City of San Antonio - File #: 19-7906

• File #: 19-7906
• Type: Miscellaneous Item
• In control: City Council A Session
• On agenda: 11/7/2019
• Posting Language: Ordinance approving the issuance by the Simonton Cultural Education Facilities Finance Corporation of bonds, loans and/or other obligations in a maximum amount of $8,000,000.00 for the benefit of the Family Endeavors, Inc. for purposes of Section 147(f) of the Internal Revenue Code. An administrative fee of $2,500.00, payable by the Simonton 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]

DEPARTMENT: Finance


DEPARTMENT HEAD: Troy Elliott


COUNCIL DISTRICTS IMPACTED: City-wide


SUBJECT:

Approval of financing for purposes of the Internal Revenue Code.


SUMMARY:

This Ordinance approves the issuance by the Simonton 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 by the Simonton Cultural Education Facilities Finance Corporation (the "Corporation") for the benefit of the Family Endeavors, Inc. (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 $8,000,000, whereby the proceeds of the Obligations will be loaned to Borrower for the purpose of (a) refinancing the cost of the acquisition, construction, renovation and equipping of the Endeavors Corporate Headquarters located at 6363 De Zavala Rd., San Antonio, TX 78249 and (b) financing the cost of the acquisition, construction, renovation and equipping of a new administrative and counseling building adjacent to the Endeavors Corporate Headquarters located at 6333 De Zavala Rd., San Antonio, TX 78249 (collectively, the "Project"). Family Endeavors, Inc. provides an array of programs and services in support of children, families, veterans, and those with struggling with disabilities. A public hearing with respect to the Project and the issuance of the Obligations was held in the City of San Antonio on October 2, 2019 in compliance with Section 147(f) of the Code.

ISSUE:

To meet the requirements of...