HomeMy WebLinkAbout20000149.tiff RESOLUTION
RE: SETTING FORTH THE INTENTION OF WELD COUNTY, COLORADO, TO ISSUE
TAX-EXEMPT REVENUE BONDS TO FINANCE A MANUFACTURING FACILITY FOR
LONGMONT DAIRY, OR ITS SUCCESSORS OR ASSIGNS
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, Longmont Dairy Farm, Inc. (the "Borrower") has requested the County to
finance the acquisition, construction, equipping and improving of real and personal property in
connection with a manufacturing facility (the "Project) to be located within the boundaries of the
County at 1-25 and Highway 52, Longmont, 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 $3,500,000, 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 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
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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
$3,500,000, 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 ordinance 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.
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.
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Section 6. The Board of County Commissioners hereby awards to the Project $340,543
of the County's 2000 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 carry forward 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.
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.
The above and foregoing Resolution was, on motion duly made and seconded, adopted by
the following vote on the 19th day of January, A.D., 2000.
BOARD OF COUNTY COMMISSIONERS
WELD COUNTY, COLORADO
ATTEST: 44/ �� f t=`j��` & J. mehai
✓ e
Weld County Clerk to B
riseBY:
Q / .7 �O►c a� 1 J. c eil , Pro-Tem
Deputy Clerk to the !% �� EXCUSED DATE OF SIGNING (AYE)
George E. Baxter
APPROVED AS TO RM:
. Hall
Soar y A tg ne St/
Glenn Vaa
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