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HomeMy WebLinkAboutItem 12 - 4B Sales Tax Revenue BondsMEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: BRUNO RUMBELOW, CITY MANAGER MEETING DATE: JANUARY 21, 2014 SUBJECT: RESOLUTION AUTHORIZING THE ISSUANCE AND SALE OF GRAPEVINE 4B ECONOMIC DEVELOPMENT CORPORATION SALES TAX REVENUE BONDS, TAXABLE SERIES 2014 RECOMMENDATION: City Council to consider adopting a resolution issuing revenue bonds not to exceed $19.5 million in aggregate as recommended by the 4B Economic Development Corporation Board of Directors. BACKGROUND INFORMATION At the December 17, 2013 Joint City Council and 4B Economic Development Board meeting, a public hearing was held and a subsequent resolution was approved authorizing the expenditure of Corporation Funds for the purchase of real estate. The resolution authorized the expenditure of up to $29.5 million in 4B Economic Development Corporation funds for the purchase of 185 acres of real estate, including the use of up to $10 million of 4B fund balance; contingent upon the reimbursement of 4B funds in the event of the sale of all or a part of the real estate being acquired; and authorizing the publication of the notice relative to the issuance of debt for the remaining $19.5 million consistent with and pursuant to Chapter 505 of the Local Government Code. Staff recommends approval. 1/16/2014 (12:52:33 PM) RESOLUTION No. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS, APPROVING A RESOLUTION ADOPTED BY THE BOARD OF DIRECTORS OF THE GRAPEVINE 413 ECONOMIC DEVELOPMENT CORPORATION AUTHORIZING THE ISSUANCE OF GRAPEVINE 413 ECONOMIC DEVELOPMENT CORPORATION SALES TAX REVENUE BONDS, TAXABLE SERIES 2014; APPROVING THE ISSUANCE OF THE BONDS AND THE PLAN OF FINANCING AUTHORIZED THEREBY AND THE FINANCING DOCUMENTS WHEREAS, the City of Grapevine, Texas (the "City "), has approved and authorized the creation of the Grapevine 4B Economic Development Corporation (the "Corporation ") as a Texas nonprofit corporation, pursuant to Chapters 501, 502 and 505, Texas Government Code, as amended (the "Act "), to act on behalf of the City in its pursuit of economic development to promote and develop projects so as to eliminate unemployment and underemployment and to promote and encourage employment and the public welfare; and WHEREAS, pursuant to the authority granted in the Act, the City has levied a local sales and use tax (the "Sales Tax ") for the benefit of the Corporation, to be used exclusively for the purposes set forth in the Act; and WHEREAS, the Corporation is authorized by the Act to issue its revenue bonds, to be secured by and payable from the Sales Tax; and WHEREAS, the City and the Corporation have previously adopted, on December 17, 2013 and January _, 2014, a Concurrent Resolution establishing the Sales Tax Proceeds Fund into which the receipts of the Sales Tax are deposited as collected and providing that moneys on deposit in such Fund shall be applied in accordance with a bond resolution authorizing the issuance of the Corporation's bonds; and WHEREAS, the Corporation has determined to issue its Grapevine 413 Economic Development Corporation Sales Tax Revenue Bonds, Taxable Series 2014 (the "Bonds ") for the purpose of providing funds to promote new or expanded business enterprises, including but not limited to entertainment, convention, tourist and exhibition facilities, amphitheaters, concert halls, parks, open space, restaurants, parking facilities, and related roads, streets and water and sewer facilities and improvements, which are authorized projects pursuant to the Act (the "Project "); and WHEREAS, the Board of Directors of the Corporation has approved a Resolution authorizing the issuance of the Bonds (the "Resolution "), dated December 17, 2013; and WHEREAS, the Act requires that the governing body of the City approve, by written resolution, any agreement to issue bonds approved by the Corporation; and WHEREAS, this City Council has reviewed the Resolution and, by adoption of this resolution, intends to approve the Resolution and the terms thereof, the issuance of the Bonds, #44351 19.1 the plan of financing established and approved by the Resolution and the financing documents related thereto; and to make the findings required by the Act to approve the Project; and WHEREAS, it is officially found, determined, and declared that the meeting at which this Resolution has been adopted was open to the public and public notice of the time, place and subject matter of the public business to be considered and acted upon at said meeting, including this Resolution, was given, all as required by the applicable provisions of Chapter 551, Texas Government Code, as amended; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS: Section 1. Capitalized terms used herein and not otherwise defined shall have the meaning assigned thereto in the Resolution. Section 2. The City, acting by and through this City Council, hereby approves: (a) the Resolution and the plan of financing established and approved by the Resolution; and (b) the issuance of the Bonds in the amount and for the purposes referred to in the preambles hereof and as described in the Resolution and the Bonds; and (c) the Paying Agent /Registrar Agreement a copy of which is on file among the records of this meeting; and Section 3. The City agrees to provide any continuing disclosure information required of the City by Article XIV of the Resolution. Section 4. This Resolution shall take effect immediately from and after its adoption. _2_ #4435119,1 PASSED AND APPROVED by the City Council of the City of Grapevine, Texas this day of January, 2014. ATTEST: City Secretary, City of Grapevine, Texas Mayor Pro Tern, City of Grapevine, Texas APPROVED AS TO FORM: City Attorney, City of Grapevine, Texas Signature Page for Resolution of the City Council