DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: City-wide
SUBJECT:
Approving Publication of Notice of Intention to Issue Certificates of Obligation.
SUMMARY:
This Ordinance authorizes and approves the publication of notice of intention to issue City of San Antonio, Texas Combination Tax and Revenue Certificates of Obligation in one or more series in a maximum aggregate principal amount not to exceed $52,000,000; and provides for an effective date.
BACKGROUND INFORMATION:
The City is planning to issue Combination Tax and Revenue Certificates of Obligation ("Certificates") in one or more series in a maximum aggregate principal amount not to exceed $52,000,000; to pay cost related to the acquisition of the Frost Bank Tower. The Certificates will be supported by ad valorem taxes.
State law requires that the Notice of Intention be published at least 30 days prior to the City's adoption of the ordinance authorizing the issuance of the Certificates. The total project amount to be funded is approximately $52,000,000, while the Notice of Intent reflects a maximum aggregate principal amount of Certificates not to exceed $52,000,000. The Certificates will be used for the purpose of providing funds for the payment of contractual obligations to be incurred for the following: (1) acquiring an existing building to be used to consolidate City Administration into a single facility, and (2) the payment of professional services (including closing cost) related to the acquisition and financing of the aforementioned project.
It is anticipated that sale of the Certificates will be presented for consideration to the City Council on December 8, 2016 with the closing to occur on or about December 20, 2016.
The closing on the acquisition of the Frost Tower is anticipated to occur on December 22, 2016. Once the acquisition is completed, the City will leaseback the Frost Tower to Frost Bank for approximately 30 months until the new ...
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