HomeMy WebLinkAbout2013-R-05 - New Hope Cultural Ed FacilityCITY OF STEPHENVILLE, TEXAS
RESOLUTION NO. 2013-05
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF STEPHENVILLE, TEXAS, AUTHORIZING THE MAYOR
TO APPROVE THE ISSUANCE OF NEW HOPE CULTURAL EDUCATION FACILITIES FINANCE CORPORATION
STUDENT HOUSING REVENUE BONDS (CHF — STEPHENVILLE, L.L.C. PROJECT) SERIES 2013A AND TO
APPROVE 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 — Stephenville, 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 (CHF — Stephenville, L.L.C. Project) Series 2013A (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 "Loon Agreement") for the purpose of providing
funds to finance the cost of the development, financing, construction, furnishing and equipping of an
approximately 514-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 Tarleton State 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 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 Stephenville, Texas (the "City") has been requested to
approve, as the applicable elected representative of the City, 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 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 executed the required
approval in connection with the issuance of the Bonds.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF STEPHENVILLE,
TEXAS, THAT:
SECTION 1
The Mayor of the City of Stephenville, Texas, is hereby authorized to approve 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 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 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 7'" DAY OF MAY, 2013.
LL��.
JerryK. W I on II, Mayor
ATTEST:
Cindy
�LS fford, Ci ySec
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Reviewed by Mark A. Kaiser,
City Administrator
Approved as to form and content by
Randy Thomas, City Attorney