12-08-22-9.10 - Resolution - 12/08/2022
RESOLUTION NO.12-08-22-9.10
A RESOLUTION OF THE CITY OF COLLEGE STATION,TEXAS, SUPPLEMENTING
RESOLUTION 04-28-22-8.5,AUTHORIZING A PROMISSORY NOTE IN THE
PRINCIPAL AMOUNT OF $2,808,000 PURSUANT TO A CONTRACT FOR LOAN
GUARANTEE ASSISTANCE UNDER SECTION 108 OF THE HOUSING COMMUNITY
DEVELOPMENT ACT OF 1974,AS AMENDED
WHEREAS,the City of College Station(“City”) has an established Community Development
Program under Chapter 373 of the Texas Local Government Code;
WHEREAS,the City is authorized by Chapter 373 of the Texas Local Government Code to issue
notes or other obligations guaranteed by the Secretary of Housing and Urban Development under
Section 108, Housing and Community Development Act of 1974, as amended;
WHEREAS, the City has applied for and received approvalforSection 108 Loan Guarantee Funds
under Section 108 of the Housing and Community Development Act of 1974, as Amended, 42
U.S.C. §5308;
WHEREAS, onApril 28, 2022,Resolution 04-28-22-8.5 was adopted by the College Station City
Council authorizing and authorizing and approving the transactions which are the subject of this
Resolution;
WHEREAS,the City desires to issue a promissory note,in the amount of $2,808,000(the “Note”),
pursuant to a Contract for Loan Guarantee Assistance under Section 108 of the Housing and
Community Development Act(the “Section 108 Contract”)a copy of which is on file with the
City Secretary and attached to Resolution 04-28-22-8.5;and
WHEREAS, the City deems it advisable to authorize, issue and sell the Note in a principal
amount of $2,808,000pursuant to the Section 108 Contract and for the purposes stated therein
and payable from the sources identified herein;now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF COLLEGE STATION,
TEXAS:
PART A:The terms of the Section 108 Contract,attached hereto as Exhibit A,are
incorporated into this Resolution. The terms of the Note,attached hereto as Exhibit B,are
incorporated into this Resolution. The Noteis hereby authorized to be delivered by the City.
PART B:(A) As security for the payment of interest on and principal of the Note, as such
interest comes due and such principal matures, the City hereby pledges (1) all allocations or grants
which have been made or for which the City may become eligible under Section 106 of The
Housing and Community Development Act of 1974, as amended(the “Act”);(2) grants which are
or may become available to the City pursuant to Section 108(q) of the Act; (3) certain program
income (as defined at 24 CFR 570.500(a)) directly generated from the use of Guaranteed Loan
Funds (as defined in the Section 108 Contract); (4) all proceeds (as described in the Section 108
Contractincluding insurance and condemnation proceeds) from the foregoing; and (6) all funds or
investments in certain accounts established pursuant to the Section 108 Contract. The allocations
and grants described in Part 2(1) and (2) of this Resolution are referred to herein as “Grant
Revenues”.
(B)Chapter 1208, Government Code, applies to the issuance of the Note and the pledge of Grant
Revenues, program income, and proceeds, funds and investments granted by the City under this
Section, and is therefore valid, effective, and perfected.
PART C:(A) A special interest and sinking fund (the “Interest and Sinking Fund”) is hereby
created solely for the benefit of the Note, and the Interest and Sinking Fund shall be established
and maintained by the City at an official depository bank of the City. The Interest and Sinking
Fund shall be kept separate and apart from all other funds and accounts of the City andshall be
used only for paying the interest on and principal of the Note. The Interest and Sinking Fundshall
constitute the Loan Repayment Account under the Section 108 Contract regarding the
establishment of deposit and investment accounts, maintenance, use and investment of funds the
Loan Repayment Account. Moneys deposited in the Interest and Sinking Fund may be invested by
the City in investments authorized under Texas state law, including Chapter 2256, Texas
Government Code. Any income received from such investments shall be retained in the Interest
and Sinking Fund.
(B)Upon receipt of Grant Revenue or program income by the City, the City shall deposit to the
Interest and Sinking Fund an amount sufficient, after accounting for theamounts then on deposit,
to pay the interest on the Note as such interest becomes due, and to pay the principal of the Note
as such principal matures.
PART D:Resolution 04-28-22-8.5and the findings and recitals set forth in the recitalsto this
Resolution are hereby incorporated in and made a part of this Resolution.
PART E:The meeting at whichResolution 04-28-22-8.5 was approved and the meeting at
whichthis Resolution was approved was in all things conducted in strict compliance with the Texas
Open Meetings Act, Texas Government Code 551.
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ADOPTED this 8day of December,2022.
ATTEST:APPROVED:
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City SecretaryMayor
APPROVED:
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City Attorney