HomeMy WebLinkAbout1984-1515 - Ordinance - 05/10/1984ORDINANCE NO. 1515
AUTHORIZING THE ISSUANCE OF CITY OF COLLEGE STATION, INTEREST
BEARING CERTIFICATE OF OBLIGATION, IN THE TOTAL AMOUNT OF
$400,000.00, TO PAY A PORTION OF THE PURCHASE PRICE OF LAND A~D A
BUILDING, TO BE UTILIZED AS A TOURIST AND CONVENTION BUREAU,
FUNDED FROM THE CITY'S HOTEL/MOTEL ROOM OCCUPANCY TAX FUND,
CONTINUE LEVYING CERTIAN TAXES FOR REPAYMENT, AND ESTABLISHING AN
INTEREST AND SINKING FUND, AUTHORIZING AN AGREEMENT WITH THE
PAYING AGENT/REGISTRAR, AND OTHER PROVISIONS RELATING TO SAID
SUBJECT
WHEREAS, the City Council of the City of College Station
deems it necessary to issue Certificates of Obligation to be
delivered to CHIMNEY HILL PLAZA JOINT VENTURE, a Texas Joint
Venture Partnership, consisting of Anthony J. Caporina, Jose
Arguello, J. W. Wood, and Rodrigo Albir, or its registered
assigns, to pay the City's contractual obligation for a .75 acre
tract, more specifically described in the attached Exhibit "A";
and
WHEREAS, the Certificate of Obligation hereinafter
authorized and designated is to be issued and delivered pursuant
to Article 2368a.1, V.A.T.C.S.; and
WHEREAS, the notice(s) required by said statute has been
duly published in the Bryan/College Station Eagle, which is a
newspaper of general circulation in said City, in its issues of
April 18, 1984 and April 25, 1984; and
WHEREAS, the City received no petition from the qualified
electors of the City protesting the issuance of such Certificate
of Obligation; and
WHEREAS, it is considered to be to the best interest of the
City, that an interest bearing Certificate of Obligation be
issued, in the amount of FOUR HUNDRED THOUSAND DOLLARS
($400,000.00); to pay a portion of the purchase price of land and
a building to be used for a tourist and convention bureau, to be
funded from the City's Hotel/Motel Room Occupancy Tax Fund;
THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
COLLEGE STATION, TEXAS:
1. That the City's Certificate of Obligation, to be called
the "CITY OF COLLEGE STATION, TEXAS, CERTIFICATE OF OBLIGATION
FOR PAYMENT OF A PORTION OF THE PURCHASE PRICE ON A .75 ACRE
TRACT OF LAND, SERIES 00007", shall be issued under and by virtue
of the Constitution and laws of the State of Texas, for the
purpose of paying a portion of the City's contractual obligations
for the purchase price of said property, which is to be used for
the purposes indicated.
2. That said Certificate of Obligation shall be dated June
ORDINANCE NO. 1515 Page 2
11, 1984, shall be n%unbered 00007, and shall be due and payable
as provided for herein.
3. That Certificate of Obligation No. 00007 shall be issued
and delivered in fully registered form without coupons, shall be
dated as of June 11, 1984, and shall be in the face amount shown.
Any subsequent Certificate of Obligation registered and delivered
in exchange for the original Certificate shall be numbered 0007-1
and upward in the order that such certificates are authenticated
and delivered by the Paying Agent/Registrar.
4. That Certificate of Obligation No. 00007 shall bear
interest at a rate to be calculated daily by reference to the
published prime lending rate of First City National Bank of
Houston; the applicable prime interest rate for weekends,
holidays, and other days upon which there is no published prime
lending rate being the rate determined on the last business day
of the preceeding week when the rate was published~ and the
applicable interest rate payable upon outstanding principal under
this Certificate shall be fifty-seven and one-half percent
(57.5%) of the said published prime lending rate, and shall
accrue as simple interest only.
5. That said Certificate of Obligation shall be issued,
shall be payable, and may be redeemed prior to its scheduled
maturity, shall have the characteristics and shall be signed and
executed (and said Certificate shall be sealed), all as provided,
and in the manner indicated, in the FORM OF CERTIFICATE set forth
in this Ordinance.
6. Payment of interest shall be made to the registered
owner of the Certificate as shown on the certificate register
provided for herein, as of the last business day of the calendar
month next preceding the interest payment date, by check or draft
mailed by the Paying Agent/Registrar to the address of such
registered owner as it appears on the certificate register on the
date aforesaid.
7. That the form of said Certificate of Obligation Number
00007, shall be, respectively substantially as follows:
FORM OF CERTIFICATE
No. 00007 $400,000.00
UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTY OF BRAZOS
CITY OF COLLEGE STATION, TEXAS
CERTIFICATE OF OBLIGATION
SERIES 1984
THE CITY OF COLLEGE STATION, IN THE COUNTY OF BRAZOS, STATE
OF TEXAS, promises to pay to CHIMNEY HILL PLAZA JOINT VENTURE, a
ORDINANCE NO. 1514 Page 3
Texas Joint Venture Partnership, consisting of Anthony J.
Caporina, Jose Arguello, J.W. Wood, and Rodrigo Albir, or
registered assigns, the principal amount of
its
FOUR HUNDRED THOUSAND DOLLARS
and to pay principal and interest thereon, from the date hereof,
at the rate of interest provided below, said principal and
interest payments being due and payable on the anniversary date
hereof in each year, in the amount of SIXTY-FIVE THOUSAND AND
NO/100 DOLLARS ($65,000.00), consisting of both principal and
interest, the interest portion thereof being calculated daily by
reference to the published prime lending rate of First City
National Bank of Houston; the applicable prime interest rate for
weekends, holidays, and other days upon which there is no
published prime lending rate being the rate upon the most recent
date when such rate was published. The applicable interest rate
payable upon outstanding principal under this Certificate shall
be fifty-seven and one-half percent (57.5%) of the said published
prime lending rate, and shall accrue as simple interest only.
The balance of said annual payment shall be credited to principal
in each year. The final payment of this Certificate shall be due
and payable on June 11, 1994, which payment shall be in an amount
equal to the then outstanding principal balance plus interest
thereon for the preceding year calculated as provided for above.
THIS CERTIFICATE OF OBLIGATION shall be payable to the
registered owner annually in accordance with the above provisions
pertaining to principal and interest, in lawful money of the
United States of America. Such payment shall be made to the
registered owner as shown on the certificate register provided
for herein, as of the last business day of the calendar month
next preceding the interest payment date, by check or draft
mailed by the Paying Agent/Registrar to the address of each such
owner as it appears on such bond register on the date aforesaid.
The principal of such bond shall be payable as provided for
above, without exchange or collection charges, in any coin or
currency of the United States of America, which, on the date of
payment thereof, is legal tender for the payment of debts due the
United States of America. Said principal payment shall be made
as provided for above, it being further provided that final
payment of principal shall be made upon presentation and
surrender of the Certificate by the registered owner, on June 11,
1984, or at an earlier redemption date, if any, at the principal
office of the Paying Agent/Registrar.
THIS CERTIFICATE OF OBLIGATION is dated as of June 11, 1984,
issued in the principal amount of $400,000.00 for the purpose of
paying for a .75 acre tract of land more specifically described
in the attached Exhibit "A".
As provided in the ordinance and subject to certain
limitations therein set forth, this Certificate is transferable
on the certificate register of the City, upon surrender of this
ORDINANCE NO. 1515 Page 4
Certificate for transfer at the principal office of the Paying
Agent/Registrar, duly endorsed, or accompanied by a written
instrument of transfer in form satisfactory to the Paying
Agent/Registrar duly executed, by the registered owner hereof or
his attorney duly authorized in writing, and thereupon one or
more new fully registered Certificates of the same maturity, of
authorized denominations, bearing the same rate of interest and
for the same aggregate principal amount will be issued to the
designated transferee or transferees.
Neither the City nor the Paying Agent/Registrar shall be
required (1) to transfer or exchange this Certificate during the
period of fifteen (15) calendar days next preceding any interest
payment date or (2) to transfer or exchange this Certificate
during the period commencing with the City's notice to the Paying
Agent/Registrar that the City intends to redeem this Certificate
or Certificates of the same maturity and ending on the date fixed
for the redemption of such Certificate or Certificates.
The City, the Paying Agent/Registrar and any agent of either
of them may treat the person, firm or corporation in whose name
this Certificate is registered as the owner hereof for the
purpose of receiving payment as herein provided and for all other
purposes, whether or not this Certificate be overdue, and neither
the City, the Paying Agent/Registrar nor any such agent shall be
affected by notice or knowledge to the contrary.
On June 11, 1985, or on any interest payment date
thereafter, this Certificate of Obligation may be redeemed prior
to its scheduled maturity, at the option of said City, in whole
or in part, for the principal amount thereof and accrued interest
thereon to the date fixed for redemption. At least thirty days
prior to the date fixed for any such redemption said City shall
cause a written notice of such redemption to be mailed by
certified mail, return receipt requested, to the registered owner
of said Certificate as shown on the register of the Paying
Agent/Registrar. Upon mailing said notice at least thirty (30)
days prior to the redemption date, all as provided above, the
Certificate of Obligation which is to be so redeemed thereby
automatically shall be redeemed prior to its scheduled maturity,
and it shall not be regarded as being outstanding except for the
right of the owner or holder to receive the redemption price from
the Finance Director out of the funds provided for such payment,
and no interest shall accrue thereon after the effective date of
redemption.
The Hotel/Motel Room Occupancy Tax Fund shall be the primary
Fund used for paying the interest and principal payable by virtue
of this Certificate of Obligation, and that any portion of
interest or principal not available and payable from said Fund
shall be paid from the General Debt Service Fund of the City. In
each year while this Certificate is outstanding and unpaid, the
City Council shall annually levy, assess, and collect, in due
time, form, and manner, a room occupancy tax sufficient to raise
ORDINANCE NO. 1515 Page 5
and produce the money required to pay the interest and principal
on said Certificate of Obligation as such principal and interest
matures. Such Room Occupancy Tax is hereby levied and assessed.
Payment of the interest and principal on said Certificate of
Obligation shall be made from the Hotel/Motel Room Occupancy Tax
Fund, to the extent that the levy and assessment of said tax is
sufficient to produce the necessary revenues for such purpose.
The City hereby pledges the revenues of said fund preferentially
for the repayment of this Certificate of Obligation, to the
extent that such a pledge is permitted by law. Additionally,
during each year while any Certificate of Obligation is
outstanding and unpaid, excess revenues from electric, water and
sewer systems operations are hereby pledged to the payment of
principal and interest on said Certificate of Obligation, to the
extent that said excess revenues, provided that the pledge of
these excess revenues from electric, water and sewer systems
operations by this instrument is subject to future revenue bonds
and prior Certificates of Obligation made by the City. Said
excess revenues from electric, water and sewer systems operations
sufficient to provide for the payment of the principal and
interest of such Certificate of Obligation, as such interest
comes due and such principal matures, and in excess of available
Room Occupancy Tax Funds, are hereby pledged irrevocably for such
payment, within the limit prescribed by law.
IN WITNESS WHEREOF, this Certificate (and the interest
coupons appertaining hereto) has been signed with the signature
of the Mayor of said City and countersigned with the signature of
the City Secretary of said City, and the official seal of said
City has been duly impressed on this Certificate.
CITY SECRETARY
MAYOR
8. The City shall cause to be kept at the principal office
of the Paying Agent/Registrar a register (the "Certificate
Register") in which, subject to such reasonable regulations as
the City and the Paying Agent/Registrar may prescribe,
registration of the Certificates and transfers of the
Certificates shall be made as provided herein. Upon surrender
for transfer of any Certificate at the principal office of the
Paying Agent/Registrar, the City shall execute and the Paying
Agent/Registrar shall authenticate and deliver, in the name of
the designated transferee or transferees, one or more new
Certificates of the same maturity, of any authorized
denominations, bearing the same rate of interest, and of like
aggregate principal amount, upon surrender of the Certificate to
be exchanged at the principal office of the Paying
Agent/Registrar. Whenever any Certificate is so surrendered for
exchange, the City shall execute, and the Paying Agent/Registrar
shall authenticate and deliver, the Certificates which the
registered owner of the Certificate making the exchange is
entitled to receive. Ail Certificates issued upon any transfer
or exchange of any Certificate shall be the valid obligations of
t 193
ORDINANCE NO. 1515 Page 6
the City, evidencing the same debt, and entitled to the same
benefits under this Order, as the Bond surrendered upon such
transfer or exchange. Every Certificate presented or surrendered
for transfer or exchange shall be duly endorsed, or be
accompanied by a written instrument of transfer in form
satisfactory to the Paying Agent/Registrar duly executed, by the
registered owner thereof or his attorney duly authorized in
writing. No service change shall be made to the registered owner
for any registration, transfer, or exchange of Certificates, but
the City or the Paying Agent/Registrar may require payment of a
sum sufficient to cover any tax or other governmental charge that
may be imposed in connection with any transfer or exchange of
Certificates. Neither the City nor the Paying Agent/Registrar
shall be required to transfer or exchange any Certificate during
the period of fifteen (15) days next preceding any interest
payment date or to transfer or exchange any Certificate during
the period commencing with the City's notice to the Paying
Agent/Registrar that the City intends to redeem such Certificate
or Certificates of the same maturity and ending on the date fixed
for redemption of such Certificate or Certificates.
9. The City, the Paying Agent/Registrar and any other
person may treat the individual, firm or corporation in whose
name any Certificate is registered on the Certificate Register as
the absolute owner of such Certificate for the purpose of making
and receiving payment of the principal thereof and interest
thereon and for all other purposes whether or not such
Certificate is overdue, and neither the City nor the Paying
Agent/Registrar shall be bound by any notice or knowledge to the
contrary. All payments made to any such person, firm or
corporation deemed to be the owner of any Certificate in
accordance with this section shall be valid and effectual and
shall discharge the liability of the City and the Paying
Agent/Registrar to the extent of the sum paid.
10. The City covenants at all times to maintain a Paying
Agent/Registrar for the Certificates meeting the qualifications
herein set forth, and subject to the remaining provisions of this
section hereby appoints University National Bank of College
Station, initially to serve in such capacity. The form, terms,
and provisions of the agreement between University National Bank
of College Station and the City of College Station shall be the
standard terms and provisions of such agreements concerned with
First City National Bank of Houston as Paying Agent/Registrar for
the City's Certificates, and the mayor is hereby authorized to
execute such agreement with the registrar upon completion
thereof. The City expressly reserves the right to appoint one or
more successor Paying Agent/Registrars by (1) filing with the
Paying Agent/Registrar then serving a certified copy of a
resolution or order giving notice of the termination of the
City's agreement with such Paying Agent/Registrar and appointing
a successor and (2) giving notice to all of the registered owners
of the Certificates and to the Municipal Advisory Council of
Texas or its successor. Every Paying Agent/Registrar appointed
04194
ORDINANCE NO. 1515 Page 7
hereunder shall at all times be a corporation organized and doing
business under the laws of the United States of America or of any
State, authorized under such laws to exercise trust powers, and
subject to supervision or examination by Federal or State
authority.
11. That the Hotel/Motel Room Occupancy Tax Fund shall be
the primary Fund used for paying the interest and principal
payable by virtue of this Certificate of Obligation, and that any
portion of interest or principal not available and payable from
said Fund shall be paid from the General Debt Service Fund of the
City. In each year while this Certificate is outstanding and
unpaid, the City Council shall annually levy, assess, and
collect, in due time, form, and manner, a room occupancy tax
sufficient to raise and produce the money required to pay the
interest and principal on said Certificate of Obligation as such
principal and interest matures. Such Room Occupancy Tax is
hereby levied and assessed. Payment of the interest and
principal on said Certificate of Obligation shall be made from
the Hotel/Motel Room Occupancy Tax Fund, to the extent that the
levy and assessment of said tax is sufficient to produce the
necessary revenues for such purpose. The City hereby pledges the
revenues of said fund preferentially for the repayment of this
Certificate of Obligation, to the extent that such a pledge is
permitted by law. Additionally, during each year while any
Certificate of Obligation is outstanding and unpaid, excess
revenues from electric, water and sewer systems operations are
hereby pledged to the payment of principal and interest on said
Certificate of Obligation, to the extent that said excess
revenues, provided that the pledge of these excess revenues from
electric, water and sewer systems operations by this instrument
is subject to future revenue bonds and prior Certificates of
Obligation made by the City. Said excess revenues from electric,
water and sewer systems operations sufficient to provide for the
payment of the principal and interest of such Certificate of
Obligation, as such interest comes due and such principal
matures, and in excess of available Room Occupancy Tax Funds, are
hereby pledged irrevocably for such payment, within the limit
prescribed by law.
12. That the Mayor and the Finance Director are hereby
ordered to do any and all things necessary to accomplish the
transfer of monies to the Fund of this issue in ample time to pay
such items of principal and interest.
13. That the City Attorney of said City is hereby authorized
to have control of said Certificate of Obligation pending its
delivery.
14. That the City covenants to and with the Purchasers of
the Certificate of Obligation that it will make no use of the
proceeds of the Certificate of Obligation which, if such use had
been reasonably expected on the date of delivery of the
Certificate of Obligation to and payment for the Certificate of
04 .9S
ORDINANCE NO. 1515 Page 8
Obligation by the purchasers, would have caused the meaning of
Section 103(c) of the Internal Revenue Code of 1954, as amended,
or any regulations or rulings pertaining thereto; and by this
covenant the City is obligated to comply with the requirements of
the aforesaid Section 103(c) and all applicable and pertinent
Department of Treasury regulations relating to arbitrage bonds.
The City further covenants that the proceeds of the Certificate
of Obligation will not otherwise be used directly or indirectly
so as to cause all or any part of the Certificate of Obligation
to be or become an arbitrage bond within the meaning of the
aforesaid Section 103(c), or any regulations or rulings
pertaining thereto.
15. That the Certificates of Obligation are to be payable to
and delivered to Chimney Hill Plaza Joint Venture, or its
registered assigns.
16. Issuance of the Certificate of Obligation is contingent
upon execution of two agreements. First, the execution by the
City of College Station and Chamber of Commerce of an Agreement
for the Lease, Occupancy, and Use of Public Property and the
Provision of Advertising and Tourist Promotion Services for the
City of College Station; and second, the execution of a Purchase
Contract between the City of College Station and Chimney Hill
Plaza Joint Venture for the purchase of the .75 acre tract of
land as described in Exhibit "A".
17. That this Ordinance was read once and became effective
upon passage.
PASSED, APPROVED, and ADOPTED this the 10th
May , 1984.
day of
ATTEST:
DIAN JON~/ClTY SECRETARY