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HomeMy WebLinkAbout15964 ORD - 01/07/1981jkh:1-7-81-1st AN ORDINANCE AUTHORIZING THE EXECUTION OF AN AGREEMENT WITH NEWCORTEX, INC., FOR THE PURCHASE OF THE LEASEHOLD INTEREST AT THE CORPUS CHRISTI GOLF CENTER, ALL AS MORE FULLY SET FORTH IN THE AGREEMENT, A SUBSTANTIAL COPY OF WHICH IS ATTACHED HERETO AND MADE A PART HEREOF, MARKED EXHIBIT "A". BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That the City Manager be authorized to execute an Agreement with Newcortex, Inc., for the purchase of the leasehold interest at the Corpus Christi Golf Center, which lease agreement was originally executed on January 31, 1963, and filed for record in Volume 995, at pages 390 to 407, Deed Records of Nueces County, Texas, a substantial copy of said Agreement with Newcortex, Inc., being attached hereto and made a part hereof, marked Exhibit "A". 15 964illfgROEILIvitu SEP 2 71984 AGREEMENT THE STATE OF TEXAS ) COUNTY OF NUECES ) THIS AGREEMENT, executed in duplicate on this day of January, 1981, by and between the City of Corpus Christi, Texas (hereinafter "City"), acting by and through its duly authorized City Manager, and Newcortex, Inc., (hereinafter "Newcortex"), a Texas corporation with offices at Corpus Christi, Texas, WITNESSETH: WHEREAS, on -January 31, 1963, the City executed a lease with Harrington & Cortelvou, a partnership consisting of Frank M. Cortelyou, E. M. Newman and F. M. Cortelvou, Jr., leasing certain premises formerly known as the "Cliff Maus Airport" in exchange for the construction of a golf course and other improve- ments, the payment of rent, and the surrender of the golf course and improvements upon the termination of the lease; and WHEREAS, said lease was executed for a term of thirty (30) years, beginning on the 3rd day of April, 1963, and ter- minating at midnight on the 2nd day of April, 1993; and WHEREAS, as allowed by Article X of said lease, Harring- ton & Cortelyou assigned all rights and interest in said lease to Newcortex by agreement on the llth day of May, 1963; and WHEREAS, Newcortex has constructed improvements and buildings on the leased premises and developed same as the "Golf Center"; NOW, THEREFORE, in consideration of the premises and of the mutual agreements herein contained, the City and Newcortex agree as follows: 1. Effective as of the 1st day of February, 1981, Newcortex will: -1- (a) Surrender, transfer and convey to the City all of the remaining leasehold interest in the premises now known as, and hereinafter described as, the Golf Center, which are more fully described in the lease agreement dated January 31, 1963, filed for record in Volume 995 at pages 390 to 407 in the Deed Records of Nueces County, Texas, and such lease shall be cancelled and have no further force or effect; (b) Grant, sell and convey to the City all rights, title and interest in the buildings and im- provements of a fixed nature constructed or maintained at the Golf Center; and (c) Transfer, sell and convey to the City all of its equipment, tools and inventories of merchandise and supplies (except as noted in Article 3 hereof) on hand and used as of close of business on January 31, 1931. Newcortex agrees that if the total value of all golf shop merchandise as reflected by inventory is below the sum of Twenty -Four Thousand Dollars ($24,000.00), Newcortex will pay to City the difference in cash at time of closing; and (d) Grant, sell, convey and relinquish to City all rights, title and interest in the watering system at the Golf Center, which shall be deemed to include, in addition to all equipment and improvements located on the premises, the pumping station located at the Westside Sewage Treatment Plant, the pipeline and the rights of way located between the pumping station and the Golf Center, and the right to use effluent from the Westside Sewage Treatment Plant. 2. City agrees, as consideration for the cancellation of the lease and the transfer of the other assets and inventory described herein, to issue City of Corpus Christi Golf Revenue -2- Bonds (hereinafter "the Bonds"), in the total of Four Hundred Forty Thousand Dollars ($440,000.00), as provided in the attached bond ordinance marked Exhibit "A". At time of closing, the City agrees to sell, transfer and convey the Bonds at face value to Newcortex, and Newcortex agrees to purchase same by tendering its check payable to City in the amount of Four Hundred Forty Thousand Dollars ($440,000.00). City agrees to tender its check in the same amount payable to Newcortex in exchange for the con- veyances and relinquishments to in Article 1 of this Agreement. and expenses be made by Newcortex as provided City agrees to pay all costs related to the issuance of the Bonds, including but not limited to bond counsel fees, the cost of printing the Bonds, any Texas, and the City. fees charged by various officers of the State of administrative and other legal expenses incurred by At time of closing, Newcortex will pay to City Five Thousand Dollars ($5,000.00) to be applied to such costs and expenses. 3. The purchase consideration provided in Article 2 hereof shall be allocated by and shall be binding upon the parties to this agreement for all purposes, as provided in this Article 3. The consideration received for the assets to be transferred to City as in Article 1 hereof shall be an amount equal to the net book value of those assets, as reflected on the books and records of Newcortex, Inc., as of the 1st day of February, 1981. The consideration received for the merchandise Inventory to be transferred to City shall be Twenty -Four Thou- sand Dollars ($24,000.00). The consideration received for the cancellation of the lease shall be an amount equal to Four Hun- dred Forty Thousand Dollars ($440,000.00) less that consideration allocated pursuant to this Article 3 to the assets and inventory described in Article 1 hereof. -3- 4. Ad valorem taxes on the Golf Center, its premises, building, improvements, equipment and inventories shall be pro- rated as of February 1, 1981. 5. Newcortex shall furnish a title opinion on the leasehold interest and improvements of the Golf Center to the City in the form and manner required by the City's attorney, and City shall furnish a title opinion, in partial reliance upon the opinion submitted by Newcortex, as to the merger of the fee and leasehold interests in the City and the City's fee simple title to the property. 6. As soon as practically feasible, at a time conven- ient to both parties, the City and Newcortex shall conduct an inspection of the Golf Center, its buildings, improvements, water system, equipment and assets herein conveyed to the City, to determine if the Golf Center is in reasonable operating con- dition. Within five (5) business days from the date of inspec- tion, the City will furnish Newcortex a written description of all defects, shortages, repairs or maintenance required to put the Golf Center in reasonable operating condition. Newcortex agrees to complete all corrections or repairs required by City's report on or before January 31, 1981, or at closing tender a check to the City in an amount equal to the agreed cost of the required corrections or repairs not then completed. 7. Newcortex has advised City that it has outstanding (a) the obligation to deliver golf shop merchandise to holders of "Tournament Credits" (certificates awarded as tournament prizes authorizing purchase of golf shop merchandise), and (b), the obligation to honor prepaid green fees to holders of "Dis- count Cards" (cards recognizing prepaid green fees in a dollar amount shown on the card, sold at twenty percent (20%) less than such amount). City will honor Newcortex' obligations on its - 4- outstanding Tournament Credits and Discount Cards until noti- fied in writing by Newcortex that the obligation is terminated on one, or the other, or both. City will furnish to Newcortex by the 15th day of each calendar month a list of the names and addresses of per- sons to whom merchandise was .furnished under Newcortex' "Tourna- ment Credits" during the previous month, the retail price of merchandise furnished to each person and the amount of credit _ used. Within fifteen (15) days after receipt of such list New - cortex will pay to City an amount equal to sixty-five percent (65%) of the retail price of all items so furnished. City will furnish to Newcortex by the 15th day of each calendar month a list of the names and addresses of persons using Discount Cards during the previous month and the total amount of the green fees charged against each person's card. Within fifteen (15) days after receipt of such list Newcortex will pay to City an amount equal to ninety-three percent (93%) of eighty percent (80%) (that is, 74.4;) of the amount of green fees so furnished. 8. An inventory of golf shop merchandise and the supply of fertilizer and golf cart batteries and tires shall be jointly conducted by City and Newcortex as of the close of business on January 31, 1981. The inventories shall be valued at Newcortex' cost on the first -in -first -out method. A supply of four tons of fertilizer and all used golf cart tires and batteries shall be considered normal or ordinary and shall go with the sale. All fertilizer in excess of four tons and all new and unused golf cart tires and batteries, if any, shall be considered extraordinary. City shall have the option to purchase all of these extraordinary items at their inventory value and a spare pump at Newcortex' total cost of overhaul and repair, provided it delivers written notice of the -5- exercise of such option at or prior to the time of closing. If City exercises its option, City shall nay Newcortex in cash at, or promptly after, time of closing. If City does not exer- cise its option, Newcortex shall retain these extraordinary items and the pump and cause them to be removed within thirty (30) days after the closing. It is understood that this sale includes the used poles and light fixtures previously used for night lighting of the golf driving range and they are not to be included as inventory items. 9. Newcortex expressly warrants all rights, title and interests in the Golf Center, its buildings, improvements, water system and assets herein conveyed to the City, as being free from any liens or encumbrances, and shall defend said rights, title and interests against every person lawfully claiming same or any part thereof. 10. This transaction shall he closed at the offices of Kleberg, Dyer, Redford & Weil on February 2, 1981, to be effec- tive as of February.1, 1981, or at such other time and place as the parties may agree. 11. The agreements and covenants made herein shall sur- vive the closing and continue until all bonds issued hereunder have been paid and retired in full, both principal and interest. IN WITNESS WHEREOF, this agreement has been executed as of the day and year first above written. APPROVED: CITY OF CORPUS CHRISTI, TEXAS J. BRUCE AYCOCK, CITY ATTORNEY By: R. Marvin Townsend, By: City Manager Assistant City Attorney ATTEST: City Secretary ATTEST: NEWCORTEX, INC. By: Secretary President -6- THE STATE OF TEXAS COUNTY OF NUECES CITY OF CORPUS CHRISTI : On this the 7th day of January, 1981, the City Council of the City of Corpus Christi, Texas convened in Regular Meeting, with the following members of said Council 'present, to -wit: Luther Jones, Edward L. Sample, Dr. Jack Best, David•Diaz, Jack K. Dumphy, Betty N. Turner, Cliff Zarsky, R. Marvin Townsend, J. Bruce Aycock, Harold F. Zick, Bill G. Read, Mayor, Mayor Pro -Tem, Councilmen, City Manager, City Attorney, Director of Finance, City Secretary, with the following absent: constituting a quorum, at which time the following among other business was transacted: presented for the consideration of the ;Council an ordinance. The ordinance was read by the City Secretary. The Mayor presented to the Council a communication in writing pertaining to said proposed ordinance, as follows: "Corpus Christi, Texas , 1981 "TO THE CITY COUNCIL Corpus Christi, Texas Gentlemen: "The public importance and pressing need for the permanent improvements to be acquired by use of the proceeds of bonds contemplated to be issued pursuant to•an ordinance create an emergency and an imperative public necessity requiring the suspension of rules and Charter provisions requiring ordinances to be considered and voted upon at three regular meetings. I, therefore, request that the City Council pass the proposed ordinance authorizing the issuance of bonds as an emergency measure. You will please consider this request in connection with the ordinance which is to be introduced for passage by the City Council on the subject. "Yours very truly, /s/ Luther Jones • Mayor" Councilman moved that the Charter provision prohibiting ordinances from being passed finally on the date introduced be suspended for the reasons stated in the written request of the Mayor and stated in the emergency clause of the ordinance. The motion was seconded by Councilman . The motion was carried by an unanimous vote by the City Council, viz.: AYES: All present voted Aye. NAYS: None. The Mayor requested that the records show that he voted Aye. This was done. Councilman moved that the ordinance be passed finally. The motion was seconded by Councilman The motion was carried by the following vote: AYES: All present voted Aye. NAYS: None. The Mayor requested that the records show that he voted Aye. 'This was done. The Mayor announced that the ordinance had been passed. The ordinance is as follows: ORDINANCE NO. BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS, PROVIDING FOR THE ISSUANCE OF $440,000 CITY OF CORPUS CHRISTI, TEXAS, GOLF CENTER REVENUE BONDS, SERIES 1981; PROVIDING THAT SUCH BONDS WILL BE PAYABLE FROM AND SECURED BY REVENUES; PRESCRIBING THE FORM OF SAID BONDS; AND ORDAINING OTHER MATTERS RELATING TO THE SUBJECT WHEREAS, the City of Corpus Christi is authorized by Articles 1269j-4.1, V.A.C.S. to issue and secure the payment of bonds herein authorized by and•from the Pledged Revenues as hereinafter defined; BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: Section 1. AUTHORIZATION OF BONDS. That said City's 'revenue bonds, to be designated the "City of Corpus Christi, Texas, Golf Center Revenue Bonds, Series 1981", are hereby ized to be issued and delivered in the principal amount of $440,000 for the purpose of acquiring a golf course. Section 2. DATE, DENOMINATION, MATURITIES. That said bonds shall be dated February 1, 1981, shall be in the denomination of $1,000 each, shall be numbered consecutively from 1 through 440, and shall mature serially on February 1 in each of the years, and in the amounts, respectively, as set forth in the following schedule: YEARS AMOUNTS YEARS AMOUNTS 1982 $ 44,000 1987 $ 44,000 1983 44,000 1988 44,000 1984 44,000 1989 44,000 1985 44,000 1990 44,000 1986 44,000 1991 44,000 Section 3. INTEREST. That the bonds shall bear interest from their date until maturity at the rate of 6% per annum, with said interest to•be evidenced by interest coupons payable on August 1, 1981, and semiannually thereafter on each February 1 and August 1. • Section 4. PLACE OF PAYMENT. That the principal of and interest on said bonds shall be payable to bearer, in lawful money of the United States of America, without author - r. exchange or collection charges to the bearer, upon presenta- tion and surrender of proper bond or interest coupon, at Corpus Christi National Bank, Corpus Christi, Texas, which place shall be the paying agent for said bonds. Section 5. FORM OF BONDS, COMPTROLLER'S CERTIFICATE AND INTEREST COUPON. That the form of said bonds, including the form of Registration Certificate of the Comptroller of Public Accounts of the State of Texas. to be printed and endorsed on each of said bonds, and the form of the aforesaid interest coupons which shall appertain and be attached ini- tially to each of said bonds shall be, respectively, substan- tially as follows: FORM OF BOND !NO. $1,000 UNITED STATES OF AMERICA STATE OF TEXAS COUNTY OF NUECES CITY OF CORPUS CHRISTI, TEXAS, GOLF CENTER REVENUE BOND SERIES 1981 On February 1, 19_, the City of Corpus Christi, in the 'County of Nueces, State of Texas, promises to pay to bearer the principal amount of ONE THOUSAND DOLLARS ;'and to pay interest thereon, from the date hereof, at the rate of 6% per annum, evidenced by interest coupons payable August 1, 1981, and semiannually thereafter on each February 1 and August 1 while this bond is outstanding. The principal of this bond and the interest coupons appertaining hereto shall be payable to bearer, in lawful money of the United States of America, without exchange for collection charges to the bearer, upon presentation and surrender of this bond or proper interest coupon at the Corpus Christi National Bank, Corpus Christi, Texas, which place shall be the paying agent for this series of bonds. This bond is one of a series of bonds dated February 1, 1981, issued in the principal amount of $440,000 for the purpose of acquiring a golf course. It is hereby certified, recited and covenanted that this bond has been duly and validly issued and delivered; that all acts, conditions and things required or proper to be performed, exist and be done precedent to or. in the authorization, issuance and delivery of this bond have been performed', existed and been done in accordance with law; that this bond is a special obligation of said City, payable from and secured by a first lien on and pledge of the Pledged Revenues as described and defined in the ordinance authorizing this bond. In witness whereof, this bond and the interest coupons ,appertaining hereto have been signed with the facsimile signature of the Mayor of said City and countersigned with the facsimile signature of the City Secretary. of said City, and the official seal of said City has been duly impressed, or placed in facsimile on this bond. City Secretary, City of Mayor, City of Corpus Christi Corpus Christi FORM OE REGISTRATION CERTIFICATE COMPTROLLER'S REGISTRATION CERTIFICATE: REGISTER NO. I hereby certify that this bond has been examined, certified as to validity, and approved by the Attorney General of•the State of Texas, and that this bond has been registered by the Comptroller of Public Accounts of the State of Texas. Witness my signature and seal this NO. Comptroller of Public Accounts of the State of Texas FORM OF INTEREST COUPON ON , 19 The City of Corpus Christi, in the County of Nueces, State of Texas, promises to pay to bearer the amount shown on this interest coupon, in lawful money of the United States of America, without exchange or collection charges to the bearer, upon presentation and surrender of this interest coupon, at the Corpus Christi National Bank, Corpus Christi, Texas, said amount being interest due that day on the bond, bearing the number hereinafter designated, of that issue of City of Corpus Christi, Texas, Golf Center Revenue Bonds, Series 1981, dated February 1, 1981. Bond No. City Secretary Mayor Section 6. DEFINITIONS. That the terms defined in this Section for all purposes of this Ordinance, except where the context by clear implication shall otherwise require, shall have the respective meanings as follows, to -wit: (a) The term "Bonds" shall mean the City of Corpus Christi, Texas, Golf Center Revenue Bonds, Series 1981, authorized to be issued and delivered by this Ordinance. (b) The term "Golf Center" shall mean the golf course and all buildings, improvements, leasehold rights, equipment and other facilities being acquired with the proceeds of the Bonds, known as :the Corpus Christi Golf Center (located on land which is particularly described in a lease dated January 31, 1963, recorded j in Volume 995, pages 390-407 of the Deed Records of Nueces County, Texas), together with all improvements, extensions, enlargements and additions thereto and replacements thereof hereafter made. (c) The term "Pledged Revenues", as used in this Ordinance, shall mean the gross revenues received from the ownership or ;;operation of the Golf Center. Section 7. PLEDGE. The bonds shall be secured by and payable Revenues, from a first lien on and pledge of the Pledged and such lien and pledge established and made. are hereby irrevocably So long as any of the Bonds remain 4 outstanding, the City will not issue any additional bonds of equal or superior dignity payable from the revenues herein pledged. Section 8. PLEDGED REVENUES. All Pledged Revenues shall be collected and held in the City's depository bank for the uses herein prescribed. The Pledged Revenues shall be deposited into the Interest and Sinking Fund to the extent and in the amounts provided hereunder. Section 9. INTEREST AND SINKING FUND. The City of Corpus Christi,• Texas, Golf Center Revenue Bonds, Series 1981 Interest and Sinking Fund, hereinafter called the "Interest Viand Sinking Fund" is hereby created and shall be established and maintained in a depository bank of the City, so long as the Bonds, or interest thereon, are outstanding and unpaid. Section 10. USE OF INTEREST AND SINKING FUND. On or before the 5th day of the first month to occur following the date of delivery of the Bonds to the purchasers thereof and on or before the 5th day of each following month thereafter so long as any of the Bonds remains outstanding, there shall be deposited in the Interest and Sinking Fund an equal amount of money from Pledged Revenues, with such deposits totaling, together with other amounts in the Interest and Sinking Fund, not less than the amount of the installment of jinterest coming due on the Bonds on the next succeeding interest payment date, and the amount of principal, if any, maturing during the succeeding twelve months. The Interest and Sinking Fund shall be used to pay the principal of and 1 1, interest on the Bonds as such principal matures and such interest comes due. Section 11: PAYMENT. On or before the first day of August, 1981 and on or before the first day of each February and each August thereafter'while any of the Bonds or interest 1 thereon are outstanding and unpaid, the City shall make available to the Paying Agent from monies in the Interest and Sinking Fund the interest coming due on each such date and the principal of the Bonds maturing, if any, on each such date. 5 Section 12. RATES. The City covenants and agrees with the holders of the Bonds that it will at all times levy and collect gross revenues received from the ownership or opera- tion of the Golf Center as will be at least sufficient to provide Pledged Revenues which will be adequate to pay promptly all of the principal of and interest on the Bonds, ;and to make all deposits now or hereafter required to be made into the Interest and Sinking Fund created and established by this Ordinance. j Section 13. EXCESS REVENUES. The Pledged Revenues in excess of those required for deposits pursuant to this Ordinance shall be used to pay the costs of operating and' - maintaining the Golf Center, and to the extent not so required, for any lawful purpose. Section 14. SECURITY FOR FUNDS. All Funds created by this Ordinance shall be secured in the manner and to the fullest extent permitted or required by law for the security of public funds, and such Funds shall be used only for the purposes and in the manner permitted or required by this Ordinance. Section 15. SPECIAL COVENANTS. It is hereby covenanted and agreed by the City that while any part of the principal ' or interest of said issue of Bonds is outstanding and unpaid: (a) It will faithfully perform at all times any and :all covenants, undertakings, stipulations and provision= contained in this Ordinance and in each and every Bond exe- i' i;cuted and delivered hereunder, that it will promptly pay or cause to be paid from the revenues herein pledgedthe grin- , ricipal of and interest on every Bond issued hereunder, on the ii dates and at the places and manner prescribed in such Bond, k and that it will, at the times and in the manner prescribed herein, deposit or cause to be deposited, from the revenues ,,pledged, the amounts of money specified herein. All Bonds ; !I agent and shall be delivered to or upon the order of the or coupons, when paid, shall be cancelled by the paying City. 6 (b) It is duly authorized under the laws of the State of Texas to create and issue the Bonds; that all action on its part for the creation and issuance of the Bonds has been duly, lawfully and effectively taken, and that the Bonds in the hands of the holders and owners thereof will be valid and enforceable special obligations of the City in accordance with their terms and the terms of this Ordinance. (c) It lawfully owns and is lawfully possessed of the land upon which the Golf Center is located and it has a good and indefeasible estate in such land in fee simple; it !warrants that it has, and will defend, the title to the said !,land and every part thereof and improvements thereon, for the benefit of the holders and owners of the Bonds against the claims and demands of all persons whomsoever; it is lawfully qualified to pledge the revenues herein pledged in the manner prescribed herein, and has lawfully exercised such right. (d) It will from time to time, and before the same become delinquent, pay and discharge all taxes, assessments and governmental charges, if any, which shall be lawfully imposed upon it, or upon the Golf Center, that it will pay ;'all lawful claims for rents, royalties, labor, materials and supplies which, if unpaid, might by law become a lien or charge upon the Golf Center, or any part of same, the lien which would be prior to or interfere with the lien hereof, !'so that the priority of the lien granted hereunder shall be fully preserved in the manner provided herein, and that it will not create or suffer to be created any mechanic's, !;laborer's, materialman's or other lien or charge which might or could be prior to the lien hereof, or do or suffer any matter or thing whereby the lien hereof might or could be impaired; provided, however, that no such tax, assessment or charge, and that no such claim which might be "used as the ,basis of a mechanic's, laborer's, materialman's or other ii lien or charge, shall be required to be paid so long as the validity of the same shall be contested in good faith by the 1 City., 7 1' • (e) It will not do or suffer any act or thing whereby Uthe Golf Center, or any part thereof, might or could be I1 l impaired, and that it will at all times maintain, preserve {j and keep the real and tangible property of said facilities '.•and every part thereof in good condition, repair and working ;;order and maintain, preserve and keep all structures and equipment pertaining thereto and every part and parcel jthereof in good condition, repair and working order. (f) That it will continuously and efficiently operate land maintain in good condition and at a reasonable cost the Golf Center and the facilities and services offered by same. (g) (1) With respect to the Golf Center, the City shall procure fire and extended coverage insurance on such buildings and the contents thereof. The foregoing fire and extended coverage insurance shall be maintained so long as any of the Bonds is outstanding and such fire and extended coverage insurance shall be in amounts at least sufficient to provide for full recovery on each building and the contents thereof whenever a loss from perils insured against does not exceed eighty per cent (80%) of the full insurable' value thereof. (2) Upon the happening of any loss or damage covered by any such policies from one or more of the causes to which reference is made in this Section, the City shall make due +proof of loss and shall do all things necessary or desirable ii to cause the insuring companies to make payment in full directly to the City. (3) The proceeds of insurance, covering such property, ,f { shall be used forthwith by the City for the purpose of repairing the property damaged or replacing the property i, destroyed, and any insurance proceeds remaining upon the completion of such repair or replacement shall be deposited II in the Interest and Sinking Fund. h () That it shall cause to be kept p proper books, ° recordb and accounts (separate and apart from all other records and accounts) in which complete and correct entries 8 shall be made of all transactions relating to the •Golf Center and the facilities and services afforded thereby; and that the City shall furnish to any holder of any of the Bonds, at written request of such holder, not less than thirty (30) days after the close of each fiscal year, complete operating and income statements of the Golf Center in reason- able detail covering such period, together with a certificate signed by the City's senior financial officer stating that the City has complied with the requirements of this paragraph of this Ordinance. (i) That any holder or holders of twenty-five (25%) per centum in aggregate amount of the Bonds at the time then outstanding, shall have the right at all reasonable times to inspect the Golf Center and all records, accounts and data of the City relating thereto. Section 16. SALE OF BONDS. That the City of Corpus Christi, Texas, Golf Center Revenue Bonds, Series 1981, aggregating $440,000, are hereby sold and shall be delivered to Newcortex, Inc., Corpus Christi, Texas, for the principal , amount thereof, without accrued interest thereon to date of delivery. 1 Section 17. APPROVAL AND REGISTRATION OF BONDS. That the City Manager of said City is hereby authorized to have control of said Bonds and all necessary records and proceed- ings pertaining to said Bonds pending their delivery and their investigation, examination and approval by the Attorney General of the State of Texas, and their registration by the Comptroller of Public Accounts of the State of Texas. Upon registration of said Bonds, said Comptroller of Public Ac- counts (or a deputy designated in writing to act for said Comptroller) shall manually sign the Comptroller's Registra- 'tion Certificate printed and endorsed on each of said Bonds, '.and the seal of said Comptroller shall be impressed, or placed in facsimile, on each of said Bonds. Section 18. ARBITRAGE. That the City covenants to and with the purchasers of the Bonds that it will make no use of the proceeds of the Bonds at any time throughout the.term of this issue of bonds expected on the date ! for the Bonds by the to be arbitrage bonds which, if such use had been reasonably of delivery of the Bonds to and payment purchasers, would have caused the Bonds within the meaning of Section 103(c) of the Internal Revenue Code of 1954, as amended, or any ' regulations, or rulings pertaining thereto; and by this covenant the City is obligated to comply with the requirements of the aforesaid Section 103(c) and all applicable and pertinent Department of the Treasury regulations relating to arbitrage bonds. The City further covenants that the proceeds of the Bonds will not otherwise be used directly or indirectly so as to cause all or any part of the Bonds to be or become arbitrage bonds within the -meaning of the aforesaid Section 103(c), or any regulations or rulings pertaining thereto. Section 19. DECLARATION OF EMERGENCY. The fact that the contemplated use of the proceeds of the Bonds is necessary for the orderly development and growth of the recreation facilities of the City of Corpus Christi, Texas, creates a public emergency and an imperative public necessity requiring the suspension of the Charter Rule providing that no ordinance or resolution shall be passed finally on the date it is introduced and that such ordinance or resolution shall be read at three several meetings of the City Council and the Mayor having declared that such public emergency and imperative necessity exist, and having requested that said Charter Rule be suspended and this ordinance take effect and be in full force and effect from and after its passage, it is accordingly so ordained. Section 20. REPEAL. That all ordinances and resolutions or parts thereof in conflict herewith are hereby repealed. PASSED AND APPROVED this th slday of January, 1981. ATTEST: r,r ity of Corpus Christi, Texas City Secretary, Cit}k of Corpus i; Christi, Texas i + 10 THE STATE OF TEXAS COUNTY OF NUECES CITY OF CORPUS CHRISTI I, the undersigned, City Secretary of the City of sl Corpus Christi, Texas, do hereby certify that the above and foregoing is a true, full and correct copy of an Ordinance passed by the City Council of the City of Corpus Christi, Texas (and of the minutes pertaining thereto) on the 7th day of January, 1981, authorizing the issuance of $440,000 City of Corpus Christi, Texas, Golf Center Revenue Bonds, Series 1981, which ordinance is duly of record in the minutes of said City Council, and said meeting was open to the public, and public notice of the time, place and purpose of said meeting was given, all as required by Vernon's Ann. Civ. Stat., article 6252-17, as amended. EXECUTED UNDER MY HAND AND SEAL of said City, this the 9 day of January, 1981. (SEAL) li City Secretary, City of Corpus Christi, Texas F • Corpus Christi, xas '7 day of , 19_j)/_ TO THE MEMBERS OF THE CITY COUNCIL Corpus Christi, Texas For the reasons set forth in the emergency clause of the foregoing ordinance, a public emergency and imperative necessity exist for the suspension of the Charter rule or requirement that no ordinance or resolution shall be passed finally on the date it is introduced, and that such ordinance or resolution shall be read at three meetings of the City Council; I, therefore, request that you suspend said Charter rule or requirement and pass this ordinance finally on the date it is introduced, or at the present meeting of the City Council. The Charter rule Luther Jones Edward L. Sample Dr. Jack Best David Diaz Jack K. Dumphy Betty N. Turner Cliff Zarsky Respectfully, MAYO was suspended Y OF CORPUS CHRISTI, TEXAS by the following vote: The above ordinance was passed by the following vote: Luther Jones Edward L. Sample,' Dr. Jack Best David Diaz - Jack K. Dumphy Betty N. Turner Cliff Zarsky 15961