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^. a= } ' -.D OFFICE OF WELD COUNTY CLERK AND RECORDER
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GREELEY, COLORADO 20631631
COLORADO
STATE OF COLORADO)
COUNTY OF WELD )
I, Mary Ann Feuerstein, County Clerk and Ex-officio
Clerk of the Board of County Commissioners in and for the County
of Weld, State of Colorado, do hereby certify that the attached
documents have been transcribed flow the tape recording regarding
the Tri County Hangar application for Industrial Development Revenue
Bonds from the records of the Board of County Commissioners of
said Weld County, now in my office.
IN WITNESS WHEREOF, I have hereunto set my hand and
affixed the seal of said County, at Greeley, Colorado, this 11 th
day of March , A. D. , 1983.
COUNTY CLERK
BY:. \
w ..G ,\ 1 - - peputy County-clerk
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800761
BEFORE THE BOARD OF COUNTY COMMISSIONERS
WELD COUNTY, COLORADO
DOCKET NO. 80-72
IN RE: TRI-COUNTY HANGAR COMPANY, INDUSTRIAL REVENUE BONDS
NOVEMBER 24, 1980 - 10:00 A.M.
COMMISSIONERS PRESENT:
BILL KIRBY, CHAIRMAN
LEONARD ROE, PRO TEM
NORMAN CARLSON
LYDIA DUNBAR
JUNE STEINMARK
ALSO PRESENT:
APPLICANT APPEARING PRO SE
THOMAS O. DAVID, COUNTY ATTORNEY
DONALD D. WARDEN, DIRECTOR OF FINANCE AND
ADMINISTRATIVE SERVICES
KEITHA WHITE, ACTING CLERK TO THE BOARD
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CHAIRMAN KIRBY: Okay, call the, ah, hearing to
order. This is a public hearing regard industrial
development revenue bonds for Tri-County Hangar Company.
Ah, Tom, do you want to make the record? (Inaudible) We
need to call the roll again.
CLERK: Norman Carlson
COMMISSIONER N. CARLSON: Here
CLERK: Lydia Dunbar
COMMISSIONER DUNBAR: Here
CLERK: Leonard Roe
COMMISSIONER ROE: Here
CLERK: June Steinmark
COMMISSIONER STEINMARK: Here
CLERK: Bill Kirby
CHAIRMAN KIRBY: Here
MR. DAVID: This is a Resolution in re: Declaration
of Weld County' s Intent to Authorize the Issuance and Sale
of Industrial Development Revenue Bonds for Tri-County Hangar
Company. Whereas, the Board of County Commissioners of Weld
County, Colorado, pursuant to Colorado statute and the Weld
County Home Rule Charter, is vested with the authority of
administering the affairs of Weld County, Colorado, and;
Whereas, Weld County, Colorado, the issuer, a county
constituting a public, a political subdivision of the State
of Colorado, is authorized and empowered by the provisions
of the County and Municipality Development Revenue Bond Act,
Article 3, Title 29 , Colorado Revised Statutes 1973, as
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amended, the act, to finance a project, as that term is
defined in the act, and to issue its industrial development
revenue bonds for the purpose of paying the cost of financing
a project, and; Whereas, Tri-County Hangar Company, the
company, has requested the issuer to issue for sale or for
placement by the First National Bank of Denver, subject to
the unqualified approving opinion of Ballard, Spahr, Andrews
& Ingersoll, bond counsel, its industrial development revenue
bonds pursuant to the provisions of the act for the purpose
of financing an industrial and commercial facility constituting
a project, as that term is defined in the act, the project,
for the company, and; Whereas, the issuer wishes to declare
its intention to authorize an issue of its industrial develop-
ment revenue bonds for the purpose of paying the cost of
financing the project, when so requested by the company, upon
such terms and conditions as may then be agreed upon by the
issuer, the company and the purchaser of the bonds. Now,
therefore, be it resolved by the Board of County Commissioners
of Weld County, Colorado that it does hereby declare its
intention to authorize the issuance of industrial development
revenue bonds, under and in accordance with the act, in an
amount necessary to pay the cost of the project as described
in attachment A, presently estimated to be $1 ,110,000, and
upon such terms and conditions as may be mutually agreed upon
by the issuer, the company and the purchaser of such bonds,
the issuance and sale of such bonds to be authorized by an
ordinance of the issuer at a meeting to be held for such
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purpose. Be it further resolved that by the Board of County
Commissioners of Weld County, Colorado that such bonds and
the interest coupons, if any, appurtenant thereto shall
never constitute the debt or indebtedness of the issuer with-
in the meaning of any provision or limitation of the consti-
tution or statutes of the State of Colorado or the charter
of the issuer, and shall not constitute nor give rise to a
pecuniary liability of the issuer or a charge against its
general credit or taxing power. Attachment A, referred to,
item number one, is the project, will be located in Weld
County to-wit, at the Tri-County Airport in Erie; item
number two, the project will generally consist of a leasehold
hangar buildings, office buildings and related equipment.
CHAIRMAN KIRBY: Okay, would anyone in the audience
that is interested in this hearing, please sign an attendance
sheet. I guess we're ready for the applicant to come forward
if he would please.
MR. WARDEN: Mr. Chairman, if I might interject,
this has been reviewed by the staff and as far as the appli-
cation and for the record, it does comply with the require-
ments of, ah, Ordinance 69-A, set by your Board as far as,
ah, aspects of the application and it' s also been referred
to EDAB, as far as their review. I think, ah, Mr. Rod
Robertson is here to comment for that perspective, but it
does comply from the financial and the planning, ah, per-
spective and legal issues, ah, as reviewed by, by staff, ah
with the supplemental information received on the financial
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aspects, so I just offer that to you.
CHAIRMAN KIRBY: Thank you, Don. If you would come
to any one of the, ah, three mikes and state your name for the
record, just anything you'd like to tell us about the
application.
DAVID B. WILKIN: My name is David B. Wilkin. I am
president of Tri-County Hangar Company, the project, that, ah,
we are going to construct with, ah, the resources authorized
by yourselves, consists essentially of 87 T-Hangar Units ,
ah, for use by light general aviation aircraft at Tri-County
Airport. Um, the reason we are here and I am here and before
you people , is that there is no other source of financing
available for this type of building and, ah, we find it, ah,
the IRB process lends itself and in fact, seems to have been
designed in fact, for this type of development, wherein, ah,
we are able to provide the buildings and, ah, financing, ah,
ah, made possible through, ah, ah, political bodies, such as
yourselves authorizing this kind of funding.
CHAIRMAN KIRBY: Okay, are there questions for Mr.
Wilkins?
COMMISSIONER STEINMARK: Mr. Wilkins, how many
people will be employed, um, at the hangar units?
MR. WILKIN : Well, I would say, probably, the direct,
um, employment, as a result of these buildings , ah, might
number anywhere between, ah, um, 3 to 7 or 8 people, ah,
that the employment benefits of this type of construction are
obviously downstream and relate from the overall development
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of the airport itself as an attraction for business and
industry in the area.
COMMISSIONER STEINMARK: It' s my understanding
that you will lease out these 87 , ah, spaces in order . . .
MR. WILKIN: That' s correct.
COMMISSIONER STEINMARK: Have you figured the
difference between conventional financing and the cost of
leasing space in comparison to going the IRB and leasing
spaces?
MR. WILKIN: Well, we really have, there is, we
have no source of conventional financing. Um, this is the
only way their buildings are financed through municipalities
who generally are in the business of building these type of
buildings. Ah, it' s very unusual to find a municipality that
will commit themselves to an obligation, ah, in the amount
of, ah, a million dollars or more, the type that' s required
to bring airport development up to the overall production
of the aircraft, within the industry.
CHAIRMAN KIRBY: Okay, are there other questions?
MR. WARDEN: I think this, this came up, ah, one
other time and maybe for the record, ah, I think there is a
question posed by one of the Board members regarding how do
municipalities finance hangars. Primarily, they do use a
bonding mechanism of a revenue bond under, ah, Colorado
statutes and that' s really pledging the revenue that will be
generated from the rental to liquidate the debt and ah,
there is some similarity in that respect too, to this ohly
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the IRB is a vehicle for a private entity as opposed to, ah,
a municipality. Also, I think it might be good, again for
the record, to explain the proposed financial arrangement
and the involvement of Farmers Home which will guarantee, ah,
this IRB, beyond just the regular county . . . .
MR. WILKIN: All right, ah, we have secured a loan
guarantee from the Farmers Home Administration under their
business and industry loan program. Ah, this guarantee, ah,
provides that, ah, FMHA wil], if there is any default involved
in the payment of these, ah, obligations, ah, step in and assume
that obligation. Ah, we have obtained that guarantee because
of the difficulty involved in securing this type of financing
and ah, are using it as a backup to, ah, the normal self
liquidating process of paying off the bonds through the rents
that will come in from the buildings.
CHAIRMAN KIRBY: Okay, are there any questions?
If not, right now, we' ll ah, let Mr. Robertson comment.
MR. ROBERTSON: Good morning, Commissioners.
CHAIRMAN KIRBY: Good morning!
MR. ROBERTSON: My name is Rod Robertson, manager
of Economic Development for the Greeley area Chamber of
Commerce. As Mr. Warden indicated, he has given us the
opportunity to review this financial package. At the outset,
ah, we did have some minor questions, those have now been
resolved and we feel this is a quality application. I think
from our standpoint of view is, ah, the fact that this
represents a support service, ah, one that, ah, in the long
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run will enable us to also continue to solicit the quality
prospects to the area. As you know, ah, we are working
County wide and this will lend us that support we need to
justify the application. Thank you.
CHAIRMAN KIRBY: Okay. Thank you. Is there anyone
in the audience that wishes to speak against this application?
Are there any other questions or comments from the Commissioners?
COMMISSIONER STEINMARK: Perhaps for the record,
the applicant could explain why, um, the bonds were not issued
through the town of Erie, since it is within the city limits.
MR. WILKIN: Primarily, we came to you
CHAIRMAN KIRBY: Excuse me, would you state your
name again, I , because of the tape.
MR. WILKIN: David B. Wilkin. In answer to, ah,
June Steinmark' s question, um, primarily, we came to the
county commissioners because of your experience in issuing
these type of obligations and the relative lack of experience
in the town in dealing with these type of things, ah, we 've
been recommended to deal with the County through another
individual who has invested in the airport, ah, who had, ah,
previous to this, ah, requested, ah, ah, the issuance of IRB' s
for the construction of a factory facility there and we just
felt, ah, that it would behoove us to deal with people who
are more experienced in issuing these obligations.
CHAIRMAN KIRBY: Okay
COMMISSIONER STEINMARK: I guess I have one more
question, ah, this apparently, if I remember previous dis-
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cussions correctly, it' s not the total number of T-Hangars
you would like to put on that property, is that . . .
MR. WILKIN: That' s correct
COMMISSIONER STEINMARK: Is it going to be financially
feasible to recoup sufficient funds from, from these start up
monies to in fact make the subsequent T-Hangars go out to the
private market?
MR. WILKINS: No, ma'am. Um, because, um, there,
there isn' t any source of conventional financing for these
buildings. Ah, and ah, because there, we had, we . . . . of
necessity we had to start with an initial funding that was
pretty much determined by the federal, guar. . . . , agency
guaranteeing this program. Ah, and it had to do with close
of their fiscal year and allocation of a certain amount of
money that could be approved within Denver, that we started
with this million dollar authorization. Um, quite honestly
and frankly we have, ah, we have plants in . . . , investing up
to ten million dollars in private capital, secured similarly
in this one aiport and we ' ll hope to come back to you and
show you where we want to do this in two other airports with-
in your county, over and over.
CHAIRMAN KIRBY: Okay, are there other questions?
COMMISSIONER N. CARLSON: What per cent of occu-
pancy do you anticipate? I am sure that you're hoping for a
hundred percent, but is there any figure lower than that,
ah, can still make this a feasible project. I know that the
rent from these 87 units will be necessary to pay off the
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project and pay operating expenses.
MR. WILKIN: Sixty-six percent occupancy will, will
ah, serve the debt service. So, ah, but ah, in fact we rea-
lize that it would be one hundred percent and these are the
first three hangars, there' s no, really as much question about
it, our demand is phenomenal.
CHAIRMAN KIRBY: Okay, what' s the wish of the Board?
COMMISSIONER N. CARLSON: Mr. Chairman, I would
make a motion we adopt the Resolution, Declaration of Weld
County' s Intent to Authorize the Issuance of, ah, and Sale
of Industrial Development Revenue Bonds for Tri-County Hangar
Company.
CHAIRMAN KIRBY: Is there a second?
COMMISSIONER STEINMARK: Mr. Chairman, I 'm going
to second the motion, it really doesn't meet my general criteria
for issuing industrial revenue bonds, however, if the private
sector has to compete with the municipal sector and municipals
build their T-Hangars by, ah, tax exempt bonds, I presume we
should give the private sector the same advantage, so I would
second the motion.
CHAIRMAN KIRBY: It has been moved by Norman Carlson,
seconded by June Steinmark, that we authorize the Resolution
for the Declaration of Weld County' s Intent to Authorize the
issuance and Sale of Industrial Development Revenue Bonds for
the Tri-County Hangar Company. Is there further discussion?
I would ask for a roll call vote.
CLERK: Norman Carlson .
COMMISSONER N. CARLSON: Yes
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CLERK: LYDIA DUNBAR
COMMISSIONER DUNBAR: Yes
CLERK: Leonard Roe
COMMISSIONER ROE: Yes
CLERK: June Steinmark
COMMISSIONER STEINMARK: Yes
CLERK: Bill Kirby
CHAIRMAN KIRBY: Yes. Motion carried unanimously.
Is there any other business to come before this hearing?
DON WARDEN: Mr. Chairman, I , I think just for the
record we might advise the applicant that if in the event,
because in the past, industrial revenue bond process, as
far as going through and getting all the paper work and the
ultimate bond ordinance, ah, sometimes its gone as long as
twelve months, I, I don't know what exact time frame would
be, but ah, after January there would be new members of the
Board, although the majority who voted in favor would be here,
if there was need for an emergency ordinance, there ' s no
assurance that, that one of the two new Board members would
be in favor or, or even vote on that particular ordinance
which may mean that you'd have to go through the long process
of about a forty-five to sixty day, one, two and three reading
of the ordinance which you should take into consideration
as far as your financial arrangements. In the past, that in
all cases except one, we've gone through the emergency ordin-
ance process to accommodate the, or expedite closing of some
of the loans, etc. But with, ah, the potential that you
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wouldn' t have four votes, that may not be possible , so . . . .
CHAIRMAN KIRBY: Yes
MR. WARDEN: They (inaudible voices) should plan
accordingly, I (inaudible voices) can maybe explain in more
detail later, but . . . .
MR. WILKIN: Thank you very much.
CHAIRMAN KIRBY: Thank you. Is there any other
business to come before this hearing? Hearing adjourned.
BEFORE THE BOARD OF COUNTY COMMISSIONERS
WELD COUNTY, COLORADO
BOARD MEETING EXCERPT
MAY 13, 1981 - 9 : 00 A.M.
AGENDA - ITEM #1 UNDER THE HEADING, OLD BUSINESS -
SUPPLEMENTAL RESOLUTION TRI-COUNTY HANGAR CO. , REVENUE BONDS
COMMISSIONERS PRESENT:
CHUCK CARLSON, CHAIRMAN
NORMAN CARLSON, PRO TEM
BILL KIRBY
JOHN MARTIN
JUNE STEINMARK
ALSO PRESENT:
APPLICANT PRO SE
THOMAS O. DAVID, COUNTY ATTORNEY
DONALD D. WARDEN, DIRECTOR OF FINANCE AND
ADMINISTRATIVE SERVICES
JEANNETTE ORDWAY, ACTING CLERK TO THE BOARD
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CHAIRMAN C. CARLSON: Next item on our agenda this
morning is a Supplemental Resolution Tri-County Hangar.
MR. DAVID: Yes, Mr. Chairman, the Board adopted
the original Resolution on November 24, 1980, and a second
Resolution, April 6, 1981 concerning the issuance of the
industrial revenue bonds for the, ah, for the project that
is known as the Tri-County Hangar Company project. This
Resolution has been proposed which would approve the changing
of the status of the applicant from, ah, the airport develop-
ment corporation, doing business as Tri-County Hangar Company
to the Tri-County Hangar Company, a Colorado limited partner-
ship, and ah, the Tri-County, ah, ah, rather, the airport
development corporation would be the sole general partner in
this limited partnership. This would, ah, the effect of
this Resolution would be to eliminate any possible question
about the tax exempt status of the bonds and, ah, the
Resolution approved would approve this change and would
further authorize the, to reflect this change throughout the
other instruments that are being prepared. The closing is
scheduled in Denver for May 21, with the pre-closing in
Greeley, May 20th. Don has, has ah, reviewed the proposed
Resolution. I 've reviewed it, it was submitted by Mr.
Chappelle from Philadelphia. We would recommend that the
Board, ah, take action on it this morning.
COMMISSIONER N. CARLSON: I would so move
COMMISSIONER KIRBY: Second
CHAIRMAN C. CARLSON: It was moved by Norm, seconded
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by Bill, that we approve this, ah, Resolution for the
Tri-County Hangar Company revenue bonds. Any discussion?
If not, all in favor say aye.
COMMISSIONERS: Aye
CHAIRMAN C. CARLSON: Opposed, no. The motion is
carried.
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