Loading...
HomeMy WebLinkAboutResolution - 2022-R0423 - Finance Jones Stadium - New Hope Cultural Education Facilities Finance and RRFFResolution No. 2022-RO423 Item No. 6.17 October 11, 2022 RESOLUTION NO. 2022-RO423 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LUBBOCK, TEXAS, AUTHORIZING THE MAYOR TO APPROVE THE NEW HOPE CULTURAL EDUCATION FACILITIES FINANCE CORPORATION'S ACCEPTNG A TAX-EXEMPT LOAN AND EXECUTION OF A NOTE IN EVIDENCE THEREOF TO OBTAIN FUNDS ON BEHALF OF THE RED RAIDER FACILITIES FOUNDATION TO FINANCE JONES STADIUM AND RELATED FACILITIES IMPROVEMENT AND EXPANSION AND OTHER MATTERS IN CONNECTION THEREWITH WHEREAS, the New Hope Cultural Education Facilities Finance Corporation (the Corporation) was created pursuant to the Cultural Education Facilities Finance Corporation Act, Article 1528m, Vernon's Revised Civil Statutes, as amended (now codified at Chapter 337, as amended, Texas Local Government Code and herein referred to as the Act), and has the power, authority and right borrow and lend money for its corporate purpose, which includes financing the costs of acquiring and improving real and personal that is found by the Issuer's governing body to be necessary or convenient to finance, refinance, acquire, construct, enlarge, remodel, renovate, improve, furnish, or equip for cultural education or community benefit that, among other purposes, promotes and educates about health and physical fitness; and WHEREAS, Red Raider Facilities Foundation, Inc., a Texas non-profit corporation organized under Chapter 22, as amended, Texas Business Organizations Code and a recognized non-profit corporation under Internal Revenue Code Section 501(c)(3) (the Borrower), has requested that the Corporation, pursuant to the Act and a tri-party loan agreement (the Loan Agreement) among the Corporation, the Borrower, and Truist Bank (the Bank), incur a tax- exempt, drawdown construction loan in the maximum amount of $225,000,0000 (the Loan) and further loan the proceeds therefrom to the Borrower to provide to the Borrower funds to (a) finance the costs of designing, redeveloping, constructing and equipping the south end zone at Jones AT&T Stadium and a new athletic training facility on the campus of Texas Tech University, (b) fund capitalized interest on the Loan, and (c) pay the costs of obtaining the Loan (collectively, the Project); and WHEREAS, Section 147(f) of the Internal Revenue Code of 1986, as amended (the Code), requires that the Loan and the Project be approved by the "applicable elected representative" of the governmental unit in which the financed facility is located after a public hearing following reasonable public notice in accordance with the Code and associated regulations (Notice); and WHEREAS, the Mayor of the City of Lubbock, Texas (the City), as the applicable elected representative of the City, has been requested to approve the Corporation's incurrence of the Loan and the Project in accordance with the requirements of the Code, and shall be furnished with evidence of the Notice and minutes of the public hearing conducted in connection therewith; and WHEREAS, the Council desires to hereby authorize the Mayor to approve the issuance of the Loan and the Project; and Resolution WHEREAS, the actions of the Corporation with respect to the Project and the Loan (including the incurrence of the Loan and the execution and delivery of the Loan Agreement) and the action of the Mayor and the Council with respect to the matters described herein will create no liability for the City, the Mayor, or the Council, and the Council desires to authorize the Mayor to execute the required approval in connection with the incurrence of the Loan and Borrower's pursuit of the Project. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK, TEXAS, THAT: SECTION 1 The Mayor of the City is hereby authorized to approve the Corporation's incurrence of the Loan and the Borrower's pursuit of the Project, for the limited purposes stated herein, and to execute and deliver such approval as requested. SECTION 2 The authorization to approve the Loan and the Project is made for the sole purpose of satisfying the requirements of Section 147(f) of the Code, and for no other purpose and shall not be construed as a representation, warranty or other undertaking of any kind by the City, the Mayor, or the Council in respect of the Loan or the Project. The Loan shall not constitute an obligation of the City or a pledge of its faith and credit, and the City shall not be obligated to pay the Loan (including principal thereof, interest thereon, or fees and expenses associated therewith) or otherwise incur any liability in respect thereof. SECTION 3 The Mayor and City Secretary of the City and other officers of the City are hereby authorized to execute and deliver such instruments, certificates or documents necessary or advisable to carry out the intent and purpose of this resolution. SECTION 4 This Resolution shall take effect immediately upon its passage and shall continue in force and effect from the date hereof. Passed by the City Council this 1 lth day of October , 2022. ATTEST: Qatecl Jlc Reb ca Garza, City Secre C / TRAY OR Resolution APPROVED AS TO CONTENT: //,-� ?t�ge f L-A- D. ku-Kostefich, Chief inancial Officer APPROVED AS TO FORM: Am i , Assis ity Attorney if Resolution CERTIFICATE OF RESOLUTION The undersigned City Secretary of the City of Lubbock, Texas, hereby certifies as follows: 1. The City Council of the City of Lubbock, Texas (the Council) convened in regular session on the 11'' day of October, 2022, at the regular meeting place, being City Council Chambers, Citizens Tower, 1314 Avenue K, Lubbock, Texas, and the roll was called of the duly constituted officers and members of said Council, to wit: Tray Payne, Mayor Shelia Patterson Harris, Mayor Pro Tern, District 2 Christy Martinez -Garcia, District 1 Mark W. McBrayer, District 3 Steve Massengale, District 4 Dr. Jennifer Wilson, District 5 Latrelle Joy, District 6 and all members of the Council were present, except NSA , thus constituting a quorum. Whereupon, among other business, a written Resolution (the Resolution) bearing the following caption was introduced for consideration by the Council. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LUBBOCK, TEXAS, AUTHORIZING THE MAYOR TO APPROVE THE NEW HOPE CULTURAL EDUCATION FACILITIES FINANCE CORPORATION'S ACCEPTNG A TAX-EXEMPT LOAN AND EXECUTION OF A NOTE IN EVIDENCE THEREOF TO OBTAIN FUNDS ON BEHALF OF THE RED RAIDER FACILITIES FOUNDATION TO FINANCE JONES STADIUM AND RELATED FACILITIES IMPROVEMENT AND EXPANSION AND OTHER MATTERS IN CONNECTION THEREWITH was introduced and submitted to the Council for passage and adoption. After presentation and discussion of the Resolution, a motion was made by Councilmember McBrayer that the Resolution be finally passed and adopted in accordance with the City's Home Rule Charter. The motion was seconded by Councilmember Dr. Wilson and carried by the following vote: 7 voted "For" 0 voted "Against" 0 abstained 2. The attached Resolution is a true and correct copy of the original on file in the official records of the City; the duly qualified and acting members of the Council of the City on the date of the Meeting are those persons shown above, and, according to the records of my office, each member of the Council was given actual notice of the time, place, and purpose of the Meeting and had actual notice that the Resolution would be considered; and the Meeting and deliberation of the aforesaid public business, including the subject of the Resolution, was open to the public and posted and given in advance thereof in compliance with the provisions of Chapter 551, as amended, Texas Government Code. SIGNED and SEALED on this I Ph day of October, 2022. (SEAL) Q,-&, 'k, City kecretary City of Lubbock, Texas Certificate of Resolution CERTIFICATE OF MAYOR CITY OF LUBBOCK, TEXAS The undersigned Mayor of the City of Lubbock, Texas (the City) hereby certifies with respect to the issuance by the New Hope Cultural Education Facilities Finance Corporation (the "Corporation") of its tax-exempt drawdown construction to ultimately finance the costs of improvements to Jones AT&T Stadium and related facilities (the Loan), that: 1. This certificate is based upon the CERTIFICATE OF PUBLIC HEARING OFFICER REGARDING PUBLIC HEARING attached hereto as Exhibit A relating to the public hearing conducted on November 7, 2022, via teleconference, by the duly appointed hearing officer of the Corporation in accordance with the requirements of Section 147(f) of the Internal Revenue Code of 1986, as amended (the Code); and 2. Solely for purposes of the approval requirements of the aforesaid Section 147(f) of the Code, and for no other purposes, in my capacity as Mayor, I hereby approve the Loan and the facilities to be financed and refinanced with the proceeds of the Loan; provided, however, THAT THIS APPROVAL SHALL NOT BE CONSTRUED AS (1) A REPRESENTATION OR WARRANTY BY THE CITY, THE MAYOR OF THE CITY, THE STATE OF TEXAS OR ANY OTHER AGENCY, INSTRUMENTALITY OR POLITICAL SUBDIVISION OF THE STATE OF TEXAS THAT THE LOAN WILL BE PAID OR THAT ANY OBLIGATIONS ASSUMED BY ANY OF THE PARTIES UNDER THE INSTRUMENTS DELIVERED IN CONNECTION WITH THE LOAN WILL IN FACT BE PERFORMED; (2) A PLEDGE OF FAITH AND CREDIT OF THE CITY OR THE STATE OF TEXAS OR ANY AGENCY, INSTRUMENTALITY OR POLITICAL SUBDIVISION OF THE STATE OF TEXAS OR THE CITY; OR (3) A REPRESENTATION OR WARRANTY BY THE CITY CONCERNING THE VALIDITY OF THE CORPORATE EXISTENCE OF THE CORPORATION OR THE VALIDITY OF THE CORPORATION'S OR THE BORROWER'S OBLIGATIONS UNDER THE ASSOCIATED LOAN AGREEMENT OR NOTE PURSUANT TO WHICH THE LOAN OR EVIDENCED, RESPECTIVELY. Mayor, C' y o ubbock, Texas Date: November 8 .2022 EXHIBIT A CERTIFICATE OF PUBLIC HEARING OFFICER REGARDING PUBLIC HEARING Re: New Hope Cultural Education Facilities Finance Corporation Tax -Exempt Drawdown Construction Loan and Related Note for the Benefit of Red Raider Facilities Foundation, Inc. (Jones AT&T Stadium Expansion and Related Facilities Construction and Improvement) CERTIFICATE OF PUBLIC HEARING OFFICER REGARDING PUBLIC HEARING Re: New Hope Cultural Education Facilities Finance Corporation Tax -Exempt Drawdown Construction Loan and Related Note for the Benefit of Red Raider Facilities Foundation, Inc. (Jones AT&T Stadium Expansion and Related Facilities Construction and Improvement) The undersigned, Clay Binford, designated Hearing Officer of New Hope Cultural Education Facilities Finance Corporation (the Corporation), the borrower of the above -referenced loan (the Loan), called the Public Hearing of the Corporation held, via teleconference, on November 7, 2022 to order at 3:00 p.m. I declared that a Public Hearing required under Section 147(f) of the Internal Revenue Code of 1986 was open for purposes of discussing the Loan and the projects to be financed with the proceeds of the Loan (the Project) by Red Raider Facilities Foundation, Inc., a Texas and federal non-profit corporation. I declared that the required notice of the Public Hearing for the Project was published in McKinney Courier Gazette on October 23, 2022 and in the Lubbock Avalanche -Journal on October 25, 2022, respectively, as evidenced by the separate and respective Affidavits of Publication attached hereto as Schedule I. I proceeded to hold the Public Hearing. No member of the public attended the Public Hearing and thus no comments were made or discussed regarding the Project or the Loan. After sufficient time was given for any member of the public to make their comments with respect to the Loan and the Project, I declared the Public Hearing closed at 3:05 p.m. DATED: November 7, 2022 ClWy BRiford, ring Officer New Hope ult al Education Facilities Finance Co r tion CERTIFICATE OF MAYOR TOWN OF NEW HOPE, TEXAS The undersigned Mayor of the Town of New Hope, Texas (the Town) hereby certifies with respect to the issuance by the New Hope Cultural Education Facilities Finance Corporation (the Corporation) of its tax-exempt drawdown construction loan to ultimately finance the costs of improvements to Jones AT&T Stadium and related facilities (the Loan), that: 1. This certificate is based upon the CERTIFICATE OF PUBLIC HEARING OFFICER REGARDING PUBLIC HEARING attached hereto as Exhibit A relating to the public hearing conducted on the date specified in the same notice, via teleconference, by the duly appointed hearing officer of the Corporation in accordance with the requirements of Section 147(f) of the Internal Revenue Code of 1986, as amended (the Code); and 2. Solely for purposes of the approval requirements of the aforesaid Section 147(f) of the Code, and for no other purposes, in my capacity as Mayor, I hereby approve the Loan and the facilities to be financed and refinanced with the proceeds of the Loan; provided, however, THAT THIS APPROVAL SHALL NOT BE CONSTRUED AS (1) A REPRESENTATION OR WARRANTY BY THE TOWN, THE MAYOR OF THE TOWN, THE STATE OF TEXAS OR ANY OTHER AGENCY, INSTRUMENTALITY OR POLITICAL SUBDIVISION OF THE STATE OF TEXAS THAT THE LOAN WILL BE PAID OR THAT ANY OBLIGATIONS ASSUMED BY ANY OF THE PARTIES UNDER THE INSTRUMENTS DELIVERED IN CONNECTION WITH THE LOAN WILL IN FACT BE PERFORMED; (2) A PLEDGE OF FAITH AND CREDIT OF THE TOWN OR THE STATE OF TEXAS OR ANY AGENCY, INSTRUMENTALITY OR POLITICAL SUBDIVISION OF THE STATE OF TEXAS OR THE TOWN; OR (3) A REPRESENTATION OR WARRANTY BY THE TOWN CONCERNING THE VALIDITY OF THE CORPORATE EXISTENCE OF THE CORP9,RATION OR THE VALIDITY OF THE CORPORATION'S OR THE BORROWER'S OBL TIONS UNDER THE ASSOCIATED LOAN AGREEMENT OR NOTE PURSUAtT�TO ICH THE IO AN OR EVIDENCED, RESPECTIVELY. `-" I Mayor, Town of New Hoe Texas Date: , 2022 SCHEDULEI Affidavit of Publication [attached hereto] LOCAU10 Austin American -Statesman Amarillo Globe -News Lubbock Avalanche -Journal PROOF OF PUBLICATION April Chairez McCall Parkhurst & Horton 112 E Pecan ST # 1310 San Antonio TX 78205-1531 STATE OF WISCONSIN, COUNTY OF BROWN The Avalanche -Journal, a daily newspaper of general circulation in the counties of: Cochran, Crosby, Dawson, Floyd, Gaines, Garza, Hale, Hockley, Lamb, Lubbock, Lynn, Motley, Terry and Yoakum, Texas; printed and published in Lubbock County, Texas; that the publication, a copy of which is attached hereto, was published in the said newspaper in the issues dated: 10/2512022 Sworn to and subscribed before on 10/25/2022 Publication Cost: $254.00 Order No: 7954086 # of Copies: Customer No: 861157 1 PO #: T -11S :IS NOT AN INVOICE! Please do not use this form for payment remittance. AMY KOKOTT Notary Public State of Wisconsin PO Box 631667 Cincinnati, OH 45263-1667 The New Hope Cultural Education Facilities Finance Corporation (the Corporation) will hold a public hearing at 3:00 p.m. (CT) on November 7, 2022 via teleconference. Among items to be discussed will be a proposal for incurrence by the Corporation of a tax-exempt construction drawdown loan in an aggregate principal amount not to exceed $225,000,000 (the Loan). The proceeds of the Loan will be further loaned by the Corporation to the Red Raider Facilities Foundation, Inc. (the Foundation) to provide to the Foundation funds to (a) finance the costs of designing, redeveloping, constructing and equipping the south end zone at Jones AT&T Stadium and a new athletic training facility on the campus of Texas Tech University (the Project), (b) fund capitalized interest on the Loan, and (c) pay the costs of obtaining the Loan. The Project will be constructed by the Foundation, a Texas non-profft corporation organized under Chapter 22, as amended, Texas Business Organizations Code and an organization described in Section 501(c)(3) of the Internal Revenue Code of 1986 (the Code). The Project is being constructed for the use and benefit of Texas Tech University (TTU) and will be located on the campus of TTU, within the City of Lubbock, Texas, and represents an expansion and extension of the existing Jones AT&T Stadium and related Improvements. All interested parties are invited to express their views with respect to the Project and the Loan by attending the public hearing to be held via teleconference, by dialing the following toll - free number 1.888-278-0296 (Posscode: 4581928#). Members of the public may attend or submit written comments prior to the hearing regarding the Project or the Loan to the Corporation c/o Clay Binford, McColl, Parkhurst & Horton L.L.P., 112 E. Pecan Street, Suite 1310, San Antonio, Texas 78205. This notice Is publicized (whether by publication In a qualifying newspaper or by Internet posting) and the above -described hearing is to be held in satisfaction of the requirements of Section 147(f) of the Code regarding the public approval prerequisite t0 the exemption from federal income taxation of Interest Incurred under the Loan. The public hearing will be held via teleconference in accordance with Revenue Procedure 2022-20 issued by the Internal Revenue Service. #7954086 C Page 1 of 1 Public Notices % + v — S X F-> 0 Q i lubbockonline.com/public-notices G Q L * i Q Pageflex Server [do... G Gmail Q Maps C Employee Navigator ■ MAC of Texas U EMMA - Municipal... Q LSO/Lone Star Over.. a PAC: Youth Educati.. Q Date Calculator Q Employee Portal I JHC i�! 1295 Filing Info FedEx I Tracking, Sh.. » •�,...,.,......... x�,. x.., sR.... uuwa.,.m uiKyw ornia. r�.i�. mi.�.a.. xwn.. u.x.wa.. c..n«i. oe...a.e. r�.,m .«...wa.. ra. sump. Texas Public Notices seaa�n �ot��e, Public Notices tulz5/]Rz2 ii—V B ®oo rant NUICEOR MUCHURING me New Hope Cultural EUuca'. :' =C Iles FlnanceCorpor-ellon (Ne CorprmtbN u•II' hc'C a :'.:':' ea' ^g NORemher l.ltli2tia ea --:-:- - a: °:W a.m.{Cn on - ms to he tllswrnW wlll hea e•:::;a': .. .- _ eCorporatlon Wa plegatepllxlpl .: . . .............. : ...-' rM p•ocee4z W staraluma h _atetl _ - - _ - .-_ =_a paruesare LUBBOCK AVALANCHE -JOURNAL Public Notices Originally published at lubbockonline.com on 10/25/2022 NOTICE OF PUBLIC HEARING The New Hope Cultural Education Facilities Finance Corporation (the Corporation) will hold a public hearing at 3:00 p.m. (CT) on November 7, 2022 via teleconference. Among items to be discussed will be a proposal for incurrence by the Corporation of a tax-exempt construction drawdown loan in an aggregate principal amount not to exceed $225,000,000 (the Loan). The proceeds of the Loan will be further loaned by the Corporation to the Red Raider Facilities Foundation, Inc. (the Foundation) to provide to the Foundation funds to (a) finance the costs of designing, redeveloping, constructing and equipping the south end zone at Jones AT&T Stadium and a new athletic training facility on the campus of Texas Tech University (the Project), (b) fund capitalized interest on the Loan, and (c) pay the costs of obtaining the Loan. The Project will be constructed by the Foundation, a Texas non-profit corporation organized under Chapter 22, as amended, Texas Business Organizations Code and an organization described in Section 501(c)(3) of the Internal Revenue Code of 1986 (the Code). The Project is being constructed for the use and benefit of Texas Tech University (TTU) and will be located on the campus of TTU, within the City of Lubbock, Texas, and represents an expansion and extension of the existing Jones AT&T Stadium and related improvements. All interested parties are invited to express their views with respect to the Project and the Loan by attending the public hearing to be held via teleconference, by dialing the following toll -free number 1-888-278-0296 (Passcode: 4581928#). Members of the public may attend or submit written comments prior to the hearing regarding the Project or the Loan to the Corporation c/o Clay Binford, McCall, Parkhurst & Horton L.L.P., 112 E. Pecan Street, Suite 1310, San Antonio, Texas 78205. This notice is publicized (whether by publication in a qualifying newspaper or by internet posting) and the above -described hearing is to be held in satisfaction of the requirements of Section 147(f) of the Code regarding the public approval prerequisite to the exemption from federal income taxation of interest incurred under the Loan. The public hearing will be held via teleconference in accordance with Revenue Procedure 2022-20 issued by the Internal Revenue Service. #7954086