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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 0JRB0502.007 1 024010 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 0JRB0502.007 2 Corpus Christi, Texas 3 ~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 0JRB0502.007 3 024010