City of San Antonio - File #: 13-875

• File #: 13-875
• Type: Resolution
• In control: City Council A Session
• On agenda: 11/21/2013
• Posting Language: A Resolution of the City of San Antonio requesting and approving the issuance by the City of San Antonio, Texas Empowerment Zone Development Corporation of $39,900,000 in aggregate principal amount of its Contract Revenue Empowerment Zone Refunding Bonds (Drury Southwest Hotel Project), Series 2013A and Series 2013B, the proceeds of which will be loaned to Alamo National Building Development, LP, a Missouri Limited Partnership, to provide funds to refund the Corporation's Outstanding Contract Revenue Empowerment Zone Bonds (Drury Southwest Hotel Project), Series 2005 and Series 2007 which were issued to finance the redevelopment of the Former Alamo National Bank Building into a hotel, and approving other matters related thereto [Carlos Contreras, Assistant City Manager; Rene Dominguez, Director, Economic Development]
• Indexes: Conduit Debt, Empowerment Zone

DEPARTMENT: Economic Development Department

DEPARTMENT HEAD: Rene Dominguez

COUNCIL DISTRICTS IMPACTED: City wide

SUBJECT:
Resolution through City of San Antonio, Texas Empowerment Zone Development Corporation authorizing the issuance of $39,900,000 in Empowerment Zone Refunding Bonds to refund all outstanding Empowerment Zone Revenue Bonds issued in 2005 and 2007 for the Drury Plaza Hotel.


SUMMARY:
The City Council will consider a Resolution requesting the City's Empowerment Zone Development Corporation to authorize the issuance of $39,900,000 in tax-exempt Empowerment Zone Development Corporation Contract Revenue Empowerment Zone Refunding Bonds (Drury Southwest Hotel Project), Series 2013A and Series 2013B (collectively, the "Bonds"). The City Council will then recess and convene as the Board of Directors of the Empowerment Zone Development Corporation and will consider a resolution authorizing the issuance of the Bonds and approving and authorizing the execution of all related documents, including a Loan Agreement, an Indenture of Trust, and a Tax Agreement, and calling outstanding Empowerment Zone Bonds for redemption.

BACKGROUND INFORMATION:
The Empowerment Zone (EZ) was a federal program designed to promote economic development and employment opportunities in distressed areas of communities using public funds and tax incentives as catalysts for private investment. The federal program has been extended to December 31, 2013.

In January 2002, San Antonio received federal designation as a Round III Urban Empowerment Zone (EZ) from the U.S. Department of Housing and Urban Development. The designation of EZ allowed businesses locating in the EZ and who hired residents that lived in the EZ to receive federal wage and tax credits, capital gains incentives and tax-exempt bond financing. This designation included 26 census tracts within the inner city plus three developable sites (see attached EZ map). In September 2004, City Council crea...