File #: 18-587    Name: MEDC Tax Revenue Bonds
Type: Resolution Status: Approved
In control: City Council Regular Meeting
On agenda: 7/17/2018 Final action: 7/17/2018
Title: Consider/Discuss/Act on all Matters Incident and Related to Approving the Resolution of the McKinney Economic Development Corporation Authorizing the Issuance of the "McKinney Economic Development Corporation Sales Tax Revenue Bonds, Taxable Series 2018" and the Deposit of Gross Sales Tax Revenues, Including the Adoption of a Resolution Pertaining Thereto
Attachments: 1. Resolution, 2. Bid Results with MEDC Approved Bid

Title

Consider/Discuss/Act on all Matters Incident and Related to Approving the Resolution of the McKinney Economic Development Corporation Authorizing the Issuance of the “McKinney Economic Development Corporation Sales Tax Revenue Bonds, Taxable Series 2018” and the Deposit of Gross Sales Tax Revenues, Including the Adoption of a Resolution Pertaining Thereto

 

Summary

 

COUNCIL GOAL:                     Financially Sound Government

(4A: Provide Funding and Organizational Framework to Ensure Continual Economic Improvements)

 

MEETING DATE:                     July 17, 2018

 

DEPARTMENT:                      MEDC / City Financial Services

 

CONTACT:                       Trudy Mathis, Finance Director

                     Abby Liu, MEDC Interim President

 

 

RECOMMENDED CITY COUNCIL ACTION:                     Approve Resolution

 

ITEM SUMMARY:                      

                     This Resolution approves the MEDC Board action to issue $20.11 million in taxable sales tax revenue bonds

 

BACKGROUND INFORMATION:

  • The purpose of the issuance is for acquisition of land to be used for economic development purposes and to pay for the cost of issuing the bonds
  • In spring 2018 MEDC purchased several parcels of land totaling $32.35 million
  • On July 12, the MEDC Board approved the bonds and a resolution declaring the expectation to reimburse itself for prior land acquisitions from the bond proceeds
  •  
  • FINANCIAL SUMMARY:                      
  • The bonds were offered for private placement through a competitive bidding process which closed on July 6, 2018

                     MEDC received bids from 10 financial institutions

                     First National Bank of Texas was the selected bid:

o                     10 year term

o                     Callable in 2019 with a 3.65% interest rate

o                     Total interest over the life of the bonds is approximately $4.32 million

 

BOARD OR COMMISSION RECOMMENDATION:

                     MEDC Board approved the bonds & terms at a special meeting held July 12, 2018.