HomeMy WebLinkAboutItem 13 - Certificates of ObligationMEMO TO:
FROM:
MEETING DATE
SUBJECT:
RECOMMENDATION:
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
ROGER NELSON, CITY MANAGER OPV
MAY 16, 2000
RESOLUTION DIRECTING PUBLICATION OF NOTICE OF
INTENTION TO ISSUE CERTIFICATES OF OBLIGATION
City Council to consider approving a Resolution directing publication of a Notice of
Intention to issue Combination Tax and Tax Increment Reinvestment Zone Revenue
Certificates of Obligation, Series 2000 .
FUNDING SOURCE:
Future issue of Certificates of Obligation for the purpose of construction of public
improvements for Tax Increment Financing Zone Number 2, the Opryland Hotel project.
BACKGROUND:
This item is placed on the Council agenda pursuant to direction from Bond Counsel in
order to meet necessary requirements for selling Certificates of Obligation. Funding from
the sale of Certificates will be used for financing $27,500,000 of public improvements for
the Opryland Tax Increment Financing Zone (TIF Number 2). The documentation outlining
the improvements is attached.
The total sales amount of Combined Tax and Revenue Certificates (CO's) to be sold is
estimated to be $31,580,000. The actual amount of the sale will be determined on June
6, 2000 and will be dependent upon interest rates bid at the time of the sale. This allows
funding for capitalization of two years of debt payments and payment of issuance costs in
addition to the public improvements costs. The issue includes capitalization of debt
payments since the debt payments by the tax increment financing district will begin prior
to the capture of enough value from the improvements to provide sufficient tax revenues
for full debt payments. The Resolution has been prepared with an authorization not to
exceed $35,000,000 to provide for enough funds to handle any unforeseen circumstances
which may require the sale of additional CO's.
May 10, 2000 (9:59AM)
The amount of CO's and uses are listed below:
Public Improvement Costs $27,500,000
Capitalized Debt Payments 3,980,000
Issuance Costs 100,000
Total $31,580,000
If approved by the Council, the required notice will be published May 19 and May 26, 2000.
A copy of the notice is attached.
Staff recommends approval.
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May 9, 2000 (3:52PM)
Bruno umbe ow -exhibit dpp
ublic imrovm
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EXHIBIT D
PUBLIC IMPROVEMENTS
Public Improvements means the following improvements designed and constructed in
accordance with plans and specifications approved by the City:
Bridge serving the main drive
Roadways A — B — C — D
Utility Facilities consisting of water and wastewater lines and associated facilities or
appurtenances.
Parking Facilities consisting of two (2) public parking garages, one (1) located beneath the
convention center and the second located adjacent to the Hotel.
206065.01 50027-0009 5/10/2000 4:07 PM
RESOLUTION NO.
A RESOLUTION RELATING TO THE GIVING OF NOTICE OF
INTENTION TO ISSUE CITY OF GRAPEVINE, TEXAS
COMBINATION TAX AND TAX INCREMENT REINVESTMENT
ZONE REVENUE CERTIFICATES OF OBLIGATION, SERIES
2000 AND PROVIDING AN EFFECTIVE DATE
WHEREAS, the City of Grapevine, Texas (the "City"), pursuant to
Section 271.041-.063, Texas Local Government Code, as amended, is authorized to issue
its certificates of obligation for the purpose of paying contractual obligations to be incurred
for the purposes set forth below; and
WHEREAS, the City Council of the City has found and determined that a notice of
intention to issue certificates of obligation should be published in accordance with the
requirements of applicable law;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS, THAT:
Section 1. The findings and determinations set forth in the preambles hereto are
hereby incorporated by reference for all purposes.
Section 2. The City Secretary of the City is hereby authorized and directed to
issue a notice of intention to issue certificates of obligation in substantially the following
form:
"NOTICE OF INTENTION TO ISSUE CITY OF
GRAPEVINE, TEXAS COMBINATION TAX AND
TAX INCREMENT REINVESTMENT ZONE
REVENUE CERTIFICATES OF OBLIGATION,
SERIES 2000
"NOTICE IS HEREBY GIVEN that on June 6, 2000, the City Council of the City of
Grapevine, Texas, at 7:30 p.m. at a regular meeting of the City Council to be held at the
City Hall, 200 Main Street, Grapevine, Texas, the regular meeting place of the City
Council, intends to pass an ordinance authorizing the issuance of not to exceed
$35,000,000 principal amount of Certificates of Obligation for the public purpose of paying
contractual obligations to be incurred for costs related to the construction of public works
within Reinvestment Zone Number Two, to wit: (i) construction and improvement of public
streets and thoroughfares, including related signage and signalization, landscaping,
lighting and utility relocation; (ii) construction of a bridge across Silverlake Inlet, including
related signage and signalization, landscaping and utility relocation; (iii) construction and
equipping of subterranean and above -ground parking facilities, including lighting, signage,
landscaping and irrigation; (iv) additions, improvements and extensions to the City's
waterworks and sewer system; (v) storm drainage improvements; (vi) acquisition of land
and interests in land, including easements and rights-of-way, necessary or convenient for
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the foregoing (collectively, the "Project"); (vii) payment of interest on the Certificates for a
period not to exceed the period of construction of such works and for one year thereafter;
and (viii) to pay for professional services of attorneys, financial advisors and other
professionals in connection with the Project and the issuance of the Certificates. The
Certificates shall bear interest at a rate not to exceed fifteen percent (15%) per annum,
and shall have a maximum maturity date of not later than twenty-five (25) years after their
date. Said Certificates shall be payable from (i) a pledge of tax increment revenues on
deposit in the Tax Increment Fund established for Reinvestment Zone Number Two, such
pledge being subordinate to such obligations, if any, that may be issued by the City that
are by their terms secured by a superior lien on the Tax Increment Fund, and any bonds
or other obligations heretofore or hereafter issued by the City or by a participating taxing
entity in Reinvestment Zone Number Two and secured by a pledge of ad valorem taxes
upon all taxable property within such entity for which the levy and collection of ad valorem
taxes has been insufficient for the payment thereof; and (ii) the levy of ad valorem taxes
upon all taxable property within the City.
"THIS NOTICE is given in accordance with law and as directed by the City Council
of the City of Grapevine, Texas.
"GIVEN THIS May 16, 2000.
/s/ Linda Huff
City Secretary
City of Grapevine, Texas"
Section 3. The foregoing notice shall be published once a week for two
consecutive weeks, the date of the first publication being not less than the fourteenth
(14th) day prior to the date set forth in the foregoing notice for passage of the ordinance
authorizing the Combination Tax and Revenue Certificates of Obligation. Such notice
shall be published in a newspaper of general circulation in the area of the City of
Grapevine, Texas.
Section 4. That this resolution shall take effect from and after the date of its
passage.
PASSED, APPROVED AND EFFECTIVE May 16, 2000.
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PRESENTED, FINALLY PASSED AND APPROVED, AND EFFECTIVE on the 16th
day of May, 2000, by a vote of ayes and nays at a regular meeting of the City
Council of the City of Grapevine, Texas.
ATTEST:
City Secretary, City of Grapevine, Texas
Mayor, City of Grapevine, Texas
APPROVED AS TO FORM:
By
City Attorney, City of Grapevine, Texas
MINUTES AND CERTIFICATION PERTAINING TO
PASSAGE OF A RESOLUTION
STATE OF TEXAS
COUNTY OF TARRANT
CITY OF GRAPEVINE
On the 16th day of May, 2000, the City Council of the City of Grapevine, Texas,
convened at 7:30 p.m., in a regular meeting at the regular meeting place thereof, the
meeting being open to the public and notice of said meeting, giving the date, place and
subject thereof, having been posted as prescribed by Chapter 551, Texas Government
Code, as amended; and the roll was called of the duly constituted officers and members
of the City Council, which officers and members are as follows:
William D. Tate, Mayor C. Shane Wilbanks )
Ted R. Ware, Mayor Pro Tem Sharron Spencer ) Members of
Clydene Johnson ) the Council
Darlene Freed )
Roy Stewart )
and all of said persons were present except , thus constituting a quorum.
Whereupon, among other business, a written resolution bearing the following caption was
introduced:
A Resolution Relating to the Giving of Notice of Intention to Issue City of
Grapevine, Texas Combination Tax and Tax Increment Reinvestment Zone
Revenue Certificates of Obligation, Series 2000
The Resolution, a full, true and correct copy of which is attached hereto, was read
and reviewed by the City Council.
Thereupon, it was duly moved and seconded that the Resolution be finally passed
and adopted.
The Presiding Officer put the motion to a vote of the members of the City Council,
and the Resolution was finally passed and adopted by the following vote:
AYES:
NAYS:
ABSTENTIONS:
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MINUTES APPROVED AND CERTIFIED TO BE TRUE AND CORRECT, and to
correctly reflect the duly constituted officers and members of the City Council of said City,
and the attached and following copy of said Resolution is hereby certified to be a true and
correct copy of an official copy thereof on file among the official records of the City, all on
this the day of May, 2000.
City Secretary
City of Grapevine, Texas
[SEAL]
NOTICE OF INTENTION TO ISSUE CITY OF
GRAPEVINE, TEXAS COMBINATION TAX AND
TAX INCREMENT REINVESTMENT ZONE
REVENUE CERTIFICATES OF OBLIGATION,
SERIES 2000
NOTICE IS HEREBY GIVEN that on June 6, 2000, the City Council of the City of
Grapevine, Texas, at 7:30 p.m. at a regular meeting of the City Council to be held at the
City Hall, 200 Main Street, Grapevine, Texas, the regular meeting place of the City
Council, intends to pass an ordinance authorizing the issuance of not to exceed
$35,000,000 principal amount of Certificates of Obligation for the public purpose of
paying contractual obligations to be incurred for costs related to the construction of
public works within Reinvestment Zone Number Two, to wit: (i) construction and
improvement of public streets and thoroughfares, including related signage and
signalization, landscaping, lighting and utility relocation; (ii) construction of a bridge
across Silverlake Inlet, including related signage and signalization, landscaping and utility
relocation; (iii) construction and equipping of a subterranean and above -ground parking
facilities, including lighting, signage, landscaping and irrigation; (iv) additions,
improvements and extensions to the City's waterworks and sewer system; (v) storm
drainage improvements; (vi) acquisition of land and interests in land, including easements
and rights-of-way, necessary or convenient for the foregoing (collectively, the "Project");
(vii) payment of interest on the Certificates for a period not to exceed the period of
construction of such works and for one year thereafter; and (viii) to pay for professional
services of attorneys, financial advisors and other professionals in connection with the
Project and the issuance of the Certificates. The Certificates shall bear interest at a rate
not to exceed fifteen percent (15%) per annum, and shall have a maximum maturity date
of not later than twenty-five (25) years after their date. Said Certificates shall be payable
from (i) a pledge of tax increment revenues on deposit in the Tax Increment Fund
established for Reinvestment Zone Number Two, such pledge being subordinate to such
obligations, if any, that may be issued by the City that are by their terms secured by a
superior lien on the Tax Increment Fund, and any bonds or other obligations heretofore
or hereafter issued by the City or by a participating taxing entity in Reinvestment Zone
Number Two and secured by a pledge of ad valorem taxes upon all taxable property within
such entity for which the levy and collection of ad valorem taxes has been insufficient for
the payment thereof; and (ii) the levy of ad valorem taxes upon all taxable property within
the City.
THIS NOTICE is given in accordance with law and as directed by the City Council
of the City of Grapevine, Texas.
GIVEN THIS May 16, 2000.
/s/ Linda Huff
City Secretary
City of Grapevine, Texas
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