City Council Agenda and Packet 1997 01 14

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SENT BY:SHERMAN HOWARD 1 -10 -97 ;10:50AM 2 SERVICES DESK- 3036739043 5/ 6 with the Act, and to be payable solely from the loan payments or other payments by the Company. The City anticipates that the principal amount of the Bonds will not exceed $2,000,000. Section 3. NO LIABILITY OF CITY, The Bonds shall never constitute the debt or indebtedness of the City within the meaning of any provision or limitation of the Constitution or statutes of the State of Colorado, and shall not constitute nor give rise to a pecuniary liability or financial obligation of the City or a charge against the City's general credit or taxing powers, nor shall the Bonds ever be deemed to be an obligation of any officer, agent or employee of the City in such person's individual capacity, and no such person shall be subject to personal liability by reason of the issuance of the Bonds. Section 4. INDEMNITY AND COSTS. The Company will indemnify and hold harmless the City and all of its officers, agents or employees as will be set forth in the transaction documents. No costs are to be borne by the City in connection with this transaction. Section 5. AUTHORITY. For purposes of the Act, the Bonds shall be issued pursuant to an ordinance of the City Council hereafter to be adopted. Section 6. INCIDENTAL AS''TION. The proper officials of the City are hereby authorized and directed to take or approve the taking of such actions as may be necessary or appropriate on its part in order to accomplish the purposes of this Resolution and to preserve the ability of the Company to finance its capital expenditures in accordance with the federal tax regulations, including applying to the Colorado Department of Local Affairs for an allocation of the private activity bond ceiling froth the statewide balance or from any other available allocation. Section 7. NO oBLTGA OF CITY. The agreements of the City set forth above are expressly conditioned upon the ability and willingness of the City to issue the Bonds as tax exempt obligations under the Internal Revenue Code of 1986, as amended, and the regulations promulgated thereunder as existing on the date of the issuance of the Bonds. Nothing contained in this Resolution shall be construed as requiring the City to issue the Bonds, and the decision to issue the Bonds shall he in the complete discretion of the City. Section 8.ECTIVE DATI REPEAL. This Resolution shall take effect immediately upon its adoption, and all prior resolutions or portions thereof inconsistent herewith are hereby repealed.