City of San Antonio - File #: 19-4439

• File #: 19-4439
• Type: Procedural
• In control: City Council A Session
• On agenda: 6/13/2019
• Posting Language: Resolution of the Board of Directors of the City of San Antonio Industrial Development Authority (the “Authority”) approving and authorizing the execution of an Amendment to an Indenture of Trust between the Authority and U.S. Bank National Association, as Trustee, primarily for the purpose of modifying the Interest Rate Formula related to the Series 2015A Refunding Bonds issued under such Indenture for the benefit of the Tindall Corporation. An administrative fee of $2,500.00, payable by Tindall Corporation, will be deposited into the General Fund in accordance with the FY 2019 Adopted Budget. [Ben Gorzell, Jr., Chief Financial Officer; Troy Elliott, Director of Finance]

DEPARTMENT: Finance


DEPARTMENT HEAD: Troy Elliott


COUNCIL DISTRICTS IMPACTED: City-wide


SUBJECT:

Approval of an Amendment to the Indenture for IDA Bonds Issued for Tindall Corporation.


SUMMARY:

This Resolution will approve an amendment to the Indenture of Trust (between the Authority and U.S. Bank National Association., as Trustee) which authorized the issuance in 2015 by the Authority for the Tindall Corporation, a South Carolina Corporation, of $7,300,000 in principal amount of "Tax-Exempt Revenue Refunding Bonds (Tindall Corporation Refunding Project), Series 2015A," and $1,300,000 in principal amount of "Taxable Revenue Refunding Bonds (Tindall Corporation Refunding Project), Series 2015B." The primary purpose of the amendment is to modify certain interest rate formulas to reflect the change in the maximum federal corporate income tax rate that became effective in 2018.


BACKGROUND INFORMATION:

The Tindall Corporation designs, manufactures and erects precast, prestressed concrete products and building systems. Headquartered in Spartanburg, South Carolina, Tindall has manufacturing facilities in Virginia, South Carolina, Georgia, Mississippi and San Antonio, Texas. The San Antonio facility is located at 2222 West Malone in City Council District 5 and was completed in two phases. The first phase consisted of approximately 58,600 square feet of manufacturing and related office facilities and was completed in January 2009. The second phase consisted of approximately 58,600 square feet of manufacturing and related office facilities and was completed in December 2012.

The facility originally was partially financed through the issuance of bonds by the Authority, which is a nonprofit industrial development corporation of the State of Texas created by the City. The bonds issued were $10,000,000 "City of San Antonio Industrial Development Authority Tax-Exempt Adjustable Mode Industrial Development Revenue Bonds (Tindall Corporation Project), Seri...