HomeMy WebLinkAboutminutes.council.19951030Aspen City Council Special meeting October 30, 1995
Mayor Bennett called the meeting to order at 5:05 p.m. in the Red Brick conference
room with Councilmembers Richards and Paulson present.
ORDINANCE #52, SERIES OF 1995 - Refund of Cozy Point Debt
Doug Smith, finance director, told Council under Amendment #1, the city cannot
incur debt without going to the electorate unless the city reserves funds balances for
the debt. Under the Charter, the city cannot issue bonds without a vote of the
people, but they can enter into a long term lease. This has been structured as a long
term lease. This will reduce the interest rate. Councilwoman Richards said the city
purchased the Cozy Point ranch and is now giving it to the Aspen Public Facilities.
Councilwoman Richards said she did not think the city could sell property without a
vote. John Worcester, city attorney, said the Aspen Public Facilities is a non-profit
organization under the laws of the state of Colorado and is an arm of the city. The
Board of Directors is Council, the city clerk, and finance director. The city
maintains a beneficial interest in the assets of anything of the Public Facilities. The
Facility cannot sell assets without a vote of their Board and a vote of the Council.
This is a sale from the city to the city for the purposes of financing.
Councilwoman Richards moved to read Ordinance #52, Series of 1995; seconded
by Councilman Paulson. All in favor, motion carried.
ORDINANCE #52
(Series of 1995)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ASPEN,
COLORADO, AUTHORIZING AND APPROVING THE SALE OF CERTAIN
REAL PROPERTY AND A LEASE PURCHASE AGREEMENT, AN
INDENTURE OF TRUST, A CERTIFICATE PURCHASE AGREEMENT, AN
OFFICIAL STATEMENT AND OTHER RELATED DOCUMENTS AND
ACTIONS IN CONNECTION WITH THE ISSUANCE OF CERTAIN
CERTIFICATES OF PARTICIPATION IN THE AGGREGATE PRINCIPAL
AMOUNT OF $2,800,000; AND DECLARING AN EMERGENCY AND
PROVIDING FOR THE EFFECTIVE DATE OF THIS EMERGENCY
ORDINANCE was read by the deputy city clerk
Worcester told Council the reason for the emergency is that interest rates are
changing daily, and it is in the best interest of the city to close this deal as quickly as
possible. Smith said the city can call the bonds in 2002. If something changes in
Aspen City Council Special meeting October 30, 1995
the city’s plans for Cozy Point, they can sell the property and put the money in
escrow until 2002. This is not limiting the city in what they want to do with Cozy
Point.
Councilwoman Richards moved to adopt Ordinance #52, Series of 1995, on first
reading; seconded by Councilman Paulson. Roll call vote; Mayor Bennett, yes;
Councilmembers Richards, yes; Paulson, yes. Motion carried.
Councilwoman Richards asked if there is a way to have more than one call date.
Smith said investors want to invest to a certain point; shortening this will increase
the interest rates.
Councilwoman Richards moved to adjourn at 5:15 p.m.; seconded by Councilman
Paulson. All in favor, motion carried.
Kathryn S. Koch, City Clerk