HomeMy WebLinkAboutRes 2025-09-1827 Approval of CDC Taxable Loan in an amount not to exceed $916,754.34RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANNA, TEXAS
("CITY"), (I) APPROVING THE RESOLUTION OF THE BOARD OF
DIRECTORS OF ANNA COMMUNITY DEVELOPMENT CORPORATION
("CORPORATION") REGARDING TWO LOANS SECURED BY AND
PAYABLE FROM THE CORPORATION'S SALES AND USE TAX IN THE
AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $2,400,000 FOR THE
PURPOSE OF REFINANCING EXISTING DEBT OF THE CORPORATION
AND ACQUIRING A PARKING LOT; (II) APPROVING SAID PROJECT AS AN
ECONOMIC DEVELOPMENT PROJECT TO BE UNDERTAKEN BY THE
CORPORATION; (III) APPROVING TWO SALES TAX REMITTANCE
AGREEMENTS BETWEEN THE CITY AND THE CORPORATION; (IV)
APPROVING SUCH PROGRAMS AND EXPENDITURES BY THE
CORPORATION; (V) RESOLVING OTHER MATTERS INCIDENT AND
RELATED TO THE LOAN; AND (VI) AUTHORIZING THE MAYOR TO
EXECUTE, ON BEHALF OF THE CITY, ONE OR MORE GENERAL
CERTIFICATES OF THE CITY AND THE SALES TAX REMITTANCE
AGREEMENTS.
WHEREAS, the Anna Community Development Corporation (the "Corporation") has been duly
created and organized pursuant to the provisions of Chapter 505, Local Government Code, as amended
(formerly Section 4B of the Development Corporation Act of 1979, A1ticle 5190.6, Texas Revised Civil
Statutes Annotated, as amended) (the "Act") by the City of Anna, Texas (the "City"); and
WHEREAS, pursuant to the Act, the Corporation is empowered to unde1take, and to borrow
money for the purpose of financing the cost of, any "project" defined as such by the Act; and
WHEREAS, the Corporation has currently outstanding ce1tain indebtedness in the original
principal amount of $2,225,000 and dated January 15, 2024 (the "Refunded Obligation") issued to finance
the costs of one or more eligible economic development projects; and
WHEREAS, the Corporation's Board of Directors (the "Board") has determined that it is
advisable to refinance the Refunded Obligation through the issuance of one or more promisso1y notes to
be secured by a pledge of the Corporation's economic development sales and use taxes (the "Refunding);
and
WHEREAS, the Board has fmther determined that it is advisable to undertake the construction of
a public parking lot to be owned and operated by the City which will promote new or expanded business
development in the City (the "Proiect"); and
WHEREAS, the Corporation proposes to enter into one or more Loan Agreements (as amended,
restated, supplemented and/or otherwise modified, the "Loan Agreements") with Government Capital
Corporation, as lender ("Lender"), to enable the Corporation to complete the Refunding, pay the costs of
the Project and pay costs of issuing the loan (the "Issuance Costs"), and as security for the payment of the
principal of and interest thereon, the Corporation has agreed to pledge its economic development sales
and use taxes. The loan shall be evidenced by: (a) a tax-exempt promissory note issued by the
Corporation in the principal amount of $1,442,381.90 payable to the Lender (the "Series A Note") and (b)
a taxable promisso1y note issued by the Corporation in the principal amount not to exceed $916,754.34
(the "Series B Note" and together with the Series A Note, the "Notes"). All capitalized terms used herein,
but not otherwise defined herein, shall have the meaning ascribed to such term in the Loan Agreement.
2025-09-1827