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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