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01-900CORDINANCENO.1-90ANORDINANCEAPPROVINGTHEFORMOFGROUNDLEASEAGREEMENTANDGOLFCOURSELEASEAGREEMENTOFTHETOWNOFESTESPARK,COLORADO,WITHTHEESTESPARKBUILDINGAUTHORITY,RELATINGTOTHEGOLFCOURSEPROJECT,ANDAUTHORIZINGTHEEXECUTIONOFSUCHDOCUMENTS,ANDAPPROVINGOTHERDOCUMENTSINCONNECTIONWITHTHEFINANCINGOFTHEPROJECT.WHEREAS,theTownofEstesPark,Colorado(the“Town”)isauthorizedtoacquire,hold,leaseanddisposeofproperty,bothrealandpersonal,pursuanttoSection31—15—101(1)C.R.S.,andWHEREAS,theTownalsohastheauthority,pursuanttoSection31—15—801C.R.S.,toenterintoleasepurchaseagreementstoprovidenecessaryland,buildings,equipmentandotherpropertyforgovernmentalorproprietarypurposes;andWHEREAS,theTownpresentlyownsan18-holemunicipalgolfcourselocatedintheTownandhasenteredintoanoperatingagreementwiththeEstesValleyRecreationandParkDistrict,LarimerCounty,Colorado(the“District”)concerningtheoperationandmaintenanceofthegolfcourse;andWHEREAS,theBoardofTrusteesoftheTown(the“Board”)hasdeterminedthatitisnecessaryandinthebestinterestsoftheTownanditsinhabitants:Ci)toconstructandinstallimprovementstotheexistingclubhouseforthe18-holemunicipalgolfcourse,includingtheacquisitionofequipment;(ii)toconstructandinstallcertainnewfairwaysgreens,andtees,includingtherealignmentofcertainexistingfairways,greensandtees;and(iii)toconstructanewmaintenancebuildingforthegolfcourse(collectivelyreferredtohereinasthe“Project”)andWHEREAS,forthepurposeofconstructingandinstallingtheProject,theBoardhasdeterminedandherebydeterminesthatitisinthebestinterestsoftheTownanditsinhabitantsthat—4— 00theTown;(i)enterintoalongtermgroundleaseagreement(the“GroundLease”)foratermofthirty(30)yearswiththeEstesParkBuildingAuthority(the“Authority”),astenant,pursuanttowhichtheTownwilllease,aslandlord,therealpropertyonwhichtheProjectwillbesituated,togetherwithexistingstructuresandfacilities,(the“Site”)and(ii)enterintoagolfcourseleaseagreement(the“Lease”)concerningtheProjectwiththeAuthority;andWHEREAS,pursuanttoaMortgageandIndentureofTrustdatedJanuary15,1990,(the“Indenture”)betweentheAuthority,asgrantor,andCentralBankDenver,NationalAssociation,Denver,Colorado,astrustee(the“Trustee”),certificatesofparticipationintheaggregateprincipalamountof$1,135,000,datedJanuary15,1990(the“Certificates”)willbeauthorizedforthepurposeofconstructingandinstallingtheProject;andWHEREAS,pursuanttotheLease,uponpaymentofallrentalsoruponpaymentoftheapplicablepurchaseoptionprice,theProjectwillbeconveyedtotheTown;andWHEREAS,theobligationoftheTownthereundershallnotconstituteageneralobligationindebtednessoftheTown,andshallbesubjecttothemakingofannualappropriationsthereforinaccordancewithlaw;andWHEREAS,theBoardhasdeterminedtoapprovethesaleoftheCertificatestoBoettcher&Company,Inc.,Denver,Colorado(the“Underwriter”),pursuanttoandinaccordancewiththeCertificatePurchaseAgreementdatedJanuary9,1990(the“CertificatePurchaseAgreement”),amongtheUnderwriter,theAuthority,andtheTown;andWHEREAS,inconnectionwiththeUnderwriter’ssaleoftheCertificatestoothers,theTownhasauthorizedthepreparationofthePreliminaryOfficialStatementdatedDecember28,1989(the“PreliminaryOfficialStatement”),concerningtheTown,theCertificates,andothermatters;and—5— CCWHEREAS,therehasbeenpresentedtotheBoardtheformoftheGroundLease,theLeaseandtheCertificatePurchaseAgreement,andthePreliminaryOfficialStatement(collectively,the“FinancingDocuments”);andWHEREAS,theBoarddesirestoapprovetheformoftheFinancingDocumentsandauthorizetheexecutionthereof;THEREFORE,BEITORDAINEDBYTHEBOARDOFTRUSTEESOFTHETOWNOFESTESPARK,COLORADO:Section1.Approvals,Authorizations,andAmendments.TheformsoftheFinancingDocumentsareincorporatedhereinbyreferenceandareherebyapproved.TheTownshallenterintoandperformitsobligationsundertheGroundLease,theLease,andtheCertificatePurchaseAgreementintheformofsuchdocumentspresentedatthismeeting,withonlysuchchangesasarenotinconsistentherewith.TheMayorandTownClerkareherebyauthorizedanddirectedtoexecutetheGroundLease,theLease,andtheCertificatePurchaseAgreement,andtoaffixthesealoftheTownthereto,andfurthertoexecuteandauthenticatesuchotherdocuments,instruments,orcertificatesasaredeemednecessaryordesirableinconnectiontherewith.TheFinancingDocumentsaretobeexecutedinsubstantiallytheformhereinaboveapproved,providedthatsuchdocumentsmaybecompleted,corrected,orrevisedasdeemednecessarybythepartiestheretoinordertocarryoutthepurposesofthisOrdinance.CopiesofalloftheFinancingDocumentsshallbedelivered,filed,andrecordedasprovidedtherein.Theexecutionofanyinstrument,certificate,agreement,orotherdocumentinconnectionwiththemattersreferredtohereinbytheMayororbyotherappropriateofficersoftheTownhereinauthorized,shallbeconclusiveevidenceoftheapprovalbytheTownofsuchinstrumentinaccordancewiththetermsthereof.Section2.AuthorizationofAuthorityandTrustee.TheTownherebyconsentstoallactionstobetakenbytheAuthorityandtheTrusteepursuanttotheFinancingDocuments,including—6— C0withoutlimitationtheissuanceoftheCertificatesevidencingassignmentsofproportionateinterestsinrightstoreceivecertainpaymentsundertheLease,suchCertificatestobeissuedintheaggregateprincipalamountof$1,135,000,tobearinterestassetforthintheIndentureataneteffectiveinterestratenotexceeding10%perannum,andtomatureandberedeemableinaccordancewiththeprovisionsoftheIndenture.TheAuthorityisherebyauthorizedtoselltheCertificatestotheUnderwriteruponthetermsandconditionssetforthintheCertificatePurchaseAgreement.Section3.FindingofPublicInterest.ItisherebydeterminedthattheexecutionoftheGroundLease,theLease,andtheCertificatePurchaseAgreement,andtheperformancebytheTownofitsobligationsthereunderareinthebestinterestsoftheTownanditsresidentsandtaxpayers.TheBoardherebydeterminesanddeclaresthattheBaseRentals(asdefinedintheLease)donotexceedareasonableamountsoastoplacetheTownunderaneconomiccompulsiontorenewtheLeaseortoexerciseitsoptiontopurchasetheProjectpursuanttotheLease.TheBoardherebydeterminesanddeclaresthattheperiodduringwhichtheTownhasanoptiontopurchasetheProject(i.e.,themaximumtermoftheLease)doesnotexceedtheusefullifeoftheProject.Section4.FindingofNoIndebtedness.NoprovisionofthisOrdinanceortheFinancingDocumentsshallbeconstruedascreatingorconstitutingageneralobligationorotherindebtednessoftheTown,noramandatorychargeorrequirementagainsttheTowninanyensuingbudgetyearbeyondthecurrentbudgetyear.TheTownshallhavenoobligationtomakeanypaymentwithrespecttotheCertificatesexceptinconnectionwiththepaymentoftheBaseRentals(asdefinedintheLease)andcertainotherpaymentsundertheLease,whichpaymentsmaybeterminatedbytheTowninaccordancewiththeprovisionsoftheLease.—7— 00Section5.LesseeRepresentative.TheBoardherebydesignatesGaryF.KlaphakeasLesseeRepresentative,asdefinedandasfurtherprovidedintheLease.TheLesseeRepresentativemaybechangedbyresolutionhereafteradoptedbytheBoard.Section6.AuthorizationtoTakeAllAction.TheofficersoftheTownandthemembersoftheBoardofTrusteesareherebyauthorizedanddirectedtotakeanyandallotheractionsnecessaryorappropriatetoeffectuatetheprovisionsofthisOrdinanceandtheFinancingDocuments.Section7.RatificationandApprovalofPriorActions.AllactionsheretoforetakenbytheofficersoftheDistrictandmembersoftheBoard,notinconsistentwiththeprovisionsofthisOrdinance,relatingtotheProject,theFinancingDocuments,oractionstobetakeninrespectthereof,areherebyratified,approved,andconfined.Section8.ApprovalofPreliminaryOfficialStatement.ThePreliminaryOfficialStatementrelatingtotheissuanceoftheCertificatesisherebyapprovedintheformpresentedatthismeeting.TheTownherebyauthorizesthepreparationofafinalversionofthePreliminaryOfficialStatement(the“OfficialStatement”),whichOfficialStatementshallcontainanyupdatedinformationregardingitemsdescribedinthePreliminaryOfficialStatementwhichbecomeknowntotheTownpriortothedateofdeliveryoftheCertificates.Section9.OrdinanceIrrepealable.AftertheGroundLeaseandtheLeasehavebeenexecutedanddelivered,thisOrdinanceshallbeandremainirrepealableuntiltheterminationoftheLeaseTerm,asdefinedintheLease.Section10.çpealer.Allorders,bylaws,andresolutionsoftheTown,orpartsthereof,inconsistentwiththisOrdinance,areherebyrepealedtotheextentonlyofsuchinconsistency.Section11.Severability.Ifanysection,paragraph,clause,orprovisionofthisOrdinanceshallforanyreasonbe—8— CCheldtobeinvalidorunenforceable,theinvalidityorunenforceabilityofsuchsection,paragraph,clause,orprovisionshallnotaffectanyoftheremainingprovisionsofthisOrdinance,theintentbeingthatthesameareseverable.Section12.RecordingandAuthentication.ImmediatelyonitspassagethisOrdinanceshallberecordedintheOrdinanceBookoftheTownkeptforthatpurpose,authenticatedbythesignaturesoftheMayorandTownClerk,andshallbepublishedinaccordancewithlaw.Section13.EffectiveDate.InaccordancewithSection31—18—501,C.R.S.,thisOrdinanceshalltakeeffectthirty(30)daysafteritsadoptionandpublication.ADOPTEDANDAPPROVEDThis9thdayofJanuary,1990.SEAL)______________________________MayorATTESTED:?1TownClerk—9—