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HomeMy WebLinkAboutordinance.council.031-18 ORDINANCE NO. 31 Series of 2018 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ASPEN CONCERNING THE CASTLE CREEK APARTMENTS PROJECT AND APPROVING AND AUTHORIZING THE EXECUTION OF A GROUND LEASE, A FINANCING AGREEMENT, A LOAN AGREEMENT AND CERTAIN OTHER DOCUMENTS, AND AUTHORIZING THE PURCHASE BY THE CITY OF THE COLORADO HOUSING AND FINANCE AUTHORITY'S TAX-EXEMPT MULTIFAMILY HOUSING REVENUE BOND (CASTLE CREEK APARTMENTS PROJECT) SERIES 2018, THE LOAN OF THE PROCEEDS. THEREOF AND THE EXECUTION OF RELATED DOCUMENTS. WHEREAS the provision of affordable housing is important to allow people who work in the City of Aspen (the "City") and Pitkin County to live near where they work and to be part of the community; and WHEREAS, the Castle Creek Apartments (the "Project") is a proposed 24-unit multifamily housing rental project, including any subordinate or related facilities, located in the City on property owned by the City at 488 Castle Creek Road (the"Property"); and WHEREAS, the Colorado Housing and Finance Authority ("CHFA") intends to issue up to a principal amount of$8,000,000 of its Tax-Exempt Multifamily Revenue Bond (Castle Creek Apartments Project) Series 2018 (the "Bond") and to use the proceeds thereof to provide a loan to 488 Castle Creek, LLC, a Colorado limited liability company (the "Borrower") in the amount not to exceed $8,000,000 (the "Bond Construction Loan") to pay a portion of the costs of the acquisition, construction and equipping of the Project, including permissible reimbursement expenses of the Project; and WHEREAS, to provide a portion of the acquisition, construction and equipping costs of the Project, the City wishes to make a permanent loan to the Borrower in an amount not to exceed $5,950,000 (the "Permanent Loan," and together with the Bond Construction Loan, the "Loans"); and WHEREAS, in order to support the development of the Project, the City is willing to lease the Property to the Borrower pursuant to a Ground Lease(as defined below), purchase the Bond, and make the Loans to the Borrower; and WHEREAS the City Clerk has on file the proposed forms of the following documents (the"Documents"): (a) Ground Lease (the "Ground Lease") between the City and the Borrower; and (b) Financing Agreement (the "Financing Agreement") among CHFA, the Borrower and the City; and (c) Funds Exchange Agreement(New Loan)between CHFA and the City; and (d) Loan Agreement (the "Loan Agreement") between the City and the Borrower; and (e) Assignment of Rents and Other Rights between Borrower and City concerning any and all leases relating to the Property and all security deposits collected or owed with relation thereto ("Assignment of Rents"); and (f) Assignment of Architects' and Engineers' Agreements, Construction Contract,Plans and Specifications by Borrower for the benefit of City; and (g) Environmental Indemnity executed by Borrower for the benefit of City; and (h) Deed Restriction Agreement between the City and the Aspen/Pitkin County Housing Authority; and (i) Purchase Option and Right of First Refusal Agreement by and among the City,the Borrower and 488 Castle Creek GP,LLC; and 0) All other documents executed by the City in connection with the Loan Agreement. WHEREAS, the City is willing to approve and authorize the purchase of the Bond and the execution and delivery of the Documents. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ASPEN: 1. The Council hereby determines that the provision of affordable housing such as the Project and, in connection therewith, the authorization and approval of the Documents and the purchase of the Bond, serves an important public purpose. 2. The lease of the Property to the Borrower and the financing of all or a portion of the costs of the Project through the City's purchase of the Bond is hereby authorized and approved. 3. The Documents, in substantially the forms on file with the City Clerk, are hereby approved, their execution thereof to constitute conclusive evidence of their approval of any and all changes or revisions therein from the forms thereof hereby approved. The Mayor, the City Manager and the Director of Finance, as required, are hereby authorized to execute such Documents and the City Clerk or the Deputy City Clerk is hereby authorized to affix the seal of the City thereto and to attest the same,as required. 2 4. The officers of the City are hereby authorized, empowered and directed to execute and deliver all such additional certificates, instruments, agreements and documents, pay all such fees, charges and expenses and to do all such further acts and things as may be necessary, or in the reasonable discretion of the person acting, desirable and proper to effect the purposes of this Ordinance and to cause compliance by the C19ty with all the terms, covenants and provisions of the Documents binding upon the City. 5. No provision of this Ordinance or of any of the Documents shall be construed or interpreted (i)to directly or indirectly obligate the City to make any payment in any fiscal year in excess of amounts appropriated for such fiscal year, (ii) as creating a debt or multiple fiscal year direct or indirect debt or other financial obligation whatsoever of the City within the meaning of the City Charter or Article X, Section 20 of the Colorado Constitution or any other constitutional or statutory limitation or provision. No provision of this Agreement or of any of the Documents shall be construed to pledge or to create a lien on any class or source of moneys of the City, nor shall any provision of this Agreement or of any of the Documents restrict the future issuance of any obligations of the City,payable from any class or source of moneys of the City. 6. All ordinance, resolutions, or parts thereof, inconsistent herewith are hereby repealed to the extent only of the inconsistency. INTRODUCED AND APPROVED ON FIRST READING by the City Council of the City of Aspen on the 22nd day of October,2018. 51� <� L - e en Skadron,Mayor Atte r Linda Manning, City Clerk ADOPTED AND APPROVED ON SECOND READING by the City Council of the City of Aspen on the 12th day of November, 2018. Stew-111- Skadron, Mayor X nning, City Clerk 3 I, Linda Manning, the duly appointed and acting City Clerk do certify that the foregoing is a true and accurate copy of that ordinance adopted by the City Council of the City of Aspen, Colorado, at a meeting held,November 12, 2018. � c Linda Manning, ?Iy Clerk 4