HomeMy WebLinkAbout026645 RES - 02/14/2006RESOLUTION OF THE CITY OF CORPUS CHRISTI, TEXAS
APPROVING THE ISSUANCE OF TAX EXEMPT OBLIGATION BY
THE COLORADO EDUCATIONAL AND CULTURAL FACILITIES
AUTHORITY FOR THE BENEFIT OF EDUCATIONAL MEDIA
FOUNDATION AS REQUIRED BY SECTION 147 (F) OF THE
INTERNAL RE\'ENTTE CODE OF 1986, AS AMENDED.
Vl HEREAS, Educational Media Foundation, a California nonprofit corporation which
operates a non - commercial radio station (KKLM -FM) located at 410 S. Padre Island Drive, Suite
207, Corpus Christi, Texas (the "Borrower ") has requested the Colorado Educational and
Cultural Facilities Authority (the "Issuer ") to issue its Tax - Exempt Obligation for the benefit of
the Borrower. in the aggregate principal amount of approximately $16,500,000 (the
"Obligation "): and
WHEREAS, the proceeds of the Obligation will be used for the purposes of:
(a) refinancing the cost of acquiring an FCC non - commercial license to operate a radio station
assigned to Corpus Christi. Texas by the FCC that offers contemporary Christian music, public
affairs programming, public service announcements and personal counseling by phone to
listeners, b) equipping the radio station which the Borrower will operate, and (c) paying certain
costs of issuance of the Obligation.
WIIEREAS. in order to achieve interest savings, the Borrower desires that the Obligation
be issued m compliance with the requirement of the Internal Revenue Code of 1986, as amended
(the "Coda) so that interest on the Obligation will be excludable from the gross income of the
holders; and
WHEREAS. Section 147 (1) of the Code requires, as a condition to receiving tax- exempt
treatment of the interest on the Obligation, that an authorized, elected representative approve the
Obligation and the City Council of Corpus Christi (the "Council ") constitutes such an authorized,
elected representative: and
WIIEREAS. it is deemed necessary and advisable that this Resolution be adopted; and
N( )W, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
CORPUS CHRISTI AS FOLLOWS:
Section 1: "['he issuance of the Obligation by the Issuer in an aggregate amount not to
exceed $10.500,000 is hereby approved.
Section 2. Such approval shall be solely for the purposes of Section 147 (f) of the
Internal Revenue Code of 1986, and the City of Corpus Christi, Texas, shall have no liabilities
for the payment of the Obligation nor shall any of its assets be pledged to the payment of the
Obligation
Section 3 In providing this approval, the City makes no representations with respect to
any of the projects to be financed with the proceeds of the Bonds, specifically, but not by way of
11 211F1 4 ?
limitation. with respect to any projects outside the City of Corpus Christi which are to be
financed with approximately $16,150,000 of the proceeds of the Bonds, of which the City has no
knowledge.
Section 4: This Resolution shall take effect and be in full force immediately after its
adoption by the Council.
TIIIS RESOLUTION HAVING BEEN DULY CONA�. JERED AND VOTED UPON
WAS PASSED AND APPROVED THIS (�'� '�-(l
AY OF erti 2006.
ATTEST
Aro1gn City Clerk
APPROVED: February 'J. 2006.
By:
Lisa Aguilar
Assistant City Attorney
for City Attorney
CITY OF C • RPUS CHRISTI, TEXAS
B
, Mayor
Corpus Christi, Texas
1_1+4.. of j (1.A-A 4'1 , 2006
The above resolution was passed by the following vote:
Henry Garrett
Brent Chesney
Melody Cooper
Henry Garrett
Bill Kelp
Rex A. Kinnison
John E. Nlarez
Jesse l\oyola
Mark Scott
'►21;1;4 5