HomeMy WebLinkAboutRES 2001-033 CITY OF GRAPEVINE
RESOLUTION NO. 2001-33
A RESOLUTION APPROVING AND RATIFYING AGREEMENTS
BETWEEN THE CITY AND A CONSORTIUM OF CITY OF
GRAPEVINE BANKS TO FINANCE THE ACQUISITION,
CONSTRUCTION AND RENOVATION OF THE HISTORIC
PALACE ARTS CENTER IN THE AMOUNT OF$3,800,000.00 AND
LOAN AGREEMENTS BETWEEN THE CITY AND THE
GRAPEVINE HERITAGE FOUNDATION PURSUANT TO AN
ECONOMIC DEVELOPMENT PROGRAM ESTABLISHED IN
ACCORDANCE WITH CHAPTER 380 OF THE TEXAS LOCAL
GOVERNMENT CODE NUNC PRO TUNC TO MARCH 7, 2000,
THE DATE THE DOCUMENTS AND AGREEMENTS WERE
REVIEWED AND APPROVED BY THE CITY OF GRAPEVINE
CITY COUNCIL.
WHEREAS,the City Council has concluded that the acquisition,reconstruction
and construction of the Palace Arts Center in Historic Downtown Grapevine,
contiguous to the new City Hall will enhance the Historic Downtown District, improve
property values, rejuvenate and accelerate commercial and retail activity and
stimulate business and commercial activity throughout the City; and
WHEREAS, to accomplish the undertaking, the City has negotiated Loan
Agreements with a consortium of six (6) City of Grapevine Banks, namely, Texas
National Bank, First State Bank of Texas, Independent National Bank, Worth
National Bank, Texas Bank, and Frost Bank (Consortium) to acquire a loan in the
amount of$3,800,000, the proceeds of which will be used to acquire the Palace Arts
Center reconstruct and construct it in a manner that will ignite growth in the
Downtown area; and
WHEREAS, the loans to be entered into by the City with the Consortium are
legal,valid and binding agreements secured by excess hotel and motel tax revenue and
the City's available funds subject to annual appropriation; and
WHEREAS, the City has concluded that the Grapevine Heritage Foundation,
a 501(c)(3) corporation created by the City for the purpose of promoting Historic
Downtown Grapevine,is the most appropriate party to acquire,construct,reconstruct,
maintain and operate the Palace Arts Center; and
WHEREAS, Texas Local Government Code, Chapter 380, provides that the
governing body of a municipality may establish and provide for the administration of
one or more programs, including programs for the making of loans and grants of public
money and providing personnel and services of the municipality to promote local
economic development and to stimulate business and commercial activity in the
municipality; and
WHEREAS, the City Council wishes to establish an incentive program under
Texas Local Government Code, Chapter 380, to provide a program that will encourage
retail and commercial business activity in Historic Downtown Grapevine by the
acquisition, construction and reconstruction of the Palace Arts Center on Main Street
contiguous to the new City Hall by the Grapevine Heritage Foundation; and
WHEREAS,the effective date of the approval of the loans from the Consortium,
the establishment of the Chapter 380 program under Texas Local Government Code,
and the approval of the Loan Documents with the Consortium and the transaction
between the City and the Grapevine Heritage Foundation is nunc pro tune March 7,
2000.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF GRAPEVINE;
Section 1. That all matters stated in the preamble are found to be true and
correct and are incorporated into the body of the Resolution as if copied in their
entirety.
Section 2. That the Financing Agreements and all Loan Agreements and
Documents and all terms incorporated therein between the City and the Consortium
for the City to borrow$3,800,000 to acquire, construct and reconstruct the Palace Arts
Center are hereby approved, subject to approval of all documents by the City Attorney
and the City's Director of Administrative Services, and the Mayor,William D. Tate, or
the City Manager,Roger Nelson, are authorized and directed to sign all necessary and
appropriate documents on behalf of the City.
Section 3. That pursuant to Chapter 380 of the Texas Local Government Code
a program to stimulate business and commercial activity in the City is hereby
established as follows:
(A) The City acquires the Historic Palace Arts Center and borrows
$3,800,000.00 from a Consortium of six (6) Banks, for the purpose of
acquiring, reconstructing and constructing the Palace Arts center in
Historic Downtown Grapevine contiguous to the new City Hall.
(B) That the City enter into valid and binding Agreements with the
Grapevine Heritage Foundation (Foundation), a 501 (c)(3) corporation,
created by the City to promote Historic Downtown Grapevine and to
RES. NO. 2001-33 2
stimulate its business development to allow the Foundation to acquire,
reconstruct, construct, operate and maintain the Palace Arts Center and
pledge to repay the $3,800,000 Note to the City from private donations,
the operational revenues from the Palace Arts Center, all net revenue of
the Heritage Foundation, and a lien against the Property.
(C) That the Mayor or City Manager shall approve and execute all necessary
documents between the City and the Foundation to carry out this
program, after said documents have been approved by the City Attorney
and City's Director of Administrative Services.
Section 4. That the effective date of all transactions described in Sections 1,
2 and 3 is hereby declared nunc pro tunc to be March 7, 2000.
Section 5. The this Resolution shall take effect from and after its passage.
PASSED the 17TH day of July, 2001.
City ecretary, 4151 a Huff Mayor William D. Tate
City Attorney, John F.Boyle, Jr.
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