DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: City-wide
SUBJECT:
Approving Publication of a Notice of Intention to Issue Certificates of Obligation
POSTING LANGUAGE:
An Ordinance authorizing and approving publication and posting of a Notice of Intention to issue City of San Antonio, Texas Combination Tax and Revenue Certificates of Obligation in a maximum aggregate principal amount not to exceed $16,100,000 and providing an effective date.
SUMMARY:
This Ordinance authorizes and approves publication and posting of a Notice of Intention to issue City of San Antonio, Texas Combination Tax and Revenue Certificates of Obligation in a maximum aggregate principal amount not to exceed $16,100,000 and providing an effective date.
BACKGROUND INFORMATION:
In October 2020, the Witte Museum ("the Witte") requested assistance from the City with their existing $15.7 million construction loan ("the Loan") with Frost Bank because their operations as well as their ability to fundraise was dramatically impacted by COVID-19. The land and most of the buildings at the Witte are owned by the City and the Witte operates the facilities through a long-term lease ("the Lease"); however, the City had previously transferred ownership interest to certain property to the Witte to use as collateral for the Loan in which operating and fundraising revenues were the projected sources of repayment.
The issuance of Certificates of Obligation will provide funding for the City-owned Witte to pay off the Loan with Frost Bank by providing consideration to the Witte for its return to the City of previously transferred real property. Under a Funding Agreement, the Witte will be required to pay for all costs of financing for the City issued debt and will also require that debt be repaid in full before the Witte moves forward with any major future expansion or renovation. The Lease will be amended to return property utilized as collateral by the Witt...
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