be used only for the purpose 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 said notes have been issued for a valuable consideration in full conformity with the law. Section 4. Lien and Priority. The revenue accruing from the operation of the Ice Garden and from the two percent (2%) Municipal Sales Tax shall be pledged for the payment of the principal of and interest on the notes author- ized herein. If the amounts required for the payment of the prin- cipal of and interest on the notes authorized herein are insuffi- cient in any way, the City shall use whatever amounts as may be necessary received by the City adopted by the Board of County the 7th day of October, 1968, cipal and interest. PROVIDED, from the County-wide sales tax, Commissioners, by resolution, on for the purpose of paying such prin- HOWEVER, the notes authorized here- in shall have a lien on such funds which is junior or subordinate to the lien of the bonds authorized in Ordnance No. 9, Series of 1978 (Sales Tax Refunding Revenue bonds in the amount of $6,030,000.00) and Ordinance No. 27, Series of 1978 Revenue Bond in the amount of $900,000.00). Section 5. Sale of Real Property. Nothing in this ordinance shall prevent the authorizing the sale at a later date of all or any part of real property acquired with the proceeds of these notes. (Golf Course City Council from the -6- RECORD OF PROCEEDINGS 100 Leaves Section 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) 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% gross (c) (b) 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. 15 A, 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 proceeds of Tax and the such books and records showing the the two percent (2%) Municipal Sales share received by the city from the County-wide sales tax, in which complete entries shall be made in accordance with standard princi- ples 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 receipt of such sales tax. It will, at least once each year, records relating to the the sales tax proceeds, cause an audit of the collection and receipt of 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. -7- RECORD OF PROCEEDINGS 100 Leaves (d) It will not sell the following described real pro- petty: Lots A through I, inclusive Block 54, City and Townsite of Aspen Pitkin County, Colorado However, the City shall not be precluded from selling any other asset acquired with the proceeds of these notes. Section 7. Additional Notes or Bonds. Nothing herein shall prevent the City from issuing addi- tional 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 amount. 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 appli- cation, 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 ordi- nance 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 pur- chase of the real property at the earliest possible date, and that -8- RECORD OF PROCEEDINGS 100 Leaves it is necessary to issue notes for the payment of such purchase, it is hereby declared that an emergency exists and that this ordi- nance is necessary to the immediate preservation of the public property, 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. INTRODUCED AND READ by the Aspen City Council at its regular ~acv/Standley III / Mayo~ _ ATTEST: Kathryn S./K°ch City Clerk READ, FINALLY ADOPTED, PASSED AND APPROVED and published by the Aspen 1979. City Council on ordered Herman Edel Mayor ATTEST: Kathryn S~Koch City Clerk -9-