TC Minutes 12-20-1984• •
MINUTES OF A SPECIAL AVON TO'VJ7N
COUNCIL MEETING - HELD DECEMBER
20, 1.984 - 12:NOON
The Snecial Meeting of the Town Council of the Town of Avon, Colorado
was held in the Municipal Building, 400 Benchmark Road, Avon, Colorado,
in the Council Chambers.
The meeting was called to order by Mayor Allan Nottingham at 12:13 p.m.
A roll call was taken with Steve Miller, Sheila Davis, A.J. I'7ells and
Al Connell present. Clint Watkins and Don Buick were absent. Also
present were Town Attorney John Dunn, Town Manager Bill Jaires, Rod Brown
of Colorado Resort Properties, Inc., as well as members of the press
and public.
The Mayor stated that the meet.inn was called to order so that the Council
could take action on Ordinance! No. 84-15 for the Industrial Development
Bonds for the Avon Resort Properties Project.
The Mayor entertained a motion for A.J. Wells and Allan Nottinrhar2 to stun
down because of conflict of interest. Steve Miller so moved.. The motion
was seconded by Al Connell and was carried with Allan Nottinahar-. and A.7
U.
.yells abstainincr.
The Mayor Pro Ter. then proceeded.
:second reading of Ordinance No..84-15, Series of 1984, AN ORDINANCE GIVING
FINAL APPROVAL TO A PROPOSED INDUSTRIAL DEVELOPMENT PROJECT BY AVON RESORT
PROPERTIES, COLORADO GENERAL PARTNERSHIP, UNDER, THE COLORADO COUNTY AND
MUNICIPALITI DEVELOPMENT REVENUE BOND ACT AND AUTHORIZING THE ISSUANCE
AND SALE OF ;10,000,000 INDUSTRIAL DEVELOPMENT BONDS(AVON RESORT PROPERTIES
PROJECT), SERIES OF 1984, TO HELP DEFRAY THE COST OF ACQUIRING AND
CONSTRUCTING SAID PROJECT.
The ~4ayor Pro Tem read the title in its entirety. It was noted that this
was a public hearing.
The Town Attorney stated that there were some changes which needed tc be
made in the text of Ordinance 84-15 prior to discussion.
On page 3, in the 3rd recital, change, "Ordinance 83-57" to "Resolution 83-57",
on pane 5, Section 6, after the word "there", insert, "Dated", and
capitalize the next word, "Date", strike the language, "of issuance and
original delivery", insert in the blanks, "8", so that the first three lines
of Section 6 would read., "The :bonds will bear interest from their Dated
Date until January 21, 1985 at the rate of eight percen.t(8°)per annum from.
January 21, 1985 until Decer:,ber 15, 1987".
On page 11, which was tie form of the reverse of the bond., paragraph title
"Interest Rates", the same chances would be made as above, so that the first
three lines would read, "she bonds will bear interest from their Dated Date
until January 21, 1985 at the :rate of eight percent(8o)per annum from
January 21, 1985 until Decerher 15, 1937".
On page 18, Section 8, paragraph C, after the words, "Loan Agreement" in the
first line, insert the words, "if paid" so that the paragraph would read,
"The amounts payable under the Loan Agreement, if paid, in addition to all
other requirements of the Agreement in this ordinance, are sufficient to
pay all sums referred to in paragraph B in this section".
At that point the attorney recommended a motion from the Council to adopt
the ordinance on second reading.
Al Connell moved approval of O:rdinance:No.34-15, Series of 1984 on second
reading. The motion was seconded by Steve Miller and was carried with
Allan Nottingham and A.J. G^:el]_s abstaining.
Discussion followed.
The Town Attorney stated that when the ordinance was passed on first reading,
he-wanted it noted that the Council not be taken as having approving any of
the documents which are referred to in Section 9 of the ordinance, page 18.
He stated that they have received and reviewed a draft of the Loan Agreement,
Trust Endenture, and Company note, but have not seen nor reviewed a Bond
Purchase Agreement, which was referred to in Section 9.
Mr. Dunn stated that in the same paragraph that the words,"subject to the
right of the Mayor to veto this ordinance", should be deleted since the
Mayor does not have the right to veto. Mr. Dunn stated that the documents
have to be in perfect draft.
The attorney discussed several other concerns he had concerning the documents.
He stated that they may or may not be important, but stated that the
language should be consistent through out the documents.
The attorney stated that Rod Brown had just brought new documents in and that
he had not had a chance to review those documents.
The Town Manager discussed some of the concerns he had with the documents.
After discussion it was agreed to recess until John Dunn could talk to
Steve Deming of the Firm of Stow and.Herskovits.
The Mayor Pro Tem recessed the meeting at 12:46 p.m.
The Council reconvened at 1:02 p.m.
Discussion followed. The Council agreed to continue the public hearing
meeting until tomorrow, Friday, December 21, 1984 at 7:30 p.m. so that
the attorney could review the documents and to work out some minor problems
thev had with the documents.
Al Connell moved to continue the Council Meeting until December 21, 1984
at 7:30 p.m. The motion was seconded by Steve Miller and was carried with
Allan Nottingham and A.J. Wells abstaining.
The meeting recessed at 1:25 p.m.
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• •
MINUTES OP THE CONTINUED COUNCIL MEETING OF
DECEMBER 20, 1984, 1984 - HELD DECEMBER 21,
1989. - 7:30 P.M.
This was a continuation of the
meeting was called to order by
roll call was taken with Clint
A.J. Wells, Al Connell and Dori
Attorney Art Abplanalp, Town r11
press and public.
December 20, 1984 Council Meeting. The
Mayor Allan Nottingham at 7:30 P.m. A
Watkins, Steve Miller, Sheila Davis,
Buick present. Also present were Town
3.nager Bill James, as well as members of the
The Mavor stated that this was a continuation from. the December 20th meeting
and was called for the purpose for approval of Ordinance No. 84-15 on
second reading. This was a public hearing.
The Mavor entertained a motion for A.J. Wells and Allan Nottingham to step
down because of conflict of interest. Al Connell so moved. The motion
was seconded by Don Buick and was carried with Allan Nottingham and A.J.
[,ells abstaining.
The Town Manager stated that lie had met with Bond Counsel for Avon Resort
Properties, Inc., and also with Jim Orr. He stated that Mr. Orr informed
him that he had constructed twenty five holiday Inns, in Denver. Mr. Orr
had also built the Curriaahn Hall in Denver. He stated that there were a
couple of areas in the Aareement that they have changed; 1) that the start
date would be November 30, 1985 and the completion date would be December
of 1987; 2) that a clause would be added in terms of when the Town would
be paid their 1/4 of 1%, which would be paid no later then January 31, 1985;
3) extension of the three years, only with the consent of the Town; 4)
that the costs incurred by the Town would be reimbursed to the Town in
addition to the 1/4 of 1% whether or not there was a redemption of a cause
of a. referendum request.
Don Buick had a concern of the letter of credit. The Town Manager stated
that the bonds actually close on January 21, 1985. He stated that they
have three alternate securites; 1) is the letter of credit; 2) is a
insurance annuity; 3) would be alternative financing_ in terms of a
construction loan. lie stated that after talking to Bond Counsel, they
seemed to move more toward the terms of a letter of credit, and that may not
take place until May of 1935.
After discussion a roll call was taken with Al Connell, Steve Miller, Clint
Watkins, Don Buick voting aye. There were no nay votes. The motion
carried with Allan Nottingham and A.J. Wells abstaining.
•
Al Connell moved to appoint the Town Manager as the Issuer Representative
so that he could sign all the doucments. The motion was seconded by
Steve Miller.
Art Abplanalp stated that if there were instruments missing at the time of
the pre-closing, which would occur in Denver, then John Dunn felt that he
needed to be there to make sure that all the documents were in order,
and that if some of the documents were missing then he would be .
going to New York, which would be at the cost of the issuance.
The motion carried with Allan Nottingham and A.J. Wells abstaining.
Mr. Abplanalp stated that the Bond Ordinance require that, in regard to
the Town Manager signing all documents, a resolution be drafted to so
authorize.
Clint Watkins moved that Willian. D. James as Town Manager of the Town of
Avon shall be selected as the issuer representative in all actions
required under the ordinance to effect this issuance of the bonds authorized
in ordinance 84-15. The motion was seconded by Al Connell and was carried
with Allan Nottingham and A.J. Wells abstaining.
The Mayor and Mr. Wells resumed their seats.
There being no further business to come before the Council Don Buick
moved to adjourn. The motion was seconded by Al Connell. The meeting
was adjourned by Mayor Allan Nottingham at 8:05 p.m.
Approved:
spectfully submitted
atricia J. Doti e, Town C er
t
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