HomeMy WebLinkAbout841288.tiff p./5/Q.9
A RESOLUTION OF INTENTION TO ISSUE
INDUSTRIAL REVENUE BONDS TO FINANCE
A BUSINESS AND COMMERCIAL PROJECT FOR 1623
JOINT VENTURE LIMITED
WHEREAS, the Board of County Commissioners of Weld County,
Colorado (the "County") , pursuant to Colorado statutes and the Weld
County Home Rule Charter, is vested with the authority of adminis-
trating the affairs of the County; and
WHEREAS, the County is authorized by Article 3 of Title 29
of Colorado Revised Statutes, as amended (the "Act") , to issue reve-
nue bonds for the purpose of defraying the cost of financing any
land, building or other improvement and all real or personal proper-
ties, and any undivided or other interest in any of the foregoing,
suitable or used for or in connection with any manufacturing, indus-
trial, commercial, agricultural or business enterprise ; and
WHEREAS, representatives of 1623 Joint Venture Limited, a
Colorado limited partnership (the "Partnership") , have advised the
County of its interest in acquiring and improving land in the County
and the constructing and equipping of a building thereon for use as a
business and commercial facility (the "Project") in the County; and
WHEREAS, the Partnership will be the borrower from the
County of the proceeds of the industrial development bonds; and
WHEREAS, the County has considered the Partnership's pro-
posal and has concluded that the economic benefits to be derived
therefrom by the County and its inhabitants will be substantial and
that the County wishes to proceed with the financing of the Project;
and
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841288
WHEREAS, the Partnership has submitted to the County all of
the documents which are required by Section 3 of the Weld County
Development Revenue Bond Policy in connection with the financing of
the Project.
NOW, THEREFORE , BE IT RESOLVED BY THE BOARD OF COUNTY
COMMISSIONERS OF WELD COUNTY, COLORADO, THAT:
1 . In order to induce the Partnership to acquire and
improve the Project within the County, the County shall take all
steps necessary or advisable pursuant to the Act to effect the issu-
ance of one or more series of industrial development revenue bonds or
other obligations (the "Bonds") in the maximum aggregate amount of
$6 ,600 ,000 or such lesser amount as shall be mutually agreed upon to
finance the Project. This Resolution is and constitutes the taking
of affirmative official action by the County toward the issuance of
the Bonds. No costs are to be borne by the County in connection with
the issuance of the Bonds.
2 . The terms and conditions of the Bonds and of the
financing documents relating to the Bonds will be mutually agreed
upon by the County and the Partnership, and prior to their execution,
such documents will be subject to authorization by Ordinance of the
Board of County Commissioners pursuant to law and any ordinance or
rules of the County and said financing documents shall provide that
the Bonds shall be secured by a first lien on the Project.
3 . The Board of County Commissioners hereby finds and
determines that the documentation furnished by the Partnership satis-
fies the requirements set forth in Section 3 of the Weld County
Revenue Development Bond Policy. The Board of County Commissioners
also hereby finds and determines that the Project meets the criteria
set forth in Section 2 of the Weld County Revenue Development Bond
Policy.
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4 . The Partnership has agreed to provide for reimbursement
of all expenses incurred or to be incurred by the County related to
the Project and to pay the County' s legal and issuance fees.
5 . Neither the Bonds, including interest and any premiums
thereon, nor anything contained in this Resolution shall constitute a
debt or indebtedness of the County within the meaning of the
Constitution or statutes of the State of Colorado, nor give rise to a
pecuniary liability of the County or a charge against its general
credit or taxing powers. The Bonds shall be payable solely from and
secured by a pledge of the revenues derived from and payable pursuant
to the financing documents referred to in Section 2 hereof.
6 . The agreements of the County set forth above are
expressly conditioned upon the ability and willingness of the County
to issue the industrial development revenue bonds as tax-exempt obli-
gations under the federal income tax laws existing on the date of the
issuance of such bonds, the issuance of such bonds to finance the
Project shall be in the absolute discretion of the County, and the
County reserves the right to issue tax-exempt industrial development
revenue bonds to finance other projects instead of the Project.
The above and foregoing Resolution was, on
motion duly made and seconded, adopted by the following vote on the
5th day of December, A.D. , 1984 .
ATTEST: 1 9P BOARD OF COUNTY COMMISSIONERS,
" { ,xi,.3,A K ' WELD COUNTY, COLORADO
Weld County Clerk and Recorder EXCUSED
and Clerk to the Board Norman Carlson, Chairman
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-
/
By: y�\ / �il1,'- ' %%%/f /7. (( ,. •>,a)lnn yy�� ?neNc1oN-.
Deputy` County Clerk ` JJac• elinelohnson, Pro-Tem
APPROVED AS TO FORM: \Gah.l QZ Selnir
Gene Brantner
r
62
County Attorney C. Chuck arlson
i
John Martin
DATE PRESENTED : December 5 , 1984
-5-
CERTIFICATION
STATE OF COLORADO
SS.
COUNTY OF WELD
I , Debbie Campbell , Deputy Clerk to the Board of County
Commissioners of the County of Weld, Colorado, certify that the fore-
going is a true copy of Resolution No. , adopted at a regular
meeting of said Board of County Commissioners held on December 5,
1984.
Deputy Clerk to the Board
[SEAL]
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s
STATE OF COLORADO
SS.
COUNTY OF WELD
The Board of County Commissioners of Weld County, Colorado,
met in regular session at the Centennial Complex, 915 Tenth Street,
Greeley, Colorado, on Wednesday , December 5 , at 10 : 30 a .m.
There were present at said meeting the following :
Present :
Chairman : Norman Carlson
Other Commissioners : J. Chuck Carlson
John T. Martin
Jacqueline Johnson
Gene Brantner
Absent :
There were also present :
Deputy County Clerk : Debbie Campbell
County Attorney : Tom David
Finance Director: Don Warden
Don Warden introduced the following
resolution, the text of which is as follows :
NOTICE OF PUBLIC HEARING
Docket # : 85-41
NOTICE IS HEREBY GIVEN that at the regular meeting of the
Board of County Commissioners of Weld County, Colorado (the
"County) , to be held on Monday, June 24 , 1985 , at the
Centennial Complex, 915 10th Street, Greeley, Colorado, at the
hour of 9 :00 a.m. , the Board of County Commissioners will hold
a public hearing to consider the adoption of a resolution
indicating the intent of the County to issue industrial
development revenue bonds in the aggregate principal amount of
$6 ,600 ,000 (the "Bonds") . The proceeds of the Bonds will be
loaned to 1623 Joint Venture Limited, a Colorado limited
partnership (the "Partnership") , to finance the purchase of an
87 ,708 square foot parcel of land within the County located on
the southeast corner of 23rd Avenue and 16th Street, the
construction of an office building of approximately 74 ,824
square feet on such land and the installation of certain
equipment therein (the "Project") . The Project will be owned by
the Partnership and leased to various business and commercial
tenants.
The bonds shall never constitute a charge against the
general credit or taxing power of the County, nor are the bonds
a general obligation of the County. All persons with differing
views on either the issuance of the bonds or the location or
nature of the Project will be given a reasonable opportunity to
be heard. The public hearing will be the only public hearing
prior to the consideration of the resolution and the issuance of
the bonds.
Copies of the application for Industrial Development
Revenue Bonds are on file in the Office of the Clerk to the
Board of County Commissioners located on the 3rd floor, Weld
County Centennial Center, 915 10th Street, Greeley, Colorado,
and may be inspected during regular business hours.
THIS NOTICE GIVEN BY ORDER of the Board of County
Commissioners of the County of Weld, State of Colorado, as of
the 6th day of June, 1985 .
THE BOARD OF COUNTY COMMISSIONERS
BY: MARY ANN FEUERSTEIN
COUNTY CLERK AND RECORDER
AND CLERK TO THE BOARD OF
COUNTY COMMISSIONERS
BY: TOMMIE ANTUNA, DEPUTY
DATED: June 3 , 1985
PUBLISHED: June 6 , 1985 in the Johnstown Breeze
Exh ; 6: TA
s
Affidavit of Publication LEGAL NOTICE
A
NOTICE OF PUELICEMIINf-
DO*0 NO.ST
STATE OF COLORADO. 1 ss NOTICE IS NEREty'GIVEN
County of Weld. ) THAT1T AgT�TIM INSULAR ME-
Comely
al YIfIIE.telNNy:
I yfrttleatt 'DS
{If lell SSW.*haled.
said County of Weld. being duly sworn, say that t Ste hour e1 telit eJll.,
1 L4aher of Sion eRhoN a.lutel hgryq'M
hid
P--c_2 * Rill Casty
M'ft Noel-
'
•
that the same is a weekly newspaper of general ueRRl, }WI Menus MnRa RI
circulation 7,:z crd published in the QOM Rh�MI amount S{,s�p,
.L 1M ISMS will be leaded N WS
town of - ,W-A-- Joint Venture Limited.a Collor
ado
in said county and state: that the notice or adorn, limited partnership(the••Pytuer-
boement. of which the annexed is a true ropy. N l L to finance the SurcMse et
an 17.7y.etluOre feet parcel of land
has been published in said weekly newspaper within the County located en the
p-y c.4?— southeast corner of lid ANN*
Ifar �" z,,,,.....t.., and lice street.Me
an Nike heading oft -et
weeks: that the nonce was published in the 14.$24 such�lend
square feet en and
regular and entire issue at every number of said the installation of certain py{p.
newspaper dung the penad and time of publi- mom therein(Me"Tro$ect"f.The
Project will be awned by the
cation of said notice and in the newspaper Prtnership and leased te vNfoes
proper and net in a supple:nent thereof: that the business and commercial tenants.
first publication al said notice was contained in The rounds shill never constitute a
the issue of said,newspaper ,bearina date. }ha charge againstthegeneral creditor
92(3, )Lc}C y rasing power of Me CWnry,nor are
day c( n.D.. 19 the bonds a general obligation m
and the last publi:ancn thereat. ulna issue of the County.All persons with Eder.
..L views on either the iswanie of
said,newspaper bearing date. the day a the bonds or the location or nature
T �� � -c-/
of the Project will be given a
�`t`'c�""- 19 that the said reasonable opportunity to be heard.
The public hearing will be the only
/J �1 1 public hearing prior to the tumid-
.� �/ec/ erasion of the resolution and me
d`�" issuance of{he bonds.
has been published continuously and uninternipt. Copies of the application for Indus-
edly during the period of ct least Iilty-two can• trial Development Revenue Bonds
arson file in Me Office of the Clerk
aeCuttva weeks net prior to the first issue thereof mine Board of County Commits
containing said notice or advertisement above inners located on theard floor,weld
County Centennial Center,515 11th
referred to: and ricer said newspaper was at the st net,Greeley,Colorado,and may
time of each of the publications of said notice. be inspected during rester busi-
duly qualified tar that purpose within the mean- nets hours.
inq of an act- entitled. "An Act Concerning Legal TINS NOTICE GIVEN SY ORDER
Notices, Advertisements and Publications. and of the/testis of Cent/ tyldyliss-
looters nal*,toe
the Fees of Printers and Publishers thereof, and of Cetera d Colorado,aCamayt e a .as s of f IM DM ow et
to Repeal all Acts and Parts of Acts in Conflict Nevaa her,1154.
with the Provisions of this Act." approved April 7• THE.EOARDOF cottony
1921, and cli amendments thereof, and particu. COMMISSIONERS
laity as =mended by an approved. March 30. BY:MARY ANN PEUERSTES
IS an act approv May I B. 1931. COUNTY CLERK ANDREOOIt-
o DER AND CLERK TOTHE
-CC�r�! .. C-�Cu 110ARDMPCOU7fTY
(/a" MIDOECOWI RS
Publisher BY:TOMMIE ANTUNA,
DEPUTY
Subscribed an sworn to before me this Pum�shed in Mb LaSaite Leader,
Thursday, November is, Iyse.
day of g A.D.. 19
Ate. o r
My commission espires . /,/-7-16—o ---
Notary Public
ELIZABETH M.ASSEY,
22019 wc.RD. 54
GREELEY CO 80631
c_-,f--
Nonce OF PUBLIC mama
OF PUBLICATION
Deuhst;:Ne..Mrei
t4oTICE 1S HEREBY GIVEN that THE JOHNSTOWN H N S TO W N BREEZE
at the regular meeting..�pi the STATE OF COLORADO )
Board ofCounty Commissionere
of Wald County Gatorade (the 1 SS
"Galntf),to he held on Monday June 64,1985,ftN .re Centennial COUNTY OF WELD )
Complex, 915 10th Street, I, Clyde Briggs, do solemnly swear that :
Greway,Colorado,at the hour of
too am, the Board of County am publisher of The Johnstown Breeze.
Commissioners will hold a public that the same is a weekly newspaper
hearing to.consider the adoption
f aat resolutionof'the C indicaunty ting
o glethe printed, in whole or in part, and publishes
industrial development revenue in the County of Weld, State of Colorado
bonds In the aggregate Pri r citMl and has a general circulation therein; tha
amount of 141000, 000
bonds"). The proceeds of the said newspaper has been publisher
Bonds will be loaned to 1623 continuously and uninterruptedly,sill in saic
Joint Venture Limited a Colorado p y
limited partnership(the"Partner- County of Weld for a period of more that
ship",to finance the purchase of
an 87,708 square foot parcel of fifty-two consecutive weeks prior to the
land Within the County located first publication of the annexed legal notice
on the southeast corner of 23rd
Avenue and 18th Street, the or advertisement; that said newspaper ha:
construction at an ottica buildmp been admitted to the United States mails a)
of approximately 74,824 square
feet on such land and the second-class matter under the provisions o
Installation of csrteil� eeqq�uipment
therein (the "P ned. The the Act of March 3, 1879, or am
by
Project veil be ownned the amendments thereof, and that lair
Partnership and leased to
various business and commercial newspaper is a weekly newspaper dill
tenants. qualified for publishing legal notices am
The bonds shall never coneti- advertisements within the meaning of the
tuts a charge against the general
credo or taxing power of the laws of the State of Colorado.
County nor are the bonds a That the annexed legal notice or advertise
general obligation of the County.
All persons with differing views ment was published in the regular am
on either the issuance of the entire issue of every number of said weekh
bonds or the Incation or nature of -
the Project will be given a newspaper for the period of .../.. consecu
reasonable opportunity to be
heard.The public hearing will be tive insertions; and that the firs
the only public hearing prior to the consideration of the resolu- publication of notice yy l said was,in the issue q
tion and the issuance of the said newspaper dated .b-6, A.D. 1bec
bonds. and that the last publication of said notici
Copies of the application for was in the issue of said newspaper date(
Industrial Development Revenue
Bonds are on file in the Office of A.D. 19
the Clerk to the Board of County In witness whereof I have hereunto se
Commissioners located on the
3rd floor, Weld County Con- my hand this ....b day of ..7Cv4
tennis, Center, 915 10th Street, -
Greeley, Colorado, and may be A.D. 19QS
inspected during regular busi-
ness hours ' ��`
THIS NOTICE GIVEN BY 1117 '
ORDER of the Board of County
,43
Commissioners of the County of Publisher
Weld,State of Colorado,as of the
8th day of June, 1985.
THE BOARD OF COUNTY
COMMISSIONERS Subscribed and sworn to before me, 1
BY: MARY ANN Notary Public in and for the County o
FEUERSTEIN W d, State of Colorado, this j,,,ti. day o
COUNTY CLERK AND
RECORDER AND CLERK .. .-, . A.D. 19.if ...
TO THE BOARD F
COUNTY COMMISSIONERS• f/
BY: TOMMIE ANTUNA, -‘7.— -'
Let 7:11/14-4//
��/
DEPUTY :G„;:i.e.,,a_. �.:./..... -.12..#:.c—.
' Notary Public
DATED: June 3, 1885
PUBLISHED:June 6,1985 In the
Johnstown Breeze
My commission expires
clerk
�'�'7� Tiart'k
• IP Cottonwood Management Co.
• 1701 23rd Avenue O Suite D John C. Todd
P. O. Box 5131 John M. Todd
Greeley, Colorado 80631
CO'I-I'ONWOOD
SQUARE
May 31 , 1985
Mr . Don Warden
Director of Finance
Weld County
Centennial Center
915 10th Street
Greeley, Colorado 80631
Re: Cottonwood Pointe Inducement Resolution
Dear Don:
This letter is to inform you of our intent to reinstitute
our application for inducement on the IRB ' s for Cottonwood
Pointe. We are interested in proceeding with our application
immediately.
If you have any questions , please contact me at your
convenience.
Very truly yours ,71
7 �) ,�
John M. Todd
JMT: jj
.CXNiBiJ
STATE Or. COLORADO
Department of Local Affairs *raj,
Ai/ �4aSC1r\'�
DIVISION OF LOCAL GOVERNMENT I 8 $
Pat Ratliff, Director I FEB 7 )9$5 ''876.
( Richard D. Lamm
GoxFrnor
OREELEY, COLO.
NOTICE OF GRANT OF AUTHORITY TO
ISSUE PRIVATE ACTIVITY BONDS
Be it known that on February 4, 1985 , the Colorado Depart-
ment of Local Affairs did notify Weld County, Colorado
that Weld County, Colorado
had been granted an allocation from the Statewide Balance to issue
$ 3,782,850.00 in Private Activity Bonds. Said Private
Activity Bonds shall be used by the entity to finance costs associated with
1623 Joint Venture, Ltd. project
The authority to issue said bonds, granted herein, shall be valid
through May 16, 1985
pursuant to Section 6 of Executive Order Number D0062-84.
- - - This Notice is given in accordance with Section 6 of Executive Order. .__.
Number D0062-84.
Moreover, I hereby certify that this grant of authority to issue Pri-
vate Activity Bonds is not a result of any bribe, gift, gratuity, or direct
or indirect contribution to any political campaign. This certification is
given pursuant to Section 103(n) 12(A) of the Internal Revenue Code.
STATE OF COLORA GV Administrator of Statewide Balance
•
1313 Sherman St., Room 518
Wiwi,Colorado 80%03 February 4, 1985
Date
1313 Sherman Street, Room 520, Denver,Colorado 80203 (303)866-2156
Bdrntq a-gS
STATE OF COLORADO
Department of Local Affairs oFco
DIVISION OF LOCAL GOVERNMENT
Pat Ratliff, Director
'1876'
Richard D. Lamrn
NOTICE OF GRANT OF AUTHORITY TO Governor
ISSUE PRIVATE ACTIVITY BONDS
Be it known that on June 26, 1985 , the Colorado Depart-
ment of Local Affairs did notify The County of Weld, Colorado
that The County of Weld, Colorado
had been granted an allocation from the Statewide Balance to issue
$ 6,600,000.00 in Private Activity Bonds. Said Private
Activity Bonds shall be used by the entity to finance costs associated
with 1623, Joint Venture, LTD project
The authority to issue said bonds, granted herein, shall be valid
through September 24, 1985
pursuant to Colorado Revised Statute 24-32-1409(4) .
This Notice is given in accordance with- Colorado Revised Statute
24-32-1409.
Moreover, I hereby certify that this grant of authority to issue Pri-
vate Activity Bonds is not a result of any bribe, gift, gratuity, or direct
or indirect contribution to any political campaign. This certification is
given pursuant to Section 103 (n) 12(A) of the Internal Revenue Code.
STATE OF COLORADO tit'
DEPARTMENT OF LOCAL AFFAIRS Administrator of Statewide Balance
1313 Sherman St., Room 51?
Denver, Colorado 8020$
June 26, 1985
Date
r.
1313 Sherman Street, Room 520, Denver, Colorado 80203 (303)866-2156
STATE OF COLORADO
Department of Local Affairs oc•cow
DIVISION OF LOCAL GOVERNMENT S $
Pat Ratliff,Director *ran*
/g�6
June 27, 1985 Richard D. Lamm
Governor
Mr. Donald D. Warden
Director of Finance, Weld County
P. O. Box 758
Greeley, CO 80632
Dear Don:
Please find enclosed a copy of a grant of authority to issue
Private Activity Bonds. If you have any questions regarding
this grant, please contact me.
Sincerely,
Julia A. Dole
Financial Advisor
Division of Local Government
JD/vt
Enclosure
1313 Sherman Street, Room 520, Denver, Colorado 80203 (303) 866-2156
APPLICATION FOR DEVELOPMENT REVENUE BOND
FINANCING FOR THE
1623 JOINT VENTURE LTD. PROJECT
OFFICE BUILDING
LOCATED IN THE CITY OF GREELEY, COLORADO
Prepared and Submitted by:
First interstate Bank of Denver, N.A.
633 Seventeenth Street
Denver, Colorado 80270
TABLE OF COTENTS
APPLICATION FOR DRB FINANCING
1623 Joint Venture Ltd.
Partnership Project
Office Building Development
Greeley, Colorado
SECTION CONTENT
I Description of the Company and
Principals of the Partnership
II Statement of First Interstate
Bank of Denver regarding the
Placement of the Bonds and
Banking Relationships
III Description of the Project
IV Description of the Site
V Cost Estimate of the Project
VI Proposed Project Timetable
Appendix A Legal Description of the Site
and Conceptual Site Plans for the
Proposed Office Building
Appendix B Communication of Sherman & Howard,
Bond Counsel for the Proposed
Issuance
_ Appendix C Biographical Information on
General Partners of the 1623
Joint Venture Ltd. Partnership
Appendix D Amortization Schedule and Payments
Appendix E Pro Forma Income Statement for 1623
Joint Venture Ltd.
SECTION I
DESCRIPTION OF THE COMPANY
The 1623 Joint Venture Ltd. is a limited partnership established for the
specific purpose of developing, constructing and owning the proposed project,
a three-story office building in the City of Greeley. The partnership has
been established for the sole purpose of successfully completing the proposed
project.
John C. Todd and John M. Todd are the general partners of the 1623 Joint
Venture Ltd. and limited partners consisting of investors in the project will
be established in the near future.
John C. Todd has been involved in real estate development in the Greeley area
throughout the last thirty years. He is responsible for a combination of
high-quality developments in the immediate area including Cottonwood Square, a
combination retail, office, and residential development adjacent to the site
of the proposed project. John M. Todd, the son of the senior Mr. Todd, has
worked in all phases of the family's enterprises during the past five years.
In addition to this proposed development, the Todd family has been intimately
involved with the development of full-service supermarkets in Greeley and
Fort Collins. These success operations have provided the family with the
sound foundation to begin the development of a set of high-quality,
high-scale supermarkets in the Denver metropolitan area.
The principals involved with the proposed project have demonstrated a sound
business and civic commitment to the projects they have undertaken and the
communities in which they have undertaken them. In this regard, and due to
the proximity of this project to the firm's other development -- Cottonwood
Square -- and adjacent residential property, the principal's have comitted to
a development style that conforms with the Cottonwood Square guidelines.
The 1623 Joint Venture Ltd. possesses the executive capacity to assure the
successful completion of the project and the financial capacity to assure a
high-quality addition to the economic base of the City of Greeley. The
development of this project will, therefore, be an important addition to the
City of Greeley's economic base.
The biographical information on the two principals -- John C. Todd and John M.
Todd -- are included in Appendix C to this application. In addition to this
biographical data, financial data on the principals associated with the 1623
Joint Venture Ltd. partnership is provided under separate cover to assure the
necessary confidentiality of the information.
•
SECTION II
Letter From First Interstate Bank
Regarding Private Placement of Bonds
and Banking Relationship
First Interstate Bank
First of Denver, N.A.
#3 633 Seventeenth Street
Denver, Colorado 80270 Walter C. Kane
Interstate 303 293-5307 Senior Vice President
Bank
September 21 , 1984
John C. Todd
2400 16th Street
Greeley, CO 80631
Dear Mr. Todd:
This letter is submitted to you in order to provide assurance to the Weld
County Commissioners that the proposed bond issue for your office building
can be sold.
Based on the information presented to the Bank, you have indicated that the
Industrial Development Bonds for this project will not exceed $6,600,000 and
that the security on the bonds will consist of a financial guarantee by a
nationally recognized bond insurance company.
First Interstate Bank of Denver has had substantial experience in arranging
for the private placement of industrial development bonds of this type. If
authorized by Weld County, it is our intention to arrange for the private
placement of these bonds so that a closing can take place on this issue as
soon as possible.
In addition your long and substantial banking relationship with the First
Interstate Bank of Fort Collins serves as evidence of your outstanding
business record and ability to successfully manage various business entities.
We will proceed with the preparation of the documents necessary for the
issuance of the bonds as soon as an inducement resolution is passed by
Weld County.
Sincerely yours,
Walter C. Kane
Senior Vice President
First Interstate Bank
of Denver, N.A.
F� First f Seventeenth r, NA. Street
Denver, Colorado 80270 Walter C. Kane
Interstate 303 293-5307 Senior Vice President
Bank
September 21 , 1984
John C. Todd
2400 16th Street
Greeley, CO 80631
Dear Mr. Todd:
This letter is submitted to you in order to provide assurance to the Weld
County Commissioners that the proposed bond issue for your new grocery and
restaurant facility in the City of Greeley can be sold.
Based on the information presented to the Bank, you have indicated that the
Industrial Development Bonds for this project will not exceed $6,600,000 and
that the security on the bonds will consist of a financial guarantee by a
nationally recognized bond insurance company.
First Interstate Bank of Denver has had substantial experience in arranging
for the private placement of industrial development bonds of this type. If
authorized by Weld County, it is our intention to arrange for the private
placement of these bonds so that a closing can take place on this issue as
soon as possible.
In addition your long and substantial banking relationship with the First
Interstate Bank of Fort Collins services as evidence of your outstanding
business record and ability to successfully manage various business entities.
We will proceed with the preparation of the documents necessary for the
issuance of the bonds as soon as an inducement resolution is passed by
Weld County.
Sincerely yours,
Walter C. Kane
Senior Vice President
SECTION III
DESCRIPTION OF THE PROJECT
The 1623 Joint Venture Ltd. project, proposed for the City of Greeley,
consists of a high-quality, executive office building providing a range of
rental space located on a 87,708 square foot parcel of land facing 23rd Avenue
between 16th and 17th Streets. Located near the center of the City, the
proposed office building will occupy approximately 23.8% of the site. A total
of 271 parking spaces are provided for full and compact vehicles, with 186
spaces or 67 per cent of the parking provided within the building on three (3)
sub-surface levels. The sub-surface parking area is anticipated to occupy
approximately 53,740 square feet.
Above ground, the proposed office building, designed to be aesthetically
integrated with the Cottonwood Square development located in close proximity,
will contain four floors with a total of 74,824 square feet. The first three
floors will contain 21 ,496 square feet each and the fourth floor will contain
10,336 square feet. Of the square footage contained in the building, 58 per
cent is allocated to office space and 42 per cent is allocated to sub-surface
parking, designed to minimize and eliminate adverse off-site impacts.
The proposed project is to be constructed in a fully developed area of the
City of Greeley and adequate and sufficient utilities are available
immediately adjacent to the site. No exceptional demands will be created by
the proposed project upon the service delivery system of the City of Greeley.
The proposed project will provide high-quality executive rental space and will
serve to further the economic development objectives of the City of Greeley by
retaining an expanded employment profile within the City. . The project is more
than 90 per cent leased at the present time and completion of the rental
commitments is expected in the very near future.
•
Specifically, the major anchor tenant committed for occupancy is United Agri
Products Companies with 100 employees, an operational division of ConAgra
Agri-Products Companies. This will be the headquarters offices of the
operation and will retain the corporate operation in the City of Greeley.
Location in the new office space will permit the expansion of this operation
in Greeley, an essential ingredient of the City's economic base. Please refer
to 1984 ConAgra Annual Report, submitted under separate cover. In addition to
United Agri Products Companies employing the 100 persons, it is anticipated
that other building occupancy, consisting of medical and financial uses will
add another 50 persons to the payroll occupancy. The major tenant will occupy
approximately 40,000 square feet or 53.4 per cent of the available office space
_ in the project. Another 10,000 square feet will be occupied by medical uses.
Interests of the project developer and associated interests will also occupy
space within the structure. Please refer to Appendix E, a Pro Forma Income
Statement for 1623 Joint Venture Ltd.
The project will be designed to minimize off-site impacts and take advantage
of the site to provide maximum use of screening materials for attractive
enhancements. Plantings will be used to accomplish this screening.
Economic Benefits of the Proposed Project:
First and foremost, the construction of this project with the use of
development revenue bond financing will permit the retention of approximately
100 jobs within the economic base of the City of Greeley. These 100 jobs --
employees of United Agri Products Company -- are an important, if not
essential, element of Greeley's economic base. The United States Chamber of
Commerce has suggested, based upon its analysis of job generation throughout
the nation, that 100 new or retained jobs result in the following per year.
Personal Income - An additional $1 ,036,000 per year
Bank Deposits - Retention of $490,000 per year
Retail Sales - Retention of $565,000 per year
Other Business - Support for one retail business,
68 persons employed in other
business enterprises and a
multiplier effect throughout the
economy. .
As the multiplier effect begins to have its impact throughout the economy,
and as the project extends beyond the first year, the impact of the project
in terms of economic additives will markedly increase.
•
Given the fact that the proposed project will have approximately 150 employees
or jobs located in it, the total project figures are as follows:
Category Amount Retained or Generated
Personal Income $ 1 ,554,000
Bank Deposits 735,000
Retail Sales 847,500
Total First Year Retention/Generation
Directly Attributed to the Project $ 3,136,500
By any measure, the return on an investment of a $6.6 million development
revenue bond is extremely positive.
Tax Generation of the Proposed Project:
In addition to the economic generation retained or added to the economy of the
City of Greeley, the proposed project will provide added tax benefits to the
jurisdictions within which it is located. These benefits include sales and
use tax revenues from the materials unused in the construction of the facility
to payments in lieu of taxes in the following estimated amounts:
Governmental Entity Mill Levy Tax Revenues
Weld County 17.369 18,640.75
School District #6 48.88 52,458.99
Northern Colorado Water District 1 .00 1 ,073.22
City of Greeley 12.00 12,878.64
Aimes Community College 4.581 4,916.42
TOTAL 83.830 $89,968.021
1Based on an assessed valuation of 1 ,073,200.
As stated with operational services, the proposed project will not require
any capital investments on the part of any governmental jurisdiction.
SECTION IV
DESCRIPTION OF THE SITE
The project is to be located on a parcel of property containing 87,708 square
feet between 16th and 17th Streets facing 23rd Avenue in the City of Greeley.
The proposed project will have a building footprint of 20,850 square feet on
the site, comprising 23.7 per cent of the total site.
The proposed project is located close to the Cottonwood Square development in
which the principals were involved. Accordingly, the site design and use will
be comparable to that employed in the Cottonwood Square development.
The proponents have presented the conceptual design of the site to the City of
Greeley and has secured the formal approval of the conceptual Planned Unit
Development (P. U . D. ) plan. This proposed design of the site and use conforms
to the adjacent uses surrounding the intersection of 16th Street and 23rd
Avenue.
Work is currently underway to complete the final site design for submission to
the City of Greeley, and it is anticipated that the City will provide final
and formal approval of the P.U.D. as finally submitted. This approval will
clear the way for total control of the property and the initiation of the
initial steps of the project development.
Facing major thoroughfares as it does, the site provides ease of access and
egress to facilitate traffic circulation in the immediate area. While the
property is adjacent to some residential property, the proposed traffic
circulation pattern is directed so as to minimize adverse impacts.
Slight site clearance will be required for the initiation of the project and
that work is included in the project design.
SECTION V
COST ESTIMATE OF THE PROJECT
The following presents, in summary form, a breakdown of the total project
costs and the distribution of those costs across major expenditure categories
for the project. All expenditures, as indicated by the letter of Bond
Counsel, Sherman & Howard, are eligible expenditures from the proceeds of the
proposed development revenue bond issue.
The cost components are as follows:
Cost Component Amount of Cost
Land $ 300,000
Building 5,100,000
Fixtures and Equipment 230,000
Site Development 200,000
Interest During Construction 500,000
Financing Fees and Cost of
Issuance 250,0001
Total Bond Issue 6,600,000
13.5% of $6.5 million DRB.
The proposed bond issue will be structured as a 20 year maturity, 30 year
principal amortization schedule. A sinking fund will be established for the
payment of a portion of the principal on the bonds prior to maturity.
No decision has been made as yet on whether or not the bonds will have a fixed
interest rate or a variable rate based on an adjustment at some future point.
This decision will be made as the project moves closer to the date of issuance
and market conditions firm up.
SECTION VI
PROPOSED PROJECT TIMETABLE
A summary of the key dates for the proposed project are submitted below and
represent an estimation of the critical path leading to the successful
completion of the project. Since this will involve a ground-up development
and construction, completion of the project is necessarily extended over a
normal construction period.
A. File Proposal for IDRB Financing November 1984
B. Secure Resolution of Inducement January 1985
C. Secure and Finalize Financing January 1985
D. Secure Issuance of DRB Issue January 1985
E. Closing on Bond Issue February 1985
F. Initiate Construction March 1985
G. Complete Project Construction March 1986
H . Occupancy and Opening of Project March 1986
The proposed timetable is felt to be realistic and will provide sufficient and
adequate time to arrange financing and closing on the Bond Issue. The First
Interstate Bank of Denver, N .A. will act as private placement agent in
arranging the placement of these bonds with institutional investors.
APPENDIX A
LEGAL DESCRIPTION OF THE SITE
AND PROPOSED SITE PLAN
L EGA L DESCRIPTION
OFFICE BUILDING - 1623 JOINT VENTURE LTD.
Lot 2, Lot 3, and Lot 4, Except the South 112.5 feet of said Lot 4, in Block 1
of Hays Subdivision, City of Greeley, Weld County, Colorado according to the
Recorded Map or Plat thereof, containing 33,570 Square Feet, more or less.
I
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•
APPENDIX B
COMMUNICATION OF SHERMAN & HOWARD,
BOND COUNSEL FOR THE PROPOSED ISSUANCE
DATED NOVEMBER 14, 1984
Sherman&Howard IN RENO NEVADA
•LAW P AMFRFM,CILMG ATOFETSONA COF'O 4UN5
Hill Cans deLipkau and Erwin.P.C.
POST OFFICE 80X 2790
2900 FIRST INTERSTATE TOWER NORTH TELEPHONE 303 297-2900 RENO,NEVADA 89505
— 633 SEVENTEENTH STREET TELECOPIER-: 303 298-0940 TELEPHONE 202323-1601
DENVER,COLORADO M 80202 TELEX 454368 KM�� TELECOPIEP 702348-7250
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SIEFHEN M. T1 CltmrtP C.BFNSIX: GREG N.Y?lE'DER RA^(lUl R.PEC.N STF"M"E W.A1EK0 •Aao Re'Nea n Ccoov
November 14, 1984
Board of County Commissioners
— Weld County
915 Tenth Street
Greeley, Colorado 80631
Gentlemen:
Weld County, Colorado
Industrial Development Revenue Bonds
(1623 Joint Venture Limited Project)
— Series 1984
We have been asked by 1623 Joint Venture Limited, a
Colorado limited partnership (the "Partnership") , to act as bond
counsel in connection with a proposed issue of industrial development
bonds by Weld County , Colorado (the "County" ) , pursuant to the
— Colorado County and Municipality Development Revenue Bond Act, con-
stituting Article 3 , Title 29 of Colorado Revised Statutes (the
"Act") . The proceeds of the bonds will be used to finance the aoqui-
_ sition of a parcel of land located within the County and the con-
struction of a business and commercial facility thereon (the
"Project") . The Project will be owned by the Partnership and leased
to various tenants. The total cost of the Project to be financed by
the bonds, including issuing expenses, is estimated by the Owner to
be approximately S6 ,600 ,000 .
— We have been informed by the Partnership that the Project,
when constructed, will consist of an office building and will be
leased to various business and commercial tenants. We understand
_ that the Partnership has not purchased or contracted for any
•
- Sherman&Howard
Board of County Commissioners
November 14, 1984
Page Two
component of the Project. The Partnership has informed us that the
Project will be economically beneficial to the County due to an
increase in employment and other economic activity within the
County.
We have reviewed a copy of the Weld County Development
Revenue Bond Policy which requires applicants for industrial develop-
ment bond financing to furnish, among other things, an opinion of
municipal bond counsel. This opinion is submitted pursuant to such
policy.
Based upon the foregoing facts, we see no legal obstacle to
financing the Project under the Act. The Act was held constitutional
in Allardice v. Adams County, 173 Colo. 133, 476 P.2d 982 (1970) .
The Project constitutes a "business or commercial" project as set
forth under the definition of "project" in Section 29-3-103(10) (a) of
the Act. We are also satisfied that the facts outlined above fulfill
the "public purpose" requirement of the Act. Therefore, in our opin-
ion, the proposed financing of the Project falls within the intent
and meaning of the Act.
Respectfully submitted,
/ /.
APPENDIX C
BIOGRAPHICAL INFORMATION ON
JOHN M. TODD
AND
JOHN C. TODD
JOHN M. TODD
4606 W. 14th Street
Greeley, Colorado 80634
•
Date of Birth: 3/5/52
Age: 32
Wife: Susan B. Todd
Son: Haynes M. Todd
EDUCATION
B.S. (Finance) University of Colorado
Juris Doctor, Southern Methodist University
BUSINESS EXPERIENCE
1980 - Present
Vice President of Toddy's Supermarket in Greeley and
Fort Collins. Manager Cottonwood Development
Licensed Real Estate Broker
CIVIC AND COMMUNITY ACTIVITIES
Member of the Greeley Library Board
Member of the Weld County Private Industry Council
and Chairman of the Weld County Private Industry
Council, Audit and Budget Committee
Member of Board of Directors, R.S.V.P.
Member of Greeley Chorale
JOHN C. TODD
1910 26th Avenue Court
Greeley, Colorado 80631
Date of Birth: 9/26/23
Age: 61
Wife: Tate M. Todd
Children: Ellen Todd, John Todd, Dayna Todd
EDUCATION
Juris Doctor, University of Colorado
BUSINESS EXPERIENCE
President and Owner of Toddy's Supermarket in Greeley
'and Fort Collins.
Former Vice President, Hensel Phelps Construction
Former Vice President, Monfort Packing Company
Current Chairman of the Board, Union Colony Bank
Current Chairman of the Board, Home, Light and
Power Company (a wholly owned subsidiary of
Public Service Company)
Licensed Real Estate Broker
CIVIC AND COMMUNITY ACTIVITIES
Past President, Greeley Rotary Club
Past President, Greeley Chamber of Commerce
Past President, United Way
Past President, Greeley Concerts Association
Current President, University of Northern Colorado Foundation
APPENDIX D
_ AMORTIZATION SCHEDULE AND PAYMENTS
- 1623 JOINT VENTURE 1...111.
•
PREPARED BY FIRST INTERSTATE PUBLIC FINANCE GROUP
_. WALTER C. KANE MANAGER
SEMIANNUAL DEBT SERVICE FROM 12/15/84
-
BATE PRINCIPAL RATE INTEREST TOTAL ANNUAL
06/15/85 363,000.00 363,000.00
-- 12/15/85 20,000 11 .000 363,000. 00 383,000.00 746,000 .00
06/15/86 361 , 900 .00 361 ,900. 00
12/15/86 40,000 11 .000 361 ,900 . 00 401r900.00 763,800.00
06/15/87 359,700.00 359, 700 .00
12/15/87 60,000 11 .000 359,700.00 419,700.00 779 , 400 . 00
06/15/80 356,400 .00 356400.00
12/15/88 80,000 11 .000 356,400 . 00 436 ,400.0() 792, 800 .00
- 06/15/89 352,000 .00 352,000.00
12/15/89 100,000 11 .000 352,000 .00 452,000.00 804 ,000 .00
06/15/90 346,500.00 346,500.00
- 12/15/90 100,000 11 .000 346,500.00 446,500 .00 793,000.00
06/15/91 341 ,000.00 341 ,000 .00
12/15/91 100, 000 11 . 000 341 ,000.00 441 ,000 .00 782,000.00
06/15/92 335,500.00 335,500.00
-
12/15/92 100,000 11 .000 335,500.00 435,500.00 771 ,000.00
06/15/93 330,000.00 330,000.00
12/15/93 100,000 11 .000 330,000.00 430,000. 00 760,000 .00
-" 06/15/94 324,500.00 324 ,500. 00
12/15/94 100,000 11 .000 324,500.00 424,500.00 749,000.00
06/15/95 319,000.00 319,000.00
_... 12/15/95 150,000 11 .000 319,000.00 469,000.00 788,000.00
06/15/96 310,750.00 310,750.00
12/15/96 150,000 11 .000 310,750.00 460,750.00 771 ,500.00
06/15/97 302,500.00 302 ,500.00
-
12/15/97 150,000 11 .000 302,500.00 452,500.00 755,000.00
06/15/98 294,250.00 294,250.00
12/15/98 150,000 11 .000 294,250.00 444 ,250.00 738,500.00
06/15/99 286,000.00 286,000.00
12/15/99 150,000 11 .000 286,000.00 436,000.00 722,000.00
06/15/00 277,750.00 277,750.00
- 12/15/00 200,000 11 .000 • 277, 750.00 477,750.00 755,500. 00
06/15/01 266,750.00 266,750.00
12/15/01 200,000 11 .000 266,750.00 466,750.00 733 ,500. 00
06/15/02 255,750.00 255!750.00
- 12/15/02 200,000 11 .000 255,750.00 455,750.00 7. 11 ,500.00
06/15/03 244,750.00 244,750.00
12/15/03 200,000 11 .000 244,750.00 444 ,750 .00 689,500.00
--- 06/15/04 233,750. 00 233,7;0.00
12/15/04 4,250,000 11 .000 233,750. 00 4,483 ,750.00 4, 717,500.00
-
TOTAL 6,600,000 12,523,500. 00 19, 123,500.00
ACCRUED THRU 12/15/84 0.00 0.00
NET COST 12,523,500.00 19, 123 ,500.00
AVERAGE COUPON 11 .000
BOND YEARS 113,850 .000
AVERAGE LIFE 17 .250
APPENDIX E
PRO FORMA INCOME STATEMENT FOR
1623 JOINT VENTURE LTD.
•
PRO FORMA INCOME STATEMENT
1623 Joint Venture Ltd.
ITEM YEAR 1 YEAR 2 YEAR 3
INCOME
63,600 Sq. Ft.
Net Rentable
@ 16.78/Sq. Ft. 1 ,067,368.00 1 ,067,368.00 1 ,067,368.00
Less 5% Vacancy 53,368.00 53,368.00 53,368.00
TOT-AL INCOME 1,014,000.00 1 ,014,000.00 1 ,014,000.00
- EXPENSE
•
*Interest (12%) 672,000.00 656,276.00 614,611 .00
Principal 42,000.00 57,724.00 99,389.00
Taxes 100,000.00 100,000.00 100,000.00
Maintenance/Util.
Management Fee 200,000.00 200,000.00 200,000.00
Depreciation 333,334.00 333,334.00 333,334.00
SL 18 Yr.
TOTAL EXEPENSES 1 ,347,334.00 1,347,334.00 1 ,347,334.00
**Net Inc/(Loss) ( 333,334.00) ( 333,334.00) ( 333,334.00)
*5,600,000 Loan - 25 Yrs. @ 12%
**First 3 years net operating loss is anticipated and will be passed on to
limited partners to declare a tax loss.
Hello