City Council Agenda and Packet 1997 01 14

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BLAKE STREET TERRACE 1860 BLAKE STREET, SUITE 550 DENVER. COLORADO 80202 GRIFFITHS TANOUE, P.C. ATTORNEYS AT LAW M E M O R A N D U M TEL. (303) 298 -1601 FAX (303) 298-1627 TO: William A. Simmons, City Administrator City of Louisville FROM: Susan K. Griffiths DATE: January 10, 1997 SUBJECT: Proposed Manufacturing Facility Private Activity Bonds I reviewed Dee Wisor's letter to you of this date and the attached proposed Letter of Intent. Dee noted in his letter the lawsuit against at least one Colorado city which was sued in the context of a private activity bond issue and either the city or its insurer paid out moneys as part of a settlement. My recollection is that one of the claims of the plaintiff bond holders in that case was that the issuing city did not adequately evaluate the financial capability of the company prior to bond issuance. It may be helpful for the City to obtain additional information regarding this lawsuit. To better protect Louisville, I suggest the following changes to the draft Resolution of Intent. Dee may have different wording or a different approach which would better protect the City and he may be able to advise the City as to the effect of any of these proposed changes on the desire of the Company to locate in Louisville. Section 3. "NO LIABILITY OF CITY." Insert the following in the second line (capital letters indicate the proposed new wording): "The Bonds shall never constitute the debt or an indebtedness of the city, NOR ANY MULTIPLE- FISCAL YEAR DIRECT OR INDIRECT CITY DEBT OR OTHER FINANCIAL OBLIGATION OF THE CITY WHATSOEVER,...." Section 4. "INDEMNITY AND COSTS." Replace with the following new wording: "The Company will indemnify and hold harmless the City and all of its officers, agents, employees and insurers from and against all losses, claims and demands, including but not limited to claims of negligence by the EO'd LE9T 86E 202 '3'd `31lONdl '8 SHlIddI89 8E:£T L66T- 0T -Ndf