DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: City-Wide
SUBJECT:
Appointing a Market Agent for Conduit Bond Issue
SUMMARY:
This resolution of the City of San Antonio, Texas Empowerment Zone Development Corporation will appoint U.S. Bank National Association to serve as the Market Agent relating to the outstanding City of San Antonio, Texas Empowerment Zone Development Corporation Contract Revenue Empowerment Zone Refunding Bonds (Drury Southwest Hotel Project), Series 2013A and Series 2013B, will approve and authorize the execution of a related Market Agent Agreement.
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.
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. In September 2004, City Council created an EZ Governance Board that advised the City Council on the implementation of the EZ Strategic Plan and provided recommendations on qualifying projects within the EZ. This Board has since been dissolved.
The San Antonio EZ was awarded $230 million in EZ facility bond capacity. Of that amount, $130 million was allocated for the 2005 Convention Center Hotel project and $39.9 million for the Drury Plaza Hotel. The Drury project included the construction of a $1,456,000 extension of the Riverwalk between Dolorosa and Commerce, as well as landscaping, lighting and streetscaping along the pedestrian walkway.
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