HomeMy WebLinkAbout05-19-94-1 - Resolution - 05/19/1994q eso£utiort
-19-94-1
A RESOLUTION AUTHORIZING THE CITY MANAGER AND DIRECTOR OF
FINANCE TO SIGN A LETTER OF GUARANTY IN AN AMOUNT NOT TO
EXCEED $500,000 FOR THE BENEFIT OF FIRST AMERICAN BANK AS PART
OF AN ECONOMIC DEVELOPMENT INCENTIVE FOR NORTH AMERICAN
TRANSIT, INC. ("NATI").
WHEREAS, NATI is a bus manufacturer that desires to locate its
production facility in College Station, Texas; and
WHEREAS, the NATI bus will promote cleaner air in the community with
its clean-burning, compressed natural gas engine, and will provide improved
accommodation to citizens with mobility impairments with its special Iow-floor
design; and
WHEREAS, NATI has contracted to sell its first 100 units of the bus to the
local transit operator, Brazos Transit System, and
WHEREAS, the CITY OF COLLEGE STATION recognizes that the
presence of a new manufacturer will benefit the community economically by
providing employment opportunities, additional tax revenues, an improved
manufacturing infrastructure, the multiplier effect of the additional dollars to be
spent in the Bryan/College Station community, and that assisting such economic
development is a valid and worthy public purpose; and
WHEREAS, the CITY OF COLLEGE STATION also recognizes that
improved environmental air quality and public transportation facilities are also a
valid and worthy public purpose of municipal government; and
WHEREAS, First American Bank has agreed to fund an interim loan of
$500,000 to NATI for the design and construction of a bus prototype provided
that a third-party agrees to guarantee this interim loan; and
WHEREAS, the CITY OF COLLEGE STATION recognizes that private
sources of capital are unable to support this particular form of economic
development without some degree of public assistance; and
WHEREAS, the CITY OF COLLEGE STATION recognizes that this
Agreement, the interim loan agreement, the guarantee thereof, and NATI's
contract with Brazos Transit System provide adequate safeguards and controls
to ensure the fulfillment of the foregoing public purposes; and
Resolution 5-19-94-1
Page 2
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
College Station that the City Manager and Director of Finance are authorized to
take any and all necessary actions to provide a guaranty for the benefit of First
American Bank as part of economic development incentive for North American
Transit, Inc. Further, the limit on the guaranty by College Station will be an
amount not to exceed $500,000, for which North American Transit, Inc. will pay
two percent (2%) of the guaranty amount.
PASSED and APPROVED this 19 day of May, 1994.
APPROVED:
ATTEST:
Connie Hooks
City Secretary