HomeMy WebLinkAboutItem 10 - Palace Theatre Financing NoteITEM# L
MEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: ROGER NELSON, CITY MANAGER
MEETING DATE: MARCH 7, 2000
SUBJECT: PALACE THEATRE FINANCING NOTE
RECOMMENDATION:
City Council to consider a motion authorizing the City to Manager to execute a financing
agreement with Texas Bank in a principal amount of $3,800,000 for the purposes of
refurbishment and construction of the Palace Theatre.
FUNDING SOURCE:
Commercial loan proceeds.
BACKGROUND:
The City and the Grapevine Heritage Foundation have been moving forward with plans to
refurbish, reconstruct and remodel the Palace Theatre. Council has previously approved
the design and concept plan of the theatre, pursuant to recommendations from the
Grapevine Heritage Foundation. At the February 15, 2000 Council Meeting, the City
Council approved bids for 1St phase of construction of Palace project in the amount of
$1,930,098.
The purpose of this agenda item is for the Council to approve a loan which will fund
$3,800,000 of the project. Coupled with donations received and recovery from future
pledges, funds will be sufficient to pay the cost of the project and therefore pay off the loan.
As Council has previously authorized, fund raising efforts are proceeding for the project.
The plans are for the Heritage Foundation to raise all the funds required for construction
of the project. In order to provide the financial backing necessary to get the bank
consortium to commit to the project, the financing note is with the City.
March 1, 2000 (10:14AM)
The loan is being administered by Texas Bank but financing will actually be in equal
amounts for the six banks involved in a consortium named below. Each bank will have a
pro rata share of the 3,800,000 loan.
The banks in the consortium are: Texas Bank, Frost Bank, First State Bank of Texas,
Texas National Bank, Worth National Bank, Independent National Bank.
Staff recommends approval.
WAG/cjc
H:HeritageLoan
March 1, 2000 (10:14AM)