College Station, TX 1101 Texas Ave College Station, TX 77840 Legislation Details (With Text) File #: 14-382 Version: 1 Name: TAMU Student Housing Resolution Type: Presentation Status: Consent Agenda File created: On agenda: Title: Sponsors: Indexes: Code sections: Attachments: 4/7/2014 In control: City Council Regular 4/24/2014 Final action: Presentation, possible action, and discussion regarding approval of a resolution authorizing the Mayor to approve the Plan of Finance, the Issuance of New Hope Cultural Education Facilities Finance Corporation Student Housing Revenue Bonds and the project to be acquired with the proceeds of such bonds. Certificate of Mayor (College Station)-TEFRA Approval - unsigned by Mayo...pdf College Station TEFRA Resolution.pdf Date Ver. Action By Action Result Presentation, possible action, and discussion regarding approval of a resolution authorizing the Mayor to approve the Plan of Finance, the Issuance of New Hope Cultural Education Facilities Finance Corporation Student Housing Revenue Bonds and the project to be acquired with the proceeds of such bonds. Relationship to Strategic Goals: 1. Financially Sustainable City Recommendation: Staff recommends approval of the resolution. Summary: The City has received a request from New Hope Cultural Education Facilities Finance Corporation to approve a resolution, a non-profit corporation affiliated with Texas A&M University for the issuance of bonds for the construction of student housing for the benefit of Texas A&M University students on land ground leased to it from the Texas A&M University System, on the Texas A&M University campus. The project was originally going to be a $460 million 4,088 bed project. The project has been downsized and is in 2 phases. The initial phase is expected to be $112 million 1,262 bed facility. The second phase is expected to be similar in size. In order for certain entities to issue tax-exempt bonds, such entities are required to obtain the approval of either the highest elected official of the local jurisdiction or the governing body of the local jurisdiction. None of the City of College Station, the Mayor nor the City Council will have any liability for the bonds or the project being financed. The approval requirement is part of the Tax Equity and Fiscal Responsibility Act (TEFRA). Basically, under TEFRA, in order to issue tax exempt bonds, the applicant is required to post notice of a public hearing in the local jurisdiction, wait 15 days, hold the public hearing, and then obtain the approval of the Mayor or the City Council. The notice has been posted, and the required public hearing was held on March 19, 2014. One member of the public attended the hearing, and was neither in favor of, or opposed to, the project and the bonds. College Station, TX Page 1 of 2 Printed on 4/17/2014 powered by Legistar
File #: 14-382, Version: 1 Budget & Financial Summary: Approval of this resolution does not create any financial liability to the City of College Station. Reviewed and Approved by Legal: Yes. Attachment: 1. Resolution 2. Certificate College Station, TX Page 2 of 2 Printed on 4/17/2014 powered by Legistar
CERTIFICATE OF THE MAYOR OF THE CITY OF COLLEGE STATION, TEXAS The undersigned Mayor of the City of College Station, Texas, (the City ) hereby certifies with respect to the issuance by the New Hope Cultural Education Facilities Finance Corporation (the Corporation ) of its Student Housing Revenue Bonds (the Bonds ), that: 1. This certificate is based upon the CERTIFICATE OF PUBLIC HEARING OFFICER REGARDING PUBLIC HEARING attached hereto as Exhibit A relating to the public hearing conducted on March 19, 2014, by the duly appointed hearing officer of the Corporation in accordance with the requirements of Section 147(f) of the Internal Revenue Code of 1986, as amended (the Code ); and 2. Solely for purposes of the approval requirements of the aforesaid Section 147(f) of the Code, and for no other purposes, in my capacity as Mayor, I hereby approve the plan of finance, the Bonds and the facilities to be financed with the proceeds of the Bonds; provided, however, THAT THIS APPROVAL SHALL NOT BE CONSTRUED AS (1) A REPRESENTATION OR WARRANTY BY THE CITY, THE MAYOR OF THE CITY, THE STATE OF TEXAS OR ANY OTHER AGENCY, INSTRUMENTALITY OR POLITICAL SUBDIVISION OF THE STATE OF TEXAS THAT THE BONDS WILL BE PAID OR THAT ANY OBLIGATIONS ASSUMED BY ANY OF THE PARTIES UNDER THE INSTRUMENTS DELIVERED IN CONNECTION WITH THE BONDS WILL IN FACT BE PERFORMED; (2) A PLEDGE OF FAITH AND CREDIT OF THE CITY OR THE STATE OF TEXAS OR ANY AGENCY, INSTRUMENTALITY OR POLITICAL SUBDIVISION OF THE STATE OF TEXAS OR THE CITY; OR (3) A REPRESENTATION OR WARRANTY BY THE CITY CONCERNING THE VALIDITY OF THE CORPORATE EXISTENCE OF THE CORPORATION OR THE VALIDITY OF THE BONDS. Date:, 2014 Mayor, City of College Station
EXHIBIT A
SCHEDULE I
SI-2
CITY OF COLLEGE STATION, TEXAS RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COLLEGE STATION, TEXAS, AUTHORIZING THE MAYOR TO APPROVE THE PLAN OF FINANCE, THE ISSUANCE OF NEW HOPE CULTURAL EDUCATION FACILITIES FINANCE CORPORATION STUDENT HOUSING REVENUE BONDS AND THE PROJECT TO BE ACQUIRED WITH THE PROCEEDS OF SUCH BONDS WHEREAS, the New Hope Cultural Education Facilities Finance Corporation (the Issuer ) was created pursuant to the Cultural Education Facilities Finance Corporation Act, Article 1528m, Vernon s Revised Civil Statutes, as amended (the Act ), and has the power, authority and rights to issue revenue bonds for the purpose of aiding any accredited institutions of higher education, secondary schools, and primary schools, and authorized charter schools in financing or refinancing educational facilities and housing facilities and facilities that are incidental, subordinate, or related thereto or appropriate in connection therewith; WHEREAS, CHF Collegiate Housing College Station I, L.L.C., a single member Alabama limited liability company (the Borrower ), has requested that the Issuer issue, and the Issuer proposes to approve the issuance of, its Student Housing Revenue Bonds (the Bonds ), pursuant to the Act and pursuant to a Trust Indenture between the Issuer and Regions Bank, as trustee (the Indenture ), and to loan the proceeds of the Bonds to the Borrower, pursuant to a Loan Agreement between the Issuer and the Borrower (the Loan Agreement ) for the purpose of providing funds to finance the cost of acquisition, development, financing, construction, furnishing and equipping of an approximately 4,088-bed student housing facility including the buildings and related facilities on the property, along with associated site development and various related amenities and improvements to be located on the campus of Texas A&M University, to fund interest on the Bonds during the period of construction and up to six months thereafter, to fund a debt service reserve fund for the Bonds, and to pay the costs of issuing the Bonds (collectively, the Project ); WHEREAS, Section 147(f) of the Internal Revenue Code of 1986, as amended (the Code ), requires that the plan of finance, the Bonds and the Project be approved by the applicable elected representative of the governmental unit in which the Project is located after a public hearing following reasonable public notice; and WHEREAS, the Mayor of the City of College Station, Texas (the City ) has been requested to approve, as the applicable elected representative of the City, the plan of finance, the issuance of the Bonds and the Project in accordance with the requirements of the Code, and will be furnished with an affidavit of publication of notice of such hearing which shall be published in a newspaper of general circulation available to residents within the boundaries of the City and minutes of the public hearing to be conducted in connection therewith once such hearing has been held; and WHEREAS, the City Council desires to hereby authorize the Mayor to approve the issuance of the Bonds and the Project; and
WHEREAS, the actions of the Issuer with respect to the plan of finance, the Project and the Bonds (including the issuance of the Bonds and the execution and delivery of the Indenture and Loan Agreement) and the action of the Mayor and the City Council with respect to the matters described herein will create no liability for the City and the City Council desires to authorize the Mayor to execute the required approval in connection with the issuance of the Bonds. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF COLLEGE STATION, TEXAS, THAT: SECTION 1 The Mayor of the City of College Station, Texas, is hereby authorized to approve the plan of finance, the issuance of the Bonds and the Project, for the limited purposes stated herein, and to execute and deliver such approval as requested. SECTION 2 The authorization to approve the plan of finance, the Bonds and the Project is made for the sole purpose of satisfying the requirements of Section 147(f) of the Code, and for no other purpose and shall not be construed as a representation, warranty or other undertaking of any kind by the Mayor, the City or the City Council in respect of the plan of finance, the Bonds or the Project. The Bonds shall not constitute obligations of the City or a pledge of its faith and credit, and the City shall not be obligated to pay the Bonds or the interest thereon or otherwise incur any liability in respect thereof. SECTION 3 The Mayor and City Secretary of the City and other officers of the City are hereby authorized to execute and deliver such instruments, certificates or documents necessary or advisable to carry out the intent and purpose of this resolution. SECTION 4 This Resolution shall take effect immediately upon its passage and shall continue in force and effect from the date hereof. PASSED, APPROVED, AND ADOPTED THIS DAY OF, 2014. ***** ATTEST: *****
APPROVED AS TO FORM AND LEGALITY: *****