Oct 18, 2021 Economic Development Corp. (Type A)

IT'S ALL GOOD. ALL RIGHT, I'VE BEEN GIVEN THE OFFICIAL OFFICIAL GO AHEAD, SO WE'LL START

[00:00:07]

[1. CALL TO ORDER]

[A. Consider approval of minutes from the July 6, 2021, September 7, 2021 and September 20, 2021 Economic Development Corp. Type A meetings. (Staff Contact: Amanda Campos, City Secretary)]

TYPE A MEETINGS. SO I'LL ALLOW THE MEMBERS OF TIME TO PERUSE THOSE AND BE READY FOR A MOTION. OK, I HAVE A MOTION BY JOHNSON, A SECOND BY GREEN TO APPROVE ALL THOSE IN FAVOR.

AND THAT MOTION PASSES BY UNANIMOUS VOTE.

SECOND ITEM ON OUR AGENDA THIS EVENING IS ITEM 2B TO CONSIDER APPROVAL OF A RESOLUTION

[B. Consider approval of a resolution requesting City Council pass a reimbursement resolution in an amount not to exceed $5,000,000 for capital project expenditures related to Chisholm Summit West Burleson Roadway Infrastructure. (Staff Presenter: Martin Avila, Finance Director)]

THANK YOU, PRESIDENT AND BOARD MEMBERS.

THIS ITEM, THIS REIMBURSEMENT RESOLUTION OF WHAT I WANT TO TALK ABOUT A LITTLE BIT IS THE REIMBURSEMENT PROCESS.

IT ALLOWS FOR PROJECTS TO BEGIN PRIOR TO ANY BOND ISSUE BEING DONE.

SO THAT'S THAT IS THE FIRST STEP.

NORMALLY WE WE ISSUE BONDS TOWARDS THE SUMMER EACH YEAR, JULY, YOU KNOW, THIS PARTICULAR CASE, JULY 2022.

NORMALLY, WITH THE WAY THE REIMBURSEMENT RESOLUTION WORKS, YOU HAVE ABOUT 18 MONTHS FROM THE START OF INCURRING THE THE INITIAL EXPENDITURE TO BE ABLE TO ISSUE BONDS TO REIMBURSE YOURSELF FOR THAT PARTICULAR EXPENDITURES FOR THAT CAPITAL PROJECT.

SO WHEN BONDS ARE ISSUED, THE BOND PROCEEDS WILL THEN REIMBURSE FOR THE AMOUNT SPENT UP TO THAT POINT. AND THEN GOING FORWARD, THE BOND PROCEEDS, WHATEVER IS REMAINING WILL BE ALLOWED TO BE USED GOING FORWARD TO WHATEVER PROJECTS WE ISSUE BONDS FOR.

SO THAT'S THE MECHANISM WHERE WE'RE GOING.

THE RESOLUTION THIS RESOLUTION DOES NOT IS NOT AN AUTHORIZATION TO ISSUE BONDS.

IT'S NOT ABOUT THAT. WHEN WE COME BACK IN MAY AND JUNE TO ISSUE, OK, THIS IS THE PROJECTS THAT WE KNOW WE'RE GOING TO BE ISSUING BONDS FOR.

THAT'S WHEN THE ACTUAL PROCESS OF ISSUING BONDS BEGINS.

THIS PARTICULAR ITEM HERE, WHAT IT PERTAINS TO IS FOR CHISHOLM SUMMIT, SO IT IS A 4A SUPPORTED PROJECT.

AND SO THERE IS SOME HISTORY.

I KNOW YOU'VE SEEN THIS PARTICULAR SLIDE BEFORE IT STARTED IN JULY 2020 AND AGAIN IN JUNE 7 2021, WE TALKED ABOUT THE THE COUNCIL APPROVING THE PURCHASE OF NINETY TWO ACRES FOR FUTURE OFFICE AND MEDICAL PARK.

ON SEPTEMBER 20TH 2021 COUNCIL APPROVED 4A ECONOMIC DEVELOPMENT BOARD'S AUTHORIZATION FOR THE CITY TO BEGIN PARTICIPATING IN THIS ROADWAY IMPROVEMENT PERTAINING TO CHISHOLM SUMMIT. AND SO AGAIN, THE PROJECT ITSELF AND HOW NOT GETTING INTO THE SPECIFICS OF HOW THAT PARTICULAR PROJECT IS GOING TO WORK.

THE TOTAL AMOUNT FOR THAT PROJECT AS IT RELATES TO DEVELOPER REIMBURSEMENTS IS ABOUT THIRTY FIVE MILLION DOLLARS.

WE ARE ONLY ASKING FOR FIVE MILLION AS PART OF THIS REIMBURSEMENT BECAUSE THAT'S IN ESSENCE THE AMOUNT THAT WE HAVE PROJECTED TO ISSUE BONDS ON FOR FISCAL YEAR 2022.

SO AGAIN, FOR THIS REIMBURSEMENT RESOLUTION, WE ASKED FOR THE ACTION TO APPROVE OR DENY THAT REIMBURSEMENT RESOLUTION.

IF Y'ALL HAVE ANY QUESTIONS, I'LL BE GLAD TO ANSWER.

OK, MARTIN, SO WHEN DO WE ANTICIPATE THE BOND ISSUE ACTUALLY TAKING PLACE JULY 2022 IN JULY. FOLLOWING THE ELECTION IN MAY FOR THESE BONDS OR ARE THESE BONDS OUTSIDE OF THAT ELECTION THAT IS OUTSIDE OF THE BOND ELECTION.

PACKAGE NEXT MAY. IF YOU NOTICE.

THESE ARE BONDS THAT WE CAN ISSUE [INAUDIBLE]] .

NONE OF THIS, NONE OF THIS REIMBURSEMENT PERTAINS TO ANY TAX SUPPORTED DEBT THAT IT IS JUST FOR THIS PARTICULAR RESOLUTION FOR THE 4A.

IT'S JUST 4A FUND.

OK, I WANTED TO CLARIFY THAT FOR THE BENEFIT OF ANYONE THAT'S LISTENING.

ANYBODY ELSE QUESTIONS OK, I CAN TAKE A MOTION ON THIS.

MOTION. OK, I HAVE A MOTION BY JAMIE, A SECOND BY RONNIE TO APPROVE ALL THOSE IN FAVOR.

ALL RIGHT. AND THAT MOTION PASSES WITH UNANIMOUS VOTE.

[00:05:01]

DO WE HAVE ANY NEED FOR EXECUTIVE SESSION? OK, THEN I HAVE NO OTHER ITEMS BEFORE THE BURLESON, 4A ECONOMIC DEVELOPMENT CORPORATION THIS AFTERNOON. SO WE WILL ADJOURN THE MEETING AT 4:37.

* This transcript was compiled from uncorrected Closed Captioning.