TC Ord. No. 2017-07 An Emergency Ordinance - EaglebendAvo n
TOWN OF AVON, COLORADO
ORDINANCE NO. 17-07
AN EMERGENCY ORDINANCE
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, THE PUBLIC FINANCE AUTHORITY 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 approximately $11,515,000 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 such debt and borrowing additional moneys in
the total principal amount of approximate $29 million at an initial interest rate not to exceed
4.5%, in order to make new improvements to the Property, by and through the Public Finance
Authority, a political subdivision of the State of Wisconsin ("PFA"), which would require
conveyance of the Property to the Town of Avon by donation and then conveyance to PFA; 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 PFA, which will initally lease 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
Ord 17-07 EagleBend Affordable Housing Corporation Property
FINAL — May 9, 2017
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of property in fee simple and may dispose of such property in accordance with the terms of the
gift; and
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, the Avon Town Council adopted Ordinance No. 17-01 which was substantially
similar to this ordinance except that it authorized conveyance of the Property from the Town to
the Colorado Housing and Financing Authority, which has since indicated that it is not willing to
accept title to the Property; and,
WHEREAS, Avon Home Rule Charter, Section 6.6 permits the adoption of ordinances on
one reading with the concurring vote of five (5) Council members after posting notice of a public
hearing and conducting a public hearing; and,
WHEREAS, the Avon Town Council finds that the adoption of this Ordinance is necessary
to the immediate preservation of the public health safety and welfare of the Avon community by
permitting EBAHC to proceed with refinancing and commence construction of valuable capital
improvements to the Property which will directly benefit the current and future residents of the
Property.
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 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 Mayor, Town Attorney, Town Manager and Council member
Megan Burch as the Town of Avon appointee to the EBAHC 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 PFA 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 Mayor, Town
Attorney, Town Manager and Council member Megan Burch as the Town of Avon appointee to
the EBAHC Board.
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Section 4. Approval of 2017 Project Agreement. The Town Council hereby approves the
new Project Agreement with EBAHC and PFA, attached hereto as Exhibit A, which final form
and completion, including but not limited to review of the Financing Agreement, shall be subject
to review and approval of the Mayor, Town Attorney, Town Manager and Council member
Megan Burch as the Town of Avon appointee to the EBAHC 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
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 immediately upon adoption in
accordance with Section 6.6 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.
INTVQDUCED AND ADOPTED ON FIRST AND FINAL READING on May 9, 2017.
BY: �\ ATTEST: L l \&IJ d op '%�
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Jenn Fancher, Mayor Debbie Hoppe, Town Clerk
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APPR D AS FO '" � °•
Eric J. 1-14vown Attorney
Ord 17-07 EagleBend Affordable Housing Corporation Property
FINAL — May 9, 2017
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