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On January 15, during a regular city council meeting in Rifle, Colorado, officials deliberated over a significant proposal concerning the issuance of bonds to support Habitat for Humanity Roaring Fork's factory project. The facility aims to manufacture approximately 200 homes annually and create around 64 jobs. The council was asked to endorse a letter of support for becoming bond counsel, facilitating the construction slated for September. This initiative involves complex financial arrangements, including securing institutional investors and ensuring smooth operations through legal and financial frameworks.

The proposed factory is set to revolutionize local housing production, with plans to significantly boost employment and home availability. Helen Atkeson, from Hogan Lovells—a Denver-based law firm—played a pivotal role in guiding the bond issuance process. Working alongside Jim Neu, Rifle’s city attorney, Atkeson detailed how the city would act as a conduit issuer for three series of bonds. These bonds will finance land acquisition, construction, equipment, startup costs, and reserve funds. The total value of these bonds falls within specified dollar amounts outlined in the ordinance.

Atkeson further explained that the city would enter into several agreements, including an indenture of trust between the city and the bond trustee, a loan agreement between the city and Habitat for Humanity Roaring Fork, and a bond purchase agreement involving D.A. Davidson & Company. The latter, a financial advisory firm, would identify institutional investors to purchase the bonds. Additionally, amendments to the lease agreement were necessary to align with investor requirements.

Neu reassured the council that the city would bear no liability for the bonds or payment processing. The only collateral backing the bonds would be the Habitat facility, its revenue, and leasehold interests. Mayor Sean Strode expressed confidence in the economic stability this project would bring, noting the urgency due to changing economic conditions. Lee White, managing director at D.A. Davidson, assured the council of high optimism regarding bond sales, emphasizing that these are non-recourse bonds for the city.

Ultimately, the council unanimously approved the emergency ordinance, paving the way for this transformative project. The decision reflects a collaborative effort between the city, Habitat for Humanity, and financial partners, aiming to enhance local housing and employment opportunities while ensuring fiscal responsibility.