HomeMy WebLinkAbout024010 RES - 04/11/2000RESOLUTION
APPROVING ISSUANCE OF BONDS BY CORPUS CHRISTI INDUSTRIAL
DEVELOPMENT CORPORATION FOR THE AIRBORNE FREIGHT
CORPORATION PROJECT AT CORPUS CHRISTI INTERNATIONAL
AIRPORT.
WHEREAS, the Corpus Christi Industrial Development Corporation (the "Issuer") is a
nonprofit industrial development corporation created by the City of Corpus Christi, Texas (the
"City"), pursuant to Article 5190.6, Texas Revised Civil Statutes, as amended (the "Act");
WHEREAS, the Issuer is authorized by the Act to issue its revenue bonds on behalf of the
City for the purpose of financing all or part of the costs of a "project," as defined in the Act, and to
loan the proceeds thereof to finance all or part of the costs thereof;
WHEREAS, the Issuer, by resolution adopted April 11,2000 (the "Bond Resolution"), has
authorized the issuance and sale of its Industrial Revenue Development Bond, Series 2000 (Airborne
Freight Corporation Project) (the "Bond") in the principal amount of $1,100,000 and by the Bond
Resolution has also authorized a Loan Agreement, dated as of April 1, 2000, by and among the
Issuer, MDC Corpus, LLC (the "Borrower") and GE Capital Public Finance, Inc. (the "Purchaser")
(the "Loan Agreement") whereunder the Borrower has agreed to make loan payments in amounts
sufficient to pay debt service on the Bond and the Issuer agrees to issue and sell the Bond to provide
funds to finance the constrnction by the Borrower of an air cargo distribution facility located at the
Corpus Christi International Airport located within the City (the "Project"), to be leased by the
Borrower to Airborne Freight Corporation, as well as approving certain other agreements of the
Issuer in connection therewith, including, without limitation, the Escrow Agreement dated as of
April 1, 2000 (the "Escrow Agreement"), by and among the Issuer, the Borrower, the Purchaser and
City National Bank, as Escrow Agent;
WHEREAS, the Act requires that the governing body of the City approve, by written
resolution, any agreement to issue bonds approved by the Issuer;
WHEREAS, the general public had an opportunity to make comments on the Bond and the
Project at a public hearing duly called and held by the Issuer;
WHEREz~S, this City Council has reviewed the proceedings relative to the issuance of the
Bond and, by adoption of this Resolution, intends to approve the Bond Resolution and the execution
and delivery of the bond documents by the Issuer, the issuance of the Bond, the plan of financing
approved by the Bond Resolution and to make the findings required by the Act to approve the
Project; and
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WHEREAS, the City has been provided with copies of the aforementioned documents in
substantially final form which will be used to issue and secure payment of the Bond, including
specifically the Loan Agreement.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF CORPUS CHRISTI, TEXAS, THAT:
SECTION 1. The Loan Agreement, in substantially the form and substance as attached to
the Bond Resolution and made a part hereof and thereof for all purposes, is hereby approved, and
the Bond in the principal amount of $1,100,000 may be issued pursuant thereto for the purpose of
financing the cost of constructing or causing to be constructed the Project as defined and described
therein, which Project was and is in compliance with the Act and the rules promulgated thereunder
by the Texas Department of Economic Development; and the Project is hereby approved. The
execution and delivery by the Issuer of the Loan Agreement, the Escrow Agreement, and other
documents contemplated by the Bond Resolution is hereby approved.
SECTION 2. The City hereby approves the issuance of the aforesaid Bond in the principal
amount of $1,100,000 for the Borrower and further approves the Project as described in the Loan
Agreement, and such approvals shall be solely for the purposes of Section 147(1) of the Internal
Revenue Code of 1986, as amended, and the City shall have no liabilities for the payment of the
Bond nor shall any of its assets be pledged to the payment of the Bond.
SECTION 3. The City Secretary is authorized and directed to deliver executed copies of this
Resolution to the General Manager of the Issuer for use in connection with the issuance of the Bond.
The Mayor and the City Manager each are authorized to executed such documents on behalf of the
City to effect the provisions of this Resolution.
SECTION 4. This Resolution shall become effective immediately upon its passage.
ATTEST:
Armando Chapa
City Secretary
APPROVED THIS THE / { DAY OF
James R. Bray, Jr., City Attorney
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Corpus Christi, Texas
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~P"~ay of dE '_9,_ :000
The above resolution was passed by the following vote:
Samuel L. NeaL Jr.
Javier D. Colmenero
Melody Cooper
Henry Garrett
Dr. Arnold Gonzales
Rex A. Kinnison
Betty Jean Longoria
John Longoria
Mark Scott
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024010