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Scott Ross, acting City Attorney, stated that Norton is providing <br />for the amendment of the City of Louisville, Colorado, Industrial <br />Development Revenue Bond, Regal Investment Associates, Limited, <br />Project, Series 1981; and approving the form and authorizing the <br />execution of certain documents relating thereto. <br /> <br />Tom Falacienski, Attorney, Grimshaw & Harring, Denver, Colorado, <br />stated that he was at the meeting on all three (3) ordinances. He <br />stated that the ordinances all relate to the amendment of <br />Industrial Development Bonds that the City sponsored in 1981, 1982, <br />and 1984 to finance the construction of office buildings on South <br />Boulder Road. The office buildings together constitute the <br />Louisville Medical and Dental Center. He explained that the <br />ordinances only amend the interest rate on the Bonds from 10% down <br />to 8%. This was done once before by the City in 1990. With the <br />continuing decline in interest rates, the holders of the bonds <br />agreed to lower the rates even more, down to 8%. <br /> <br />Sisk: <br /> <br />What would happen if the partnership <br />would miss a payment on the bonds? <br />Would the bonds then be deemed to be <br />in default and, then, foreclosure <br />could take place? <br /> <br />Falacienski: <br /> <br />The bond issue is solely the <br />obligation of the partnerships <br />involved and is not an obligation of <br />the City. The bonds are all held by <br />one (1) bank and the banks treat the <br />bonds as a real estate loan. If the <br />payments were missed, the bonds are <br />secured by a Trust on the buildings <br />involved and foreclosure would <br />occur, if the payments were missed. <br />The bonds were originally issued at <br />a flowing rate with a floor of 12%. <br />They were switched to fixed rate <br />bonds at 10% in 1990. Now they are <br />going down to a fixed rate of 8% for <br />the remainder of their term. One <br />(1) matures in 1996. The other two <br />(2) are later in 1998 and 2001. <br /> <br />Sisk: <br /> <br />As the City's bond council, we're <br />not paying you for your appearance <br />here this evening. You're being <br />paid by the partnerships, which are <br />representing the City. <br /> <br />Falacienski: <br /> <br />Exactly. <br /> <br />11 <br /> <br /> <br />