HomeMy WebLinkAbout20053086.tiff RESOLUTION
RE: APPROVE SETTING FORTH THE INTENTION OF WELD COUNTY,COLORADO,TO
ISSUE ADJUSTABLE RATE REVENUE BONDS TO FINANCE A MANUFACTURING
FACILITY FOR THE BENEFIT OF BSC HUDSON, LLC, OR ITS SUCCESSORS OR
ASSIGNS DECLARING ITS OFFICIAL INTENT TO REIMBURSE ITSELF WITH
PROCEEDS OF A FUTURE TAX-EXEMPT BORROWING FOR CERTAIN
EXPENDITURES TO BE UNDERTAKEN BY THE COUNTY; IDENTIFYING SAID
CAPITAL EXPENDITURES AND THE FUNDS TO BE USED FOR SUCH PAYMENT;
AND PROVIDING CERTAIN OTHER MATTERS IN CONNECTION THEREWITH
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"County")is authorized and empowered under the
provisions of the County and Municipality Development Revenue Bond Act, Article 3 of Title 29,
Colorado Revised Statutes, as amended (the"Act"),to issue revenue bonds to pay the costs of a
project(as defined in the Act)and to loan the proceeds of said revenue bonds to others to provide
for the financing, acquiring, equipping, and improving of such a project, and
WHEREAS,BSC Hudson, LLC, (together with its successors or assigns, the "Borrower")
has requested the County to issue revenue bonds, in one or more series in a combined aggregate
principal amount not to exceed $5,900,000, with the interest on the bonds] to be excluded from
gross income for federal income tax purposes (the "Bonds"), and to apply the proceeds of the
issuance and sale of the Bonds to fund a loan to the Borrower for purposes of financing costs of the
acquisition,construction,equipping and improving of real and personal property in connection with
an approximately 48,000 square-foot manufacturing facility(the"Project)to be located at Hudson
Business Park, within the boundaries of the County, and
WHEREAS,the Borrower has represented to the County that the Project will qualify as a
project within the meaning of the Act, and
WHEREAS,the County desires to indicate its intention to finance the costs of financing,
acquiring,constructing,equipping,and improving the Project by the issuance of tax-exempt revenue
bonds under the Act in a principal amount not to exceed$5,900,000,said Bonds to be payable solely
out of revenues derived from the repayment by the Borrower of the loan from the County, and
WHEREAS,the Borrower intends to commence the Project prior to the issuance of the
Bonds and has furnished to the County a preliminary bond counsel opinion of Brownstein Hyatt and
Farber, P.C., attorneys of Denver, Colorado, to such effect, and
WHEREAS,the Borrower desires that such financing,acquiring,constructing,equipping and
improving of the Project commence immediately, and
WHEREAS, the County's ability to issue tax-exempt revenue bonds to finance such
improvements is subject to the limitations set forth in the Colorado Private Activity Bond Ceiling
Allocation Act, Part 17 of Article 32 of Title 24, Colorado Revised Statutes (the "Bond Allocation
Act"), and
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INDUCEMENT RESOLUTION FOR ADJUSTABLE RATE REVENUE BONDS - BSC HUDSON,
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WHEREAS,the County hereby desires to declare its official intent, pursuant to Treasury
Regulations,Section 1.150-2(the"Regulations"),to reimburse the Borrower for such expenditures
with the proceeds of the County's future tax-exempt borrowing.
NOW,THEREFORE,BE IT RESOLVED by the Board of County Commissioners of Weld
County, Colorado, as follows:
1. The Board of County Commissioners, having considered the application of the
Borrower for assistance to finance the Project to be located within the boundaries
of the County, has determined and hereby determines that the financing of the
Project will promote the public health,welfare, safety, convenience and prosperity
and promote and develop trade or other economic activity by inducing manufacturing
facilities to locate, expand, or remain in the County and the State of Colorado.
2. In order to induce the Borrower to construct the Project within the County, subject
to the provisions hereof, the County shall take all necessary or advisable steps to
effect the issuance of the Bonds pursuant to the Act in a combined aggregate
principal amount not to exceed $5,900,000, or such lesser amount as shall be
determined and agreed upon between the Borrower and the County,to fund a loan
to the Borrower for the purpose of financing costs of the acquisition, construction
and equipping of the Project. The Bonds will not be general obligations of the
County. Neither shall the Bonds, including interest thereon, constitute the debt or
indebtedness of the County within the meaning of any limitation of the Constitution
or Statutes of the State of Colorado,nor give rise to a pecuniary liability of the County
or a charge against its general credit or taxing powers. The Bonds shall be payable
solely from and secured by a pledge of revenues derived from and payable by the
Borrower pursuant to financing agreements with the County.
3. No costs or expenses, whether incurred by the County or any other party in
connection with the issuance of the Bonds or the preparation of any documents by
any legal or financial consultants retained in connection therewith,shall be borne by
the County. All such costs or expenses shall be paid from the proceeds of the
Bonds or otherwise borne by the Borrower.
4. Prior to the execution of a loan agreement, indenture of trust, bond purchase
agreement, or any other necessary documents and agreements in connection with
such Bonds,documents, and/or agreements shall be submitted for approval to the
County, and, if satisfactory to the County, their execution shall be authorized by
resolution of the County pursuant to law. Prior to any further action by the Board of
County Commissioners,the Borrower shall provide the County with all information
concerning the utilization of Bond proceeds for said Project,construction plans,and
all financial information requested by the County.
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5. The County presently intends and reasonably expects to participate in a tax-exempt
borrowing for the benefit of the Borrower within 18 months of the date of the
expenditures of moneys on the Project or the date upon which the Project is placed
in service, but in no event more than three years after the expenditure is made,
whichever is later.
6. The County has received information which it considers to be reliable (a) that the
Borrower proposes to undertake the Project, (b) that except for (i) expenditures
aggregating no more than the lesser of $100,000 or five percent (5%) of the
proceeds of the bonds, (H) preliminary expenditures (as described in the
Regulations)in an amount not to exceed 20% of the issue price of the Bonds, and
(Hi) other expenditures made not earlier than 60 days before the date of this
Resolution,no expenditures for the Project have been made by the Borrower that will
be reimbursed from the proceeds of the Bonds, and (c) the Borrower reasonably
expects to reimburse the expenditures made for costs of the Project out of the
proceeds of the Bonds; and that this Resolution is a declaration of official intent
adopted pursuant to Section 1.150 2 of the Regulations.
7. The Board of County Commissioners hereby awards to the Project$5,900,000 of
the County's portion of the State's private activity bond volume cap (the "County's
Volume Cap"). The appropriate officers of the County are hereby authorized to take
all action that may be necessary to preserve the County's Volume Cap.
8. All commitments of the County contained herein are subject to the following
conditions and any other requirements deemed necessary by the County:
a. The property on which the Project is proposed to be constructed be located
within the County, and
b. The Bonds shall be issued and sold not later than one year from the date
hereof, and in the event the Bonds are not issued by such date,the County
shall be under no obligation to perform any of the terms and conditions
contained in this Resolution.
9. Nothing herein requires the County to proceed with the issuance of the Bonds, it
being in the sole discretion of the Board of County Commissioners as to whether the
Bonds will be issued or not. The approval of this Resolution does not limit or restrict
the County in the exercise of any of its legal powers with respect to the Project or the
property on which it is to be located.
10. If any section,paragraph,clause or provision of this Resolution shall be adjudged to
be invalid or unenforceable, the invalidity or unenforceability of such section,
paragraph, clause or provision shall not affect any of the remaining sections,
paragraphs, clauses or provisions of this Resolution.
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11. This Resolution shall take effect immediately upon its passage.
The above and foregoing Resolution was,on motion duly made and seconded,adopted by
the following vote on the 17th day of October, A.D., 2005.
1E BOARD OF COUNTY COMMISSIONERS
WELD COUNTY, COLORADO
last ( �:�. ;.._ •
1 -' 4/1
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1 '•.,,:�� �� William H. Je Chair
® I. o Clerk to the Board
M. .eile, Pr.-Te
BY:
eputy Clerk to the Board d �� A
. id E. Long
APPROVED AS TO FORK/F.
Robert D. asden
AAt J�
ttor ey
Glenn Vaad
Date of signature: ,1/ //025--
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