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HomeMy WebLinkAboutC88-062 Sports Facilities Financing Agreement with VAMay 17, 1988
Board of County Commissioners
Eagle County, Colorado
P.O. Box 850
Eagle, Colorado 81631
Attn: James Fritze, County Attorney
RE: Sports Facilities Financing Agreement
Dated as of November 1, 1984
Dear Mr. Fritze:
C88 -62 -04
Reference is made to the Sports Facilities Financing Agreement dated as of
November 1, 1984 (the "Agreement ") between this Company and the County and
relating to the financing of certain Project Facilities described therein. As
contemplated in the Agreement, the County issued its Sports Facilities Revenue
Bonds (the "Bonds ") in the principal amount of $11 million on November 20,
1984. While most of the Project Facilities contemplated.in 1984 have been
completed and funded from Bond proceeds, approximately $2.2 million remains on
deposit in the Construction Bond established under the Trust Indenture dated as
of November 1, 1984 (the "Indenture ") with The Colorado National Bank of Denver,
as Trustee (the "Trustee "). The Agreement requires that these moneys be spent
on qualifying sports facilities.
Pursuant to Section 2.2 of the Agreement, we propose that Schedule A to the
Agreement be supplemented to add as a Project Facility the proposed Doppelmayr
high - speed detachable quad lift to be installed in the "China Bowl" area of the
Vail complex. The estimated cost of this facility is $2.8 million. This
Company will own such lift and lease it to our corporate parent, Vail
Associates, for operation in accordance with the special use permits held by
Vail Associates.
The China Bowl lift itself will provide access to over 1,200 acres of skiing
terrain and can be expected to add significantly to maintaining the leading
position of both Vail and Beaver Creek in the skiing industry. Thus, this
expansion is significant to the continued development of the economy of Eagle
County. Adding such lift to the Project Facilities covered by the Agreement
will permit us to spend the remainder of the Bond proceeds in an expeditious
manner while still accomplishing the public purposes for which the Bonds were
issued. We hereby confirm to you that the additional Project Facilities will
conform to this Companv's representations and undertakings set forth in the
Agreement. We request that the County confirm its findings in respect of such
additional Project Facilities.
Post Office Box 7 . Vail, Colorado 81658 + USA - (303) 476 -5601 . Telex: 910 - 920 -3183
-,,Board of County Commiss ers
May 17, 1988®
Page 2
In connection with this supplement to the Project Facilities, certain incidental
revisions to the Agreement appear to be advisable. We propose that the
completion date set forth in Section 3.4 of the Agreement be revised to
March 15, 1989 in order to provide sufficient time for installation and final
acceptance of the new lift. We also agree that our right to prepay our Sports
Facilities Note delivered to the Trustees would not be exercised in the event of
damage or loss to, or the imposition of burdens or liabilities with respect to,
the additional Project Facilities.
As required by Section 9.03 of the Indenture, we will provide an opinion from
Ballard, Spahr, Andrews & Ingersoll, bond counsel, in connection with these
revisions to the Agreement. A draft of their opinion is enclosed. This
letter - agreement and the revisions made by us shall be subject to any
requisite consent or approval by the Trustee under the Indenture and by The
First National Bank of Boston under the Reimbursement Agreement dated as of
December 22, 1986.
Thank you for your cooperation and assistance. If you agree with the changes to
the Agreement described here, and if this letter sets forth our understanding to
your satisfaction, please sign and return the enclosed copies.
BEAVER CREEK ASSOCIATES, INC.
By:
V' e President
APPROVED AND ACCEPTED THIS -�Ll= day of 1988:
EAGLE COUNTY, COLORADO
By: _SA;t�
Chairman, Board of County Commissioners
ounty Clerk
We hereby consent to the foregoing amendments this day of 1988.
COLORADO NATIONAL BANK OF DENVER, TRUSTEE
By:
Authorized Officer
cc: Jack Gardner - Ballard, Spahr, Andrews & Ingersoll
Chuck Cordray - Bank of Boston
Diane Reeder - Colorado National Bank of Denver, Trustee
GEF:amc