ORDINANCE NO. 2014-11
A BILL
FOR AN ORDINANCE AUTHORIZING THE USE OF LEASE-PURCHASE
FINANCING FOR AN EXPANSION OF THE AURORA HISTORY MUSEUM
DURING THE 2014 FISCAL YEAR PURSUANT TO THE TERMS OF A
LEASE-PURCHASE AGREEMENT BY AND BETWEEN THE AURORA
CAPITAL LEASING CORPORATION, AS LESSOR, AND THE CITY OF
AURORA, COLORADO, AS LESSEE; AUTHORIZING OFFICIALS OF THE
CITY TO TAKE ALL ACTION NECESSARY TO CARRY OUT THE
TRANSACTIONS CONTEMPLATED HEREBY; AND RELATED MATTERS
WHEREAS, the City of Aurora, Colorado, (the “City”), is a home rule municipality,
organized and existing under and by virtue of Article XX, Section 6 of the Colorado
Constitution; and,
WHEREAS, the City is authorized pursuant to Section 31-15-801, C.R.S., as amended,
the City’s home rule powers, and Section 2-683 of the City Code to enter into long-term or shortterm rental or leasehold agreements in order to provide necessary land, buildings, equipment, and
other property for governmental or proprietary purposes, which agreements may include an
option to purchase and acquire title to such leased or rented property, and may have a term, at the
discretion of the City, in excess of 30 years; and,
WHEREAS, in order to provide for the capital asset needs of the City, the City Council of
the City (the “Council”) hereby determines that it is necessary and in the best interests of the City
and its citizens that the City undertake lease-purchase financing of an expansion of the Aurora
History Museum for use by the City for governmental or proprietary purposes; and
WHEREAS, the City wishes to fund the expansion of the Aurora History Museum (the
“Expansion”) from the proceeds of a lease-purchase financing to be completed during the 2014
fiscal year; and
WHEREAS, the Expansion is hereby authorized to be financed by lease-purchase from
the Aurora Capital Leasing Corporation (“ACLC”) with cash balances made available to ACLC
by the City or pursuant to a direct placement of a lease-purchase agreement, or an assignment
thereof, as a tax-exempt obligation, with one or more banks or institutional investors selected by
the Finance Director through an informal competitive process; and
WHEREAS, ACLC is currently the fee owner of the Aurora History Museum and the
land on which it is situated (the “Property”); and
WHEREAS, in order to facilitate the Expansion, ACLC may convey the Property to the
City prior to the commencement of the subject financing; and
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WHEREAS, in the event that the City shall become the fee owner of the Property, the
City intends to enter into a site lease (the “Site Lease”) of the City’s interest in the Property to
ACLC and a Lease Purchase Agreement (the “Lease Purchase Agreement” and, together with the
Site Lease, the “Lease”) with ACLC to effectuate the lease-purchase financing of the Property;
and
WHEREAS, in the event that ACLC remains the fee owner of the Property, the City
intends to enter into the Lease Purchase Agreement with ACLC to effectuate the lease-purchase
financing of the Property; and
WHEREAS, there have been presented to this meeting of the Council the proposed forms
of the Site Lease to be entered into between the city, as lessor, and ACLC, as lessee, as well as
the Lease Purchase Agreement (the “Lease”), to be entered into by and between ACLC, as lessor,
and the City, as lessee; and
WHEREAS, according to Section 5-3 of the City Charter, any use of lease-purchase
financing by the City must be approved by ordinance.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
AURORA, COLORADO:
Section 1.
Ratification of Actions. All action heretofore taken, not inconsistent with
the provisions of this Ordinance, by the Council or the officers of the City, directed toward the
expansion of the Aurora History Museum and the preparation of the form of the Lease are hereby
ratified, approved and confirmed.
Section 2.
The History Museum Expansion. The City is hereby authorized to obtain
lease-purchase financing through one or more lease-purchase agreements with ACLC for the
expansion of the Aurora History Museum to be completed during the 2014 fiscal year.
Section 3.
Maximum Principal Amount; Interest Rate; Term. The principal amount
to be financed shall not exceed $1,500,000, the interest component of rental payments to be made
by the City shall accrue at a rate not to exceed five percent (5.00%), and the term of any Lease
hereunder shall not exceed one hundred twenty (120) months. Rental payments may be made
annually, semi-annually, or at any other convenient interval as determined by the Director of
Finance.
Section 4.
Findings; Authorizations. The Council hereby finds and determines,
pursuant to the City’s home rule powers and the laws of the State of Colorado, that the expansion
of the Aurora History Museum is necessary, convenient, and in furtherance of the governmental
purposes of the City and in the best interests of the City and its citizens; and the Council hereby
authorizes the Expansion by means of lease-purchase financing.
Section 5.
Agency Relationship. The City shall accept the appointment of ACLC to
act as its agent solely for the purpose of financing the Expansion. The City will do all things
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necessary to effect the Expansion free and clear of any encumbrances and subject the same to any
security interests as may be contemplated under the Lease.
Section 6.
Approval and Execution of Documents; Authorized Officers. The Lease,
in substantially the form filed in the office of the City Clerk prior to the final adoption of this
Ordinance, is in all respects approved, authorized and confirmed. The Mayor is hereby
authorized and directed to execute and deliver, and the City Clerk is hereby authorized and
directed to affix the seal of the City to, and attest, each Lease hereunder in substantially the form
filed with the City Clerk, with such changes as are not inconsistent with the intent of this
Ordinance and are approved by the City Attorney. The Council hereby designates the Director of
Public Works and the Director of Finance to act as “Authorized Officers” under each Lease. Prior
to the execution of each Lease, the description and price of the Property subject to the Lease and
the schedule of rental payments allocated to the Property under the Lease shall be approved by a
certificate executed by the Director of Finance (the “Final Terms Certificate”) and attached as a
schedule to the Lease.
Section 7.
Additional Documents. The City Clerk is hereby authorized and directed
to attest all signatures and acts of any official of the City in connection with the matters
authorized by this Ordinance. The Mayor and the Authorized Officers are hereby authorized to
execute and deliver for and on behalf of the City any and all additional certificates, documents
and other papers and to perform all other acts that they may deem necessary or appropriate in
order to implement and carry out the transactions and other matters authorized by this Ordinance.
Section 8.
No General Obligation or Other Indebtedness. The obligation of the City
to make rental payments under each Lease is subject to annual appropriation by the Council and
constitutes an undertaking of the City to make current expenditures. Such payments are subject
to termination and nonrenewal by the City in accordance with the provisions of the Lease. No
provision of this Ordinance or any Lease hereunder shall be construed as constituting or giving
rise to a general obligation or other indebtedness or multiple fiscal year financial obligation of
the City within the meaning of any home rule, constitutional or statutory debt limitation nor a
mandatory charge or requirement against the City in any ensuing fiscal year beyond the current
fiscal year.
Section 9.
Expression of Need. The City hereby declares its current need for the
Expansion. It is hereby declared to be the present intention and expectation of the Council that
each Lease will be renewed annually until title to the Property is acquired by the City pursuant to
the Lease; but this declaration shall not be construed as contractually obligating or otherwise
binding the City.
Section 10.
Reasonable Rentals. The Council hereby determines and declares that,
after execution and delivery of each Lease, the rental payments due thereunder will represent the
fair value of the use of the Property and the purchase price, as defined therein, will represent, as
of any date upon which the City may exercise its option to purchase such Property, the fair
purchase price of such Property. The Council further hereby determines and declares that, after
the execution and delivery of each Lease, the rental payments due thereunder will not exceed a
reasonable amount so as to place the City under an economic or practical compulsion to renew
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the Lease or to exercise its option to purchase the Property pursuant to the Lease. In making such
determinations, the Council has given consideration to the cost of acquiring the Property, the
uses and purposes for which the Property will be employed by the City, the benefit to the citizens
of the City by reason of the acquisition and use of the Property pursuant to the terms and
provisions of each Lease, the City’s option to purchase the Property, and the expected eventual
vesting of title to, or other indicia of ownership of, the Property in the City. The Council hereby
determines and declares that, after execution and delivery of each Lease, the maximum duration
of the portion of the Lease allocable to any item of the Property separately identified in the
payment schedule appended thereto will not exceed the weighted average useful life of the
Property .
Section 11.
Severability. The provisions of this Ordinance are hereby declared to be
severable. If any section, paragraph, clause, or provision of this Ordinance shall, for any reason,
be held to be invalid or unenforceable by a court of competent jurisdiction, the invalidity or
unenforceability of such section, paragraph, clause, or provision shall not affect any of the
remaining provisions of this Ordinance.
Section 12.
Repealer. All acts, orders, resolutions, ordinances, or parts thereof, in
conflict with this Ordinance or with any of the documents hereby approved, are hereby repealed
only to the extent of such conflict. This repealer shall not be construed as reviving any
resolution, ordinance, or part thereof, heretofore repealed.
Section 13.
Publication. Pursuant to Section 5-5 of the City Charter, the second
publication of this ordinance shall be by reference, utilizing the ordinance title. Copies of this
ordinance are available at the office of the City Clerk.
INTRODUCED, READ AND ORDERED PUBLISHED this
April , 2014.
14th
day of
PASSED AND ORDERED PUBLISHED BY REFERENCE this _____ day of
____________, 2014.
____________________________________
STEPHEN D. HOGAN, Mayor
ATTEST:
____________________________________
JANICE NAPPER, City Clerk
APPROVED AS TO FORM:
____________________________________
BILLY R. STIGGERS, II, Assistant City Attorney
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