Loading...
HomeMy WebLinkAbout12-08-22-9.10 - 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. th ADOPTED this 8day of December,2022. ATTEST:APPROVED: _______________________________________________________________ City SecretaryMayor APPROVED: _____________________________ City Attorney