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".
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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:
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(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
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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.
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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
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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
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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
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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