city of San Antonio


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File #: 19-7472   
Type: Miscellaneous Item
In control: City Council A Session
On agenda: 10/17/2019
Posting Language: Ordinance approving a certificate of approval concerning the issuance of “City of Hondo, Texas Cultural Education Facilities Finance Corporation Revenue Bonds (Goodwill Industries of San Antonio Project), Series 2019” in satisfaction of the requirements of section 147(f) of the Internal Revenue Code. An administrative fee of $2,500.00, payable by the City of Hondo, Texas Cultural Education Facilities Finance Corporation, will be deposited into the General Fund in accordance with the FY 2020 Adopted Budget. [Ben Gorzell, Chief Financial Officer; Troy Elliott, Deputy Chief Financial Officer].
Attachments: 1. Draft Ordinance
DEPARTMENT: Finance


DEPARTMENT HEAD: Troy Elliott


COUNCIL DISTRICTS IMPACTED: City-wide


SUBJECT:

Approval of financing for purposes of compliance with the Internal Revenue Code of 1986, as amended (the "Code").


SUMMARY:

This Ordinance authorizes execution of a certificate of approval concerning the issuance of "City of Hondo, Texas Cultural Education Facilities Finance Corporation Revenue Bonds (Goodwill Industries of San Antonio Project), Series 2019" in satisfaction of the requirements of section 147(f) of the Internal Revenue Code.

BACKGROUND INFORMATION:

Section 147(f) of 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 of San Antonio, Texas (the "City") was contacted by the Corporation, who is acting on behalf and for the benefit of Goodwill Industries of San Antonio (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 $6,000,000.00. The proceeds of these Obligations will be loaned to the Borrower for the purposes of (a) financing, refinancing, acquiring, constructing, enlarging, remodeling, renovating, improving, furnishing, and equipping retail and workforce training centers for the Borrower, and facilities incidental, subordinate, or related thereto, as appropriate in connection therewith, as well as paying certain expenses in connection with the issuance of the Obligations (collectively, the "Project"). The Project will be owned and operated by the Borrower and will be located generally at Lots 10, 11, and 12, Block 1, NCB 19603, Potranco Commons in the City, within Bexar County, Texas. A public hearing with respect to the Project and the issuance of the Obligations will be hel...

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