HomeMy WebLinkAbout20011639.tiff RESOLUTION
RE: APPROVE SETTING FORTH THE INTENTION OF WELD COUNTY, COLORADO, TO
ISSUE ADJUSTABLE RATE REVENUE BONDS TO FINANCE A MANUFACTURING
FACILITY, OR ITS SUCCESSORS OR ASSIGNS AND AUTHORIZE CHAIR TO SIGN
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 (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, MAK Group, LLC (the "Borrower") has requested the County to finance the
acquisition, construction, equipping and improving of real and personal property in connection
with a 37,800 square-foot manufacturing facility (the "Project") to be located within the
boundaries of the County in Frederick, Colorado, and to loan the proceeds of such revenue
bonds to the Borrower or its successors or assigns (the "Borrower"), 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 revenue bonds
under the Act in a principal amount not to exceed $1,345,000, 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 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
WHEREAS, the Borrower desires that such financing, acquiring, constructing, equipping
and improving of the Project commence immediately, and
WHEREAS, the Board of County Commissioners 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, and
WHEREAS, the Internal Revenue Service has issued 1.150-2 of the Income Tax
Regulations (the "Regulations") dealing with the issuance of bonds, all or a portion of the
proceeds of which are to be used to reimburse project expenditures incurred prior to the date of
2001-1639
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INDUCEMENT RESOLUTION, MAK Group, LLC
PAGE 2
issuance; the Regulations generally require that a prior declaration of official intent be made by
the County as issuer if the Borrower intends to reimburse itself for such prior expenditures out
of the proceeds of a subsequently issued borrowing, that the borrowing occur, and the
reimbursement allocation be made from the proceeds of such borrowing within eighteen months
of the payment of the expenditure or, if later, within eighteen months of the date the project is
placed in service, and that the expenditure be a capital expenditure or payment of costs of
issuance; and the County as issuer and the Borrower desire to comply with the requirements of
the Regulations with respect to the Project.
NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of
Weld County, Colorado, as follows:
Section 1. The Board of County Commissioners of the County, having considered the
application of the Borrower for assistance to undertake the Project within the boundaries of the
County, hereby finds that the assistance it may give will further the purposes set forth in the Act
and that the Project will create economic benefits for the County and its inhabitants.
Section 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 revenue bonds (the"Bonds")pursuant to the Act in the aggregate principal amount of
$1,345,000,or such lesser amount as shall be determined and agreed upon between the Borrower
and the County, to finance the Project. The Bonds will not be general obligations of the County.
Neither shall the Bonds, including interest thereon, constitute the debt, indebtedness or multiple
fiscal year direct or indirect financial obligation of the County within the meaning of any limitation
of the Constitution or Statutes of the State of Colorado or the County's 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 revenues derived from and payable by the
Borrower pursuant to financing agreements with the County.
Section 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.
Section 4. Prior to the execution of a financing agreement, mortgage, 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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INDUCEMENT RESOLUTION, MAK Group, LLC
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Section 5. Based upon representations of the Borrower, the County declares (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 5%of the proceeds of the bonds, (ii) preliminary expenditures
(as described in the Regulations) in an amount not to exceed 20%of the issue price of the bonds,
and (iii)other expenditures made not earlier than 60 days before the date of the Prior Declaration,
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.
Section 6. The Board of County Commissioners hereby awards to the Project $1,345,000
of the County's[20011 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 carryforward and preserve the County's Volume Cap.
Section 7. Nothing contained in this Resolution shall constitute the debt or indebtedness
or multiple fiscal year direct or indirect financial obligation of the County within the meaning of any
limitation of the Constitution or Statutes of the State of Colorado or the County's Charter, nor give
rise to a pecuniary liability of the County or a charge against its general credit or taxing powers.
i^ Section 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.
Section 9. 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.
Section 10. This Resolution shall take effect immediately upon its passage.
BE IT FURTHER RESOLVED by the Board that the Chair be,and hereby is, authorized to
sign all documents necessary to the completion of said revenue bond issue.
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r. INDUCEMENT RESOLUTION, MAK Group, LLC
PAGE 4
The above and foregoing Resolution was,on motion duly made and seconded,adopted by
the following vote on the 20th day of June, A.D., 2001.
BOARD OF COUNTY COMMISSIONERS
WELD UNTY, COLORADO
�► M. J. Geile, Chair
ise w
to the Board
{ i : EXCUSED
Glenn Vaad, Pro-Tern
`ter L-U
Willia . Jerk
APP ED A ORM:
vi E. Lo
ounty Atto ney
Robert D. Masden
2001-1639
FI0033
NOTICE OF PUBLIC HEARING
IN CONNECTION WITH THE ISSUANCE BY
WELD COUNTY, COLORADO
OF ITS
ADJUSTABLE RATE REVENUE BONDS
(WALL TECHNOLOGY,INC. PROJECT)
SERIES 2001
PUBLIC NOTICE IS HEREBY GIVEN that the Board of County Commissioners of the
County of Weld, Colorado (the "Board of County Commissioners")will hold a public hearing on
the 20th day of June, 2001, at or about 9:00 a.m., at 915 10th Street, 1st Floor Hearing Room,
Greeley, Colorado 80632, on the proposed issuance by Weld County, Colorado, of its Adjustable
Rate Revenue Bonds (MAK Group, LLC, Project), Series 2001, in the total principal amount not
to exceed $1,345,000 (the "Bonds"). Proceeds of the Bonds will be loaned to MAK Group, LLC,
a Colorado limited liability company(the "Borrower") to finance a manufacturing facility
consisting of a building containing approximately 37,800 square feet located in the Glacier
Business Park, at 3771 Eureka Way, Frederick, Colorado (the "Project"). The Project will be
owned by MAK Group, LLC, and will be leased to Wall Technology, Inc.
It is intended that the interest payable on the Bonds be excludable from the gross income of
the owners thereof for Federal income tax purpose pursuant to the applicable provisions of the
Internal Revenue Code of 1986, as amended.
The Board of County Commissioners will, at the above stated time and place, receive any
written comments from and hear all persons with views in favor of, or opposed to, the proposed
issuance of the Bonds and the use of the proceeds thereof to finance the Project.
Dated: June 1, 2001
Publication date: June 6, 2001, in the Tri-Town Farmer and Miner
2001-1639
Affidavit of Publication
STATE OF COLORADO
County of Weld SS.
11011q0DMIIIBIOAMMO
I A. Winkler Riesel of said County of Weld being IN flan*
MANX IV
duly sworn,say that I am publisher of MID COWRY COLORADO
Of O
FARMER&MINER
ADJUSTABLE RAZE IIIVMIIR
B that the same is a weekly newspaper of general BONDS
circulation was printed and published in the town of P AU.TECHINOLOGY,NC-
PROJECT)
FREDERICK S IM 2001
in said county and state that the notice of PUBLIC MOTICE IS
advertisement,of which the annexed is a true copy has IWYGIVBI1swte.R0ard
been published in said weekly newspaper for of County Conwisslorwsof
ONE consecutive weeks: that the notice was the County of Weld.
Gear*Colorado minhe "Board of.e I
published in the regular and entire issue of every CountyC nearing onthe
number of said newspaper during the period and time hold o public heorkp on he
of publication of said notice and in the newspaper 201 day o June,2(OI,otor
proper and not in a supplement thereof: that the first about 9:mo.m.,of 915 10th
publication of said notice was contained in the issue of Street. 1st Floor Nearing
Room, Greeley, Colorado
said newspaper bearing the date of 80632, on the proposed
issuance by Weld County,
JUNE 6 A.D.2001 and the last publication thereof, Colorado, of its Adjustable
in the issue of said newspaper, bearing date, the Rote Revenue Bond (MAK
61hday of JUNE 2001 that the said Group,LLC..Protect),Sages
2001, in the total prbkJpal
amount not to exceed
FARMER &MINER $1,345,000 (the 'Bonds"),
has been published continuously and uninterruptedly Proceedsof the BondswMbe
during the period of at least fifty-two consecutive loaned to MAK Group,L1C.,
o Colorado Limited Ilahity
weeks next prior to the first issue thereof containing
said notice or advertisement above referred to: and Canancepeny a manufacturing(The nuc
r0Rnycanisiofabld
that said newspaper was at the time of each of the fpcRlyconslstingofobuRdrg
publications of said notice duly qualified for that containing approximately
purpose within the meaning of an act entitled. "An 37,800 square feet located
Act Concerning Legal Notices, Advertisements and in the Glacier Business Pork,
Publications and the Fees of Printers and Publishers at 3771 Eureka Way,
Frederick, Colorado (the
thereof, and to Repeal all Acts and Parts of Acts in
l
Conflict with the Provisions of this Act" approved alir owned
lye protect, ,
PP be., netl by MAXol seGrd to
April 7, 1921, and all amendments thereof, and tie.,and will be leased to
particularly as amended by an act approved, March Wall Technology.Inc.
30 2 and an act approved May 13,1931. a it is intended that the
interest payable on the
//)) (p/ Bands be excluded from the
.h x i��i 4 S �J grow income of the owners
5/6 ,-( ✓rzr _ '7;
- r•/l.<!,7 p thereof for Federal income
(r �" tax expose pursuant to thhe
PuUFishe[ - !r applicable provisions of the
Internal Revenue Code of
Subscribed and sworn to before me this 6th day of 1986,os amended,
The Board of County
JUNE. A.D. 2001 Commissioners will, at the
above stated time and
place, receive any written
comments from and hear all
) �� persons with views in favor
of, or opposed to, the
())/12,22-C.; (717O/2/9/c proposed issuance of the
Notary Pub}' Bonds and the use of the
proceeds thereof to finance
the Pralect.
P.O.BOX 125 Dated: June 1,2001.
Published in the Trl-Town
FT.LUPTON, CO 80621 Farmer and Miner June 6,
2001,
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