File #: 21-0232    Name: MEDC Bond Issuance
Type: Agenda Item Status: Approved
In control: McKinney Economic Development Corporation
On agenda: 3/16/2021 Final action: 3/16/2021
Title: Consider/Discuss/Act on All Matters Incident and Related to the issuance and sale of the "McKinney Economic Development Corporation Sales Tax Revenue Improvement and Refunding Bonds, Taxable Series 2021," including the adoption of a resolution authorizing the issuance of such bonds, establishing parameters for the sale and issuance of such bonds and delegating certain matters to an authorized official of the Corporation.
Attachments: 1. Resolution

Title

Consider/Discuss/Act on All Matters Incident and Related to the issuance and sale of the “McKinney Economic Development Corporation Sales Tax Revenue Improvement and Refunding Bonds, Taxable Series 2021,” including the adoption of a resolution authorizing the issuance of such bonds, establishing parameters for the sale and issuance of such bonds and delegating certain matters to an authorized official of the Corporation.

 

Summary

 

COUNCIL GOAL:                     Financially Sound Government

4A: Provide funding and organizational framework to ensure continual economic improvements

 

MEETING DATE:                     March 16, 2021

 

DEPARTMENT:                      MEDC / City Financial Services

 

CONTACT:                       Peter Tokar, MEDC President

                     Mark Holloway, Chief Financial Officer

 

RECOMMENDED CITY COUNCIL ACTION:                     

                     Approval of Resolution

 

ITEM SUMMARY: 

                     This Resolution approves the MEDC Board action to issue not to exceed $16.5 million in taxable sales tax revenue bonds (and)

                     Not to exceed $25 million of sales tax revenue refunding bonds (tax exempt)

                     The current interest rate for the bonds ranges shall not exceed 4%.

                     Additionally, approval of this resolution will designate the Chairman or Vice Chairman of the Board of Directors of the Corporation or the President and Chief Executive Officer of the Corporation as Pricing Officers to execute the transaction. This will enable pricing of the bonds at such time as the market conditions are most favorable.

 

 

BACKGROUND INFORMATION: 

                     The purposes of the issuance are (i) in the principal amount specified in the Pricing Certificate to provide funds to finance the costs of the Projects authorized by Section 501.101 of the Local Government Code which will create or retain primary jobs, (ii) in the principal amount specified in the Pricing Certificate for the discharge and final payment of certain outstanding obligations of the Corporation and (iii) to pay costs of issuance, in conformity with the Constitution and laws of the State of Texas, including the Act, the Texas Nonprofit Corporation Act, and Chapter 22, Texas Business Organizations Code

                     Application has been made to Standard and Poor’s (S&P) to review the bond rating

 

FINANCIAL SUMMARY: 

                     Total not to exceed amount for new issues is $16,500,000

                     Total not to exceed amount to refund is $25,000,000

                     Term not to exceed 20 years

                     Net present value savings of refunding debt of at least 4%