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HomeMy WebLinkAbout20-818RESOLUTION NO. 20-81$ A RESOLUTION APPROVING USE OF UNSPENT PROCEEDS OF REVENUE BONDS ISSUED BY NEW HOPE CULTURAL EDUCATION FACILITIES FINANCE CORPORATION ON BEHALF OF CHF — COLLEGIATE HOUSING DENTON, L.L.C. IN AN AMOUNT NOT TO EXCEED $2,700,000 FOR COSTS RELATING TO PARKING FACILITIES AT TEXAS WOMAN'S UNIVERSITY; RECOGNIZING THAT THE CITY OF DENTON IS NOT RESPONSIBLE FOR THE REVENUE BONDS AND HAS NO FINANCIAL OBLIGATION TO PAY ANY PRINCIPAL OF OR INTEREST ON THE REVENUE BONDS; MAKING CERTAIN FINDINGS 1N CONNECTION THEREWITH; AND PROVIDING AN EFFECTIVE DATE WHEREAS, the City of Denton, Texas (the "City") is a duly organized and validly existing municipal corporation under the laws and Constitution of the State of Texas; and WHEREAS, the New Hope Cultural Education Facilities Finance Corporation (the "Issuer") was created pursuant to the Cultural Education Facilities Finance Corporation Act, Texas Local Government Code, Chapter 337, as amended (the "Act"), and has the power, authority and right to issue revenue bonds for the purpose of aiding any accredited institutions of higher education, secondary schools, and primary schools, and authorized charter schools in financing or refinancing educational facilities and housing facilities and facilities that are incidental, subordinate, or related thereto or appropriate in connection therewith; and WHEREAS, the Issuer previously issued its Capital Improvement Revenue Bonds (CHF — Collegiate Housing Denton, L.L.C. — Texas Woman's University Housing Project) Series 2018A- 1(the "Bonds") on behalf of CHF — Collegiate Housing Denton, L.L.C., a single member Alabama limited liability company (the "Borrower"), to finance student housing facilities at Texas Woman's University (the "University"); and WHEREAS, the Borrower and the University wish to use unspent proceeds of the Bonds in an amount not greater than $2,700,000 for costs relating to certain parking facilities at the University's campus (the "ProjecP'); and WHEREAS, Section 147(� of the Internal Revenue Code of 1986, as amended (the "Code"), requires that the use of unspent proceeds of the Bonds for the Project be approved by a governmental unit in which the Proj ect is located after a public hearing following reasonable public notice; and WHEREAS, a public hearing relating to the use of unspent proceeds of the Bonds for the Project was held within the City on February 26, 2020, after publication in the Denton Record Chronicle of a Notice of Public Hearing, and a report on the hearing has been presented to the City Council; and WHEREAS, the Bonds are payable solely from revenues of the Borrower, and the City has no obligation whatsoever for the Project or for the payment of the Bonds; and NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: Section 1. The findings set forth in the preamble of this Resolution are incorporated by reference into the body of this Resolution as if fully set forth herein. Section 2. The City hereby approves the use of unspent proceeds of the Bonds in the maximum amount of $2,700,000 for the Project, as described in the related Notice of Public Hearing, and such approval shall be solely for the purpose of satisfying the requirements of Section 147( fl of the Internal Revenue Code of 1986, 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, and City Cauncil in respect to the Bonds or the Project. The Bonds and the Project shall not constitute obligations of the City or a pledge of its faith and credit, and the City shall have no liabilities for the Project or the payment of the Bonds nor shall any of its assets be pledged to payment of the Bonds. Section 3. The Mayor and the City Secretary of the City and other officers of the City are hereby authorized to execute and deliver such instruments, certificates or other documents necessary or advisable to carry out the intent and purpose of this Resolution. Section 4. Further, it is recognized by the City that the instruments which authorize the issuance of bonds, notes or obligations by the Issuer specifically state that the City is not ohligateri to pay the principal of or interest on the bonds, notes or obligations issued by the Issuer. Nothing in this Resolution shall be construed as an indication by the City that it will pay or provide for the payment of any obligations of the Issuer whether theretofore or hereafter incurred; and in this connection, attention is called to the Constitution of the State of Texas, wherein it is provided that a City may incur no indebtedness without having made provisions for its payment, and the City Council of the City hereby specifically refuses to set aside any present or future funds, assets or money for the payment of any indebtedness or obligation of the Issuer. Section 5. This Resolution shall become effective immediately upon its passage and approval. The motion to approve this Resolution was made by � �,�� and seconded by �%E�S��A Vt� . The Re olution was passed and approved by the following vote [ `� - �: Mayor Chris Watts: Gerard Hudspeth, District 1: Keely G. Briggs, District 2: Jesse Davis, District 3: John Ryan, District 4: Deb Armintor, At Large Place 5 Paul Meltzer, At Large Place 6: Aye Nay ✓ ✓ ✓ ✓ V 2 Abstain Absent PASSED AND APPROVED this the l� day of 2020. , ATTEST: ROSA RIOS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: AARON LEAL, CITY ATTORNEY . BY: � G �� 3 CHRIS WATTS, MAYOR