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HomeMy WebLinkAboutRES 2014-008RESOLUTION NO. 4B 2013 -04 RESOLUTION NO. 2014 -08 A CONCURRENT RESOLUTION PROVIDING FOR THE COLLECTION, HANDLING AND TRANSFER OF SALES TAX REVENUES DUE AND OWING TO GRAPEVINE 4B ECONOMIC DEVELOPMENT CORPORATION Adopted Concurrently By the BOARD OF DIRECTORS OF THE GRAPEVINE 4B ECONOMIC DEVELOPMENT CORPORATION BOARD (the "Corporation ") and By the CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS (the "City ") as its WHEREAS, the Grapevine 4B Economic Development Corporation (the "Corporation ") is a non -profit industrial development corporation, governed by Chapters 501, 502 and 505 of the Texas Local Government Code, as amended (collectively, the "Act "); and WHEREAS, pursuant to the authority granted in the Act, the City has levied a one -half of one percent sales and use tax for the benefit of the Corporation, to be used exclusively for its lawful purposes; and WHEREAS, under current policies and procedures established by the Comptroller of Public Accounts of the State of Texas (the "Comptroller "), sales tax belonging to the City and the Sales Tax belonging to the Corporation are collected, commingled and remitted directly to the City in undivided interests and without allocation or notations of ownership as between the City and the Corporation; and WHEREAS, the Corporation proposes to issue its sales tax revenue bonds (the "Bonds ") for its lawful purposes in accordance with the Act, the same to be authorized and issued under and secured respectively by, the terms and provisions of a Bond Resolution (the "Bond Resolution "); and WHEREAS, in order to provide security for the Bonds, it is appropriate and necessary that the Corporation and the City adopt formal procedures by which the revenues received from MAN808/48001 Dallas DM -# 4430440 -v1- Grapevine_ Concurrent _SaleS_TaX_Resolution.doe the Sales Tax (as defined in said Bond Resolution) are collected, deposited, held, identified, allocated and transferred, to or for the benefit of the Corporation; NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF GRAPEVINE 4B ECONOMIC DEVELOPMENT CORPORATION, AND BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE, acting concurrently, as follows, to -wit: Section 1. Short Title Definitions of Terms. (a) This Resolution may hereafter be cited in the Bond Resolution and in other documents and without further description as the "Sales Tax Collection Resolution." (b) All capitalized terms used herein, including the preambles hereof and not otherwise, defined herein, shall have the meanings assigned to them in the Bond Resolution. Section 2. Sales Tax Revenue Fund. (a) The Corporation, with the concurrence and approval of the City, as evidenced by its concurrent adoption hereof, creates and orders that there be established for the Corporations benefit a special fund to be named the "Sales Tax Revenue Fund." (b) The Sales Tax Revenue Fund shall be held and maintained by the City, on behalf of the Corporation, at its official depository bank (the "Depository Bank ") in accordance with the terms and provisions of the Bond Resolution. The monies from time to time on deposit in the Sales Tax Revenue Fund, shall be transferred, used and applied as directed by the Bond Resolution. Section 3. Collection and Transfer of Undivided Sales Tax Receipts. (a) The City hereby requires and orders that all remittances of commingled sales and use tax collections belonging to the City and the Corporation in undivided interests (the "Undivided Sales Tax Receipts ") shall be deposited as received, or transmitted by the Comptroller directly, to the depository account of the City held and maintained by the City at the Depository Bank and the City shall request the Comptroller to transmit such funds by the earliest available and feasible means under the policies of the Comptroller in effect from time to time. (b) Immediately upon receipt of Undivided Sales Tax Receipts from the Comptroller, an Authorized Officer and the Director of Administrative Services or his designee, of the City shall determine the share of the Undivided Sales Tax Receipts belonging to the Corporation, in accordance with the Act. (c) Within twenty -four hours, or during the next succeeding business day, whichever is later, after receipt, the City, on behalf of the Corporation, shall transfer 1 /4th of the Corporation's share of the Undivided Sales Tax Receipts into the Sales Tax Revenue Fund. The monies from time to time on deposit in the Sales Tax Revenue fund, shall be transferred, used and applied as directed by the Bond Resolution. (d) The Depository Bank shall not have any responsibility to verify or determine the accuracy of the amounts certified to it from time to time according to this Section. MAN8 0 8/4 800 1 Dallas DM -# 4430440 -vl- Grapevine_ Concurrent _SaleS_TaX_Resolution.doc -2- Section 4. Acceptance of Depository Responsibilities. (a) An Authorized Officer and the Director of Administrative Services of the City are authorized and directed to develop procedures to which the requirements of this Resolution are met, including the incorporation of this Resolution by the City into and as a part of the bidding procedures by which the City designates and selects its Depository Bank or Banks from time to time. (b) Each Depository Bank, by its acceptance of its designation as depository of the City, agrees to abide by the terms and provisions of this Resolution. (c) All reasonable costs, if any, of the Depository Bank associated with the administration of the terms and provisions of this Resolution shall be paid for by the Corporation as an administrative expense under the Bond Resolution and shall be paid by the Corporation upon receipt of statements therefore from the Depository Bank. Such costs, if any, shall never constitute a cost, liability, or obligation of the City. Section 5. Effect of Resolution. The City and the Corporation acknowledge that the Bonds entered into the Bond Resolution will be purchased in reliance upon timely and diligent compliance with the terms and requirements of this Resolution. Section 6. Effective Date. This Resolution shall take effect upon and as of the last date of adoption by either the City or the Corporation. MAN8 0 8 /4 8 00 1 Dallas DM -# 4430440- vl- Gi-apevine_ Concurrent _Sales_TaX_Resolution.doc -3- ADOPTED this 17th day of December, 2013. GRAPEVINE 4 ECONOMIC DEVELOPMENT CORPO I N 1 C Vice Pres dent [SEAL] ADOPTED this 21 st day of January, 2014. CITY OF G Jo i C. Brown City Secretary sm d� By: . John F. Boyle, J .` City Attorney Signature Page to Concurrent Resolution