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HomeMy WebLinkAbout810385.tiff CERTIFIED- RECORD OF PROCEEDINGS OF THE- BOARD- OF- COUNTY- COMMISSIONERS OF WELD- COUNTY . COLORADO RELATING- TO A- RESOLUTION PROVIDING- FOR- THE- ISSUANCE OF- ITS INDUSTRIAL" DEVELOPMENT- REVENUE" BONDS (HORACE GREELEY- =- PHASE- II - PROJECT) SERIES- 1981 • • 31U38� • STATE OF COLORADO ) ss . COUNTY OF WELD - - ) The Board of County Commissioners of Weld County, Colorado , met in regular session at the County Courthouse , Greeley, Colorado , on Monday, the 10th day of August , 1981 , at the hour of 10 :30 a .m . The following members of the Board of County Commissioners , constituting a quorum thereof, were present: Name Title Chuck Carlson Chairman Norman Carlson Commissioner C.W. Kirby Commissioner June K. Steinmark Commissioner John T. Martin Commissioner The following members of the Board of County Commissioners were absent: JUNE" K." STETNMARK The following persons were also present : Keitha White. Deputy County Clerk Tom Davis , County Attorney -2- • RESOLUTION NO . IN THE MATTER OF THE ISSUANCE OF WELD COUNTY, COLORADO, INDUSTRIAL DEVELOPMENT REVENUE BONDS (HORACE GREELEY - PHASE II PROJECT) , SERIES 1981 , FOR THE PURPOSE OF FINANCING THE ACQUISITION , IMPROVEMENT AND CONSTRUCTION OF A BUSINESS FACILITY AND AUTHORIZING THE PREPARATION OF DOCUMENTS AND INSTRUMENTS RELATING THERETO. WHEREAS, the Board of County Commissioners ( the Board) of Weld County, Colorado ( the County) , pursuant to the statutes of the State of Colorado and the Home Rule Charter of the County ( the Charter) , is vested with the authority of administering the affairs of the County; and WHEREAS , the County, acting through the Board , is authorized by the provisions of part 1 of article 3 of title 29, Colorado Revised Statutes 1973 , as amended ( the Act) , to finance , acquire , own , lease , improve and dispose of properties to the end that business enterprises will locate in the County, and the County is further authorized thereby to issue revenue bonds for the purpose of defraying the costs of financing , acquiring , improving and equipping such facilities ; and WHEREAS, Horace Greeley - Phase II , a Colorado joint venture ( the Company) , proposes to acquire , construct , improve , and equip an existing high school building for conversion to and use as an office building ( the Project) , located within the City of Greeley, Colorado and the County ; and WHEREAS , the Company has represented to the County that the Project will be designed to qualify as a "project" within the meaning of the Act; and WHEREAS , the Company has requested the County to issue and sell its revenue bond or bonds ( the Bonds) pursuant to the provisions of the Act for the purpose of financing the Project; and -3- WHEREAS , pursuant to the requirements of Ordinance No . 69-A of the County, the Board has scheduled and held a pubilc hearing for the purpose of discussing the Project and considering public comment on the Project and the Bonds ; and WHEREAS , the County considers that the financing of the Project will induce the Company to locate the Project in the County, thereby adding to the business and aesthetic development of the County and helping secure and maintain a balanced and stable economy in the County and that the Project will provide increased employment opportunities within the County, all of which will promote the public health , welfare and safety of the County and its citizens ; and WHEREAS, prior to the issuance of the Bonds the County will consider and approve by ordinance the final details of the Bonds and will authorize and approve , subject to the conditions of this Ordinance , the Act , the Charter and Ordinance NO. 69-A of the County, all acts and the execution of all documents and instruments necessary or desirable in connection with the issuance thereof; and WHEREAS, no public official of the County who has exercised or will exercise any discretionary function on behalf of the County with respect to the financing of the Project , has a personal financial interest in or will personally and financially benefit from the financing of the Project or has other conflicts of interest relating to the financing of the Project . NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF WELD COUNTY, COLORADO, THAT: Section 1 . The Board hereby finds , intends and declares that this Resolution shall constitute its official binding commitment to issue -4- the Bonds , subject to the terms hereof and thereof, and that the adoption of this Resolution is and constitutes the taking of affirmative official action by the County, acting by and through the Board , toward the issuance of the Bonds . Section 2. In order to insure the completion of the Project and the public benefit which is expected from the operation thereof , the County, subject to the terms and conditions of the Memorandum of Agreement between the County and the Company attached hereto as Exhibit A ( the Memorandum of Agreement) and by this reference made a part hereof, will issue the Bonds pursuant to the provisions of the Act and the Charter in a principal amount necessary to pay the cost of financing the Project , together with any necessary reserves and the costs incident to the authorization , issuance and sale of the Bonds , which Bonds will not exceed in principal amount the sum of $2 , 300 , 000 . Section 3. The Bonds shall bear such interest rate or rates , be in such denominations , bear such dates , mature at such dates , be in such form, carry such registration privileges , be executed in such manner , be payable at such place , and be subject to such terms of redemption consistent with the Act as shall be authorized and approved by subsequent ordinance of the Board adopted prior to the issuance of the Bonds . Section 4 . Any mortgage , trust indenture , deed of trust , lease , sublease , installment purchase agreement , loan agreement , security agreement , rental agreement , option to purchase , or other agreement or security device , or any combination thereof, entered into in connection with the financing of the Project ( the Financing Agreements) and any other documents relating to the Project and the -5- Bonds shall also be authorized and approved prior to the issuance of the Bonds . Section 5 . The proceeds of the Bonds will be used to finance the Project . The major components of the Project are described in a schedule attached hereto as Exhibit B and by this reference made a part hereof . Section 6 . The County will enter into mutually agreeable Financing Agreements with the Company with respect to the Project as more fully described in the Memorandum of Agreement . Section 7 . The form of the Memorandum of Agreement is hereby approved , and the Chairman of the Board is hereby authorized and directed to execute the Memorandum of Agreement on behalf of the County. Section 8 . The entire cost of financing the Project will be paid from the proceeds of the sale of the Bonds or from other Company funds . The Bonds will not be a general obligation 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 or the Charter 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 the revenues derived from and payable pursuant to the Financing Agreements . Section 9 . Nothing contained in this Resolution or the Memorandum of Agreement shall constitute a debt or indebtedness of the County within the meaning of the Constitution or statutes of the State of Colorado or the Charter nor give rise to a pecuniary liability of the County or a charge against its general credit or taxing powers . -6- The above and foregoing resolution was , on motion duly made and seconded , adopted by the following vote on the 10th day of August , A. D. , 1981 . BOARD OF COUNTY COMMISSIONERS WELD COUNTY, COLORADO A e " Ch ck Carlson , airman ( COUNTY) ( SEAL ) -Absent date-signed (Aye)- " r �-/� �` Norman Carlson , A �J I � � Commissioner ATTEST: �J � t2n�wi Weld County Clerk and Recorder � ti (Aye} / and Clerk to the Board C.W. Kirb , Co issioner —i kyCount Clerk June K. Steinmark, Commissioner APPROVED AS TO FORM: j i ")92n in-v- (Aye)" J T. Martin , Commissioner County Attorney DATE PRESENTED: August 12, 1981 -7- Exhibit A MEMORANDUM OF AGREEMENT This Memorandum of Agreement is between Weld County, Colorado ( the County) , and Horace .Greeley - Phase II , a Colorado joint venture ( the Company) . 1 . Preliminary Statement. Among the matters of mutual inducement which have resulted in the execution of this Memorandum of Agreement are the following : ( a) The County is authorized and empowered by part 1 of article 3 of title 29, Colorado Revised Statutes 1973, as amended ( the Act) , to finance , acquire , own , lease , improve and dispose of properties to the end that business enterprises will locate , expand or remain in the County, to issue revenue bonds for the purpose of defraying the costs of financing , acquiring , improving and equipping such facilities , and to enter into agreements with respect to the financing of such facilities upon such terms and conditions as the Board of County Commissioners ( the Board) of the County deems advisable . ( b) In order to provide such facilities , the Company proposes to acquire , construct , improve , and equip by means permitted by the Act , an existing high school building for conversion to and use as an office building ( the Project) , located within the City of Greeley, Colorado and the County. ( c ) The County has indicated its willingness to proceed with the issuance of revenue bonds as provided by the Act ( the Bonds) to finance the Project and has advised the Company that , subject -8- to due compliance with all requirements of law and the obtaining of all necessary consents and approvals and to the happening of all acts , conditions , and things required precedent to such financing , the County will issue the Bonds pursuant to the Act in a principal amount sufficient to pay the costs of financing the Project, together with the costs and expenses of issuance and sale of the Bonds, which Bonds will not exceed in aggregate principal amount the sum of $2,300 ,000 . ( d) The County considers that the financing of the Project and the entering into of agreements relating to the Project, such as a mortgage , trust indenture , deed of trust , lease , sublease , installment purchase agreement , loan agreement, security agree- ment , rental agreement , option to purchase or other necessary documents ( the Financing Agreements) with the Company with respect to the Project will induce the Company to locate the Project in the County, thereby adding to the business and aesthetic development of the County and helping secure and maintain a balanced and stable economy in the County and that the Project will provide increased employment opportunities within the County, all of which will promote the public health , welfare and safety of the County and its citizens . 2. Undertakings by- the County. Subject to the foregoing Paragraph 1 , the County agrees as follows : ( a ) It will authorize and issue the Bond pursuant to the terms of the Act in a principal amount sufficient to pay the cost of financing the Project, together with any necessary reserves and the costs incident to the authorization , issuance , and sale of the -9- Bonds , which Bonds will not exceed in principal amount the sum of $2,300 ,000 . ( b) It will adopt or cause to be adopted such proceedings and authorize the execution and delivery of such documents as may reasonably be necessary or advisable for the authorization , issuance and sale of the Bonds , the financing of the Project, and the execution of the Financing Agreements with the Company and other documents relating to the Project and the Bonds as shall be authorized by the Act or other law and mutually satisfactory to the County and the Company. ( c) The aggregate sums to be paid by the Company under the Financing Agreements shall be required to be sufficient to pay the principal of, interest on , and any premiums due in connection with the redemption or prepayment of the Bonds as and when the same shall become due . ( d) It will take or cause to be taken such other action and adopt such further proceedings as may reasonably be required to implement the aforesaid undertakings . ( e) The Bonds shall provide that they shall be payable •solely from the revenues derived from the Financing Agreements , that they shall never constitute the debt or indebtedness of the County within the meaning of any provision or limitation of the Constitution or statutes of the State of Colorado or the Home Rule Charter of the County, and that they shall not give rise to a pecuniary liability of the County nor a charge against its general credit or taxing powers . -10- ( f) In authorizing the issuance of the Bonds pursuant to this Memorandum of Agreement , the County will make no warranty, either expressed or implied , that the proceeds of the Bonds will be sufficient to pay all costs of the Project . 3 . Undertakings on the Part of the Company. Subject to the foregoing Paragraph 1, the Company agrees as follows : ( a) The Company will acquire , construct , improve , and equip the Project by means permitted by the Act . ( b) Prior to the delivery of the Bonds the Company will enter into the Financing Agreements with the County under the terms of which the Company will obligate itself to pay to the County, whether from the proceeds of the Bonds or otherwise , sums sufficient in the aggregate to pay or reimburse the County for : expenses incurred by it in connection with the authorization , issuance and sale of the Bonds and the payment of the principal of, interest on, and any premiums due in connection with the redemption or prepayment of the Bonds as and when the same shall become due and payable ; all fees and expenses of any trustee for the benefit of the holders of the Bonds incurred under any trust indenture ; all utility charges , taxes, assessments , and casualty and liability insurance premiums; and any other expenses or charges relating to the ownership, use , operation , maintenance , occupancy and upkeep of the Project . The Financing Agreements shall contain such other provisions as may be required by law and such other provisions as shall be mutually acceptable to the County .and the Company. -11- ( c) It will take such further action and adopt such further proceedings as may be required to implement the aforesaid undertakings . 4 . General Provisions.. ( a) All commitments of the County under Paragraph 2 hereof and of the Company under Paragraph 3 hereof are subject to the condition that on or before twelve months from the date of this Memorandum of Agreement ( or such other date as shall be mutually satisfactory to the County and the Company) the County and the Company shall have agreed to mutually acceptable terms for the Bonds and of the issuance , sale and delivery thereof , and mutually acceptable terms and conditions of any Financing Agreements and other documents referred to in Paragraph 3 and the proceedings referred to in Paragraphs 2 and 3 hereof . ( b) Prior to the issuance of the Bond , there shall be a reasonable showing to the County that the Company is capable of carrying out its financial obligations under the Financing Agreements . ( c) If the events set forth in subsection ( a) of this paragraph do not take place within the time set forth or any extension thereof and the Bond is not issued and sold within such time , the Company agrees that it will reimburse the County for all reasonable and necessary direct out-of-pocket expenses which the County may incur arising from the execution of this Memorandum of Agreement and the performance of the County' s obligations hereunder , and this Memorandum of Agreement shall thereupon terminate . -12- IN WITNESS WHEREOF, the parties have entered into this Memorandum of Agreement by their duly authorized officers this -TOth day of August , 1981 . WELD COUNTY, COLORADO ( COUNTY) ( SEAL ) By _ _ airman Board of County Commissioners ATTEST: 7rar.. County clerk and Recorder By . . ; . . - e ty County lerk HORACE GREELEY - PHASE II , a Colorado joint venture By : SINCO INTERNATIONAL INVESTMEN , INC , a Delaw e cor -orat, on By: A/A- i nt rin Sine Simantob , Preside t ATTEST: itz-2 Constance Norrie , Secretary ( COMPANY) ( SEAL By : PIONEER INVESTMENTS , INC . , a Colorado corpo at'on By : - - Ronald Cape , President ATTEST: /� Secretary ( COMPANY) ( SEAL ) -13- Exhibit B The major components of the proposed Project are presently contemplated to be as follows : The construction , reconstruction and improvement of the building known as the "Old School House" located in downtown Greeley, Colorado for conversion to and use as an office building , together with all appurtenant improvements for site development . -14- STATE OF COLORADO ) ss . COUNTY OF WELD ) I , Mary Ann Feuerstein , County Clerk and Recorder of Weld County, Colorado ( the County) , do hereby certify that the foregoing pages , numbered 1 to 14 , inclusive , constitute a full , true and correct copy of the record of proceedings of the Board of County Commissioners ( the Board) of the County taken at a regular meeting thereof , held at the County Courthouse , Greeley, Colorado , the regular meeting place thereof , on Monday, the 10th day of August , 1981 , insofar as said minutes relate to Resolution No . , a copy of which is therein set forth; that said copy of Resolution No . , is a full , true and correct copy of the original of said resolution as adopted by the Board at said meeting ; that the original of said resolution has been duly executed and approved by the Chairman of the Board and myself , as County Clerk and Recorder , sealed with the seal of the County, and recorded in the official records of the County kept in my office . I further certify that the Chairman and "four other member( s) of the Board , constituting a quorum thereof , were present at the meeting ; and that the members thereof voted for the adoption of Resolution No . , as in the minutes set forth . IN WITNESS WHEREOF , I have hereunto set my hand and the seal of the County this " " 10thday of August" " " " " " " , 1981 . ( COUNTY) County Clerk and Recorder ( SEAL ) By: //)A( > puty County Clerk yy „ 0 -15- An application to Weld County for the issuance of Industrial Bonds for "The Old School House. " Respectfully submitted by: HORACE GREELEY-PHASE II , a joint venture between Sinco International Invest- ments, Inc. , and Pioneer Investments, Inc. July 29, 1981 INDEX SECTION SUBJECT (1) STATEMENT OF INTENT (2) BOND COUNCILS OPINION LETTER (3 ) BOND UNDERWRITERS LETTER (4) HISTORY OF THE APPLICANTS (5) BANK REFERENCE AND RATING (6) RESUME' S (7) PROFORMA: A FIVE YEAR FINANCIAL ANALYSIS (8) FINANCIAL STATEMENTS (9) A BREAKDOWN OF THE COSTS RELATED TO Ttth PURCHASE, RENOVATION, CONSTRUC- TION, AND FINANCING COSTS HORACE GREELEY - PHASE II A JOINT VENTURE A STATEMENT OF INTENT The goal of Horace Greeley/Phase II is to renovate the "Old School House" into a landmark office building in downtown Greeley. It is our wish to give back to the community a "page of history" for the general and business populace to enjoy in future years. We envision the school to be the cornerstone of Greeley' s effort to revitalize its downtown area. Sinco International and Pioneer Investments are accepting the responsibility of taking a leading role in this attempt at revitalization. The building will be living proof that the people and the city fathers of Greeley truly care about the future of their city. The building will strike the proper balance between the old and the new. It will provide an excellent work environment for those who choose to use the "Old School House" as their place of bus- iness, and it will restore a piece of history for all the commun- ity to enjoy. This project has become a reality because all the parties involv- ed have worked together in a cooperative manner. Everyone in- volved, the developers, the city government, the county govern- ment, and the Downtown Development Corporation have all shown their sense of commitment to the community of Greeley. The project is proof that the private and public sectors can success- fully work together to meet a well defined goal: The revitaliza- tion of a building, city and community. LAW OFFICES OF DEMUTH, KEMP & BACKUS 1600 WESTERN FEDERAL SAVINGS BUILDING LAEL S.DEMUTH TERREL E.DAVIS 718 SEVENTEENTH STREET WILLIAM G. KEMP IRVING G. FINKEL DENVER,COLORADO 80202 ALAN C.DEMUTH THOMAS J.MANCUSO 303'629-1800 ROBERT A.BACKUS CRAIG D.JOYCE DONALD A.HOULEHAN CHARLES A. HILLESTAD DANIEL C. LYNCH LORING E.HARKNESS III GEORGEANN BECKER July 29 , 1981 Board of County Commissioners Weld County 915 10th Street Greeley, Colorado 80631 Horace Greeley Phase II Mr. Sina Simantob and Mr. Ronald J. Cappello 1401 Walnut, Suite 305 Boulder , Colorado 80302 Re: County of Weld, Colorado Industrial Development Revenue Bonds (Horace Greeley Phase II Project) Series 1981 Ladies and Gentlemen: This law firm has been retained to act as bond counsel in connection with the issuance of the above-referenced proposed industrial development revenue bonds . In this regard we have conferred with representatives of Horace Greeley Phase II , a Colorado general partnership, concerning the facility to be acquired, constructed and installed with the proceeds of the pro- posed bonds , which facility is to consist of the renovation and reconstruction of an approximately 40, 000 square foot high school building to be converted to office space. Based upon such review it is our opinion that the proposed facility qualifies as a "project" within the meaning of the Colorado County and Municipality Development Revenue Bond Act, part 1 of article 3 of title 29 , Colorado Revised Statutes 1973 , as amended. Very truly yours , DeMUTH, KEMP & BACKUS ithii p Daniel C. Ly DCL:bab GERWIN AND COMPANY INVESTMENT BANNERS/MUNIGPAL BONDS 621 SEVENTEENTH STREET/SUITE 2800/DENVER,COLORADO 80293/(303)572-8515 July 10, 1981 Mr. Sina Simantob Sinco International Investments Inc. Highland Offices 885 Arapahoe Avenue Boulder, CO 80302 LETTER OF INTENT Dear Mr. Simantob: We understand you are considering the use of Industrial Devel- opment Revenue Bonds to finance the renovation and construction of a new office building to be located in Greeley, Colorado. In order to analyze the merits and specific limitations of this financing method you will need to be informed of and review (1) the various applicable state and federal statutes and regulation, (2) the legal requirements which must be met to produce a valid bond issue, (3) the specific procedures which must be followed and the probable timetable therefore, and (4) the economic advantages and disadvantages (if any) to be realized. As qualified underwriters experienced in I.D.R.B . financing we are in a position to provide this essential information and guidance to you in a timely and expeditious manner during the preliminary discussion and developmental stage of your project, leading up to the final decision-making process. We are pleased to offer you these various pre-commitment financial services necessary to initiate this undertaking. Functioning in this manner we shall expect to assign experienced personnel to work with you and to assemble information and data from numerous sources pertin- ent to your project, including bond counsel and adoption, if necessary, of the required ecomonic inducement resolution by the prospective issuing authority. Therefore, in consideration of the foregoing services to be pro- vided by us it shall be our mutual understanding that at the appro- priate time - when and if you have determined to proceed with the acquisition of I.D.R.B . financing - you will be receptive to the sub- - mission on an exclusive basis by us of a specific underwriting proposal relating to your project, for review and acceptance. Should you decide not to accept our proposal you will have no financial obligation to us for the pre-commtment service which we have performed, unless prior written approval for related expenses has been obtained from you. MEMBERS NATIONAL ASSOCIATION OF SECURITIES DEALERS,INC/SECURITIES INDUSTRY ASSOCIATION Page 2 Mr. Sins Simaninb It is further and mutually agreed that until such definitive action is taken, both parties shall cooperate and work together exclusively in the preliminary development of the proposed project financing. Upon the execution of this Letter of Intent and its return to us we shall undertake the preliminary steps necessary for the issuance of Industrial Development Revenue Bonds. Within ninety (90) days after receipt of the above and unless extended by mutual agreement, we shall either release you from this obligation or furnish you with a specific financing proposal including terms, conditions, probable interest rates, and timetable for issuance of bonds. Sincerely yours, GERWIN AND ,COMPANY / / / by / . _/ f/ A .'. Richard A. / ontane Municipal/ inance Department 7 Accepted this ih day of ,r , 983. / ,---- by /,.., / P,-, On beh 1f of Sinco Interns Tonal Investments Inc. SINCO INTERNATIONAL INVESTMENTS, INC. HISTORY Horace Greeley/Phase II is a joint venture between Sinco International Investments, Inc. and Pioneer Investments, Inc. of Boulder, Colorado for the pur- chase, renovation and reuse of the "Old School House" in Greeley, Colorado. The experience and financial background of these two corporations are to provide the expertise and organization necessary to accomplish the task of rehabilitation of the Old School House. Sinco International Investments, Inc. (hereinafter referred to as Sinco) , was registered as a corporation in the State of Delaware on November 26, 1979 with Mr. Sina Simantob as president and sole owner. Sinco was founded for the purpose of doing business in the area of real estate development, historic renovation, inter- ior design and the sale of fine art and antiques . Sinco International 's decision to specialize in the renovation, rehabilitation and reuse of pre-1930 struc- tures was prompted by the energy shortage and energy price increases of 1973 and by the Federal and State tax incentive rulings of 1976 for the preservation of Historic Landmarks. Since the passage of IRS Rule 191 five years ago, Sinco International has undertaken and successfully completed the following projects: 1 . The historic Highland School, constructed in 1895, had been vacant for 12 years and was in an ad- vanced state of disrepair when purchased by Sinco in 1978. Sinco acted as developers and designers to convert the building into 23, 000 square feet of modern professional offices employing state-of- the-art electronic office equipment, a sauna/ jacuzzi spa, modern kitchen facilities, an art gallery and fully landscaped grounds . Completed in 1980, Sinco has won the following awards for the renovation of the Highland School Building: AWARD OF MERIT from Historic Boulder, Inc. " . in recognition of distinguished accom- plishment towards historic preservation with notable credit given for the endeavor of renovation. " PIONEER INVESTMENTS, INC. HISTORY AND BACKGROUND Pioneer Investments, Inc. was formed in October, 1980, and became an operating entity in January, 1981. Pioneer was founded to act as an investment vehicle for investors who wish to participate in real estate, and real estate oriented investment ventures. Presently, the group of investors Pioneer represents are individ- uals who are in the oil and energy related field. Through Pioneer they are expanding their interests into the area of real estate. Pioneer' s activity is directed, and managed by Ronald J. Cappello. Mr. Cappello acts as president of Pioneer and is it' s sole employee. Pioneer is designed to be a closely held one man firm. This structure allows for the most efficient application of Mr. Cappello ' s know- ledge of real estate and management skills . Since it' s formation, Pioneer' s activity has been concentrated in two areas; the acquisition of con- structed property to be held as part of a portfolio, and the second area is the participation in the devel- opment of to-be-built projects on a joint venture basis. The first half of 1981 has proven to be very rewarding; a summary of activity follows: 1. The purchase of two Larimer Place condomin- iums located in downtown Denver. The port- folio value is $325, 000. 2 . Entered into contract to purchase two Windsor condominiums. Delivery is scheduled for June, 1982 . The portfolio value is $340, 000. 3 . The purchase of four turn-of-the-century homes located in Denver, Colorado. The homes will be renovated and sold as luxury single family homes . The project' s value is 1 . 5 million dollars. The above listed projects, coupled with the formation of a joint venture with Sinco International Investments for the renovation of the Old Greeley School House has indeed made our activity to date a very rewarding experience. Pioneer Investments is anticipating a very bright and successful future. This report has been prepared forr'. o1' ;`': Y . SUBSCRIBER: 067- 151640LC BE SURE NAME , BUSINESS AND ANSWERING zeller • ADDRESS MATCH YOUR FILE . INQUIRY ., IS REPORT MAY NOT BF REPRODUCED IN WHOLE OR IN,,PART IN ANT MANNER WHATEVER. M. DUNS : 09-928-2394 DATE PRINTED SUMMARY SINCO INTERNATIONAL JUN 18 1980 RATING BA2 INVESTMENT , INC FORMERLY +HIGHLAND DESIGN REAL ESTATE , ER8 +HIGHLAND OFFICES INTERIOR DESIGN, STARTED 1979 +INTERNATIONAL ART EXCHANGE ART DEALER E PAYMENTS SEE BELOW +COMBS TRAVEL TRAVEL AGENT SALES $450 , 000 PROJECTED 885 ARAPAHOE AVE SIC NOS . WORTH F $365 , 267 BOULDER CO 80302 73 99 59 99 47 22 EMPLOYS 10 TEL : 303 447-2644 65 13 HISTORY CLEAR CONDITION GOOD CHIEF EXECUTIVE : SINA SIMANTOB , PRES FINANCE 06/06/80 Fiscal Interim Partial Consolidated Dec 31 1979 Feb 29 1980 Curr Assets 24 , 501 6 , 949 Curr Liabs 21 , 612 200 Other Assets 10 , 417 358 , 512 Worth 12 , 603 365, 267 Sales 93 , 044 Het Income 2 , 603 Interim Consolidated statement dated FEB 29 1980 : Cash $ 1 , 433 Accts Pay $ 139 Accts Rec 240 Taxes 61 Deposits 5 , 276 Current 6 , 949 Current 200 Fixt E Equip 26 , 613 Highland Design 175 , 990 Intl Art Exchanger 1-5II440. — Investment k y ` "'z' ''E fors PI APly�"3°S°dE"1{ It }' 376 , 713 enel<t ,.J w tT T g'(`if�1{1NtiStS ( 1 1 , 446 ) Company In t arslan t, ay_ ' � ._ r ' .t. At nre r eitmioi ree eT p L': F '�.'m Mt report In qpRr Total Assets on �� xLoo,l'in* s74 EoS EVE pe AIA*t s:r rrneacei,ed 365, 467 Submitted Apr 15otraMei vTce...PresTdent. Extent of audit, if any, not indicated. --0-- _. On Jun 6 1980 Paul Lev-Ary, vice president, referred to the above figures as still representative. He submitted the following estimates: Projected annual sales are $ 950 , 000 . Projected sales derived from: annual sales projected for Sinco International Investment Inc. , 520,000; Highland Design, 520,000; International Art Exchange, 5120,000; Combs Travel, 5500,000; New Orleans Apartments, 540,000; Highland Offices, 5150,000 . Condition regarded as good. BANKING 2/80 Balances average moderate four figures. Relations satisfactory. HISTORY 06/06/80 SINA SIMANTOB , PRES PAUL LEV-ARY , V JPRES CONSTANCE MORRIE, SEC-TREAS DIRECTOR(S ) ' THE OFFICER(S) Incorporated Delaware Jul 1 1979. Authorized capital consists of 100 shares common stock, no par value. Business started 1979. 100% of capital stock is owned by Simantob. SIMANTOB born 1952 married. 1976 received masters degree in Business and Engineering from the University of Colorado. 1976 started Highland Design, Boulder, -- Colorado as partner. Became president upon incorporation. LEV-ARY born 1952 single. 1976 graduate of University of Colorado with masters degree in finance. 1976-79 Green Mountain Herbs, Boulder, Colorado. Started herein ( CONTINUED) - THIS REPORT, FURNISHED PURSUANT TO CONTRACT FOR THE EXCLUSIVE USE OF THE SUBSCRIBER AS ONE FACTOR TO CONSIDER IN CONNECTION WITH CREDIT. INSURANCE, MARKETING OR OTHER BUSINESS DECISIONS, CONTAINS INFORMATION COMPILED FROM SOURCES WHICH DUN & BRADSTREET, INC.DOES NOT CONTROL AND WHOSE INFORMATION, UNLESS OTHERWISE INDICATED IN THE REPORT, HAS NOT BEEN VERIFIED. IN FURNISHING THIS REPORT. DUN 8 BRADSTREET, INC. IN NO WAY ASSUMES ANY PART OF THE USER'5 BUSINESS RISK, DOES NOT GUARANTEE THE ACCURACY, COMPLETENESS, OR TIMELINESS OF THE INFORMATION PROVIDED. AND SHALL NOT BE LIABLE FOR ANY LOSS OR INJURY WHATEVER RESULTING FROM CONTINGENCIES BEYOND ITS CONTROL OR FROM NEGLIGENCE. 9R2-107801281 l A This report has been prepared for t( : Cfa C. • SINCO INTERNATIONAL JUN 18 1980 Page 2 BOULDER CO FULL REVISION-RATING CHANGE I .:IS REPORT MAY NOT BE REPRODUCED IN WHOLE OR IN PART IN ANY MANNER WHATEVER. - .vR' kp ,R HISTORY (Cont'd) upon incorporation. NORRIE born 1949 married. 1974 graduate of University of Colorado. 1974-76 self employed as an interior designer. Discontinued that business with no outstanding obligations to start partnership in Highland Design. OPERATION 06/06/80 Operates in interior design (25%) , art dealer (25%) , travel agency (25%), apartment complex operator (15%) and real estate agent (10%) . Sells to commercial and general trade. Territory United States. Terms vary as per type of operation involved, to include cash and net terms. Nonseasonal . EMPLOYEES: 10 including officers. FACILITIES: Owns 7,500 sq. ft. four story brick building in good condition. LOCATION: Commercial section on main street. 067 06- 18 ( 254 /7 ) 0000/00 00000 THIS REPORT, FURNISHED PURSUANT TO CONTRACT FOR THE EXCLUSIVE USE OF THE SUBSCRIBER AS ONE FACTOR TO CONSIDER IN CONNECTION WITH CREDIT. INSURANCE. MARKETING OR OTHER BUSINESS DECISIONS. CONTAINS INFORMATION COMPILED FROM SOURCES WHICH DUN 8 BRADSTREET, INC. DOES NOT CONTROL AND WHOSE INFORMATION. UNLESS OTHERWISE INDICATED IN THE REPORT, HAS NOT BEEN VERIFIED. IN FURNISHING THIS REPORT, DUN 8 BRADSTREET. INC. IN NO WAY ASSUMES ANY PART OF THE USER'S BUSINESS RISK. DOES NOT GUARANTEE THE ACCURACY, COMPLETENESS, OR TIMELINESS OF THE INFORMATION PROVIDED. AND SHALL NOT BE LIABLE FOR ANY LOSS OR INJURY WHATEVER RESULTING FROM CONTINGENCIES BEYOND ITS CONTROL OR FROM NEGLIGENCE. 9R2-t0 p30121Y Central Bank of Denver January 28, 1981 Mr, Sina Simatob 885 Arapahoe Street Boulder, Colorado 80302 Dear Sina: The purpose of this letter is to confirm that you have been a customer of the Central Bank of Denver for approximately three years. You presently have a Certificate of Deposit in the amount of $200 ,000. 00 with our bank, and you have handled your credit in a satisfactory manner. We have loaned you $195,000.00 on an unsecured basis , and this debt has been retired in a timely and satisfactory manner. I understand that you wish to use this in reference to a potential bonding. We value your business, and look forward to future business with you. Sincerely, i (fl,e(e-)Lit ((— Michael W. Lubchenco Vi ce President MWL:smw 1515 Arapahoe St. - P.O. Box 5548 T.A. - Denver, Colorado 80292 - 303/893-3456 RECEIVED . jutcaireitI Bank of Denver July 24, 1981 Mr. Sina Simantob Sinco International Investments, Inc. 885 Arapahoe Avenue Boulder, Colorado 80302 RE: Greeley High School Dear Sina: I am please to inform you that we will be willing to loan Sinco International Investments, Inc. and yourself $ 225,000.00, for the purpose of the acquisi- tion and exterior rehabilitation of the historic Greeley High School. You are to provide $ 75,000.00 toward the acquisition price and we will loan up to $ 125,000.00 to complete the purchase. An additional $ 100,000.00 will be made available by us through our construction loan funding procedure to do the exterior rehabilitation. This commitment from us shall be valid for 90 days. We will have a first lien on the real estate and all of our normal conditions and procedure will apply. We reserve the right to review all of the purchase documentation and restrictions that may be placed upon the real estate and withdraw our loan commitment if we feel they create an adverse position for the security for our loan. The loan will be for a term of one year and the rate will be 2% over our base rate floating plus a 2% origination fee. It is understood by us that you may sell a 50% interest in this project to equity partners and this loan will be paid off from the proceeds of that sale. If the sale is consumated prior to the acquisition of the real estate, then you will not call upon this loan to be funded. Sincerely, CENTRAL BANK OF DENVER 7 Q- Terry D. Martin Assistant Vice President TDM:csa 1515 Arapahoe Street, Denver,Colorado 80292/(303)893-3456 U_CENTRAL BANCORPORATION.INC. SINCO INTERNATIONAL INVESTMENTS INC. RESUME SINA SIMANTOB 915 Maxwell Avenue Boulder, Colorado (303) 442-5535 PROFESSIONAL OBJECTIVE: To utilize my international abilities and connections to further the development of Sinco International Investments, Inc. Sinco's goal is to promote new concepts in energy efficient real estate development and renovation of historic landmarks. EDUCATION: University of Colorado Graduate School of Business Administration, MBA, 1974-76 University of Colorado School of Engineering Design and Economic Evaluation (EDEE), 1970-74 Colorado Academy, Englewood, Colorado 1968-70 _ BUSINESS EXPERIENCE: August 1979 - Present: President and sole share- holder of Sinco International Investment, Inc. , a Delaware corporation. Sinco is the parent company for many of the assets and/or companies listed be- low. August 1978 - Present: Developer of Highland Offices. Engineered the $1.4 million purchase and renovation of the 23,500 square foot historic land- mark. Acted as electrical engineer, project super- visor and designer. Project received both Historic Boulder and City awards for renovation as well as City, State and Federal tax benefits. 1979 - Present: International Art Exchange, a gallery of antiques, oriental carpets and structural antiques. Contains $120,000 in inventory at book value. 1978 - Present: Established Highland Design Asso- ciates, a contract and residential interior design firm responsible for many of Sinco's development projects listed. 1978 - 1980: Limited partner in Boulderado Hotel. Sold in 1980 for $2,100,000. 1978 - 1980: Conceptualized and acted as presi- dent of Combs International Travel, a travel agency which attained $600,000 in yearly sales. HIGHLAND OFFICES 885 Arapahoe Avenue, Boulder, Colorado 8O3O2 USA 3O3 447 2649 Resume Sina Simantob Page -2- 1977 - 1980: Purchased $88,000 Victorian home on Pine Street, Boulder. Renovated and sold for $175,000. 1977 - 1980: New Orleans Apartments, a thirteen unit complex at 1030, 32, 34 Pine Street, purchased for $220,000, renovated and managed to substantiate a 120% rental increase in 33 months. Sold in August of 1980 for $335,000. 1977 - 1979: Consultant, investor and developer of Gold Lake Ranch Resort and Conference facility, Ward, Colorado. A 100 acre camp with log cabins converted to a winterized guest ranch with new water system and complete individually furnished bungalows. Project expense - $1,400,000. 1976 - 1978: Investor and business consultant for Fleur de Lis Restaurant in the Boulderado Hotel. Sold to Boulderado Hotel. 1974 - 1976: Sills & Sina Antiques, Denver, an im- porter of oriental carpets and exporter of antiques to the Middle East, managed incorporation and all business aspects. PERSONAL DATA: Birth Date: April 16, 1952 Marital Status: Married, two daughters Health: Excellent INTERESTS: FORTRAN - COBOL computer language Organizational behavior studies Antique and art collector FUTURE PROSPECTS: Purchase and renovation of a 43,000 square foot historic landmark in Greeley, Colorado adjacent to the proposed downtown mall. Construction of thermal envelope/passive solar con- dominiums in conjunction with Milburn/Sparn Archi- tects. Currently property owned in downtown Boulder for small prototype (8 units). Plans to ex- pand along Front Range area. BACKGROUND: Represented Societe Meykadeh in Tel Aviv, Geneva, Tehran and London. REFERENCES: Michael Lubchenko, Central Bank of Denver Jack Minniman, United Bank of Boulder SINCO INTERNATIONAL INVESTMENTS INC. RESUME PATRICK CULLIE Vice President/Operations 441 Marine Street Boulder, Colorado (303) 494-4050 PROFESSIONAL OBJECTIVE: To utilize my business/personal management skills and experience effectively at Sinco and to further my personal interest in energy efficient real estate development of naturally complimentary habitats. I am also interested in bringing my Art History ed- ucation and background as a collector to fruition in interior design work. EDUCATION: Minneapolis School of Art 1964-1965 Kent State University 1965-1969 English Literature - Major Art History - Minor BUSINESS EXPERIENCE: June 1978 to June 1980 - Art and Advertising Dir- ector/Product Manager for Contemporary Communica- tions Corporation, New York City. Was responsible agent for CCC's four highest grossing artists. Booked tours, was liason to CBS Records Group, guided careers creatively. Wrote, produced and directed all radio and television advertising, was Design Liason for all album cover art production. February 1977 to February 1978 - President and Sole Owner of Out West Management, Boulder, Colorado. Handled all personal management aspects (creative career direction, legal, accounting, adver- tising, concert touring, etc. ) for Carole King & Navarro, Capitol Records recording artists. January 1977 to June 1977 - Director of Northstar Studios, Boulder, Colorado. Was consultant for reorganization and restructuring of Northstar, a 24 track audio recording studio. July 1972 to December 1976 - Administrative Vice President of Front Line Management, Los Angeles, California. Was tour liason/office manager for the world's highest grossing talent management firm. Was responsible for all phases of tour production, art and advertising, merchandising and press, and publicity. HIGHLAND OFFICES 885 Arapahoe Avenue, Boulder, Colorado 8O3O2 USA 303 447 2649 Resume Patrick Cullie Page -2- September 1969 to June 1972 - Was a tour director "on-the-road" for numerous musical groups. My clients included Rolling Stones, Bob Dylan, Deep Purple, Joe Walsh, Eagles, Dan Fogelberg and Ted Nugent. AWARDS: RIAA (Recording Industry Association of America), Gold Records Awards for the sale of over 1,000,000 units for Simple Things (Carole King), Silk Degrees (Boz Scaggs), Souvenirs (Dan Fogelberg), Smoker (Joe Walsh), So What (Joe Walsh), Lowdown (Boz Scaggs). - INTERESTS: Classic Automobiles, Skiing, Ice Skating, Film, Music. REFERENCES: George Wilson 2435 Topaz, Boulder, Colorado (447-1975) David Krebs 65 West 55th Street, New York City, New York (212-765-2600) Jay Rubenstien 2153 Kress Street, Los Angeles, California (213-654-8182) PERSONAL DATA: Birth Date: October 24, 1946 Marital Status: Single Health: Good BACKGROUND: Born and raised in the Midwest. I have lived and traveled extensively in North America, South Amer- ica and Europe. SINCO INTERNATIONAL INVESTMENTS INC. RESUME LARRY D. MANGIN Salina Star Route Boulder, Colorado 80302 (303) 443-6066 PROFESSIONAL OBJECTIVE: To increase the productivity and efficiency of the design firm through the use of my problem solving talents. EDUCATION: North Dakota State University Bachelor of Architecture - 1970 Indiana University Graduate work on Future Evolution of Higher Educa- tion in U.S. - 1972 Associated General Contractors' seminar: Coordination Between General Contractor and Me- chanical Contractor - 1976 Public Service Company course: Lighting Design for Commercial and Industrial Ap- plications - 1977 National Sanitation Foundation seminar: Kitchen Design - 1978 PROFESSIONAL EXPERIENCE: October 1980 - Present: Coordinator and supervisor of Highland Design Associates. Entails delegating responsibilities to designers, concepts for draftsmen and job site supervision. 1973 - September, 1980: Nobel, Inc. , design de- partment supervisor and estimator. Responsibilities include scheduling all drafting work for five drafts- men and overseeing design development and adher- ence to local codes for this $7 million/year contract design firm specializing in restaurant, hotel, office and condominiums. Personally handled all lighting design. Estimated all interior design projects. In- itiated competitive bidding for office supplies there- by reducing the budget by fifty percent. 1972 - 1973: Designs for Business, Denver, archi- tectural designer. Handled design and job site supervision for firm specializing in retail stores. Performed all functions of office manager. HIGHLAND OFFICES 885 Arapahoe Avenue, Boulder, Colorado 8O3O2 USA 303 447 2649 Resume Larry Mangin Page -2- 1970 - 1972: Delta Upsilon International Frater- nity, Director of Chapter Services. Evaluated organizational structure and programming of 110 chapters. Made recommendations to improve management. Designed new programs. 1968 - 1970: Part-time college experience consist- ed of: Design work for Northwest Restaurant Supply Company, Fargo, North Dakota; Industrial steel building and custom home de- sign and drafting for Anderson & Son Con- struction Company, Fargo, North Dakota; Eight-plex apartment and shopping center design and drafting, project constructed in Moorhead, Minnesota. PERSONAL DATA: Birth Date: 1946 Marital Status: Married, one child Health: Excellent INTERESTS: Designing homes and millwork Outdoor sports, bridge, painting and reading BACKGROUND: Raised in North Dakota, attended North Dakota University School of Engineering before transferring to architecture. Instrumental in starting Delta Upsilon Chapter at NDSU. Colorado resident for eight years; have designed and built own residence outside of Gold Hill. REFERENCES: Harley Turnbeaugh Johnson & Turnbeaugh Sales, Denver, Colorado SINCO INTERNATIONAL INVESTMENTS INC. The following is a partial list of the approximately 120 projects Larry D. Mangin has been involved with from design through site supervision in eight years. Four Seasons Motor Inn Colorado Springs, Colorado Cowpalace Lamar, Colorado Elk's Club Goodland, Kansas Slim & Swim Club Greeley, Colorado Sports Arena Kearny, Nebraska D.L. Yocum's Lounge and Patio Boulder, Colorado Tico's Lincoln, Nebraska Holiday Inn Grand Junction, Colorado Sundance Saloon Vail, Colorado Sun Terrace Retirement Home Albuquerque, New Mexico Durocher's Farmington, New Mexico Mozer's Fine Foods Denver, Colorado Hilton Inn Garden City, Kansas Claim Jumper Frisco, Colorado L.C. Benedict's Winter Park, Colorado Organ Grinder Denver, Colorado Sundance Bank Sundance, Wyoming Gondolier Boulder, Colorado Elk's Club Scottsbluff, Nebraska International Athletic Club Denver, Colorado Copper Mountain Village Copper Mountain, Colorado Monarch Ski Lodge Monarch, Colorado Beaver Creek Ski Area Vail, Colorado Serra Blanc Swim 8i Racquet Club Rio Dosa, New Mexico Hilton Inn Casper, Wyoming Coffee Bar Estes Park, Colorado Furphy's Colorado Springs, Colorado Dicky Dugans Dance Hall & Saloon Kearny, Nebraska Sourdough Bread Company Boulder, Colorado HIGHLAND OFFICES 885 Arapahoe Avenue, Boulder, Colorado 8O3O2 USA 3O3 447 2649 RESUME RONALD J. CAPPELLO P.O. Box 419 Boulder, Colorado (303) 442-0698 PROFESSIONAL OBJECTIVE: To utilize my management and marketing abil- ities to further the interests of Pioneer Invest- ments, Inc. Pioneer's goal is to maximize the return on investment to investors through the efficient management of real estate development and real estate investment. EDUCATION: University of Colorado Economics, BA September 1974-December 1977 American University of Ciro, Egypt Semester of study, 1975 University of New Mexico, 1973-1974 Amity Regional Highschool Woodbridge, Connecticut 1970-1973 BUSINESS EXPERIENCE: January 1981 - Present: President of Pioneer Investments, Inc. , a Colorado corporation. Responsible for the management, and the development of real estate investments for a group of investors. Areas include: the purchase of existing property, and acting as a joint venturer in the development of to be built and renovation pro- jects. October 1979-December 1980: LaGarde'Eklund, LTD, Boulder, Colorado. Acted as realty operations manager. Worked directly in conjunction with the two principles, and was involved in all levels of meetings, and decision making. My time was concentrated in Resume Ronald J. Cappello Page -2- the areas of marketing and finance. Prior to my leaving to form Pioneer Investments, Inc. , I was involved in two projects in the Vail area. Sunriver, a 64 unit condominium in Eagle-Vail, and Chambertin, a 16 unit luxury townhome project in Avon, at Beaver Creek. 1979 - Present: 1979, invested in real estate for my own ac- count. Purchased 3740 Iris, No. C; 830 20th Street, No. 209; and 665 Manhattan Drive, No. 10. 100% occupancy has been maintained since closing. 1980, entered into contract for pur- - chase for unit D101 in the Sunriver Project. 1981, closed Sunriver, and entered into con- tract for purchase for unit No. 1709 in the Windsor, a new highrise condominium project in downtown Denver, Colorado. September 1978-August 1979: Storage Technology Corporation, Boulder, Colorado. Marketing support for a memory computer product produced by Intersil for STC. Interfaced with field engineering, the manufacturer and STC marketing staff. March 1978-September 1978: Grayson Construction Company, Boulder, Colorado. The period between graduation and starting along a career path was spent doing work as a laborer. This exposed me to the building process and helped me to understand the management tasks involved in delivering a completed project. PERSONAL DATA: Birth Date: September 3, 1955 Marital Status: Single Health: Excellent INTERESTS: Reading, travel, skiing and tennis FUTURE PROSPECTS: The renovation of four, turn of the century homes in Denver, Colorado. The purchase was finalized in June, 1981. The project's sell out value is 1.5 million dollars. Resume Ronald J. Cappello Page -3- The purchase and renovation of a 40,000 square foot historical landmark in Greeley, Colorado. This project will be done on a joint venture basis with Sinco International Invest- ments, Inc. The building will have an approx- imate renovation budget of 2 million dollars. (Raised through investment revenue bonds. ) BACKGROUND: Born and raised in Connecticut. Began work- ing with a landscape company at age twelve, during the summer months. I also had my own painting business. I have traveled extensively in North America, Europe and have lived in the Middle East. REFERENCES: Mr. "Swede" Johnson, Boulder, Colorado Mr. Robert L. Barr, Hennessy, Oklahoma Mr. Howard LaGarde', Boulder, Colorado Mr. Robert M. Hart, Boulder, Colorado CONFIDENTIAL CENTRAL BANK OF DENVER, Denver, Colorado Sipco International M maker Investments , Inc. Address 885 Arapahoe , Boulder, Colorado 80302 C Maker (' ae below) Address All assets and income listed below are the sole property of the Maker and/or Co-Maker (if any), unless otherwise indicated. This statement and ar— applicable supporting schedules may be completed jointly by both married and unmarried persons if their assets and liabilities are sufficiently jc ed so that the statement can be meaningfully and fairly presented on a combined basis; otherwise separate statements and schedules are re fired. 0 Completed Jointly Not Completed Jointly (r-s joint statement — both signatures are required on the reverse side.) T' undersigned furnish(es) the following true financial statement as of December 31 19 80 to the Central Bank of Denver. ASSETS LIABILITIES C.- :h In Bank— Name of Bank S Notes Payable $ Central 5 ,741. 70 To Central Bank of Denver(see Schedule C) 'inpa Account—Name of Bank Central p To Other Banks(see Schedule C) 'ertificate of Dep . w/Bank. ,211 , 784.02 To Others (see Schedule C) Securities Instalment Accounts Payable Gov't.and Listed thee Schedule A) Automobile (see Schedule C) Unlisted (see Schedule A) Other (see Schedule C) Deposits 6 , 105 . 00 In- vestment in Own Business( %owned) Accounts Payable(Credit Cards.etc.)(see Schedule C) 11 , 588. 79 A vounts end Notes Receivable 12 , 939 . 93 Unpaid Income Tax Sales/Payroll 2, 792 . 32 Work in Progress 6 , 356.99 Other Unpaid Taxes and Interest Other(Good) (see Schedule A-t) Other Debts— _ Concigned Goods 24, 418.00 SUB TOTAL—Current Assets 236, 822. 64 SUB TOTAL—Current Liabilities 44, 904. 11 F ilEstathOwned Highland Off. Bld gl 263. 714. 57 MortgagesPayebleonRealEsfeteEmpire Say. 1, 150 ,000.00 L_,h Value Life Insurance (Face Amt ) Loans on Lite Insurance Policies Vested Interest in Deferred Compensation Plans (Include Premium Advances) s omobile(s) 1976 Volvo 4,666 .90 OtherDebts—Itemize Equipment-Lease 7, 108. 76 P.D. /Note 1-2 500 .00 _'repaid Ins . /Expenses 2 ,491.00 , Personal Property and F_rnitureF&F/Inventory 156 , 800.09 C —ar Assets— Itemize Petty Cash 143. 75 TOTAL LIABILITIES 1 ,214, 512 . 87 Design Samples 4 1 , 854. 95 NET WORTH (Total Assets Minus Total Liabilities) 451 , 981. 03 TOTAL ASSETS 1, 666, 49 3. 90 TOTAL LIABILITIES AND NET WORTH 1 ,666 , 493. 90 — The financial statement above, for Sinco International, dated December 31, 1980 , is only a guideline to understanding our financial strength. To get a more realistic picture of where we stand, a brief word of explanation is necessary. Sinco International' s assets consist mainly of real estate and Art & Antiques . With the passage of time , and as we depreciate our assets ac- - cording to guidelines established by the Internal Revenue Service , the actual value of these assets is on the rise. This variance between depre- ciated goods and rising market worth has created a wide discrepancy between — the "book value" and the "market value" of said assets , • We estimate that Sinco International Investments actual market worth (total assets minus total liabilities) to exceed One Million Dollars . FINANCIAL STATEMENT OF PIONEER INVESTMENTS, INC. 1401 Walnut, Suite 505 Boulder, CO 80302 June 30, 1981 ASSETS NOTE # COST BASIS MARKET BASIS CASH (1 ) $ 18, 000 $ 18, 000 REAL ESTATE OWNED (2 ) 722, 500 905, 000 DEPOSITS (3 ) 14, 700 24, 700 TOTAL ASSETS $755,200 $947, 700 LIABILITIES REAL ESTATE LOANS $555, 750 $555, 750 NOTES PAYABLE 212, 000 212, 000 TOTAL LIABILITIES $767, 750 $767, 750 NET WORTH $(12 , 550)* $179, 950 — *The Financial Statement above, for Pioneer Investments, Inc. , dated June 30, 1981 is only a guideline to understand our financial strength. To get a more realistic picture of where we stand, a brief word of explanation is necessary. Pioneer Investment's assets consist mainly of real estate. With the passage of time, and as we depreciate our assets according to the guidelines estab- lished by the Internal Revenue Service, the actual value of these assets is on the rise. This variance between depreciated goods and rising market worth has created the wide discrepancy between the "cost basis" and the "market basis" of said assets. —1— NOTE NO. 1 CASH COST MARKET VALUE National State Bank P.O. Box 227 Boulder, CO 80306 Acct No. 34-3490-7 $17, 000 $17, 000 Acct No. 34-4186-5 1, 000 1, 000 TOTAL $18, 000 $18, 000 -2- NOTE NO. 2 COST MARKET VALUE REAL ESTATE 1551 Larimer, No. 1605 Denver, Colorado $122, 500 $150, 000 1551 Larimer, No. 1403 Denver, Colorado $150,000 $175, 000 1118 East 8th Avenue Denver, Colorado $112, 500 $125, 000 784 Corona Denver, Colorado $112, 500 $135, 000 788 Corona Denver, Colorado $112, 500 $150, 000 776 Corona Denver, Colorado $112, 500 $170, 000 TOTAL $722, 500 $905, 000 -3- NOTE NO. 3 DEPOSITS INVESTMENT MARKET COST VALUE Contract for purchase of units No. 2107 and No. 2203 in the condominium project known as "The Windsor. " Scheduled de- livery is June, 1982 . $14, 700 $24, 700 TOTAL $14, 700 $24, 700 -4- NOTE NO. 4 LIABILITIES OUTSTANDING BALANCE REAL ESTATE (1) 1551 Larimer, No. 1605 Denver, Colorado Columbia Savings & Loan Department 900 Denver, Colorado 80281 Acct. No. 0011690875 $ 85, 750 (2 ) 1551 Larimer, No. 1403 Denver, Colorado Mr. Ben Mares 1985 Jellison Lakewood, Colorado 80215 $115, 000 (3 ) 1118 East 8th Avenue Denver, Colorado $ 85, 000 (4) 784 Corona Denver, Colorado $ 90, 000 (5 ) 788 Corona Denver, Colorado $ 90, 000 (6) 776 Corona Denver, Colorado Mr. Alvin H. Rudy 776 Corona Denver, Colorado (Holder of notes on 776, 784, 788 Corona, and 1118 East 8th Avenue) $ 90, 000 TOTAL $555, 750 NOTE: The four homes, 776, 784, 788 Corona, and 1118 East 8th Avenue will comprise a renovation project called Corona Place. The projected sell out value of the project is 1.4 million dol- - lars . Phase One is scheduled to begin October 1, 1981. The scheduled completion date for the entire project is November, 1982 . -5- NOTE NO. 5 NOTES PAYABLE OUTSTANDING BALANCE Pioneer Transports, Inc. P.O. Box 697 Hennessy, Oklahoma 73742 $212, 000 TOTAL $212, 000 NOTE: Pioneer Investments, Inc. , is a wholly owned subsidiary of Pioneer Transports, Inc. -6- ASSUMPTIONS RELATING TO FIVE YEAR FINANCIAL PROJECTIONS ASSUMPTIONS: The five year financial projections on the follow- ing page were prepared by the developer at a time when several unknowns exist. However, we have used the experience of the developer in the preparation of this proforma because he had successfully con- verted an old school building into office space in Boulder, Colorado. The assumptions are as follows: (1) The interest rate on the bond revenues of 2 .3 million dollars is 13%. (2 ) The amortization schedule is based on 20 years. (3 ) The investor will require the developer to keep a one year' s reserve. (4) That reserve of $323, 355 will be placed in an account and will yield 15% inter- est. (Each years interest will be kept in the account for each of the five years . ) (5) Vacancy rate will equal five percent per year. (6 ) Operating expenses will be based on a $3 . 50 per square foot stop for years 1 through 3; years 4 and 5 will have a $4. 00 per square foot stop. Expenses over these amounts will be paid for by the tenants on a pro rata basis. (7) Gross income is based on $12 .00 per square foot for the first three years. ( Increases reflect possible shorter term leases in the first three years . ) Years 4 and 5 reflect $14.00 per square foot. 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A, a) a) q > al +) q 44 C0p � 4' H sa 4ei .2 O sa c1 H N H N +) a W H N CIO H 0 O Z Z U< ri N en A SUMMARY OF ASSETS TO BE PURCHASED AND EXPENSES INCIDENTAL TO THE ACQUISITION OF THOSE ASSETS AND COSTS OF THE SALE OF THE REVENUE BONDS. The Horace Greeley - Phase II Joint Venture (H.G.J.V. ) will purchase, renovate reconstruct, and lease office space in the "old highschool" in Greeley, Colorado. The following is a summary of costs which will be incurred in that process . (1 ) The purchase of the school : $200, 000 to be paid in cash or certified funds. The building and all the improvements as- sociated with the site will be owned by H.G.J.V. free and clear. (2 ) Industrial Revenue Bond: The necessary funds to complete construction, and ac- quire all the necessary materials for construction will be provided for through the issuance of an Industrial Revenue Bond by Gerwin and Company, Den- ver, Colorado. The fees are as follows : a. $10, 000 fee paid to Weld County b. $12 , 000 fee paid to Bond Council c. $15, 000 fee paid to Scott Realty for property acquisi- tion. d. $40, 000 fee paid to the in- vestor for participation in Bond purchase. e. $60, 000 fee paid to Gerwin and Company for underwriting fees. f. $325, 000 fee to be held in reserve. This is an investor requirement. g. $325, 000 first years interest; capitalized. Construction and the "start-up" of the building will occur during this period. h. $1, 513 , 000 costs and fees for the design, constructions, and development of the "Old School House. " 1. $100, 000 tax fees, city use tax, utilities and permits . 2 . $125, 000 architectural and engineering fees . 3 . $100, 000 interior design and purchasing expediting fees. 4. $75, 000 demolision, dis- posal, and clean up. 5. $275, 000 mechanical (HVAC) systems . 6. $200, 000 electrical sys- tems and fixtures. 7. $175, 000 roof structure, roofing, gutter and win- dow repair. 8 . $100, 000 parking, site- work and landscaping. 9. $100, 000 general require- ments . Contingency, gen- eral expenses, unforseen structural work. 10. $138, 000 carpentry. 11. $125, 000 contractors overhead and profit. TOTAL $1, 513 , 000 -2- ATTENDANCE RECORD TODAY' S HEARINGS ARE AS FOLLOWS: D0C 81-39 CenCor, Inc. , Industrial Development Revenue Bonds D0C 81-40 Horace Greeley - Phast II, Industrial Development Revenue Bonds PLEASE write or print legibly your name, address and the DOC # (as listed above) or the applicants name of the hearing you are attending. ' NAME ADDRESS HEARING ATTENDING --/ 7//•C Lech-Za l,-Yt-c-y7.;t-e ,`-" / 7 ( /9G , 644-A/ e O clr, i. / * n //.t a/z ,y, 4 k i- 4.‘ '<,-- `ixi a2,a,_ ,e.L.4'e.l.) c7yi3 /?I-__A- X oe t, /i &jet iVa.44).iix-- ., „2 7.3 7 ._2(7-1-_`6/:4 . /1 , __ e lb _ _ &-d.A.57 fM 1` 1 ! JC ._1AA.(3-k_ r-Q )c . 9 op.-)T • r2,1/t In il (4.")1° 't-A- /k__-e-7--v,--r---;---- /1.O-3 7 '.6(- 67,-(Lio / A- -,RicK CJ LLi q&D ct4k /1- )u LI =2 V-6r4c qsaLLz.f /Rum . �1u� � .,,Q�;L�� 616— x =I1 /&fAc2L' /‘, v v n� 111 '//PYw•N�'1�. � c71.4-1%-;.- iJ r 1 l�' CO-sr F.�' �.,=L 1 � 7 �`1.S�..�.e�k�`a�r n v�2 � Gam/f/y /. .L_Jl, / Iiirle r 47/J I *7- ,,iv r e,-,-,11--y [-s 272J e l 1 q � ,' z -'.-C. e BI L NA%-►C !-k�Lt_ l 1 �7 R G-I�� EI 1 w a03JC4,D S7 � � I S� t-�t / 7 7y SINCO INTERNATIONAL INVESTMENTS INC. August 17, 1981 Mary Ann Feuerstein County Clerk & Recorder The Board of County Commissioners Weld County, Colorado 80632 Dear Mary Ann, Persuant to your letter of August 12 , 1981 , enclosed please find page 13 of the inducement resolution for IDRB ' s for the Horace Greeley - Phase II , joint venture . All parties have signed and sealed as requested. However, if there are any questions , please contact me directly. Meanwhile , Dear Mary Ann, I await the return of a completed copy for our files and remain . . . . 2 S ' cerely Sina Simantob President Sinco International Investments , Inc . / % HIGHLAND OFFICES 885 Arapahoe Avenue, Boulder, Colorado 80302 USA 303 447 2649 flEmORAnDUn1 To Board of County Commissioners Date August 5, 1981 COLORADO From Don Warden Y Subject: Horace Greeley Phase II Industrial Revenue Bond Application A public hearing has been scheduled for August 10, 1981 at 10:30 a.m. for the Board of County Commissioners to consider the Industrial Revenue Bond application from Horace Greeley Phase II. In reviewing the application the applicant does comply with the application requirements of Ordinance #69-A. Therefore the application is ready for the Board of County Commissioners to consider the policy of approval or disapproval of an inducement resolution for the project. Please note that there has been favorable comments received from the City of Greeley for this application. OFFICE OF FINANCE PHONE 13031356-0000 EXT.218 P.O. BOX 758 \II GREELEY,COLORADO 80631 L . = O COLORADO August 10, 1981 Mr. Sina Simantob Sinco International Investments Inc. Highland Offices 885' Arapahoe Avenue Boulder, CO 80302 Dear Sina: In accordance with Section 5 of Weld County Ordinance 69-A which I have enclosed, ' of 1% of the total face amount of the proposed industrial bond issue of $2,300,000 up to a maximum of $10,000 is due and payable to Weld County within 30 days of the issuance of the inducement resolution. A state- ment in the amount of $10,000.00 is enclosed and should be considered a state- ment for the amount payable to Weld County. If you have any questions regarding the above, please do not hesitate to con- tact me. r / Very truly yours, 1• h✓ Donald D. Warden, Director Finance and Administration DDW/ch Encl. t >�s,�`>.`9�,a. ,cyxw� uu •� mh u�t roy�s -'.>' &.:�¢ak+ ...'s,_�' ac^�! , 1 , • .. , bd a� socks gr its • 'aS' • .A� Rad, w �. .yrty,,24A ,4. �� o el ..aly, `� a ��y +i ,'15f ., "�:� �� _. .�z. '�.r" � ea� , i':H�.. . ..;.,..mrz �• :,� GREEI_EY CIVIC CENJEI2 July 28 , 1981 OPEl LEY. COLORADO eOti ' PHONE !3O3! 353-!i,_.. Don Warden Director of Administrative Services Weld County P .O. Box 758 Greeley, Colorado 80632 Dear Don, This letter is to inform you that the City of Greeley strongly supports the issuance of industrial revenue bonds to finance the restoration and remodeling of the old Greeley High School. The City Council has been thoroughly briefed on the project and they urge the County' s favorable consid- eration in the matter. Formal action in adopting a resolution supporting the project will be taken at our August 4 City Council meeting . We appreciate the County' s willingness to cooperate with the City to the benefit of our respective jurisdictions . Sincerely, Kent L. Cooper Assistant City Manager "A COMMUNITY OF PROGRESS" ATTEST: GAYLE VOSS CITY CLERK STATE OF COLORADO ) COUNTY OF WELD CITY OF GREELEY ) I, Gayle Voss, City Clerk of the City of Greeley, County and State aforesaid, do hereby certify that the attached copy of Ordinance No. 42 , 1981 passed and adopted, signed and approved at a regular meeting of the City Council of the City of Greeley on August 4 . 1981, is a true and correct copy of the original which is on file in my office. I further certify that I am the official custodian of the ordinances of the City of Greeley, Colorado. IN WITNESS WHEREOF I have hereunto set my hand and the seal of the City of Greeley, this 7th day of August 1981. Gayle Voss; City Clerk l THE CITY OF GREELEY , COLORADO RESOLUTION NO. 42 , 1981 A RESOLUTION SUPPORTING THE ISSUANCE OF WELD COUNTY INDUSTRIAL DEVELOPMENT REVENUE BONDS FOR THE RENOVATION OF THE OLD GREELEY HIGH SCHOOL WHEREAS , the City of Greeley and the County of Weld are empowered by the Colorado County and Municipal Development Revenue Bond Act to issue industrial development revenue bonds ; and WHEREAS , certain market conditions sometimes make it more favorable for applicants who wish to construct projects within the city limits of Greeley to process industrial develop- ment revenue bonds through Weld County; and WHEREAS, the City has developed a working relation- ship with Weld County to process applications for such projects in accordance with the rules and regulations promulgated by Weld County; and WHEREAS , Weld County has agreed to evaluate and duly consider the position of the City of Greeley with regard to any such project in making its decision to issue bonds in the name of Weld County; and WHEREAS, the City of Greeley through the Greeley Downtown Development Corporation has sought and received proposals to renovate and restore the "Old Greeley High School" to save the building from demolition and to promote economic development in downtown Greeley; and WHEREAS , an investor ' s group known as , "Horace Greeley, Phase II - A Joint Venture" has submitted the most favorable bid for the project; �' RESOLUTION NO. 42 , 1981 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF GREELEY, COLORADO: Section 1. The City of Greeley endorses and supports the issuance of industrial development revenue bonds to finance the redevelopment, within national historic preservation guide- lines, of the old high school located on Block 46 in downtown Greeley. Section 2 . The City respectfully requests the Board of Commissioners of Weld County to give favorable considera- tion to the request of "Horace Greeley, Phase II - A Joint Venture" for the issuance of industrial development revenue bonds to finance said project. PASSED AND ADOPTED, SIGNED AND APPROVED THIS 4th DAY OF August , 1981. ATTEST: THE CITY OF GREELEY, COLORADO ICY/u /lbw By' / C City Cletk Mayor APPROVED: 7-7i'c�2 City Manager ity Attorney (Actin;) I e ! I INVESTMENTS 14(' ' 'v : " ! ; , 05 Rot : .. -698 i t October 7, 1981 telA i A GpLOr Weld County Colorado CREEL... Donald D. Warden Director of Finance & Administration 915 10th Street Greeley, CO 80631 Dear Don: I wanted to follow up our phone conversation with this letter to let you know the joint venture has not for- gotten the fee due Weld County for the issuance of the inducement resolution. Both Sina and I are confident that our loan will be funded soon. It is from that loan the Weld County fee will be paid. Please convey this message to the County Commissioners and should you have any additional questions, please don't hesitate to call . Kindest re ards, Ronald . Cappello LAW OFFICES OF DEMUTH, KEMP 8c. BACKUS 1600 WESTERN FEDERAL SAVINGS BUILDING LAEL S.DEMUTH TERREL E.DAVIS 718 SEVENTEENTH STREET WILLIAM G.KEMP IRVING G. FINKEL DENVER,COLORADO 80202 THOMAS J.MANCUSO ALAN C.D[MUTH 303-629-1800 ROBERT A.BACKUS CRAIG D.JOYCE DONALD A. HOULEHAN CHARLES A.HILLESTAD DANIEL C. LYNCH ,f 110O, (11 LORING E.HARKNESS III August `4 GEORGEANN BECKER Tom Davie, Esq. Mary Ann Feuerstein Dick Fontane Larry L. Bohlander Vicki Ericson Donald Warden Horace Greeley - Phase II Re: County of Weld, Colorado Industrial Development Revenue Bonds (Horace Greeley - Phase II Project) Series 1981 Ladies and Gentlemen: Enclosed for your review and comment please find a first draft of an Inducement Resolution relating to the issuance of the above proposed Bonds . You will note that these proceedings have been prepared for a meeting of the Board of County Commis- sioners on August 10, 1981 . Please telephone us with any questions or comments you may have in connection with the text of this Inducement Resolution. We have forwarded six (6) copies of this Resolution to the County Clerk and Recorder in case this Resolution does not require any revisions . These six copies could be used to distribute to the County Commissioners at the August 10 meeting and used as the County' s copy of the Resolution. If changes are required, we will forward new execution copies for use at the August 10 meeting. Very truly yours, DeMUTH, KEMP & BACKUS Georgeann Becker GB/wt Enclosure: As stated Hello