City of San Antonio - File #: 19-1029

• File #: 19-1029
• Type: Resolution
• In control: City Council A Session
• On agenda: 1/10/2019
• Posting Language: Resolution approving the issuance by the Daingerfield Cultural Education Facilities Finance Corporation of bonds, loans and/or other obligations for purposes of Section 147(f) of the Internal Revenue Code. An administrative fee of $2,500.00, payable by the Clarity Child Guidance Center, will be deposited into the General Fund in accordance with the FY 2019 Adopted Budget. [Ben Gorzell, Chief Financial Officer; Troy Elliott, Deputy Chief Financial Officer]

DEPARTMENT: Finance


DEPARTMENT HEAD: Troy Elliott


COUNCIL DISTRICTS IMPACTED: Citywide


SUBJECT:

Approval of financing for purposes of the Internal Revenue Code


SUMMARY:

This Resolution approves the issuance by the Daingerfield Cultural Education Facilities Finance Corporation of bonds, loans and/or other obligations for purposes of Section 147(f) of the Internal Revenue Code.


BACKGROUND INFORMATION:

Section 147(f) of the Internal Revenue Code (the "Code") requires that the issuance of any qualified 501(c)(3) obligations be approved by the applicable elected representative of the governmental unit in which the project is located after a public hearing following reasonable public notice.

The City was contacted regarding Daingerfield Cultural Education Facilities Finance Corporation (the "Corporation") for the benefit of the Clarity Child Guidance Center (the "Borrower"), a Texas nonprofit corporation and 501(c)(3) organization so that the Corporation may issue bonds, loans and/or other obligations (the "Obligations") in the maximum aggregate principal amount of $7,000,000, whereby the proceeds of the Obligations will be loaned to Borrower for the purpose of financing and refinancing the construction, acquisition, renovation and/or equipping of health facilities to assist the maintenance of public health, including the expansion of the Living Unit to add 6 psychiatric emergency services beds and 14 acute care inpatient beds, expansion of the therapeutic recreation space including gymnasium, and the Partial Hospitalization Program area; construction of the Outpatient Services Building and parking garage; and infrastructure improvements to existing facilities, all located at 8535 Tom Slick Dr., San Antonio, Texas, 78229 (the "Project"). A public hearing with respect to the Project and the issuance of the Obligations was held in the City of San Antonio on November 16, 2018 in compliance with Section 147(f) of the Code.


ISSUE:

To meet the requirem...