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HomeMy WebLinkAboutordinance.council.002-79RECORD OF PROCEEDINGS ORDINANCE NO. ~ (Series of 1979) AN ORDINANCE AUTHORIZING THE ISSUANCE OF NOTES OF THE CITY OF ASPEN, COLORADO, IN THE PRINCIPAL AMOUNT OF $100,000.00, FOR THE PURPOSE OF IM!~ROVING CERTAIN REAL PROPERTY, KNOWN AS THE VISUAL ARTS CENTER; PRESCRIBING THE FORM OF SAID NOTES; PROVIDING FOR THE PAYMENT OF 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 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, the the improve- ment 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 improve certain real property known as the Visual Arts Center located within the corporate limits 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 $100,000.00 for the purpose of improving 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-wide 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 improving certain real property known as the Visual Arts Center, located within the corporate limits of the City of Aspen and adjacent to the Roaring Fork River, there are hereby authorized Notes of the City of Aspen, in the principal amount of $100,000.00. Both the principal thereof and the interest thereon shall be payable solely and only out of the proceeds of the Municipal Sales Tax of percent (2%), and if necessary, from the City share of Pitkin County-wide sales tax, in this ordinance. That the notes shall be as more particularly set dated January 26, 1979, of two the forth varying denominations, with no greater than six percent (6%) annual r~te of interest, non-assignable, with interest and principal payable on the date of maturity, and mature Maturity 1980 1981 on September l, as follows: Amount $50,900.90 $50,000.90 The interest and principal of the notes shall be payable at the office of the Director of Finance, City Hall, in Aspen, Colorado. Section 2. 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 -2- RECORD OF PROCEEDINGS the Director of Finance, sealed with a facsimile o£ 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 £orm: 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 $ together with interest thereon from the date hereof, at the rate of six percent (6%) per annum. Principal and interest shall be payable as follows: One-half thereof due September l, 1980, together with accrued interest; the remainder thereof due September l, 1981, together-with accrued interest. The undersigned shall have the right at any time to prepay this Note in whole or in part. 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 indebtedness of the City of Aspen without means of any charter, constitutional or statutory limitation and shall not be considered a general obligation to the City. This Note has been made in and is subject to Ordinance , Series of 1979. -3- RECORD OF PROCEEDINGS IN WITNESS WHEREOF, this Note is executed and delivered the day and year first above written. City of Aspen Section 3. Disposition of Note Proceeds. Said notes shall be issued for the purpose of improving 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 said notes have been issued for a valuable consideration in full conformity with the law. Section 4. Lien and Priority. · 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, HOWEVER, 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, Series 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 Bonds 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 o£ 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-- .~,,,.~.o.,~,.u........~ ~o...~..,~. R E C O R D O F P R O C E E D I N G S each and every holder of of this ordinance, that so outstanding: Section 6. Covenants of the City. The City hereby irrevocably covenants and agrees with the notes issued under the provisions long as any of said notes remain (b) It will not repeal either Ordinance No. 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. -6- RECORD OF PROCEEDINGS Section 7. Additional Notes or Bonds. ~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. Ail 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 ll. Emergency Provision. By reason of the fact that the City must complete the improvement of the real property at the earliest possible date, and that it is necessary to issue notes for the payment of such improvements, it is hereby declared that an emergency exists and that this ordinance 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. -7- RECORD OF PROCEEDINGS Section 12. Recording 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 __ ATTEST: ~day of , 1979. . -~ Stacy/Standley III / Kathryn S~Koch City Clerk FINALLY adopted, passed and approved on this of ATTEST: day Mayor By: H. Michael Behrendt Mayor Pro Tem K~th~yn S. ~ City Clerk 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 7, and was finally adopted and approved at a regular meeting of the City Council on  ~ , 197~, and ordered published as Or ~ , Series of 197 ~, of said City, as provided by law. IN WITNESS WHEREOF, I have hereunto the seal of said City of Aspen, Colorado, day of ~ ., 197~_. set my hand and this c:~~r''~ .SEAL