TC Ord. No. 1984-159
ORDINANCE NO. 84-15
AN ORDINANCE GIVING FINAL APPROVAL TO A
PROPOSED INDUSTRIAL DEVELOPMENT PROJECT BY
AVON RESORT PROPERTIES, A COLORADO GENERAL
PARTNERSHIP, UNDER THE COLORADO COUNTY AND
MUNICIPALITY DEVELOPMENT REVENUE BOND ACT AND
AUTHORIZING THE ISSUANCE AND SALE OF
$10,000,000 INDUSTRIAL DEVELOPMENT BONDS
(AVON RESORT PROPERTIES PROJECT), SERIES 1984,
TO HELP DEFRAY THE COST OF ACQUIRING AND
CONSTRUCTING SAID PROJECT.
WHEREAS, there has been presented to this Town Council a
proposal by Avon Resort Properties, a Colorado general
partnership (the Partnership), that the Town undertake a project
pursuant to the Colorado County and Municipality Development
Revenue Bond. Act constituting Article 3, Title 29, Colorado
Revised Statutes (the Act) to provide financing for constructing
a hotel facility (hereinafter called the Project) and;
WH-EREAS, under the proposal, the Project will be owned by
Avon Resort Properties, and the Partnership will enter into a
loan agreement with the Town upon such terms and conditions as
are necessary to produce income and revenues sufficient to pay,
when due, the principal of and interest on up to approximately
$10,000,000 Industrial Development Revenue Bonds of the Town to
be issued pursuant to the Act, to provide monies for the Project,
and the 'own will pledge its interest in the loan agreement to
secure the bonds, and;
WHEREAS, the Bonds ,shall be payable solely from amounts
received by the Town pursuant to the Loan Agreement and other
property pledged to their project; and
WHEREAS, the bonds shall not be a general obligation of the
Town or be payable from any other property or funds of the Town;
and
WHEREAS, the purpose the Project is and the effect thereof
will be to enable the Town to promote industry and develop a
trade or other economic activity by inducing profit- or nonprofit
corporations, federal governmental offices, hospitals and
agricultural, manufacturing, industrial, commercial, or business
enterprises to locate, expand or remain in this state, to
mitigate the serious threat of extensive unemployment in parts of
this state, to secure and maintain a balanced and stable economy
in all parts of. the state, or to further the use of its
agricultural products or natural resources, and to provide more
adequate facilities for conventions and trade shows, all of which
promote the public health, welfare, safety, convenience and
prosperity; and
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WHEREAS, the Town shall receive a demonstrated public
benefit involving one or more of the following:
a. Provide facilities or benefits to the Town of Avon
citizens for economic, recreational, cultural or health purposes
in a manner that complements the Town's own program or
facilities;
b. Carrying out stated goals and objectives of the Town's
Comprehensive Master Plan;
C. Protecting or enhancing the envirmnntent and general
welfare of the residents of the Town;
d. Enhancing the financial stability and/or tax base of the
Town;
WHEREAS, the Partnership has agreed to reimburse the Town
for any expenses borne by the Town in connection with the
adoption-of this Ordinance, the performance by the Town of its
obligations hereunder, the issuance of such industrial
Development Revenue Bonds, the preparation of any documents
relating thereto, and any legal or financial consultants retained
in connection therewith, and;
WHEREAS, on the 30th day of December, 1983, by Ordinance No.
83-57, this Town Council gave preliminary approval to said
project and authorized the Mayor and other city officials' to
initiate preparation of necessary documents; and
WHEREAS, said documents have been prepared and reviewed and
approved by the Mayor, Town Attorney, and other officials; and
WHEREAS, said documents have been presented to the Town
Council for its approval;
BE IT ORDAINED BY THE TOWN COUNCIL OF- THE TOWN OF AVON,
COLORADO:
Section 1. All action 4not inconsistent with the provisions
of this Ordinance) heretofore taken by the Town, Council and the
officers of the Town directed toward the acquisition of the
Project and the issuance and sale of the Bonds therefore, be and
the same is hereby ratified, approved" and confirmed. All
capitalized terms not otherwise defined herein shall have the
meaning set forth in the Indenture described herein.
Section 2. The Project be, and hereby is, given final
approval by the Town.
Section 3. To defray the cost of construction of the
Project and •the incidental expenses incurred in issuing the
Bonds, there is hereby authorized and created an issue of
Industrial Development Revenue Bonds to be designated "Town of
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• •
Avon, -Colorado, Industrial Developement Revenue Bonds ,(Avon
Resort Properties Project), Series 1984" in the- aggregate
principal amount of 510,000,000. The Bonds shall be in the
denomination of $5,000 each, and all Bonds shall be dated as of
December 15, 1984. Interest only shall be payable semiannually
from the date of the Bonds through December 15, 1987 beginning on
June 15, 1985 in the semiannual amount of $350,000, and
thereafter, at a floating rate of interest, calculated as set
forth in Section 6 hereof, until maturity, prior redemption, or
until the date, if any, upon which the Bonds convert from a
floating rate to a fixed rate of interest upon the occurrence of
certain events (the Conversion Date, as more fully described in
Section 6 hereof), and shall mature on December 15 in the
following years and amounts:
Maturity (Year) Principal Amounts
12/15/1988
50,000
12/15/1989
50,000
12/15/1990
50,000
12/15/1991
100,000
12/15/1992
100,000
12/15/1993
100,000
12/15/1994
100,000
12/15/1995
200,000
12/15/1996
200,000
12/15/1997
200,000
12/15/1998
300,000
12/15/1999
300,000
12/15/2000
300,000
12/15/2001
3.00,000
12/15/2002
400,000
12/15/2003
400,000
12/15/2004
400,000
12/15/2005
500,000
12/15/2006
500,000
12/15/2007
500,000
.12/15/2008
550,000
12/15/2009
600,000
12/15/2010
650,000
12/15/2011
700,000
12/15/2012
750,000
12/15/2013
800,000
12/15/2014
900,000
The Bonds shall be payable, subject to redemption prior to
maturity and in substantially the forms as provided herein and in
the indenture. The Bonds shall be issued in fully registered
form. Pursuant to the Bond Purchase Agreement,. the Bonds shall
be sold to the Underwriter at a private sale at a purchase price
of three percent (3%) of the principal amount thereof, plus
accrued interest from December 15, 1984, to the date of their
payment and delivery, which sale is to_ the best advantage of the
Town.
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The principal of and premium, if. any, on all bonds shall be
payable upon presentation and surrender of such Bonds at the
Principal Office of the Trustee or at the designated - office of
any other Paying Agent. Interest on any Bonds shall be, paid on
each Interest Payment Date by check or draft drawn on the Trustee
mailed to.the person who is the owner of such Bond at the address
appearing on the Bond Register at the close of business on the
Regular Record Date pertaining to such Interest Payment Date, as
more fully described in the Indenture.
Section 4. Notice of the call for redemption of Bonds,
identifying by designation, letters, numbers, or other
distinguishing marks, the Bonds, or portions of Bonds in amounts
of Minimum Denomination, or any integral multiple thereof, to be
redeemed, the redemption price to be paid, the date fixed for
redemption and the place or places where the amounts due upon
such redemption are payable, shall be given by the Trustee on
behalf of the Issuer by mailing a copy of the redemption notice
by first class mail, postage prepaid, at least thirty (30) days
prior to the date fixed for redemption to the Owner of each Bond
to be redeemed at the address shown on the Bond Register
provided, that failure to give such notice by mailing with
respect to a particular bond, or any defect in such notice shall
not affect the validity of the proceedings for the redemption of-
the other Bonds.
Section 5. Bonds shall be signed in their official
capacities by the Mayor and the Town Clerk, provided that either
or both of such signatures may be facsimilies, and shall bear the
seal or a facsimile seal of the Issuer if the :Issuer has an
official seal. In case any officer whose signature or a
facsimile of a signature shall appear on any Bonds shall cease to
be such officer before the issuance of such Bonds, such signature
or such facsimile shall nevertheless be valid and sufficient-for
all purposes,-the same as if he had remained in office until that
time. Any Bonds may be executed on behalf of the Issuer by an
Officer who, on the date of execution, is the proper officer,
although on the date of such Bonds, such person was not the
proper officer. No Bonds shall be valid or become obligatory for
any purpose or shall be entitled to any security or benefit under
the Indenture unless and until a Certificate of Authentication,
substantially in,the form set forth herein, shall have been duly
endorsed upon such Bond by the Trustee or any Authenticating
Agent on behalf of the Trustee.
Section 6. The Bonds will bear interest from their date of
issuance and original delivery until December 15, 1987, at the
rate of seven percent (7%) per annum, and thereafter at a
floating rate of interest, calculated as set forth below,- until
maturity, prior redemption, or until the date, if any, upon, which
the Bonds convert from a floating rate to a fixed rate of
interest upon *the occurrence of certain events (the Conversion
Date., as more fully described below).
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- The floating interest rate shall be computed for each
seven-day period commencing December 15, 1987, (a "Floating Rate
Period") prior to the Conversion Date based upon an index (the
"Floating Interest Index") computed on the fourth business day
immediately preceding the first day of the Floating Rate Period
by Kenny Information Systems (KIS) or asuccessor indexing agent,
appointed under the Indenture (the "Indexing Agent")-. The
Floating Interest Index is based on yields of tax-exempt
securities, selected by the Indexing Agent, with maturities and
credit ratings similar to that of the Bonds. The Bonds are
subject to conversion on any six-month anniversary of the dated
date of the Bonds to a fixed rate of interest. Upon
establishment of the Conversion Date, the Trustee will give
notice of conversion to a fixed rate to all Bondowners. The
Fixed Interest Rate, which will be based upon the Index, will be
effective until the final maturity of the Bonds. -
The owner of each Bond is entitled to tender the Bond for
purchase at a purchase price equal to the principal amount
thereof, plus accrued interest, if any, to the date of purchase
on the last business day of any Floating Rate Period or on the
Conversion Date, upon written notice at least seven days before
the purchase date and upon certain other certain 'conditions as
set forth in the Indenture.
Section 7. The Bonds and the certificates to appear thereon
shall be in substantially the following form:
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(BOND FORM)
REGISTERED
NO.
(FORM OF FACE OF FIXED RATE BOND)
Town of Avon, Colorado
Industrial Development Revenue Bonds
(Avon Resort Properties Project)
Interest Rate [Maturity Date: Dated as of: CUSIP
% , 19 December 15, 1984
The Town of Avon, Colorado (the "Issuer"), for value
received, promises to pay to the order of
or registered assigns, but solely from the sources and in the
manner hereinafter referred to, the principal sum of
dollars
on, unless called for earlier redemption, the maturity date shown
above, and to pay from those sources interest thereon on each
six-month anniversary of the dated date (the "Dated Date") of the
Bonds shown above ("Interest Payment Date") at the rate per annum
shown above until the principal sum is paid or has been provided
for. This Bond will bear interest from the most recent Interest
Payment Date to which interest has been paid or duly provided for
or, if no interest has been paid, from the Dated Date. The
principal and premium, if any, on this Bond are payable upon
presentation and surrender hereof at the corporate trust office
of the Trustee, currently Philadelphia National Bank, (the
"Trustee"). Interest on this Bond will be paid on each Interest
Payment Date by check or draft mailed to the person in whose name
this Bond is registered ("Owner" or ''Bondowner") on the
registration books of the Issuer maintained by the Trustee and at
the address appearing thereon at the close of business on the
fifteenth day of the calendar month next preceding such Interest
Payment Date (the _"Regular Record Date") or at-the option of any
owners of $1 million or more in aggregate principal amount of
Bonds, by wire transfer to the account on file with the. Trustee
of such Record Date. Any such interest not so timely paid or
duly provided for shall cease to be payable to the person who is
the owner hereof as of the Regular Record Date, and shall be
payable to the person who is the owner at the close of business
on a Special Record Date for the payment of such defaulted
interest. Such Special Record Date shall be fixed by the Trustee
whenever moneys become available for payment of the defaulted
interest, and notice of the Special Record Date shall be given to
Bondowners not less than ten days prior thereto. The principal
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of and premium, if any, and interest on this Bond are payable in
lawful money of the United States of America without deduction
for the services of the paying agent.
REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS
BOND SET FORTH ON THE REVERSE HEREOF AND SUCH PROVISIONS SHALL
FOR ALL PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH HERE.
It is hereby certified and recited that all acts and
conditions necessary to be done or performed by the Issuer or to
have happened precedent to and in the issuing of the Bonds in
order to make them legal, valid and binding special obligations
of the Issuer in accordance with their terms, and,precedent to
and in the execution and delivery of the Indenture and the
Agreement, have been performed and have happened in regular and
due form as required by law; that payment in full for the Bonds
has been received; and that the Bonds do not exceed or violate
any-constitutional or statutory limitation.
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i
Date of Registration
and Authentication:
FORM OF TRUS-
TEE'S CERTIF-
ICATE OF AUTH-
ENTICATION)
This Bond is one
_of the Bonds
described in the
within-mentioned
Indenture.
Trustee
By
Authorized Officer
0
Seal IN WITNESS OF
THE ABOVE, the
Issuer has caused
this Bond to'be
executed in the
name of the
Issuer and in
their official
capacities by the
manual or fac-
simile signatures
of its Executive
and Clerical
officer as of
(FORM OF REVERSE OF BOND)
This Bond is one of an issue of Bonds in an aggregate
principal amount of $10,000,000, authorized and issued pursuant
to an indenture, dated as of the Dated Date (the "Indenture")
between the Issuer and the Trustee, for the purpose of providing
funds to lend to Avon Resort Properties, a Colorado general
partnership (the "Partnership") to finance the costs of acquiring
and constructing a hotel facility project (the "Project")
pursuant to a Loan Agreement (the "Loan Agreement") between the
Issuer and the Partnership. Pursuant to the Loan Agreement and a
promissory note made by the Partnership, each dated as of the
Dated Date, the Partnership has agreed to make payments
sufficient to pay the principal of and interest and any premium
on all bonds* issued under the Indenture.
The term "Trustee" as used herein refers to said Trustee or
any successor Trustee appointed pursuant to the Indenture. The
Indenture and the other documents herein described are on-file in
the offices of the Issuer and the Trustee. Reference is hereby
made to the Indenture for a more complete description of the
provisions, among others, with respect to the nature and extent
of the security, the rights, duties and obligations of the
Issuer, the Trustee and the owners of the Bonds, and the terms
and conditions upon which the Bonds are issued and secured, to
all of the provisions of which Indenture, each owner, by the
acceptance hereof, assents.
The Bonds are issued pursuant to the laws of the State of
Colorado, and to a resolution or ordinance duly enacted by the
governing body of the Issuer. The Bonds are special obligations
of the Issuer, and the principal of and premium, if any, and
interest on the Bonds (the "Bond services charges") are payable
solely from the Revenues as defined and as provided in the
Indenture (being, generally, the payments and other amounts
payable under the Agreement) and are not otherwise an obligation
of the Issuer. The Bonds are not secured by an obligation or
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0
pledge of any moneys raised by`taxation and do not represent or
constitute a debt or pledge of the faith and credit of the
Issuer.
The Bonds are issuable solely as fully registered bonds in
the denominations of .$5,000 and'any integral multiple thereof and
are exchangeable for fully registered Bonds of other
denominations in equal aggregate principal amounts and in
authorized denominations at the aforesaid office of the Trustee,
but only in the manner, subject to the limitations and on payment
of the charges provided in the Indenture.
This Bond is transferable by the owner in person or by his
attorney,duly authorized in writing at the corporate trust office
of the Trustee as Bond Registrar upon presentation and surrender
hereof to the Trustee, all subject to the terms and conditions
provided in the Indenture.
The Bonds are subject to mandatory redemption at par (except
for paragraph '(e) below) plus accrued interest thereon to the
date of redemption, as described below:
(a) In whole or in part on the date 35 months after
the Delivery Date of the Bonds, to the extent funds in the
Construction Fund under the Indenture are not advanced to the
Partnership or reserved to acquire, construct, develop or equip
the Project by the date which is 35 months after the date of
issuance of the Bonds.
(b) In whole upon foreclosure or acceleration of the
Partnership Note, on the first Bond interest payment date which
is at least 60 days after such foreclosure or acceleration.
(c) In whole on any Bond interest payment date
immediately following an Event of Default under the Reimbursement
Agreement between the Partnership and the Bank.
(d) on the first feasible Bond interest payment
date, upon the damage, destruction or condemnation of the Project
to the extent any insurance or condemnation proceeds are not
applied to repair or restore the Project or if the Trustee
determines it will not be feasible to repair or restore the
Project to operation as a residential rental project within 12
months after the damage, destruction or condemnation.
(e) The Bonds are also subject to mandatory
redemption upon the optional prepayment by the Partnership of the
Partnership Note in whole or in part on any Bond interest payment
date, on or after December 15, 1989, at the redemption prices
equal to the following percentages of the principal amount
redeemed plus accrued interest to the redemption date:
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1]
Redemption Date
•
Redemption Price
December
15,-
1989
and
June 15, 1995
103%
December
15,
1995
and
June 15, 1999
102%
December
15,
1999
and
June 15, 2004
101%
December
15,
2004
and
thereafter
100%
Rights of redemption of the Bonds shall be exercised by
notice, specifying the Bonds or portions thereof to be called,
the redemption price to be paid, the date fixed for redemption
and the place or places where the amounts due upon such
redemption are payable. Such notice, subject to the provisions
of the Indenture therefor, will be sent by first class mail,
postage prepaid, not less than 30 days prior to the date fixed
for redemption to the owner of each Bond to be redeemed at the
address shown on the registration books kept by the Trustee.
Reference is made to the Indenture for provisions as to failure
to give, or any defect in, such mailed notice. The Trustee will
not be required to transfer or exchange (i) any Bond during a
period beginning at the opening of business fifteen (15) days
before the day of the mailing of a notice of redemption of Bonds
and ending at the close of business on the day of such mailing,
or ('ii) any Bonds so selected for redemption in whole or in part.
If less than all the Bonds are called for redemption at one
time, they shall be called in inverse order of maturity if there
is more than one maturity, and if there is only one maturity or
if the Bonds of- a single maturity are to be redeemed, the
selection of such Bonds, or portions thereof in amounts of $5,000
or any integral multiple thereof, to be redeemed shall be made by
lot by the Trustee in such manner as the Trustee may determine.
If Bonds or portions thereof are duly called for redemption and
if on such redemption date moneys for the redemption thereof,
together with interest thereon to the redemption date, shall be
held by the Trustee so as to be available therefor, then from and
after such redemption date such Bonds or portions thereof shall
cease to bear interest, and such Bonds or portions thereof no
longer shall be protected by, and shall not be deemed to be
outstanding under, the Indenture.
11 Except as provided in the Indenture, the Bond Owners are not
entitled to enforce the provisions of the Indenture or to
institute, appear in or defend any suit, action 'or proceeding or
to enforce any provisions of the Indenture or to take any action
with respect to any Event of Default under the Indenture.
The Indenture permits certain amendments or supplements to
the Agreement and various related documents not prejudicial to
the Bond Owners to be made with the consent of the Trustee, but
without the consent of or notice to the Bond Owners and other
amendments or supplements thereto (with certain exceptions as
provided 'in the Indenture) to be made with the consent of the
owners of not-less than 66-2/3% in aggregate principal amount of
the Bonds at the time outstanding.
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If an Event of Default, as defined in the Indenture, shall
occur, the principal of Bonds then outstanding may be declared
due'and payable in the manner and with the effect provided by the
Indenture, but subject to waiver of such Event of Default or
rescission of such declaration as provided in the Indenture.
The Bonds shall not constitute the personal obligation,
either jointly or severally, of the members of-the governing body
or any other officer of the Issuer.
This Bond shall not be entitled to any security or benefit
under the Indenture or become valid or obligatory for any purpose
until the certificate of authentication hereon shall have been
signed by the Trustee.
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0 •
(FORM OF ASSIGNMENT)
Assignment
For value received, the undersigned hereby sells, assigns
and transfers unto the within Bond and does
hereby irrevocably constitute and appoint
attorney ' to transfer the said Bond on the books kept for.
registration of the-within Bond, with full power of substitution
in the premises.
Dated:
Signature Guaranteed:
Notice: The assignor's signature to this assignment must
correspond with the name as it appears upon the face
of the within Bond in every particular, without
alteration or any change whatever.
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•
(BOND FORM--FLOATING RATE)
(FORM OF FACE OF BOND)
REGISTERED
NO.
Town of Avon, Colorado
Industrial Development Revenue Bonds
(Avon Resort Properties Project)
Maturity Date: Dated as of:
December 15, 19 December 15,, 1984
CUSIP:
Town of Avon, Colorado (the "Issuer"), for value received,
promises to pay to the order of
or registered assigns, but solely from the sources and in the
manner hereinafter referred to, the principal sum of
on, unless called for earlier redemption, the maturity date shown
above and to pay from those sources interest thereon on each
six-month anniversary of each June 15 and December 15, until
December 15, and on the first day of each month thereafter
(on each six-month anniversary of December 15, 1986), at least 45
days after the Conversion Date, if any, as described below)
commencing June 15, 1985, ("Interest Payment'' Date") at the rate
of interest described below until the principal sum is paid or
has been provided for. This Bond will bear interest from the
most recent Interest Payment Date to which interest has been paid
or duly provided for or, if no interest has been paid, from the
Dated Date. The principal of and premium, if any, on this Bond
are payable upon presentation and surrender hereof at the
corporate trust office of the Trustee, currently Philadelphia
National Bank (the "Trustee"). Interest on this Bond will be
paid on each Interest Payment Date by check or draft mailed to
the person in whose name this Bond is registered ("owner" or
"Bond owner") on the registration books of the Issuer maintained
by the Trustee and at the address appearing thereon at the close
of business on the day preceding such Interest Payment Date (the
15th calendar day immediately preceding the Interest Payment Date
whenever interest is paid semiannually) (the "Regular Record
Date") or at the option of any owner of $1 million or more in
aggregate principal amount of Bonds, by wire transfer to the
account -on file with the Trustee of such Record Date.. Any such
interest not so timely paid or duly provided for shall cease to
payable to the person who is the owner hereof as of the Regular
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• •
Record Date, and shall be payable to the person who is the owner
at the close of business on a Special Record Date for the payment
of such defaulted interest. Such Special Record Date shall be
fixed by the Trustee whenever moneys become available for payment
of the defaulted interest, and notice of the Special Record Date
shall be given to Bond Owners not less than ten (10) days prior
thereto. The principal of and premium, if any, and interest on
this Bond are payable in lawful money of the United States of
America without deduction for the services of the paying agent.
REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS
BOND SET FORTH ON THE REVERSE HEREOF AND SUCH PROVISIONS SHALL
FOR ALL PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH HERE.
It is hereby certified and recited that all acts and
conditions necessary to be done or performed by the Issuer or to
have happened precedent to and in the issuing of the Bonds in
order to make them legal, valid and binding special obligations
of the Issuer in accordance with their terms, and precedent to
and in the execution and delivery of the Indenture and the
Agreement, have been performed and have happened in regular and
due form as required by law; that payment in full for the Bonds
has been received; and that the Bonds do not exceed or violate
any constitutional or statutory limitation.
-is-
11
Date of Registration
and Authentication:
i
FORM 'OF TRUS- Seal
TEE'S CERTIF-
ICATE OF AUTH-
ENTICATION)
This Bond is one
of the Bonds
described in the
within-mentioned
Indenture.
IN WITNESS OF
THE ABOVE, the
Issuer has caused
this Bond to be
executed in the
name of the
Issuer and in .
their official
capacities by the
manual or fac-
simile signatures
of its Executive
and Clerical
officer as of
Trustee
By
Authorized Officer
(FORM OF REVERSE OF BOND)
This Bond is one of an issue of Bonds in an aggregate
principal amount-of $10,000,000, authorized' and issued pursuant
to an indenture, dated as of the Dated Date (the "Indenture")
between the Issuer and the Trustee, for the purpose of providing
funds to lend to Avon Resort Properties, a Colorado general
partnership (the "Partnership") to finance the costs of acquiring
and constructing a hotel facility project (the "Project")
pursuant to a Loan. Agreement dated as of the Dated Date (the
"Loan Agreement") between the Issuer and the Partnership.
Pursuant to the Loan Agreement and a promissory note made by the
Partnership, the Partnership has agreed to make - ,payment
sufficient to pay the principal of and interest and, any premium
on all Bonds issued under the Indenture. '
The term "Trustee" as used herein refers to said Trustee or
any successor Trustee appointed pursuant to the Indenture. The
Indenture and the other documents herein described are on file in
the offices of the Issuer and the Trustee. Reference is hereby
made to the Indenture for a more complete description of the
provisions, among others, -with respect to the nature and extent
of the security, the rights, duties and obligations of the
Issuer, the Trustee and the owners of the Bonds, and the terms
and conditions upon which the Bonds are issued and secured, to
all of the provisions of which Indenture, each owner, by the
acceptance hereof, assents.
The Bonds are issued pursuant to the laws of the State of
Colorado, and to a resolution or ordinance duly enacted by the
governing body of the Issuer. The Bonds are special obligations
of the Issuer, and the principal of and premium, if any, and
interest on the Bonds (the "Bond service charges") are payable
solely from the Revenues as defined and as provided in the
Indenture (being, generally, the payments and other amounts
payable under the Agreement) and are not otherwise an obligation
. -16-
of the Issuer. The Bonds are not secured by an obligation or
pledge of any moneys raised by taxation and do not represent or
constitute a debt or pledge of the faith and. credit of the
Issuer.
Registration, Transfer and Exchange. The Bonds are issuable
solely as fully registered bonds in the denominations of $5,000
and any integral multiple thereof and are exchangeable for fully
registered Bonds of other denominations in equal aggregate
principal amounts and in authorized denominations at the
aforesaid office of the Trustee, but only in the manner, subject
to the limitations and on payment of the charges provided in the
Indenture.
This Bond is transferable by the owner in person or by his
attorney duly authorized in writing at the corporate trust office
of the Trustee as Bond Registrar upon presentation and surrender
hereof to the Trustee, all subject to the terms and conditions
provided in the Indenture.
Interest Rates. The Bonds will bear interest from their
date of issuance and original delivery until December 15, 1987,
at the rate of seven percent (7%) per annum; and thereafter at a
floating rate of interest, calculated as set forth below, until
maturity, prior redemption, or until the date, if any, upon which
the Bonds convert from a floating rate to a fixed rate of
interest upon the occurrence of certain events (the "Conversion
Date," as more fully described below). Interest payable on the
Bond shall be computed on the basis of a year of 360 days
composed of twelve 30-day months.
The floating interest rate shall be computed for each week
(a "Floating Rate Period") prior to the Conversion Date based
upon an index (the "Floating Interest Index") computed on the
fourth business day immediately preceding the first day of the
Floating Rate Period by Kenny Information Systems (KIS) or a
successor indexing agent appointed under the Indenture (the
"Indexing Agent"). The Floating Interest Index is based on
yields of tax-exempt securities, selected by the Indexing Agent,
with maturities and credit ratings similar to that of the Bonds.
The floating interest rate shall be a rate which, if borne
by the Bonds, would, in the judgment of the Remarketing Agent,
giving due regard to prevailing market conditions, be 'the
interest rate necessary to enable. the Remarketing Agent to
remarket the Bonds at par, as more fully described in the
Indenture. In no event ma.y the interest rate for any Floating
Rate Period be less than 80% nor greater than 120% of the
Floating Interest Index, as more fully described in the
Indenture.
The Bonds are subject to conversion to a fixed rate upon
direction by the Partnership specifying the Conversion Date,
which must be an Interest Payment Date at least 30 days after the
date of Partnership direction. The direction, to be effective,
-17-
must be accompanied by an opinion of nationally recognized bond
counsel stating that the establishment of a fixed interest rate
is permitted -by the Indenture and the statute, ordinance or
charter pursuant to which the Bonds-were issued-and will not have
an adverse effect upon the tax-exempt status of the Bonds. Upon
establishment of the Conversion Date, the Trustee will give
notice to all Bond owners of conversion to a fixed rate.
The fixed interest rate will be calculated by the
Remarketing Agent and shall be that rate which, if borne by the
Bonds, would, in the judgment of the Remarketing Agent (based on
a Fixed Interest Index computed by the Indexing Agent in like
fashion described above for the Floating Interest Index), giving
due regard to prevailing market conditions, be the rate necessary
to enable the Remarketing Agent to remarket the Bonds at par, as
more fully described in the Indenture. In no event may the fixed
interest rate be less than 80% of the Fixed Interest Index or
greater than 120% of that Index.
The fixed interest rate will be effective until the final
maturity of the Bonds. However, in the event the Letter of
Credit expires by its terms prior to the final maturity of the
Bonds (such termination date, the "Rollover Date"), the fixed
interest rate will be effective only until the Rollover Date.
Following any Rollover Date, the Bonds will bear interest at a
floating rate, as described above, unless and until converted to
a fixed rate, which conversion may be effective as early as the
Rollover Date.
Demand Purchase option and Remarketing. The owner of this
Bond shall be entitled to tender this Bond for purchase at a
price price equal to the principal amount hereof, plus accrued
interest, if any, to the date of purchase on the last business
day of any Floating Rate Period or' on any Rollover Date upon (i)
receipt* by Matthews and Wright, Inc. or its successor as
remarketing agent.under the Indenture, in New York, New York, at
least seven (7) days before the purchase date of a written notice
that states the principal amount of such Bond and (ii) receipt of
the 'following to the New York office of Philadelphia National
Bank, or its successor as tender agent under the Indenture (the
"Tender Agent") at or prior to 10:00 a.m., New York time on the
purchase date: (a) the Bond (with all.necessary endorsements),
(b) a copy of the notice described in (i) above, (c) instructions
for the payment of the purchase price (by wire transfer or by
check or draft mailed or delivered in person at the New York
office of the Tender Agent on the purchase date and (d) in the
case of a Bond to be purchased prior to a Bond interest payment
date and after the Record Date immediately preceding such
interest payment date, a due-bill check, in form satisfactory to
the Tender Agent, for interest due on such interest payment date.
Notwithstanding the foregoing, no Bonds will be purchased if
an Event of Default under the Indenture or the Agreement has
occurred and is continuing.
-18-
•
Redemption. The Bonds are subject of mandatory redemption
at par (except for the final lettered paragraph immediately
below) plus accrued interest thereon to,the date of redemption,
as described below:
(a) In whole or in part on the date 36 months after
the Delivery Date, to the extent funds in the Construction Fund
under the Indenture are not advanced to the Partnership or
reserved to acquire, construct, develop or equip the project by
the date which is 35 months after the date of issuance of the
Bonds.
(b) In whole upon foreclosure or acceleration of the
Partnership Note, on the first Bond interest payment date which
is at least 60*days after such foreclosure or acceleration.
(c) In whole on any Bond interest payment date
immediately following an Event of Default under the Reimbursement
Agreement between the Partnership and the Bank.
(d) In whole at the end of any Floating Rate Period
at the direction of the Bank or the Partnership given at least 30
days before, the end of such period, accompanied by moneys
sufficient to effect redemption.
(e) On the first feasible Bond interest payment
date, upon the damage, destruction or condemnation of the Project
to the extent any insurance or condemnation proceeds are not
applied to repair or restore the Project or if the Trustee
determines it will not be feasible to repair or restore the
Project to operation as a residential rental project within 12
months after the, damage, destruction or condemnation.
(f) In whole upon failure to obtain alternate
security prior to the end of the first, floating rate period
unless Alternate Security is then in, place or, thereafter, upon
expiration of- the Alternate Security.
(g) Once the Bonds have been' converted to a fixed
rate, the Bonds are also subject to mandatory redemption upon the
optional prepayment by the Partnership of its Note, accompanied
'by sufficient funds to effect the redemption, in whole or in part
on any Bond interest payment date on or after the Bond interest
payment date which is at least the lesser of 8 years or that
number of years equal to 2/3 of the time between the Conversion
Date and the final maturity of the Bonds or the Rollover Date if
sooner rounded down to an integral number of years. The Bonds
shall be redeemed in such case at a redemption price equal to
103% of the principal amount of bonds to be redeemed for the
first such permitted redemption date (1028 if the number of years
above is less than six) and reducing 18 (but not below 1008) for
each second Bond interest payment date thereafter, in each case,
together with accrued interest to the redemption date.
-19-
Rights of redemption of the Bonds shall be exercised
by notice, specifying the Bonds or portions thereof to be called,
the redemption price to be paid, the date fixed for redemption
and the place or places where the amounts due upon such
redemption are payable. Such notice, subject to the provisions
of the Indenture therefor, will be sent by first class mail,
postage prepaid, not less than 30 days prior to the date fixed
for redemption to the Owner of each Bond to be redeemed at the
address shown on the registration books kept by the Trustee,
Reference is made to the Indenture for provisions as to failure
to give, or any defect in, such mailed notice. The Trustee will
not be required to transfer or exchange (i) any Bond during a
period beginning at the opening of business fifteen days before
the day of the mailing of a notice of redemption of Bonds. and
ending at the close of business on the date of such mailing, or
(ii) any.bonds so selected for redemption in whole or in part.
If less than all. the Bonds are called for redemption
at one time, they shall be called in inverse order of maturity if
there is more than one maturity, and if there is only one
maturity or if the Bonds of a single maturity are to be redeemed,
the selection of such Bonds, or portions thereof in amounts of
$5,000 or any integral multiple thereof, to be redeemed shall be
made by lot by the Trustee in such manner" as the Trustee -may
determine. 'If' Bonds or portions thereof are duly called for
redemption and if on such redemption date moneys for the
redemption thereof, together with interest thereon to the
redemption date, shall be held by the Trustee so as to be
available therefor, then from and after such redemption date such
Bonds or portions thereof shall cease to bear interest, and such
Bonds or portions thereof no longer shall be protected by, and
shall not be deemed. to be outstanding under, the Indenture.
Except as provided in the Indenture, the Bondowners
are not entitled to enforce the provisions of the Indenture or to
institute,. appear in or defend any suit, action or proceeding or
to enforce any provisions of -the Indenture or 'to take any action
with respect to any Event of Default under the Indenture.
The Indenture permits certain amendments or
supplements to the Agreement and various related documents not
prejudicial to the bondholders to be made with the consent of the
Trustee, but without the consent of or notice to the bondowners
and other amendments or supplements thereto (with certain
exceptions as provided in the Indenture) to be made with the
consent of- the holders of not less than 66-2/3%' in aggregate
principal amount of the Bonds at the time outstanding.
If the Event of Default, as defined in the Indenture,
shall occur, the principal of Bonds then outstanding may be
declared due and payable in the manner and with the effect
provided by the Indenture, but subject to waiver of such Event of
Default or rescission of such declaration as provided in the
Indenture.
-20-
The Bonds shall not constitute' the personal
obligation, either- jointly or severally, of the members of the
governing body or any other officer of the Issuer.
This -Bond shall not be entitled to any security or
benefit under the Indenture or become valid or obligatory for any
purpose until the certificate of authentication hereon shall have
been signed by the Trustee.
I
i
R
-21-
(FORM OF ASSIGNMENT)
Assignment
For value received, the undersigned hereby sells, assigns
and transfers unto the within Bond
and does- hereby irrevocably constitute and appoint
attorney to transfer the said Bond on
the books kept for registration of the within Bond, with full
power of substitution in the premises.
Dated:
Signature Guaranteed:
Notice: The assignor's signature to this assignment must
correspond with the name as it appears upon the face of
the within Bond in every particular, without alteration
` or any change whatever.
-22-
Section 8. The following determinations and findings are
hereby made in accordance with the Act:
(a) The Bond Fund has been established -with the
Philadelphia National Bank in Philadelphia, Pennsylvania from of
the proceeds of this issue of Bonds
(b) Interest only shall be payable semiannually from
the date of the Bonds through December 15, 1987 beginning on June
15, 1985 in the semiannual amount of $350,000 and the loan shall
be- amortized thereafter, at a floating rate of interest,
calculated as set forth in Section 6 hereof, until maturity,
prior redemption, or until the date, if any, upon which the Bonds
convert from a floating rate to a fixed rate of interest upon the
occurrence of certain events (the Conversion Date, as more fully
described in Section 6 hereof).
(c) The amounts payable under the Loan Agreement, in
addition to all other requirements of the Agreements and this
ordinance are sufficient to pay all sums referred to in paragraph
(b) of this Section.
Section 9. The forms, terms and provisions of the Bond
Purchase Agreement, Loan Agreement, Deed of Trust and Security
Agreement, Trust Indenture and Partnership Note be and they
hereby, are approved, and the Town shall enter into the )fond
Purchase Agreement, Trust Indenture, Loan Agreement, Deed of
Trust and Security Agreement and Partnership Note in the forms of
each of such documents presented to the Town Council at this
meeting, with such changes therein as are not inconsistent
herewith and with, any supplemental 'resolution to be adopted by
the Town Council, and the Mayor of the Town is hereby authorized
to execute and deliver such documents including the Bond Purchase
Agreement which may be executed by the Mayor upon the final
passage of this ordinance subject to the right of the Mayor to
veto this Ordinance and the ordinance becoming effective
following final publication of this ordinance, and the Town Clerk
is hereby authorized to affix the Town seal to and attest the
Loan Agreement and the Indenture.
Section 10. The form, terms and provisions of the
Preliminary Official Statement be and they hereby are approved,
and the Mayor of the Town is hereby authorized to execute and
deliver an Official Statement substantially in the forms of the
Preliminary Official Statement presented to-the Town Council at
this meeting, with such changes therein as are not inconsistent
herewith and with any supplemental resolution to be adopted by
the Town Council, and the Underwriter is hereby authorized to use
the Preliminary Official Statement and the Official Statement in
connection with the resale of the Bonds.
-23-
Section 11. The Mayor, or another officer of the Town, is
hereby authorized to execute and deliver to the Trustee the
written request and authorization of the Town for the
authentication and delivery of the Bonds by the Trustee.
Section 12. The Treasurer of the Town is hereby authorized
and directed to sign and file or cause to be filed the Capital
Expenditures Statement, thereby electing on behalf of the Town to
have the provisions of Section 103(b)(6)(D) of the Internal
Revenue Code of 1954, as amended, apply to the Bonds. Such
statement shall contain the information and shall be filed at'the
place required by the income tax regulations promulgated under
said Section 103(b)(6)(D).
Section 13. The officers of the Town shall take all action
necessary or reasonably required by the parties to the Bond
Purchase Agreement to effectuate its provisions_'and shall take
all action necessary to des..irable in conformity with the Act to
acquire the Project and for carrying out the transactions
contemplated by this ordinance, including without limitation the
execution and delivery of any closing documents to be delivered
in connection with the sale and delivery of the Bonds.
Section 14. The entire cost of acquiring the Project will
be paid out of the proceeds of the Bonds and none of the bonds,
will be the general obligation of the town nor shall any of the
Bonds, including interest thereon, constitute the debt or
indebtedness of the Town within the meaning of the Constitution
or statutes of -the State of Colorado nor shall anything contained
in this ordinance or in the Bonds, Indenture, Bond Purchase
Agreement; Preliminary official Statement, Official Statement or
Capital Expenditures Statement, or any other instrument give rise
to a pecuniary liability or a charge upon the general credit or
taxing powers of the Town, nor shall.the.breach of any agreement
contained in this ordinance, the Indenture,'Bdnds, Bond Purchase
Agreement, Preliminary official Statement, Official Statement or
Capital Expenditures Statement or any other instrument impose any
pecuniary liability upon the Town or any charge upon its general
credit or against its taxing power, the Town having no power to
pay out of its general funds, or otherwise contribute any part of
the costs of acquiring the Project, nor power to operate the
Project as a business or in any manner, nor shall the Town
condemn any land or other property for the Project nor contribute
any land or other property to the Project.
Section 15. After any of the Bonds are issued, this
ordinance shall be and remain irrepealable until the Bonds and
the interest thereon shall have been fully paid, cancelled and
discharged.
-24-
Section 16.. If any, section, 'paragraph, clause or provision
of this ordinance shall for any reason.be held to be invalid or
unenforceable, the invalidity or unenforceability of such
Section, paragraph, clause or provision, shall not affect any of
the remaining provisions of this ordinance.
Section 17. All by-laws, orders, resolutions and
ordinances, or parts thereof, inconsistent herewith are hereby
repealed to the extent only of such inconsistency. This repealer
shall not be. construed as reviving any by-law, order, resolution
or ordinance, or-part thereof.
Section 18. This ordinance shall be deemed effective from
its passage, approval and publication as required by law, the
ordinances of and the Charter of the Town of, Avon.
Section 19. The Notice of Public Hearing shall be given in
the following form:
-25-
NOTICE OF PUBLIC HEARING
NOTICE IS HEREBY GIVEN that at a Council meeting of the
Town Council of the Town of Avon, State of Colorado, to be held
on December , the 27th day of December, 1984, at the hour of
7.00 p.M., at the Avon Municipal Building, 400 Benchmark
Road, Avon, Colorado, the Town Council will hold a public hearing
concerning the proposed issuance by the Town of industrial
development revenue bonds in a maximum aggregate principal amount
of $10,000,000. for Avon Resort Properties, a Colorado general
partnership, for the purpose of financing the acquisition and
improvement of land, and the construction and equipping of a
building thereon, and all necessary and appurtenant real and
personal properties, whether or not now in existence, suitable
for use as a hotel facility within the Town (the Project).
The hotel facility-to be financed shall consist of a 150-
room resort/roadside hotel at the I-70 Avon/Beaver Creek Exit
with a 120-seat restaurant/coffee shop, 90-seat lounge, 235-seat
banquet/meeting rooms, 90,000 square foot building, 6-story room
tower, 6,000, square foot Holidome with peakadash. dining, areas.
The initial owner of the facility shall be Avon Resort
Properties, a Colorado general partnership. The initial
management of the facilities shall be professional resort hotel
management by The Stanford Company.
The prospective location of the facility shall be at the
Avon/Beaver Creek Exit of Interstate Highway 70; the site of the
Project is more specifically designated as Lot 1, A resubdivision
of Lots 5, 52A and 52B, Block 1, Benchmark at Beaver Creek
Subdivision, Town of Avon, Eagle County, State of Colorado, Lot 1
shall be reduced by approximately 1 acre- but shall meet the Town
of Avon requirements for a 150-unit hotel'.
The Bonds shall never constitute a charge against the
general credit or taxing power of the Town, nor are the Bonds a
general obligation of the Town. All persons with views on either
the issuance of the Bonds, the location or nature of the Project,
or other issues arising out of the Project, will be given' a
reasonable opportunity to be heard.
THIS NOTICE GIVEN BY ORDER of the Town Council of the Town
of Avon, State of Colorado, as of the 13thday of December,
1984.
/s/ Patricia J. Doyle
County Clerk
Publish in:
Publish on: December 13, 1984
-26-
INTRODUCED, ADOPTED AND APPROVED BY THE Mayor and the
Town Council constituting the governing body of the Town of Avon,
Eagle County, Colorado, on First Reading this 11th day of
December, 1984.
s/Sheila R.-Davis -
Mayor Pro-Tem'
( SEAL )
Attest:
s/Patricia J. Doyle
Town Clerk
INTRODUCED, READ BY TITLE ONLY AND FINALLY APPROVED BY the
Mayor and the Town Council constituting the governing body of the
Town of Avon, Eagle County, Colorado, on Second Reading this
21st day of December, 1984.
' Mater Pro Tem
(S E A L)
Attest:
q/P a i- r i,.r_ i a -D~n41P
Town Clerk
-27-
It was then moved by Council Member Watkins that the
ordinance be approved upon first reading and that said ordinance
be considered for approval on second reading at a meeting of teh
Town Council on Thursday, the 20th day of December, 1984., at the
hour of 12:00 Noon. Council Member Miller seconded the
motion.
The question being upon the passage and adoption of'the
ordinance, the roll was called with the following result:
Those voting YES:
Council'Members: Don Buick
Al Connell
Stephen Miller
"Clinton Watkins
A.J. Wells
Allan Nottingham and A.Z. Wells abstained
Those voting NO:
The presiding officer thereupon declared that, a majority of
all the Council Members elected having voted - in favor thereof,.
the motion was carried and the ordinance duly approved,.
On motion duly adopted, it was ordered that the Ordinance be
numbered 84-15 , and after approval by the Mayor, be published
in the Eagle Valley Enterprise, a newspaper of general
circulation within the Town of Avon, and that Notice of a Public
Hearing on the ordinance, to be held on the 27th day of December,
1984 at 7:00 P.M. at the Avon Municipal Building, 400 Benchmark
Road, Avon, Colorado, be published in the form provided in
Section 19 of this ordinance.
After consideration of other business to come before the
City Council, the meeting was adjourned.
s/Sheila R. Davis
Mayor Pto Tem
( S E A L )
ATTESTED:,
s/Patricia J. Doyle
Town Clerk
-28-
STATE OF COLORADO )
COUNTY OF EAGLE )
TOWN OF AVON )
I, Patricia J. Doyle, Town Clerk of the Town of Avon, Eagle
County, Colorado, do hereby certify that the foregoing pages 1 to
27, inclusive, constitute a true and correct copy of the Record
of Proceedings of the Town Council of the Town, taken at a
regular meeting of the Town Council, held at,the Avon.Municipal
Building, in Avon, Colorado, on Tuesday, the llth day of
December, 1984, commencing at the hour of 7:30 p.m, as recorded
in the official Record of the Proceedings of the Town kept in my
office, insofar as said proceedings relate to an ordinance
authorizing the issuance of its Industrial Development Revenue
Bonds (Avon Resort Properties Project), Series 1984, dated
December 15, 1,984, in the aggregate principal amount of.
$10,000,000; that said proceedings were duly had and,•taken; that
the meeting was duly held; and that the persons were present at
said meeting as therein shown.
That attached hereto is an Affidavit of Publication of said
ordinance as passed and. adopted by the Town Council at said
meeting; that the original ordinance has been duly authenticated
by the signatures of the Mayor and myself, as Clerk of the Town,
sealed with the corporate seal of the Town, and signed and
recorded in the Book of ordinances of the town kept for that
purpose in my office.
IN WITNESS
affixed the seal
December, 19 8 4.
( S E A L )
WHEREOF, I have hereunto subscribed my name and
of the Town of Avon, Colorado, this -13thday of
-29-
• 0
STATE OF COLORADO )
COUNTY OF EAGLE ) SS
TOWN OF AVON )
NOTICE IS HEREBY GIVEN OF A PUBLIC HEARING BEFORE THE TOWN COUNCIL
OF THE TOWN OF AVON, COLORADO, AT 12:00 NOON ON THE 20TH OF
DECEMBER, 1984, AT THE MUNICIPAL BUILDING, 400 BENCHMARK ROAD, AVON,
COLORADO FOR THE PURPOSE OF CONSIDERING THE ADOPTION OF ORDINANCE
NO.84-15, SERIES OF 1984:
AN ORDINANCE GIVING FINAL APPROVAL TO A PROPOSED INDUSTRIAL
DEVELOPMENT PROJECT BY AVON RESORT PROPERTIES, A COLORADO GENERAL
PARTNERSHIP, UNDER THE COLORADO COUNTY AND MUNICIPALITY DEVELOPMENT
REVENUE BOND ACT AND AUTHORIZING THE ISSUANCE AND SALE OF $10,000,000
INDUSTRIAL DEVELOPMENT BONDS(AVON RESORT PROPERTIES PROJECT),
SERIES 1984, TO HELP DEFRAY THE COST OF ACQUIRING AND CONSTRUCTING
SAID PROJECT
A copy of said Ordinance is attached hereto and is also on file
at the office of the Town Clerk and may be inspected during regular
business hours.
Following this hearing the Council may consider final passage of
this ordinance. r
This notice given and passed by order of the Town Council of the
Town of Avon, Colorado.
Dated this 13th day of December, 1984.
TO OF VON, COLORADO
B
POSTED AT THE FOLLOWING PUBLIC PLACES WITHIN THE TOWN OF AVON
ON DECEMBER 14, 1984:
THE MAIN ENTRANCE OF THE POST OFFICE
THE MAIN ENTRANCE TO CITY MARKET
THE PESTER GAS STATION; AND
THE MAIN LOBBY IN THE MUNICIPAL BUILDING
`,~93-3