DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: City-wide
SUBJECT:
Authorizing the issuance of $5,570,000 Tax Notes, Taxable Series 2015
SUMMARY:
This Ordinance authorizes the issuance of $5,570,000 "City of San Antonio, Texas Tax Notes, Taxable Series 2015" (the "2015 Taxable Notes"), levying a continuing direct annual ad valorem tax for the payment of the Notes; prescribes the form, terms, conditions, and resolving other matters incident and related to the issuance, sale, and delivery of the Notes; authorizes the execution of a Paying Agent/Registrar Agreement and a Purchase and Investment Letter, complying with the provisions of the Depository Trust Company's letter of representations; enacts other provisions incident and related to the subject and purpose of this ordinance; and provides for an effective date.
BACKGROUND INFORMATION:
The City is planning to issue "$5,570,000 City of San Antonio, Texas Tax Notes, Taxable Series 2015". The 2015 Taxable Notes are planned to be privately placed with a financial institution(s). The 2015 Taxable Notes are short term ad valorem tax supported taxable debt.
The 2015 Taxable Notes are being issued primarily to fund the Initial or Prepaid Purchase Price for the acquisition of the Frost Bank Tower included in the Comprehensive Development Agreement among the City, Weston Urban, LLC, and Frost Bank and the Purchase and Sale Agreement between the City and Frost Bank. Other authorized uses of proceeds of the 2015 Taxable Notes include payment of professional expenses related to such acquisition and building utilization by the City. Under the aforementioned agreements, the City will, at the time of execution of the same (which execution signifies the City's commitment to purchase the Frost Bank Tower), pay $5.51 million as a Prepaid Purchase Price, which amount will be held in two escrow accounts. At "closing" on the Frost Bank Tower (defined in the ...
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