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TC Ord. No. 2017-01 Accepting the Donation of the Eaglebend Affordable Housing Property� �4 AVO n TOWN OF AVON, COLORADO ORDINANCE NO. 17-01 ACCEPTING THE DONATION OF THE EAGLEBEND AFFORDABLE HOUSING PROPERTY, AUTHORIZING DISPOSAL OF SUCH PROPERTY, AND APPROVING A NEW PROJECT AGREEMENT BETWEEN THE TOWN OF AVON AND EAGLEBEND AFFORDABLE HOUSING CORPORATION WHEREAS, Eaglebend Affordable Housing Corporation ("EBAHC") owns an affordable rental housing project located on property described as follows: Parcel 1: Lot 2 and Tract A, Replat Number 1, Final Plat of Eaglebend Subdivision, Filing No. 4, According to the Plat Recorded July 17, 1992 in Book 584 at Page 995, County of Eagle, State of Colorado; and, Parcel 2: Lot 1, Riverside Subdivision, Town of Avon, According to the Final Plat Recorded September 1, 1989 on Book 512 at Page 802, County of Eagle, State of Colorado, ("Property"); and WHEREAS, EBAHC desires to refinance existing debt on the Property with an approximately current outstanding balance of $11,965,000 in order to accelerate capital improvements to the Property, to take advantage of low interest rates, and to provide for more favorable amortization of the debt; and, WHEREAS, EBAHC proposes refinancing by and through the Colorado Housing and Finance Authority ("CHFA"), which would require conveyance of the Property to the Town of Avon by donation, then conveyance to CHFA, and then conveyance to EBAHC; and, WHEREAS, EBAHC entered into the Eaglebend Affordable Housing Project Second Amended and Restated Project Agreement, dated August 1, 2006, ("Project Agreement') with the Town of Avon, under which EBAHC must obtain consent of the Town of Avon for any amendment or modification of the Indenture (as referenced in the Project Agreement), which will be necessary for the refinancing; and, WHEREAS, EBAHC proposes to convey the Property by donation to the Town of Avon without the Town paying the outstanding debt balance, and in connection with such donation EBAHC requests that the Town reconvey the Property to CHFA, which will sell and convey the Property to EBAHC subject to such new and modified requirements as set forth in the new documents with respect to the refinancing; and, WHEREAS, Section 2.1 of the Avon Home Rule Charter provides that the Town Council may accept conveyances of real property to the Town and may dispose of real property and Section 18.4 of the Avon Home Rule Charter provides that the Town Council may receive gifts of property in fee simple and may dispose of such property in accordance with the terms of the gift; and Ord 17-01 Eaglebend Affordable Housing Corporation Property FINAL — February 14, 2017 Page 1 of 3 WHEREAS, the Avon Town Council finds that facilitating the refinancing of the Property will allow for a more favorable amortization schedule with respect to the financing of the Property, will provide necessary new funds to accelerate capital improvements to the Property, and will extend the life of the Property which provides a substantial number of affordable housing rental units for the Avon community, and will thereby promote the health, safety and general welfare of the Avon community; and, WHEREAS, approval of this Ordinance on First Reading is intended only to confirm that the Town Council desires to comply with the requirements of the Avon Home Rule Charter by setting a public hearing in order to provide the public an opportunity to present testimony and evidence regarding this Ordinance and that approval of this Ordinance on First Reading does not constitute a representation that the Town Council, or any member of the Town Council, supports, approves, rejects, or denies this Ordinance. NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF AVON, COLORADO the following: Section 1. Recitals Incorporated. The above and foregoing recitals are incorporated herein by reference and adopted as findings and determinations of the Town Council. Section 2. Acceptance of Donation Property. The Town Council hereby accepts the donation of the Property by and through a Quit Claim Deed, the form of which shall be subject to review and approval by the Mayor, Town Manager and Town Attorney, and which acceptance of title to the Property shall be subject to the terms and conditions of the refinancing and the new Project Agreement, as described below in Section 4, the form of such Quit Claim Deed shall be subject to review and approval of the Town Attorney, Town Manager and Council member Megan Burch as the Town of Avon appointee to the Eaglebend Affordable Housing Corporation Board. Section 3. Authorization to Reconvey Property. The Town Council hereby authorizes the Mayor, Town Clerk, Town Manager and Town Attorney to execute all documents and take such action to reconvey the Property to CHFA by Quit Claim Deed in accordance with the terms and conditions of the refinancing and the new Project Agreement, as described in Section 4, the form of such Quit Claim Deed shall be subject to the review and approval of the Town Attorney, Town Manager and Council member Megan Burch as the Town of Avon appointee to the Eaglebend Affordable Housing Corporation Board. Section 4. Approval of 2017 Project Agreement. The Town Council hereby approves the new Project Agreement with EBAHC, attached hereto as Exhibit A, which final form and completion, including but not limited to review of the Finance Agreement, shall be subject to review and approval of the Town Attorney, Town Manager and Council member Megan Burch as the Town of Avon appointee to the Eaglebend Affordable Housing Corporation Board. Section 5. Severability. If any provision of this Ordinance, or the application of such provision to any person or circumstance, is for any reason held to be invalid, such invalidity shall Ord 17-01 Eaglebend Affordable Housing Corporation Property FINAL — February 14, 2017 Page 2 of 3 not affect other provisions or applications of this Ordinance which can be given effect without the invalid provision or application, and to this end the provisions of this Ordinance are declared to be severable. The Town Council hereby declares that it would have passed this Ordinance and each provision thereof, even though any one of the provisions might be declared unconstitutional or invalid. As used in this Section, the term "provision" means and includes any part, division, subdivision, section, subsection, sentence, clause or phrase; the term "application" means and includes an application of an ordinance or any part thereof, whether considered or construed alone or together with another ordinance or ordinances, or part thereof, of the Town. Section 6. Effective Date. This Ordinance shall take effect thirty (30) days after the date of final passage in accordance with Section 6.4 of the Avon Home Rule Charter. Section 7. Safety Clause. The Town Council hereby finds, determines and declares that this Ordinance is promulgated under the general police power of the Town of Avon, that it is promulgated for the health, safety and welfare of the public, and that this Ordinance is necessary for the preservation of health and safety and for the protection of public convenience and welfare. The Town Council further determines that the Ordinance bears a rational relation to the proper legislative object sought to be obtained. Section 8. Publication. The Town Clerk is ordered to publish this Ordinance in accordance with Chapter 1.16 of the Avon Municipal Code. INTRODUCED AND ADOPTED ON FIRST READING AND REFERRED TO PUBLIC HEARING on January 24, 2017 and setting such public hearing for February 14, 2017 at the Council Chambers of the Avon Municipal Building, located at One Lake Street, Avon, Colorado. BY.,,! ATTEST: J Jennie Fancher, Mayor Debbie Hoppe, To n Clerk ADOPTED ON SECOND AND FINAL READING on February 14, 2017. BY( ATTEST: zz� Jenni"e,Fancher, Mayor Debbie Hoppe, Town Clerk APP ROV AS TO FORM: O Eric J. Heil, n Attorney Ord 17-01 Eaglebend Affordable Housing Corporation Property FINAL — February 14, 2017 Page 3 of 3 o�N OFq�� :SEAL,: