City of San Antonio - File #: 14-907

• File #: 14-907
• Type: Resolution
• In control: City Council A Session
• On agenda: 4/17/2014
• Posting Language: A Resolution approving the mandatory tender of certain outstanding bonds (LGC Building, Ltd. and KLN Steel Products Company, Ltd. Project); delegating authority to approve and execute certain documents and provide certain notices relating to remarketing the bonds; and other related matters. [Carlos Contreras, Assistant City Manager; Rene Dominguez, Director, Economic Development]

Date	Ver.	Action By	Action	Result
4/17/2014	1	City Council A Session	approved	Pass

DEPARTMENT: Economic Development Department


DEPARTMENT HEAD: Rene Dominguez


COUNCIL DISTRICTS IMPACTED: City-wide


SUBJECT:

The adoption of a resolution by the City of San Antonio Industrial Development Authority (Development Authority) to authorize LGC Building, Ltd. to remarket previously issued bonds to Broadway National Bank at a fixed interest rate. There is no fiscal impact to the City or the Development Authority as a result of this action.


SUMMARY:

City Council will recess and convene as the City of San Antonio Industrial Development Authority to consider the adoption of a resolution (Resolution) that will permit the mandatory tender of the Development Authority's Adjustable Rate Demand Industrial Development Revenue Bonds issued in 1998 in the original principal amount of $5,500,000 (Bonds), and the remarketing and sale of the Bonds to Broadway National Bank. The Development Authority will then adjourn and reconvene as the City Council.

The Resolution will not obligate the City or the Development Authority to pay the debt or the Bonds. The borrower, LGC Building, Ltd. is solely responsible for paying all debt service and other costs associated with the remarketing of the Bonds.


BACKGROUND INFORMATION:

Pursuant to Texas law, the Development Authority is empowered to issue bonds to finance the cost of projects to promote the development and expansion of manufacturing and industrial facilities to promote and encourage employment and the public welfare by the issuance of obligations.

In 1998, LGC Building, L.L.C. (now reorganized as LGC Building, Ltd.) (Borrower) requested that the Development Authority issue the Bonds to loan the proceeds to the Borrower, in order to finance the costs of acquiring, constructing and equipping a 303,893 sq. ft. manufacturing facility located at 2 Winnco 2 in the City of San Antonio (Facility). The Development Authority adopted a bond resolution on May 7, 1998, authorizing ...