HomeMy WebLinkAbout830601.tiff RESOLUTION
RE: APPROVING AN ECONOMIC DEVELOPMENT PROJECT FOR DAYTON HUDSON
CORPORATION; MAKING FINDINGS AND AUTHORIZING BOND FINANCING
IN CONNECTION THEREWITH; AND AUTHORIZING OFFICERS TO TAKE
ACTION INCIDENTAL THERETO .
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, Dayton Hudson Corporation (the "Company") has
requested this County to undertake a project (the "Project" ) con-
sisting of the financing for the Company of certain economic
development facilities located in the City of Greeley, Weld
County, Colorado, as described in a letter application of the
Company submitted to this meeting (a copy of which shall be filed
with the records of the County) ;
NOW, THEREFORE, BE IT RESOLVED by the Board of County Com-
missioners of Weld County, Colorado, as follows :
Section 1. Based upon the representations made by the
Company, the County hereby approves the Project and makes the
following findings in connection therewith:
A. The Project constitututes a "project" for purposes of
the Colorado County and Municipality Development Revenue
Bond Act (the "Act") in that it consists of properties,
other than inventories , raw materials and other working
capital, suitable or to be used for or in connection
with a commercial facility to be owned and operated by
a business enterprise; and
B. The Project will promote the public purposes of the Act
by promoting industry and developing trade through the
inducement of the Company to locate, maintain and expand
its operations, mitigating a threat of unemployment and
securing and maintaining a balanced and stable economy.
830601
Section 2 . The letter application from the Company is hereby
approved and accepted. The County will issue its Industrial Develop-
ment Revenue Bonds or Notes for the financing of the Project up to
a maximum aggregate principal amount of $2, 000 , 000 , such Bonds to
be issued in compliance with the Act, to be subject to such terms
and conditions as the Board of County Commissioners shall approve by
subsequent proceedings, and to be special , limited obligations of
the County, payable solely from the revenues derived from the
financing of the Project facilities for the Company; provided that
all of the foregoing shall be authorized by law and shall be mutually
acceptable to the County and the Company.
Section 3 . Any bonds, notes or other obligations issued to
assist in the financing of the Project shall not be a general debt
or liability of this County or of the State of Colorado or any other
political subdivision thereof and shall not create , within the
meaning of any constitutional provision or otherwise, any indebted-
ness, of the State of Colorado or of any such political subdivision.
Section 4 . For purposes of the Act, this Resolution shall
constitute authorization for the issuance of bonds or notes by
the County for the Project, and, in accordance with the Act, no
action may be brought questioning the legality of any contract,
agreement, proceedings, bonds or notes following the passage of any
statutory period following the effective date of this Resolution.
Section 5. The proper officers of the County are hereby
authorized to take all action necessary to accomplish the purposes
of this Resolution, including (i) acceptance of the letter applica-
tion, and (ii) the negotiation of agreements in connection with the
financing of the Project.
Section 6 . This Resolution shall take effect immediately upon
its adoption.
-2-
The above and foregoing Resolution was, on motion duly made
and seconded, adopted by the following vote on the 2nd day of
March, 1983.
BOARD OF COUNTY COMMISSIONERS
ATTEST : WELD COUNTY, COLORADO
�f
Weld County Clerk and Recorder O vim.
CTeerI\ to the Board---- Ch ck Carlson, Chairman
By:: Q-'ham r i ' _ ,,
/ Deg ty County Clerk . Marti Pro-Tem
AI3ROV AS TO FO
(:::--22} � ene R. Brantner
County Attorney
Norman Carlson
a.quel e Johras\nnt‘.1A'(---
-3- DAY FILE: March 2, 1983
A public hearing was conducted on March 2 , 1983 at 10:40 A M. , with
the following present:
Chuck Carlson Chairman
John Martin Pro Tem
Gene Brantner Commissioner
Norman Carlson Commissioner
Jacqueline Johnson Commissioner
Also present:
Acting Clerk to the Board, Jeannette Sears
-_Assistant County Attorney, Tom David
Planning Department Representative, None
The following business was transacted:
I hereby certify that pursuant to a notice dated February 7, 1983,
duly published on February 10, 1983 in the LaSalle reader, a public hearing
was held on the request of Dayton Hudson Corporation (Target Stores) for
Industrial Development Revenue Bonds. The County Attorney made the record.
Mr. Warden read into the record the staff's comments dated February 14, 1983.
Mr. Warden stated that the applicant meets all the essential financial criteria;
however, items 3.3(c) Letter From Principal Banker, 3.3(d) Major Customer of
Applicant, and 3.3(f) Five Year Pro Forma Projections should be waived by the
Board. The high credit rating are in lieu of 3.3 (c) . Major customers of a
retail establistunent do not fit the requirements of 3.3(d) . For competitive
reasons, 3.3(f) is not provided, but in recognition of the high credit rating,
the requirement is not relevant in consideration of this issue. Mr. Warden
listed the companies and/or firms that referral letters were sent to solicit
their comments on the issuance of industrial revenue bonds for the Target
Store. Mr. Warden stated that he had not received any written responses,
however, he has received several verbal favorable responses. Commissioner
Johnson moved to waive the requirements as listed in the second paragraph
of the memorandum dated, February 14, 1983. Commissioner N. Carlson seconded
the motion and it carried unanimously. Dawn I. Hyde, assistant vice president
with Dan Bosworth, and a representative from the Dayton Hudson Corporation,
Art Smith, were present. Ms. Hyde expressed her appreciation to the Board
for their consideration to this request. Ms. Hyde stated that this firm is
a retail establishment but retail is in fact the most labor intensive industry
and Target proposes to bring over 200 jobs into the City of Greeley. She
commented on the related benefits. Mr. Smith expressed his appreciation to
the Ord. The two million dollars will fund the refurbishing of the Woolco
Store, located in the Hillside Mall, into a Target Store. He commented on
Target's approach to retailing. The Target firm should be an asset to the
community, stated Mr. Smith. They plan to pay la million dollars per year
in wages, in excess of $40,000 annually in property taxes, will pay about
$300,000 per year in city sales tax. He also commented on their community
giving program and their method of making the contributions. Former Weld
County Commissioner, Bill Kirby, stated that more retail establishments are
able to finance with tax exempt bonds in opposition to Target in this issue.
He thinks for the record that it is important to note that a great number of people
should have concerns regarding the financing of retail establishments that do
compete with locally operated businesses that are smaller and do not have this
method of financing available to them. Mr. Kirby could not understand how
the general public and especially other retailers allow this to happen.
This is another edge in the lowering of the cost of doing business. He believes
that the legislation is horrible to allow this to happen. Commissioner N. Carlson
stated that when he first intzoduced IRB his intent was to bring industry rather
than retail business to this area. He would rather support this type of request than
CETA or the new Jobs Training Program. He feels that this request is an
indirect use of taxpayers dollars. After additional discussion, Commissioner
N. Carlson moved to approve an economic development project for Dayton Hudson
Corporation; making findings and authorizing bond financing in connection
therewith; and authorize officers to take action incidental thereto.
Commissioner Brantner seconded the motion. Commissioner Johnson expressed
her appreciation to Bill Kirby for his remarks and she shares a portion of
her thoughts, however, she is aware of the ecomnic conditions and the needs
of the city and the County. She added that she will support the motion but
it has not been an easy decision. Commissioner Brantner said that he has
sane reservations, however, he concurred with Commissioner Johnson.
Commissioner Martin said that it is a changing world and competition can
be very good. The Target Store will be a big drawing card and it will pull
business and buyers to this area. He feels that everyone has more to gain
if this request is approved. The Chairman commented on the numerous
firms that were contacted and requested to respond regarding this matter.
Commissioner N. Carlson said that when he first heard of this request he
was opposed to it, however, after studying the application he feels he must
support the request because it will bring shoppers to Greeley. The motion
carried unanimously.
i—a22BOARD OF COUNTY COMMISSIONERS
ATTEST:
WELD COUNTY CTFRK AND RECORDER
AND CLERK TO THE BOARD
BY: O7<-nt c) L .Tu-r_z
De ty County Cl k
Docket #83-8
TAPE #83-14
Ordinance #114
NOT I C E
PUBLIC HEARING
INDUSTRIAL DEVELOPMENT REVENUE BONDS
FOR DAYTON HUDSON CORPORATION (TARGET STORES)
Docket 83-8
NOTICE IS HEREBY GIVEN of a hearing before the Board of County Commissioners
of Weld County, Colorado, on the 2nd day of March, 1983, at the hour of
10:00 a.m. , in the Weld County Commissioners hearing room, first floor, Weld
County Centennial Center, 915 10th Street, Greeley, Colorado, for the purpose
of considering the application from Dayton-Hudson Corporation (Target Stores)
for Weld County to issue $2,000,000 in Industrial Development Revenue Bonds.
The proposed bond issue is to renovate and equip a retail Target store. This
procedure is in accordance with the County and Municipality Development
Revenue Bond Act, Section 29-3-101, et seq. , CRS 1973 as amended.
Copies of the application for Industrial Development Revenue Bonds are on
file in the Office of the Clerk to the Board of County Co mmissioners located
on the 3rd floor, Weld County Centennial Center, 915 10th Street, Greeley,
Colorado, and may be inspected during regular business hours.
Following the close of the public hearing, the Board of County Commissioners
will consider whether or not to proceed with the issuance of Industrial
Development Revenue Bonds.
All interested parties under the law will be afforded an opportunity to be
heard at said hearing.
This notice given and published by order of the Board of County Commissioners,
Weld County, Colorado.
DATED: February 7, 1983
THE BOARD OF COUNTY COMMISSIONERS
BY: MARY ANN FEUERSTEIN
WELD COUNTY CLERK AND RECORDER
AND CLERK TO THE BOARD OF COUNTY
COMMISSIONERS
BY: Jeannette Sears, Deputy
PUBLISHED February 10, 1983 in the LaSalle Leader
mEmoRAnDum
W�`P Board of County Commissioners February 14, 1983
To y , Date
COLORADO From Don Warden
Industrial Revenue Bond Application from Dayton Hudson
Subject:
Corporation (Target Stores)
In analyzing the IRB application of Dayton Hudson Corporation (Target Stores) ,
they have complied with all the application requirements of Ordinance 69—A.
The project meets the legal requirements per the bond counsel opinion of
Ballard, Spahr, Andrews, and Ingersoll. The planning criteria are met in that
the location is in the Hillside Mall Shopping Center which is commercially
zoned by the City of Greeley (replacing the former Woolco Store). Based upon
the high credit rating by Standard and Poor's Corporation (AA) and Moody's
Investor's Service (Aa2) , the corporation would appear to have no problem in
liquidating the bonded indebtedness of the two million dollar proposed
industrial revenue bond.
The applicant meets all the essential financial criteria; however,
items 3.3(c) Letter From Principal Banker, 3.3(d) Major Customer of Applicant,
and 3.3(f) Five Year Pro Forma Projections should be waived by the Board. The
high credit ratings are in lieu of 3.3(c) . Major customers of a retail
establishment do not fit the requirements of 3.3(d) . For competitive reasons,
3.3(f) is not provided, but in recognition of the high credit rating, the
requirement is not relevant in consideration of this issue.
Although the application conforms to all the requirements of Ordinance 69-A,
the issue of an IRB for a retail establishment is a policy issue for your
Board at the conclusion of the hearing process. No staff recommendation is
made on the policy question of IRB's for a retail establishment. Exhibit "X"
is a benefit statement that highlights the benefits to the City of Greeley and
Weld County from the location of the Target Store in the community in
conjunction with the requested revenue bond financing.
Referral letters have been sent to the Chamber of Commerce, Economic
Development Advisory Board, City of Greeley, and merchant associations in the
Greeley area to solicit their comments on the issuance of the industrial
revenue bond for Target Stores. It has been requested that those comments be
sent to the Board of County Commissioners in writing no later than the hearing
date or that individuals wishing to make comments, appear at the hearing to
make oral presentations. Hopefully, these referral letters and comments that
may follow from them will allow the Board to make the policy determination as
to the appropriateness of an industrial revenue bond for a Target Store which
is a retail establishment.
4/r ,.
1 ' 1383
0Re4er. �o� u
a
LAW OFFICES
BALLARD, SPAHR, ANDREWS 8c INGERSOLL
SEVENTEENTH STREET PLAZA BUILDING 30 SOUTH r7.,+ STREET
SUITE 2300 PHILADELPHIA. PA. 19103
215 564-1600
1225 17r1+ STREET TELEX: 83-4532
DENVER, COLORADO 80202 SUITE 1100
303 292-2400 1650 K STREET, N. W.
WASHINGTON, D. C. 20006
202 466-5800
January 28 , 1983 TELEX. 90-4165
HAMBURGER ALLEE 2-10
6000 FRANKFURT/MAIN 90
FEDERAL REPUBLIC OF GERMANY
Board of County Commissioners 10610 77 50 83
Weld County, Colorado TELEX: 4169617
P. O. Box 758
Greeley, CO 80632
Re : $2 , 000 , 000 Aggregate Principal Amount
of Industrial Development Revenue Bonds
(Dayton Hudson Corporation Project)
Honorable Members of the Board:
Reference is made to our letter dated January 25 ,
1983 , a copy of which is attached hereto, addressed to you in
regard to the above-described Project and a request by Dayton
Hudson Corporation for industrial development bond financing
therefor pursuant to the Colorado County and Municipality
Development Revenue Bond Act. We have been advised that Day-
ton Hudson will be leasing rather than purchasing the existing
building, and the proceeds of the bonds would be used to finance
leasehold improvements and equipment only. While we believe the
term of the leasehold will be relevant to the exempt status of
interest on the bonds under federal tax law, the fact that Day-
ton Hudson will not own the building does not change our prior
conclusion. Therefore, this letter will confirm our opinion
that the Project and its financing is permitted by the Colorado
County and Municipality Development Revenue Bond Act.
Very truly ours,
J. M 4 rdne
JMG: fj/A4
cc: M/M Hyde
Kranz
David
LAW OFFICES
BALLARD, SPAHR, ANDREWS a INGERSOLL
SEVENTEENTH STREET PLAZA BUILDING 30 SOUTH 17TH STREET
PHILADELPHIA, PA. 19103
SUITE 2300
215 564-18.00
1225 17TH STREET TELEx: 83-4532
DENVER, COLORADO 80202 SUITE 1100
303 292-2400 1850 K STREET, N. w.
WASHINGTON, O. C. 20006
January 25, 1983 202 466-5800
TELEX: 90-4185
HAMBURGER ALLEE 2-10
Board of County Commissioners 6000 FRANKFURT/MAIN 90
FEDERAL REPUBLIC OF GERMANY
Weld County, Colorado 1061277 50 93
)
P. O. Box '/ 558 TELEX: 4189617
Greeley, CO U 80632
Re : $2, 000, 000 Aggregate Principal Amount
of Industrial Development Revenue Bonds
(Dayton Hudson Corporation Project)
Honorable Members of the Board:
We have reviewed a draft of an application submitted
by Dayton Hudson Corporation requesting your approval of the
financing of a Project consisting of the acquisition of an ex-
isting commercial building in the City of Greeley and the reno-
vation and equipping thereof for use as a Target Store . We
understand that the Company has not yet acquired the property
and will not do so prior to your approval. We are of the opin-
ion that the County' s issuance of the above-referenced bonds ,
insofar as the proceeds will be used to finance the acquisition
and construction of such Project and other real and personal
property (other than inventories, raw materials and working
capital) used in connection with a business enterprise , is per-
mitted by and falls within the intent and meaning of the Colorado
County and Municipality Development Revenue Bond Act.
This opinion is based upon our preliminary review of
the materials we understand are being submitted to you and is
addressed only to the qualification of the Project under the Act.
We would expect to undertake substantial additional review before
rendering our final opinion as to the validity and tax-exempt
status of bonds issued for this Project. However, nothing has
come to our attention which causes us to believe we could not
render such opinion.
Very truly yours ,
. 1- . e.rdne
JMG: fj/A25
i` .
Affidavit of Publication
STATE OF COLORADO. 1 sa
County of Weld. 1
a��g
I. ` AAA d.o eV; of
"M M 10E LEG . said County cl Weld, being duly'swag, say that.-.
N^ I am Publisher of
IpOst.ICHEARING ,)
INDVBTRIAL DEV ELOPMENT that the same is a weekly newspaper of general
REVENUEBONDS cymulatiOt..�rtr�J,' panted and
,npublished in the
PROpea PTIONON r \ •-7�ed�.t.6.4 L/
'STORES) town of
(TARGETS pocket$' 8
in said county and state; that the notice or adver-
tisement. of which the annexed is a true ropy,
IS NEREBV GIVEN rl has been published in said weekly newspaper
ariM bcforc me Board p1 Countat/ /
Weld County. for Consecutive
Commissioners of dayat March,
weeks: that the notice was published in the
Colorado,the Inn rs hear-
19n.at the iwur o1 10:89 a.m.,in the
woe County Commtss m county regular and entire issue of every number of said
OM room.Mrst ifeor.V7ete Street,.
newspaper during the period and time of publi-
Centennial Center. loathe D tom efense cation of said notice and in the newspaper
Greet"'Caw the'aPinicahon ft m proper and not in a supplement thereon that the
d considering ration l first publication of said notice was contained in
patron-Hudson ectU sal w issue
get staeslfaeafnal pevHop- the issue al acid ewspaPer bearing date.pp/th�a
UAW"renueBones.Theadequip. E'�t�l-Lla 11.52=
���� ,fggpa and aced- day of c.b ,�// A.D.. l9
• ti rss This ^rig, and the last publication mere:.(/1n the issue °i
a retail Tareacc Ceres.7.„L peveloP,
too is..in - said-newspaper bearing date, Dthee /O day at
county one ue n . ;•1973 fon
as G'F-1 Ah.U-'0,4- . IS a that the said
�RoveetW,p s - , ,, L
amMlddd. . . for In.' .-.� .. -- fefYC/✓
copies of the epblieat•t /
Rev oboe..
Comeclustrt, OevelePella has been published continuously and uninterrupn
Bones are td Board alkie Oat c Cou 3rV.
to she C0 are edly during the mined of at least fifty-two con-
perk ten on . secunw weeks next prior to the first issue thereof
cemryission°ra Iota
lint,Wele CeunW Centamal a_::.
Street, Greeley, containing said notice or advertisement above
ter.Sts tOln inspected during referred to: and that said newspaper was at the
Ryular busnissat hours. time of each of the publications of said notice.
l wiAe the den of me public duly qualified for that purpose within the mean.
hearing.: the send of County inq of an act. entitled. "An Act Concerning Leant
oammtsstoners wdl consider who
rokeed wain me Notices. Advertisements and Publications, and
seer•a not to P. the Fen of Printers and Publishers thereof. and
eSlrepce W IDdusinal DevelopinM
Revenge Bonds. to Repeal all Acts and Parts of Acts in Conflict
hes under ihelaw with the Provisions of this Act."approved April 7.
All interested ph' unity to 1921. and all amendments thereof. and particu-
larly ae afford ear
to neare atsa, lady as amended by an act approved. March 30.
and published nv 1923. and an act =Premed May 8, 1931-
This notice Siva bosre of COcolra,
order..of,Ace....
rad°.
February 7. 198] P Asher
OAT EDTNE BOARDOF COUNTY
MARY ANN E1UER5 1=1N Subscribed and`9w�orn too before me this -_._��.......
O.
BY: COUNTY CLERK AND day of _..—� 2Zeti!(`%L:L.. A.D.. 19_4-,5
RETHEBOAROOF COUNTY - f
ne esoo510NER5 -� � c, /, f . ./V ,1./L LB
gY:Jeennettesears,Deputy +�.Lrs� I/v a Publisheu Innl he L oal19gea0eT _
Thursday__ My commission expires ._ //--, "fir
-- Notary Public
ELIZABETH MASSEY
22019 W.C.RD. 54
GREELEY, CO 80631
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