HomeMy WebLinkAbout07530SUBSTITUTED COPY 10/23/06
ORDINANCE NO. 7530
AN ORDINANCE OF THE CITY COUNCIL OF PUEBLO APPROVING THE
ISSUANCE BY THE URBAN RENEWAL AUTHORITY OF PUEBLO,
COLORADO OF THE AUTHORITY'S REVENUE BONDS (EXPANDED
URBAN RENEWAL PROJECT), SERIES 2006, FOR THE PURPOSE OF
PROVIDING FUNDS FOR THE CONSTRUCTION OF A PARKING
GARAGE, AND PAYING CERTAIN COSTS AND EXPENSES ASSOCIATED
WITH THE ISSUANCE OF THE BONDS; COMMITTING THE CITY
COUNCIL TO CONSIDER FUNDING ANY DEFICIT IN THE AUTHORITY'S
PAYMENT OF THE BONDS IF AND WHEN SUCH DEFICITS ARISE;
APPROVING AN INDENTURE OF TRUST AND PRIVATE PLACEMENT
AGREEMENT IN CONNECTION WITH THE ISSUANCE OF THE BONDS;
AND APPROVING CERTAIN ACTIONS OF THE AUTHORITY
HERETOFORE TAKEN AND TO BE TAKEN HEREAFTER WITH RESPECT
TO THE ISSUANCE OF THE BONDS.
WHEREAS, the City of Pueblo, in the County of Pueblo and State of Colorado (the
"City"), is a municipal corporation duly organized and existing as a home rule city pursuant to
Article XX of the Constitution of the State of Colorado and the home rule charter of the City (the
"Charter"); and
WHEREAS, the Urban Renewal Authority of Pueblo (the "Authority"), is a body
corporate, and has been duly organized, established and authorized by the City to transact
business and exercise its powers as an urban renewal authority under the laws of the State of
Colorado; and
WHEREAS, the Authority is authorized to transact business and exercise its powers as an
urban renewal authority, all under and pursuant to the Colorado Urban Renewal Law,
constituting Sections 31 -25 -101 et seq., Colorado Revised Statutes, as amended (the "Act'); and
WHEREAS, an urban renewal plan, known as the "Downtown Pueblo Amended Urban
Renewal Plan dated May 1985" (the "1985 Plan"), was duly and regularly approved by the City
Council of the City; and
WHEREAS, the City Council of the City duly adopted and approved the Urban Renewal
Plan for the Phase One Urban Renewal Project for Downtown Pueblo (the "Phase One Plan") as
a separate urban renewal plan which modifies the 1985 Plan and provides for an urban renewal
project under the Act known and designated as the "Phase One Urban Renewal Project" (the
"1985 Phase One Project"), which was amended on January 28, 1988 and July 22, 1991 (as
amended, the "Phase One Project "); and
WHEREAS, the City Council amended and expanded the Phase One Plan by the
adoption of the Pueblo Expanded Urban Renewal Project pursuant to Ordinance No. 7113,
adopted on March 22, 2004, minor modifications to which were approved by Ordinance No.
7186, adopted on August 23, 2004 (as modified, the "Expanded Plan" and the "Expanded
Project "); and
WHEREAS, pursuant to the Act, the Authority has the power and authority to issue
bonds to finance its activities under the Expanded Plan; and
WHEREAS, under the Expanded Plan, the Authority desires to finance the construction
of a parking garage (the "Project "); and
WHEREAS, the Authority, by and through its Board of Commissioners, has determined
that it is in the best interest of the Authority and its constituents, including the residents of the
City, to issue, in furtherance of the Plan, its Revenue Bonds (Phase Two Urban Renewal
Project), Series 2006 (the "Bonds "), in an aggregate principal amount not to exceed $9,500,000
for the purpose of providing funds for the construction of the Project; and
WHEREAS, the City has determined that it is in the best interests of the residents of the
City to issue the Bonds, and the City therefore deems it advisable and necessary for the
Authority to issue the Bonds for such purposes as heretofore described; and
WHEREAS, pursuant to Article XI, Section 7 of the Colorado Constitution, and Section
31- 25 -11, Colorado Revised Statutes, the City is authorized to aid, cooperate with and contribute
to the financial support of the Authority; and
WHEREAS, the Expanded Plan Area is just beginning to be developed, and, therefore,
there exists uncertainty as to the adequacy of the Authority's revenues which will be available
for payments on the Bonds; and
WHEREAS, the City has determined that because of the importance of the Project, the
City will agree to consider, at any time there is a deficiency in monies available to pay the
Bonds, whether the City will at that time contribute an amount equal to the deficit; and
WHEREAS, there have been presented to the City Council: (a) a proposed form of the
Private Placement Agreement, dated as of December 2006 (the "Private Placement
Agreement "), between the Authority and Vectra Bank Colorado, and (b) a proposed form of
Indenture of Trust, dated as of December _, 2006 (the "Indenture "), between the Authority and
as Trustee (the "Trustee "); and
WHEREAS, this Ordinance is being adopted to approve the issuance, sale and delivery of
the Bonds.
BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO:
Section 1. Definitions. In addition to terms otherwise defined herein, the following
terms shall have the following meanings, as used herein:
"Authority" means the Urban Renewal Authority of Pueblo, and any successor entity.
4826- 7540 - 3265.1 2
"Series 2006 Debt Service Fund" means the fund by that name created pursuant to
Section 4.02 of the Indenture.
"Bonds" mean the bonds approved by Section 3 hereof entitled Urban Renewal
Authority of Pueblo, Colorado, Revenue Bonds (Expanded Urban Renewal Project), Series 2006.
"Business Day" means any day other than (a) a Saturday or Sunday, and (b) a day on
which banking institutions in the State of Colorado are authorized or obligated by law or
executive order to be closed for business.
"City" means the City of Pueblo, Colorado, and any successor.
"Code" means the Internal Revenue Code of 1986, as amended, and any Regulations
promulgated thereunder.
"Dated Date" means the original issuance date of the Bonds, as established in the Sale
Certificate.
"Indenture" means the Indenture of Trust, dated as of December , 2006, by and
between the Authority and as Trustee.
"Interest Payment Date " means the Interest Payment Date as defined in the Indenture.
"Private Placement Agreement" means the Private Placement Agreement, dated as of
December _, 2006, by and between the Authority and the Purchaser, pursuant to which the
Authority has agreed to sell and the Purchaser has agreed to purchase the Bonds at the prices and
on the terms set forth therein.
"Purchaser" means Vectra Bank Colorado, a Colorado banking corporation, and any
successor or assign.
"Regular Record Date" means the fifteenth day of the month (whether or not a Business
Day) prior to each interest payment date with respect to the Bonds.
"Registered Owner" means any person or persons in whose name or names a Bond shall
be registered on the registration books of the Authority maintained by the Trustee.
"Sale Certificate" means the certificate executed by the Authority's Agent under the
authority delegated pursuant to the Authority's Bond Resolution.
"Special Record Date" shall have the meaning ascribed to such term in Section 4(e)
hereof.
"Supplemental Public Securities Act" means the Colorado Supplemental Public Securities
Act, Title 11, Article 57, Part 2, C.R.S., as amended.
Section 2. General. Except to the extent inconsistent with this Ordinance, all action
heretofore taken by the Authority, the City and their respective officers directed toward
4826- 7540- 3265.1 3
accomplishing the issuance and sale of the Bonds to the Purchaser is hereby ratified, approved
and confirmed.
Section 3. Approval and Purpose of Bonds. For the purpose of funding the
construction of the Project and paying certain costs and expenses associated with the issuance of
the Bonds, the Authority will issue its Revenue Bonds (Expanded Urban Renewal Project),
Series 2006 (the "Bonds ") in an aggregate principal amount not to exceed $9,500,000. The
issuance and sale of the Bonds, in a principal amount not to exceed $9,500,000 and bearing
interest at rates to be determined, but not to exceed a maximum net effective interest rate of
8.50 %, and the form, terms and provisions of the Bonds, in substantially the form set forth in the
Indenture, are hereby approved, with such changes therein as shall be consistent with the
Indenture and this Ordinance and which the officers of the Authority executing the Bonds shall
approve, their execution thereof being deemed conclusive of their approval of any such changes.
Section 4. Covenant Upon Deficiency in Series 2006 Debt Service Fund.
(a) Whenever, one month prior to an Interest Payment Date on the Bonds,
there is a deficit in the Series 2006 Debt Service Fund such that debt service payments
cannot be made in full therefrom on the next succeeding Interest Payment Date or debt
service requirements cannot be met, the Authority shall deliver within two (2) Business
Days a certificate to the City Council (through the City Manager's office) indicating the
sum necessary to meet applicable debt service payments or requirements and include a
request for appropriation of such sums from the City Council. The City Council may, but
shall not be required to, make the appropriations so requested. All sums appropriated by
the City Council for such purposes shall be delivered to the Trustee and deposited in the
Series 2006 Debt Service Fund. Nothing contained in this Ordinance shall be construed
to create or constitute a debt, liability or multiple -fiscal year financial obligation of the
City.
(b) In the event that the City Council appropriates funds as provided in
Subsection (a) hereof, any amounts actually advanced by the City to the Trustee shall be
repaid by the Authority, with interest thereon at a rate to be determined by the City
Council at the time of passage of the appropriate measure, on or before a date similarly
determined and specified in writing to the Authority. The Authority's obligation to repay
such amounts may be evidenced by a note or notes of the Authority, and shall be secured
by a lien upon the revenues pledged in the Indenture, which lien shall be expressly
subordinate and junior to the lien of the Bonds and any obligations having a parity claim
to the same revenues as the Bonds. Unless otherwise provided by a subsequent ordinance
of the City, the requirements of Section 4 of this Ordinance and the City's Approval of
the Bonds, Private Placement Agreement and Indenture as herein provided shall apply
only to the Bonds.
Section 5. Approval of Private Placement Agreement. The form, terms and
provisions of the Private Placement Agreement are hereby approved, and approval is granted to
the Authority to enter into the Private Placement Agreement substantially in the form presented
to the City Council at this meeting, but with such changes as shall be consistent with this
4826- 7540- 3265.1 4
Ordinance and as shall be deemed necessary or desirable by the officer executing the same, such
execution to conclusively show the approval of any revisions to the form hereby approved.
Section 6. Approval of Indenture of Trust. The form, terms and provisions of the
Indenture are hereby approved, and approval is granted to the Authority to enter into the
Indenture substantially in the form presented to the City Council at this meeting, but with such
changes as shall be consistent with this Ordinance and as shall be deemed necessary or desirable
by the officer executing the same, such execution to conclusively show the approval of any
revisions to the form hereby approved.
Section 7. Miscellaneous Documents. The President or Vice President of the City
Council and the City Clerk or Deputy or Assistant City Clerk, are hereby authorized and directed
to execute and deliver any and all closing documents necessary or desirable in connection with
the issuance of the Bonds.
Section 8. Exercise of Home Rule Power. Pursuant to Article XX of the State
Constitution and the Charter, the City hereby determines and declares the issuance of the Bonds
to be a local matter, and therefore all statutes of the State of Colorado which might otherwise
apply in connection with the issuance of the Bonds are hereby superseded, except that the City
chooses to apply the provisions of the Colorado Supplemental Public Securities Act to the
Bonds, as set forth above in this Ordinance.
Section 9. Further Action. The officers of the City are hereby authorized and directed
to take all other action necessary or appropriate, on behalf of the City, to effectuate the
provisions of this Ordinance, including the printing of the Bonds and the execution of such
certificates as may reasonably be required by bond counsel. The President or Vice President of
the City Council is hereby specifically authorized and directed to execute a "Tax Compliance
Certificate" on behalf of the City in connection with the Bonds.
Section 10. Severability. If any provision of this Ordinance shall be held or deemed to
be or shall, in fact, be illegal, inoperative or unenforceable, the same shall not affect any other
provision or provisions hereof or render the same invalid, inoperative or unenforceable to any
extent whatever.
Section 11. Governing Law. This Ordinance will be governed by and construed in
accordance with the laws of the State of Colorado.
Section 12. Repeals. All ordinances, or parts thereof, in conflict with this Ordinance,
are hereby repealed to the extent of such conflict. After the Bonds have been issued, this
Ordinance shall be and remain irrepealable until the Bonds and the interest thereon shall be fully
paid, satisfied and discharged in the manner herein provided, or sufficient provision shall have
been made for such payment, satisfaction and discharge. After any of the Bonds are issued, this
Ordinance shall be and remain irrepealable until the Bonds and interest thereon shall be fully
paid or provided for.
Section 13. Records. A true copy of this Ordinance, as adopted by the City Council of
the City, shall be numbered and recorded, and its adoption and publication shall be authenticated
4826- 7540- 3265.1
by the signatures of the President or Vice President of the City Council and City Clerk or Deputy
or Assistant City Clerk.
Section 14. No Recourse Against Officers, Employees or Agents. No recourse shall
be had for the payment of the principal of or premium, if any, or interest on any of the Bonds or
for any claim based thereon or upon any obligation, covenant or agreement contained in this
Ordinance against any past, present or future officer, employee or agent of the City, or of any
successor public corporation, as such, either directly or through the City or any successor public
corporation, under any rule of law or equity, statute or constitution or by the enforcement of any
assessment or penalty or otherwise, and all such liability of any such officers, employees or
agents as such is hereby expressly waived and released as a condition of and consideration for
the passage of this Ordinance and the issuance of the Bonds.
[The remainder of this page is left blank intentionally.]
4826 -7540- 3265.1 6
INTRODUCED AND PRESENTED FOR A FIRST TIME ON OCTOBER 10, 2006,
ORDERED PUBLISHED BY TITLE ONLY, PRESENTED A SECOND TIME AND
FINALLY PASSED AND ADOPTED ON OCTOBER 23, 2006.
ATTEST:
City 9erk
APPROVED AS TO FORM BY
CITY ATTORNEY:
City Attomey
INTRODUCED: OCTOBER 10, 2006
B Randy Thurston
Councilperson
APPROVE
Presi ent of the City Council
4826.7540.3265.1 7
Background Paper for Proposed
ORDINANCE
DATE: 10/10/06
&d . : 0 '7530
AGENDA ITEM # 22
DEPARTMENT: URBAN RENEWAL AUTHORITY OF PUEBLO
Mike Tedesco, Assistant City Manager / Urban Renewal
TITLE
AN ORDINANCE OF THE CITY COUNCIL OF PUEBLO APPROVING THE ISSUANCE
BY THE URBAN RENEWAL AUTHORITY OF PUEBLO, COLORADO OF THE
AUTHORITY'S REVENUE BONDS (EXPANDED URBAN RENEWAL PROJECT),
SERIES 2006, FOR THE PURPOSE OF PROVIDING FUNDS FOR THE
CONSTRUCTION OF A PARKING GARAGE, AND PAYING CERTAIN COSTS AND
EXPENSES ASSOCIATED WITH THE ISSUANCE OF THE BONDS; COMMITTING
THE CITY COUNCIL TO CONSIDER FUNDING ANY DEFICIT IN THE AUTHORITY'S
PAYMENT OF THE BONDS IF AND WHEN SUCH DEFICITS ARISE; APPROVING AN
INDENTURE OF TRUST AND PRIVATE PLACEMENT AGREEMENT IN
CONNECTION WITH THE ISSUANCE OF THE BONDS; AND APPROVING CERTAIN
ACTIONS OF THE AUTHORITY HERETOFORE TAKEN AND TO BE TAKEN
HEREAFTER WITH RESPECT TO THE ISSUANCE OF THE BONDS.
ISSUE
Should City Council approve the issuance by the Urban Renewal Authority of Pueblo
Revenue Bonds for the construction of a 732 space parking garage?
RECOMMENDATION
Approval of the Ordinance.
BACKGROUND
The Urban Renewal Authority of Pueblo is selling approximately $8.85 million in
revenue bonds in an effort to construct a 732 space parking structure located directly
north of the City's Fleet Maintenance Building. The City of Pueblo will utilize 300 parking
spaces within the structure. By doing so, the City will contribute, on an annual basis,
40.98% of the annual debt service, or $388,000. As well, in the event there is a shortfall
in TIF revenue as collected by the Urban Renewal Authority, the City will have a "moral
obligation" to replenish any such shortfall to insure debt coverage is met.
FINANCIAL IMPACT
Upon loan stabilization in 2010, the City's minimum annual obligation will be
approximately $388,000.