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HomeMy WebLinkAboutResolution No. 2013-035 RESOLUTION NO. 2013-035 A RESOLUTION MAKING CERTAIN FINDINGS AND DETERMINATIONS REGARDING FUNDING CERTAIN IMPROVEMENTS TO THE SAM RAYBURN TOLLWAY; APPROVING THE ACTIONS OF THE COLONY ECONOMIC DEVELOPMENT CORPORATION, THE COLONY COMMUNITY DEVELOPMENT CORPORATION, AND THE COLONY LOCAL DEVELOPMENT CORPORATION RELATED TO SUCH IMPROVEMENTS; PROVIDING A SEVERABILITY CLAUSE; PROVIDING FOR AN EFFECTIVE DATE, AND RESOLVING OTHER MATTERS INCIDENT AND RELATED THERETO. WHEREAS, The Colony Economic Development Corporation, The Colony Community Development Corporation, and The Colony Local Development Corporation (collectively, the "City Entities") have each been created by the City to, among other things, promote and encourage economic development within the City of The Colony, Texas (the WHEREAS, the City Entities have previously issued their respective obligations designated "The Colony Economic Development Corporation Sales Tax Revenue Bonds (Nebraska Furniture Mart Texas Project Infrastructure Bonds), Series 2013", dated February 21, 2013 (the "EDC Bonds"); "The Colony Community Development Corporation Sales Tax Revenue Bonds (Nebraska Furniture Mart Texas Project Infrastructure Bonds). Series 2013", dated February 21, 2013 (the "CDC Sales Tax Bonds"), "The Colony Local Development Corporation Sales Tax Increment Contract Revenue Bonds (Nebraska Furniture Mart Texas Project Infrastructure Bonds), Series 2013", dated February 21, 2013 (the "LDC Sales Tax Bonds") and "The Colony Local Development Corporation Tax Increment Contract Revenue Bonds (Nebraska Furniture Mart Texas Project Infrastructure Bonds), Series 2013'", dated February 21, 2013 (the "LDC Ad Valorem Tax Bonds", and together with the EDC Bonds, CDC Bonds, and LDC Sales Tax Bonds, referred to collectively as the 'Bonds"); WHEREAS, the Bonds were issued in part to finance the costs of construction of certain public infrastructure projects located within and outside of, and benefitting, the Tax Increment Reinvestment Zone Number One, City of The Colony, Texas (the "Zone"), all in accordance with and authorized by the respective indentures and applicable laws of the State of Texas under which such Bonds were issued, including certain road improvements which include a bridge crossing of South Colony Boulevard over the Sam Rayburn Tollway (the "Tollway Improvement"); and WHEREAS, agreements related to the Sam Rayburn Tollway existing prior to the issuance of the Bonds require the transfer of ownership of the Tollway Improvement upon completion of construction to the North Texas Tollway Authority ("NTTA") for so long as NTTA is the exclusive operator of the Sam Rayburn Tollway, or to the Texas Department of Transportation ("TxDOT") if NTTA is no longer the operator of the Sam Rayburn Tollway; and 52862498.1/11200715 -1 - WHEREAS, the City and the City Entities originally certified in their respective general certificates relating to the Bonds that "any public infrastructure projects consisting of tollroad improvements to be financed in part by the Bonds that are ultimately transferred to NTTA or TxDOT shall be maintained by NTTA or TxDOT following such transfer"; and WHEREAS, construction of the Tollway Improvement requires the City and The Colony Local Development Corporation, a Texas non-profit local government corporation organized and operating under the applicable provisions of the Texas Transportation Code, Chapter 431, Subchapter D, as amended, as the entity responsible for overseeing the construction and management of the Tollway Improvement on behalf of the City, to enter into an interlocal agreement (the "ILA") with NTTA, as the current and exclusive operator of the Sam Rayburn Tollway, to address the issues relating to the construction, ownership and maintenance of the Tollway Improvement during the term NTTA remains the exclusive operator of the Sam- Rayburn Tollway under prior agreements between TxDOT and NTTA; and WHEREAS, under the proposed ILA, NTTA is responsible for the ongoing the maintenance of the "substructure" of the Tollway Improvement after the completion of construction and subsequent transfer of the Tollway Improvement to NTTA; however, NTTA has requested that the City be responsible for maintenance of "traffic signals, pedestrian access, pavement markings, illumination, railings, concrete deck, and all architectural elements of the bridge and connecting ramps" in accordance with the ILA following such transfer of ownership (the "City Maintenance Obligation"); and WHEREAS, the Board of Directors of each of the City Entities have found and determined that the expenditure of Bond proceeds on the Tollway Improvement, which will ultimately be owned and operated by NTTA (or to TxDOT following the expiration of the agreements governing NTTA's operation of the Sam Rayburn Tollway) under the terms of the proposed ILA, including the City Maintenance Obligation, is consistent with the indentures under which their respective series of the Bonds were issued and under the laws of the State of Texas, including specifically Texas Constitution, Article 111, Section 52(a), as amended, and each have adopted resolutions stating the same; and WHEREAS, the City Council of the City (the "City Council") hereby finds and determines that the expenditure of Bond proceeds on the Tollway Improvement, which will ultimately be owned and operated by NTTA (or to TxDOT following the expiration of the agreements governing NTTA's operation of the Sam Rayburn Tollway) under the terms of the proposed ILA, including the City Maintenance Obligation, is consistent with the Indenture and the laws of the State of Texas, including specifically Texas Constitution, Article III, Section 52(a), as amended, and that the adoption of this Resolution is in the best interests of the Corporation. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE COLONY CITY OF THE COLONY, TEXAS: SECTION 1. The findings set forth above are incorporated into the body of this Resolution as if fully set forth herein. 52862498.1/11200715 -2- SECTION 2. The City Council hereby approves the actions taken by the Board of Directors of each of the City Entities relating to the Tollway Improvement. SECTION 3. The City Council hereby finds and determines that the City, the City Entities and the residents of the City receive valuable consideration for undertaking and financing the Tollway Improvement and for the requisite transfer of ownership upon completion to NTTA (or to TxDOT following the expiration of the agreements governing NTTA's operation of the Sam Rayburn Tollway), specifically: (a) the City will receive contractual approval by NTTA and TxDOT to build the Tollway Improvement across NTTA and TxDOT's rights-of-way and ongoing contractual access across the Sam Rayburn Tollway (both of which constitute contractual rights the City and the does not otherwise have); (b) the City's residents will receive significant increased access to the Sam Rayburn Tollway from the expansion of South Colony Boulevard and will benefit fi-om improved traffic flow throughout the City; (c) the City will receive the contractual agreement by TxDOT and NTTA to maintain certain additional frontage road improvements anticipated to benefit potential development within the City; (d) TxDOT will contribute approximately $12,600,000 to the Tollway Improvement, (e) TxDOT has waived approximately $4,100,000 in administrative fees relating to certain projects including the Tollway Improvement, and (f) NTTA will provide ongoing structural maintenance of the Tollway Improvement as provided in the ILA; and, the City Council further finds and determines that such consideration collectively constitutes adequate consideration for the transfer of the constructed Tollway Improvement in accordance with the ILA. SECTION 4. The City Council hereby finds and determines that the expenditure of Bond proceeds for the undertaking and financing the Tollway Improvement, and that the requisite transfer of ownership upon completion to NTTA (or to TxDOT following the expiration of the agreements governing NTTA's operation of the Sam Rayburn Tollway) serves a legitimate public purpose in that (a) the City is authorized to construct streets and bridges, including projects for the state highway system such as the Sam Rayburn Tollway, and (b) the City will retain sufficient controls through agreements with TxDOT and NTTA, including the ILA, to ensure that the Tollway Improvement is constructed to the specifications approved by the City and that such improvement remains open and available for public use. SECTION 5. The City Council hereby finds and determines that the expenditure of Bond proceeds for the undertaking and financing the Tollway Improvement, and that the requisite transfer of ownership upon completion to NTTA (or to TxDOT following the expiration of the agreements governing NTTA's operation of the Sam Rayburn Tollway) affords a clear public benefit in that the Tollway Improvement will be critical to easing traffic congestion anticipated to occur with the significant development projects occurring at this time within the Zone and the City and will provide convenient access to surrounding areas for the City's residents. SECTION 6. The Mayor, Secretary and the City Manager of the City, any one or more of said officials, are hereby authorized and directed to furnish and execute such documents and certifications relating to the Tollway Improvement as may be requested by the Attorney General of Texas. 52862498.1/11200715 -3- SECTION 7. If any section, article paragraph, sentence, clause, phrase or word in this Resolution, or application thereto to any persons or circumstances, is held invalid or unconstitutional by a Court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this Resolution; and the City Council hereby declares it would have passed such remaining portions of this Resolution despite such invalidity, which remaining portions shall remain in full force and effect. SECTION 8. It is officially found, determined and declared that the meeting at which this Resolution is adopted was open to the public and public notice of the time, place, and subject matter of the public business to be considered at such meeting, including this Resolution, was given as required by Texas Government Code, Chapter 551, as amended. SECTION 8. This Resolution shall become effective immediately upon passage. 52862498.1/11200715 -4- PASSED AND ADOPTED, THIS THE 18TH DAY OF JUNE, 2013. CITY OF THE COLONY, TEXAS 4~z J Mcc iY , Mayor ATTEST: /v -J" 1) fJa / Lo' OF Tylc Christie Wilson, Secretary h5: SEAL APPROVED AS TO FORM: - •.TE X AS . .v Jeff Moore, Cy Attorney 52862498.1/11200715 S-1