HomeMy WebLinkAbout02/07/2013 City Council
February 7, 2013 Joint Special Session
MEETING MINUTES
JOINT MEETING OF THE
CITY OF THE COLONY
CITY COUNCIL
ECONOMIC DEVELOPMENT CORPORATION (TYPE A)
COMMUNITY DEVELOPMENT CORPORATION (TYPE B)
THE COLONY LOCAL DEVELOPMENT CORPORATION
FEBRUARY 7, 2013
The Joint Special Session of the City Council, the Local Development Corporation, the
Economic Development Corporation, and the Community Development Corporation, of the City
of The Colony, Texas, was called to order at 7:05 a.m. on the 7th day of February 2013, at City
Hall, 6800 Main Street, The Colony, Texas, with the following roll call:
1.0 CALL ORDER & ROLL CALL;
The Colony City Council
Joe McCourry Mayor Present
Kirk MlkUleC Councilmember Present
Richard Boyer Councilmember Present
Jeff Connelly Councilmember Present
David Terre Councilmember Present
Perry Schrag Councilmember Present
Joel Marks Mayor Pro-Tern Present
The Colony Local Development Corporation
Joe McCourry Present
Kirk Mikulec Present
Richard Boyer Present
Jeff Connelly Present
David Terre Present
Perry Schrag Present
Joel Marks Present
Tod Maurina Present
Troy Powell Present
The Colony Economic Development Corporation
Tom Tvardzik Present
Ferri Omonijc Absent
David Pcerson Present
David Smith Present
L{evin Braby Present
The Colony Community Development Corporation
TeRon Lawrence Present
Steven Sohn Present
Don Beckel Present
1
February 7, 2013
Susanna Perez Absent
Kathy Braby Present
Lisa Leary Present
Donna Cole Present
Quorum was established for all boards.
2.0 REGULAR LOCAL DEVELOPMENT CORPORATION AGENDA ITEMS
2.1 Discuss and consider a resolution authorizing the president to execute documents
necessary for the conveyance of an approximately 79.614 acre tract of land
consistent with a real estate contract of sale dated September 26, 2012.
2.2 Discuss and consider a resolution authorizing and approving a first amendment to
real estate contract of sale, amended and restated promissory note, correction
special warranty deed, correction deed of trust, and all necessary documents
concerning the acquisition from 121 Acquisition Company, LLC, a Texas limited
liability company, an undivided interest in an approximately 346,70 acre tract of
land generally located along the south side of and adjacent to the Sam Rayburn
Tollway (State Highway 121), north of and adjacent to Plano Parkway, and west of
Spring Creel: Parkway, concerning the Nebraska Furniture Mart Texas project.
2.3 Discuss and consider approving the December 11, 2012 meeting minutes.
SEE EXHIBIT A FOR LOCAL DEVELOPMENT CORPORATION MEETING MINUTES.
3.0 REGULAR ECONOMIC DEVELOPMENT CORPORATION (TYPE A)
AGENDA ITEMS
3.1 Discuss and consider a resolution authorizing the president to execute documents
necessary for the conveyance of an approximately 79.614 acre tract of land
consistent with a real estate contract of sale dated September 26, 2012.
3.2 Discuss and consider a resolution authorizing and approving a first amendment to
real estate contract of sale, amended and restated promissory note, correction
special warranty deed, correction deed of trust, and all necessary documents
concerning the acquisition from 121 Acquisition Company, LLC, a Texas limited
liability company, an undivided interest in an approximately 346.70 acre tract of
land generally located along the south side of and adjacent to the Sam Rayburn
Tollway (State Highway 121), north of and adjacent to Plano Parkway, and west of
Spring Creel: Parkway, concerning the Nebraska Furniture 1\'Iart Texas project.
SEE EXHIBIT B FOR ECONOMIC DEVELOPMENT CORPORATION MEETING
MINUTES.
4.0 REGULAR COIVIIVIUNITY DEVELOPMENT CORPORATION (TYPE B)
AGENDA ITEMS
2
February 7, 20 13
4.1 Discuss and consider a resolution authorizing the president to execute documents
necessary for the conveyance of an approximately 79.614 acre tract of land
consistent with a real estate contract of sale dated September 26, 2012.
4.2 Discuss and consider a resolution authorizing and approving a first amendment to
real estate contract of sale, amended and restated promissory note, correction
special warranty deed, correction deed of trust, and all necessary documents
concerning the acquisition from 121 Acquisition Company, LLC, a Texas limited
liability company, an undivided interest in an approximately 346.70 acre tract of
land generally located along the south side of and adjacent to the Sam Rayburn
Tollway (State Highway 121), north of and adjacent to Plano Parkway, and west of
Spring Creek Parkway, concerning the Nebraska Furniture Mart Texas project.
SEE EXHIBIT C FOR COMMUNITY DEVELOPMENT CORPORATION MEETING
MINUTES.
5.0 REGULAR CITY COUNCIL AGENDA ITEMS
5.1 Discuss and consider a resolution authorizing the City Manager and/or Mayor to
execute documents necessary for the conveyance of an approximately 82.09 acre
tract or tracts of land to TxFM, Inc.
[Explanation of this item also applies to agenda items 2.1, 3. 1, and 4. 1.] City Attorney
Jeff Moore explained that on September- 26, 2012 an 82 acre tract of land and a 351 acre
tract of land was conveyed to the Local Development Corporation (LDC), the
Community Development Corporation (CDC), and the Economic Development
Corporation (EDC) by 121 Acquisitions. This agenda item addresses the 82 (79.6t4)
acres. The real estate contract included a "tear-up provision" that said if bonds were not
issued by December 31, 2012, rather than malting an interest payment, the property could
be conveyed back to 121 Acquisitions, which it was on December 28, 2012. Since then
TXFM, Inc. has become the successor in interest to 12 t Acquisitions. Earlier tonight (2.1
and 4.1) the property was conveyed back to the city. Now the city needs to convey the
property to TXFM, Inc. The city also desires to convey an additional 2.476 acres in
additional property to TXFM, Inc. for a purchase price of $359,572.26. The 79.614 acres
plus the 2.476 acres totals 82.09 acres.
Motion to approve the resolution authorizing the City Manager and/or Mayor to execute any
and all real estate closing documents necessary for the acquisition of the 79.614 acre
tract of laud fi,oin the LDC, CDC, and EDC, and the conveyance of the 52.09 acre tract of
land to T_xFM, liar, as presented- Terre; second by Mikulec; motion pass with all ayes.
5.2 Discuss and consider a resolution authorizing and approving a first amendment to
real estate contract of sale, amended and restated promissory note, correction
special warranty deed, correction deed of trust, and all necessary documents by and
between The Colony Local Development Corporation, The Colony Economic
Development Corporation, The Colony Community Development Corporation, and
121 Acquisition Company LLC a Texas limited liability company concerning the
3
February 7, 2013
acquisition of an undivided interest in an approximately 346.70 acre tract of land
generally located along the south side of and adjacent to the Sam Rayburn Tollway
(State Highway 121), north of and adjacent to Plano Parkway and west of Spring
Creek Parkway concerning the Nebraska Furniture Mart Texas project.
[Explanation of this item also applies to 2.2, 3.2, and 4.2.1 City Attorney Jeff Moore
explained that on September 26, 2012 an 82 acre tract of land was conveyed to the Local
Development Corporation (LDC), the Community Development Corporation (CDC), and
the Economic Development Corporation (EDC) by 121 Acquisitions. This agenda item
addresses the 351 acre conveyance. Originally the 351 acres was conveyed to the LDC
(96.4%) and the CDC (3.6%). This document corrects the percentages of the acreage as
follows: LDC (94.4%), EDC (2.8), and CDC (2.8%). 121 Acquisitions will retain 5.02
acres where the current batch plant is located, which reduces the promissory note by
5728,170.73.
Motion to approve the resolution authorizing The Colony Community Development
Corporation, The Colony Economic Development Corporation, and The Colony Local
Development Corporation to execute the first amendment to real estate contract of sale,
amended and restated promissory note, correction special warranty deed, correction
deed of trust, and all necessary documents concerning the acquisition from 121
Acquisition Company, LLC, an undivided interest in the approximately 346.70 acre
tract of'land, as presented-Connelly; second by Marks; motion passed with all ayes.
5.3 Continue a public hearing from January 15, 2013, discuss and consider an
ordinance levying the public improvement assessment on properties located within
the City of The Colony Public Improvement District No. 1, approving the final
service and assessment plan for the City of The Colony Public Improvement District
No. 1, and approving and authorizing the execution of the reimbursement
agreement for the City of The Colony Public Improvement District No. 1.
Jeff Moore explained that this item only applies to the 439.12 acres consisting of the
Nebraska Furniture site. The timeline of events for this item is as follows:
On September 17, 2012 - 121 Acquisition Company LLC, at the time the owner of most
of the acreage filed a petition with the City requesting the creation of a public
improvement district.
On September 18, 2012 - City Council approved a resolution accepting the petition and
setting a public hearing for October 8, 2012 to take testimony as to whether to create the
PID.
On October 8, 2012 -City Council conducted the public hearing on whether to create the
PID and following the public hearing approved a resolution creating the PID.
On December 11, 2012 - City Council approved a resolution ordering a public hearing
for January 15, 2013.
4
February 7, 20 13
On January 15, 2013, the public hearing was opened and a motion was made to continue
this agenda item and the public hearing to February 7, 2013 at 7:00 a.m.
The public hearing was continued and closed at 7:30 a.m. with no one wishing to speak.
Jeff Moore told the Council that he provided to each of them a revised Plan and pointed
out the differences between the one in the packet and the revised version. He further
stated that the plan addresses a Debt Service Shortfall, which would result in an
assessment on the 430.919 acre Public Improvement District property in the amount of
$739,983.27 per gross acre. If there is no shortfall then there will be no assessment. If
there is an assessment the revenue would be collected in semi-annual installments and
deposited into a PID Operating Account to pay the Debt Service Shortfalls.
Reimbursement Agreements-
LDC TIF Ad Valorem: City will transfer all funds in the PID Operating Account to the
LDC pursuant to this reimbursement agreement. The LDC will pledge such
reimbursement revenue as additional security for the Series 2013 Bonds. The LDC will
calculate the amount of the Debt Service Shortfall if any and such amount shall be the
portion due as reimbursement revenue to the LDC on September 5 and March 5. Semi-
Annual installments will begin September 1, 2013 and continue each March 1 and
September I thereafter.
LDC Sales Tax: Same arrangements as Ad Valorem except for the use of Sales tax.
EDC: Same arrangements as LDC Ad Valorem except for use of Sales tax.
CDC: Same arrangements as LDC Ad Valorem except for use of Sales tax.
Motion to approve the ordinance levying the public improvement assessment of properties
located with the City of The Colony Public Improvement District No. 1, approving the
final (as revised) service and assessment plan, and approving an authorizing the
execution of the reimbursement agreement for the City of The Colony Public
Improvement District No. 1, as presented- Connelly; second by Boyer; motion passed
with all ayes.
5.4 Discuss and consider a resolution approving an Amendment to Articles of
Incorporation of The Colony Community Development Corporation by amending
and clarifying the name of the corporation as "The Colony Community
Development Corporation."
Jeff Moore explained that in the Articles of Amendment filed stamped November 9, 1998
the word "the" in the corporation name had a lower case "t" used rather than "The"
Colony Community Development Corporation. This amendment makes that correction.
Motion to approve the resolution approving the Amendment to Articles of Incorporation for
The Colony Community Development Corporation, and authorize the filing of same
5
February 7, 2013
with the Secretary of State, as presented- Terre; second by Marks; »iotion passed with
all ayes.
6.0 REGULAR LOCAL DEVELOPMENT CORPORATION AGENDA ITEMS
6.1 Discuss and consider all matters incident and related to the issuance and sale of
"THE COLONY LOCAL DEVELOPMENT CORPORATION SALES TAX
INCREMENT CONTRACT REVENUE BONDS, SERIES 2013A", including the
approval of a bond indenture and supplement, a purchase contract, bond insurance,
a disclosure agreement and authorizing the issuance of such bonds.
6.2 Discuss and consider all matters incident and related to the issuance and sale of
"THE COLONY LOCAL DEVELOPMENT CORPORATION SALES TAX
INCREMENT CONTRACT REVENUE BONDS (NEBRASKA FURNITURE
MART TEXAS PROJECT INFRASTRUCTURE BONDS, SERIES 20131,
including the approval of a bond indenture and supplement, a purchase contract, a
reimbursement agreement, a disclosure agreement and authorizing the issuance of
such bonds.
6.3 Discuss and consider all matters incident and related to the issuance and sale of
"THE COLONY LOCAL DEVELOPMENT CORPORATION TAX INCREMENT
CONTRACT REVENUE BONDS (NEBRASKA FURNITURE MART TEXAS
PROJECT INFRASTRUCTURE BONDS, SERIES 2013", including the approval
of a bond indenture and supplement, a purchase contract, a reimbursement
agreement, a disclosure agreement and authorizing the issuance of such bonds.
SEE EXHIBIT A FOR LOCAL DEVELOPMENT CORPORATION MEETING MINUTES.
7.0 REGULAR ECONOMIC DEVELOPMENT CORPORATION (TYPE A)
AGENDA ITENIS
7.1 Discuss and consider all matters incident and related to the issuance and sale of
"THE COLONY ECONOMIC DEVELOPMENT CORPORATION SALES TAX
REVENUE BONDS (NEBRASKA FURNITURE MART TEXAS PROJECT
INFRASTRUCTURE BONDS), SERIES 2013", including the approval of a bond
indenture and supplement, a purchase contract, a reimbursement agreement, a
disclosure agreement and authorizing the issuance of such bonds.
SEE EXHIBIT B FOR ECONOMIC DEVELOPMENT CORPORATION MEETING
MINUTES.
8.0 REGULAR COMMUNITY DEVELOPMENT CORPORATION (TYPE B)
AGENDA ITEMS
8.1 Discuss and consider all matters incident and related to the issuance and sale of
"THE COLONY COMMUNITY DEVELOPMENT CORPORATION SALES TAX
REVENUE BONDS (NEBRASKA FURNITURE MART TEXAS PROJECT
INFRASTRUCTURE BONDS), SERIES 2013", including the approval of a bond
6
February 7, 2013
indenture and supplement, a purchase contract, a reimbursement agreement, a
disclosure agreement and authorizing the issuance of such bonds.
SEE EXHIBIT C FOR COMMUNITY DEVELOPMENT CORPORATION MEETING
MINUTES.
9.0 REGULAR CITY COUNCIL AGENDA ITEMS
9.1 Discuss and consider a resolution consenting to the "The Colony Local Development
Corporation Sales Tax Increment Contract Revenue Bonds, Series 2013A", "The
Colony Local Development Corporation Sales Tax Increment Contract Revenue
Bonds (Nebraska Furniture Mart Texas Project Infrastructure Bonds) Series 2013"
and "The Colony Local Development Corporation Tax Increment Contract
Revenue Bonds (Nebraska Furniture Mart Texas Project Infrastructure Bonds)
Series 2013"; and resolving other matters incident and related to the issuance of
such Bonds; and providing an effective date.
This item approves the three LDC bond issuances (Items 6.1, 6.2, and 6.3.)
Motion to approve Resolution 2013-008, consenting to the issuance of "The Colony Local
Development Corporation Sales Tax Increment Contract Revenue Bonds, Series
2013A, " "The Colony Local Development Corporation. Sales Tax Increment Contract
Revenue Bonds (Nebraska Furniture Mart Texas Project Infrastructure Bonds), Series
2013, " and "The Colony Local Development Corporation Tax Increment Contract
Revenue Bonds (Nebraska Furniture Mart Texas Project Infrastructure Bonds), Series
2013, " by The Colony Local Development Corporation, and resolving other matters
incident and related thereto- Terre; second by Marks; motion passed with all ayes.
9.2 Discuss and consider a resolution relating to the "THE COLONY ECONOMIC
DEVELOPMENT CORPORATION SALES TAX REVENUE BONDS
(NEBRASKA FURNITURE MART TEXAS PROJECT INFRASTRUCTURE
BONDS), SERIES 2013"; approving the resolution of the Board of Directors of The
Colony Economic Development Corporation authorizing the issuance of such Bonds
and resolving other matters incident and related to the issuance of such Bonds; and
providing an effective date.
This item approves the EDC bond issuances (Item 7.1.)
Motion to approve Resolution 2013-009 authorizing and approving the issuance of The
Colony Economic Development Corporation Sales Tax Revenue Bonds (Nebraska
Furniture Mart Texas Project Infrastructure Bonds), Series 2013, by The Colony
Economic Development Corporation, and resolving other matters incident and related
thereto- Boyer; second by Marks; motion passed with all ayes.
9.3 Discuss and consider a resolution relating to the "THE COLONY COMMUNITY
DEVELOPMENT CORPORATION SALES TAX REVENUE BONDS
(NEBRASKA FURNITURE MART TEXAS PROJECT INFRASTRUCTURE
7
February 7, 7_013
BONDS), SERIES 2013"; approving the resolution of the Board of Directors of The
Colony Community Development Corporation authorizing the issuance of such
Bonds and resolving other matters incident and related to the issuance of such
Bonds; and providing an effective date.
This item approves the CDC bond issuances (Item 8. l.)
Motion to approve Resolution 2013-010 authorizing and approving the issuance of The
Colony Community Development Corporation Sales Tax Revenue Bonds (Nebraska
Furniture Mart Texas Project Infrastructure Bonds), Series 2013 by The Colony
Community Development Corporation, and resolving other matter incident and related
thereto- Terre; second by Marks; motion passed with all ayes.
And with no further business to discuss the meeting was adjourned at 8:00 a.m.
APPROVED:
oe McCour Mayor
City of The~Colony
ATTEST:
Christie Wilson TRMC W Z
City Secretary F" = 1
i
TE X P"
8
February 7, 2013 EXHIBIT A
MINUTES
LOCAL DEVELOPMENT CORPORATION
JOINT MEETING HELD ON
February 7, 2013
The meeting of The Colony Local Development Corporation of the City of The Colony, Texas,
was called to order at 7:05 a.m. on the 7th day of February, 2013, at City Hall, 6800 Main
Street, The Colony, Texas, with the following roll call:
Joe McCourry Chair Present
Troy Powell Member Present
Kirk Mikulec Member Present
Richard Boyer Member Present
Jeff Connelly Member Present
David Terre Member Present
Perry Schrag Member Present
Joel Marks Member Present
Tod Maurma Member Present
And with eight members present a quorum was established and the following items were addressed:
Call to Order
2.1 Discuss and consider a resolution authorizing the president to execute documents
necessary for the conveyance of an approximately 79.614 acre tract of land consistent
with a real estate contract of sale dated September 26, 2012.
City Attorney Jeff Moore explained the original contract language included if bonds were
not issued by December 31, 2012 the property could be conveyed back to 121 Acquisition,
LLC in lieu of making the payment that is due.
Motion to approve the resolution authorizing the president to execute any and all documents
necessary for the conveyance of the approximately 79.614 acre tract of laud as pr°eseuted -
Terre; second by Milzulec; motion passed with all ayes.
2.2 Discuss and consider a resolution authorizing and approving a first amendment to real
estate contract of sale, amended and restated promissory note, correction special
warranty deed, correction deed of trust, and all necessary documents concerning the
acquisition from 121 Acquisition Company, LLC, a Texas limited liability company, an
undivided interest in an approximately 346.70 acre tract of land generally located along
the south side of and adjacent to the Sam Rayburn Tollway (State Highway 121), north
of and adjacent to Plano Parkway, and west of Spring Creek Parkway, concerning the
Nebraska Furniture Mart Texas project.
February 7, 2013 EXHIBIT A
Mr. Moore explained the amendments to the documents address the correction of the
percentages of the project designated to the Local Development Corporation (LDC),
Economic Development Corporation (EDC), and the Community Development Corporation
(CDC). The original designated 96.4 % to the LDC and 3.6 % to the CDC. The amended
document reflects the LDC with 94.4%, EDC with 2.8% and CDC with 2.8%.
In addition, the 121 Acquisition LLC would retain 5.02 acres currently occupied by the batch
plant. The amount amended promissory note is reduced to reflect the reduction of property.
Motion to approve the resolution authorizing the president to execute the first amendment to real
estate contract of sale, amended and restated promissory note, correction special warranty
deed, correction deed of trust, and all necessary documents concerning the acquisition
from 121 Acquisition Company, LLC, an undivided interest in the approximately 346.70
acre tract of land, as presented - Connelly; second by Boyer; motion passed with all ayes.
2.3 Discuss and consider approving the December 11, 2012 meeting minutes.
Motion to approve- Marks; second by Mikulec; â–ºnotion passed with all ayes.
6.1 Discuss and consider all matters incident and related to the issuance and sale of "THE
COLONY LOCAL DEVELOPMENT CORPORATION SALES TAX INCREMENT
CONTRACT REVENUE BONDS, SERIES 2013A", including the approval of a bond
indenture and supplement, a purchase contract, bond insurance, a disclosure
agreement and authorizing the issuance of such bonds.
Boyd London of First Southwest addressed the board. He stated the project was very
complex and complicated. Jason Hughes of First Southwest explained the project included
an issuance of three bonds, one insured and two uninsured. The anticipated closing date for
the bonds is February 21, 2013. Mr. Moore explained the first bond the board could approve
is for $106,850,000 with funding from sales tax.
Motion to approve Resolution Number LDC2013-001, authorizing the issuance of $106,850, 000
Of "The Colony Local Development Corporation Sales Tax Increment Contract Revenue
Bonds, Series 2013A " and approving and authorizing the execution of any and all related
documents, including the indenture of trust and security agreement, first supplemental
trust indenture, purchase contract, and continuing disclosure agreement, and resolving
other matters incident and related thereto - Schrag; second by Mikulec; motion passed
with all ayes.
6.2 Discuss and consider all matters incident and related to the issuance and sale of "THE
COLONY LOCAL DEVELOPMENT CORPORATION SALES TAX INCREMENT
CONTRACT REVENUE BONDS (NEBRASKA FURNITURE MART TEXAS
February 7, 2013 EXHIBIT A
PROJECT INFRASTRUCTURE BONDS, SERIES 2013", including the approval of a
bond indenture and supplement, a purchase contract, a reimbursement agreement, a
disclosure agreement and authorizing the issuance of such bonds.
Mr. Moore explained the second bond could approve is $15,875,000 with funding from sales
tax.
Motion to approve Resolution NunnberLDC2013-002, authorizing the issuance of $15,875,000 of
"The Colony Local Development Corporation Sales Tax Increment Contract Revenue
Bonds (Nebraska Furniture Mart Texas Project Infrastructure Bonds), Series 2013 " and
approving and authorizing the execution of any and all related documents, including the
indenture of trust and security agreement, second supplemental trust indenture, purchase
contract, continuing disclosure agreement, and public improvement district reimbursement
agreement, and resolving other matters incident and related thereto. - Terre; second by
Marks; motion passed with all ayes.
6.3 Discuss and consider all matters incident and related to the issuance and sale of "THE
COLONY LOCAL DEVELOPMENT CORPORATION TAX INCREMENT
CONTRACT REVENUE BONDS (NEBRASKA FURNITURE MART TEXAS
PROJECT INFRASTRUCTURE BONDS, SERIES 2013", including the approval of a
bond indenture and supplement, a purchase contract, a reimbursement agreement, a
disclosure agreement and authorizing the issuance of such bonds.
Mr. Moore explained the last bond the board could approve is $19,515,000 with funding
from the tax increment zone.
Motion to approve Resolution Number LDC2013-003, authorizing the issuance of $19,515, 000 of
"The Colony Local Development Coiporation Tax Increment Contract Revenue Bonds
(Nebraska Furniture Mart Texas Project Infrastructure Bonds), Series 2013" and
approving and authorizing the execution of any and all related documents, including the
indenture of trust and security agreement, first supplemental trust indenture, purchase
contract, continuing disclosure agreement, and public improvement district
reimbursement agreement, and resolving other matters incident and related thereto -
Connelly; second by Schrag; motion passed with all ayes.
Adjourn- Meeting adjourned at 8:00 a.m.
APPROVED:
Joe McCouriy, Chair
Local Development Corporation
City of The Colony
February 7, 2013 EXHIBIT A
ATTEST:
Richard Boyer, Secretary
EXHIBIT B
JOINT MEETING AGENDA OF THE
CITY OF THE COLONY
CITY COUNCIL
ECONOMIC DEVELOPMENT CORPORATION (TYPE A)
COMMUNITY DEVELOPMENT CORPORATION (TYPE B)
THE COLONY LOCAL DEVELOPMENT CORPORATION
FEBRUARY 7, 2013
The Special Session of The Colony Economic Development Corporation of The Colony, Texas,
was called to order at 7:05 a.m. on the 7c" day of February 2013, at City Hall, 6800 Main
Street, The Colony, Texas, with the following roll call:
Tom Tvardzik President Present
Kevin Braby Member at Large Present
David Peerson Vice President Present
David Smith Treasurer Present
Femi Omonije Secretary Absent
Perry Schrag Council Liaison Present
Keri Samford Staff Present
Cindi Lane Staff Present
1.0 CALL TO ORDER
The Economic Development Corporation was called to order at 7:05 by President
Tvardzik. A roll call was taken and all board members were present except for Femi
Omonije.
[3.0 REGULAR ECONOMIC DEVELOPMENT CORPORATION (TYPE A) AGENDA ITEMS
3.1 Discuss and consider a resolution authorizing the president to execute documents
necessary for the conveyance of an approximately 79.614 acre tract of land consistent
with a real estate contract of sale dated September 26, 2012. Mr. Moore explained to
the Local Government Board in the 2.0 portion of the agenda item that if bonds were
not issued by December 31, 2012 the real estate sales contract provided that the EDC
could exercise its option to convey the 79.614-acre tract of land back to 121 Acquisition
Company. The purpose of this item is to convey the 79.614 acre property to TXFM, Inc.,
the successor in interest to 121 Acquisition Company.
Motion to approve the resolution authorizing the president to execute any and all documents
necessary for the conveyance of the approximately 79.614 acre tract of land as
presented. - Smith; Second by Braby; motion passed with all ayes.
3.2 Discuss and consider a resolution authorizing and approving a first amendment to real
estate contract of sale, amended and restated promissory note, correction special
warranty deed, correction deed of trust, and all necessary documents concerning the
acquisition from 121 Acquisition Company, LLC, a Texas limited liability company, an
undivided interest in an approximately 346.70 acre tract of land generally located
along the south side of and adjacent to the Sam Rayburn Tollway (State Highway 121),
north of and adjacent to Plano Parkway, and west of Spring Creek Parkway,
concerning the Nebraska Furniture Mart Texas project. Mr. Moore explained that this
item pertains to correcting the conveyance on September 26, 2012. On September 26,
2012, the approximately 351 acre tract was conveyed by 121 Acquisition to LDC, and
CDC. The undivided interest in the land was conveyed in the following percentages: LDC
(96.4%) and CDC (3.6%). This agenda item corrects the undivided interest in the
approximately 351 acre tract of land to the following percentages: LDC (94.4%), EDC
(2.8%), and CDC (2.8%). Secondly, the conveyance is revised to allow 121 Acquisition
Company to retain approximately 5.02 acres. This reduces the total acreage from 351
acres to 346.70 acres of land. Further, this reduces the promissory note from
$51,018,000 to $50,290,000. This is a reduction of $728,170.73. The 5.02 acres is
retained where the current batch plant is.
Motion to approve the resolution authorizing the president to execute the first amendment to
real estate contract of sale, amended and restated promissory note, correction special
warranty deed, correction deed of trust, and all necessary documents concerning the
acquisition from 121 Acquisition Company, LLC, an undivided interest in the
approximately 346.70 acre tract of land, as presented. - Peerson; Second by Smith;
motion passes with all ayes.
7.0 REGULAR ECONOMIC DEVELOPMENT CORPORATION (TYPE A) AGENDA ITEMS
7.1 Discuss and consider all matters incident and related to the issuance and sale of "THE
COLONY ECONOMIC DEVELOPMENT CORPORATION SALES TAX REVENUE BONDS
(NEBRASKA FURNITURE MART TEXAS PROJECT INFRASTRUCTURE BONDS), SERIES
2013", including the approval of a bond indenture and supplement, a purchase
contract, a reimbursement agreement, a disclosure agreement and authorizing the
issuance of such bonds. Mr. Moore explained that this item is to approve bonds to pay
for public infrastructure, regional headquarters and other allowable projects for Type A
corporations such as infrastructure and site improvements. The total value of this
percentage of bonds total $29,580,000. Mr. Smith asked why the interest rate for these
bonds is different. Jason Hughes of First Southwest replied that the structure is different
and the buyers are different.
EDC Minutes February 7, 2013, Page 2
Motion to approve a resolution authorizing the issuance of $29,580,000 of "The Colony
Economic Development Sales Tax Revenue Bonds (Nebraska Furniture Mart Texas
Project Infrastructure Bonds), Series 2013" and approving and authorizing the
execution of any and all related documents, including the indenture of trust and
security agreement, first supplemental trust indenture, purchase contract, continuing
disclosure agreement, and public improvement district reimbursement agreement,
and resolving other matters incident and related thereto. - Braby; Second by Smith;
motion passed with all ayes.
President Tvardzik adjourned the board at 8:00 a.m.
Cindi Lane Tom Tvardzik
Recording Secretary President
EDC Minutes February 7, 2013, Page 3
February 7, 2013 EXHIBIT C
MINUTES OF REGULAR SESSION OF THE
COMMUNITY DEVELOPMENT CORPORATION
FEBRUARY 7TH 2013
The Joint Special Session of The Community Development Corporation of the City of
The Colony, Texas, was called to order at 7:00 a.m. on the 7"' day of February 2013, at
City Hall, 6800 Main Street, The Colony, Texas, with the following roll call:
TeRon Lawrence President Present
Stephen Sohn Vice President Present
Kathy Braby Treasurer Present
Lisa Leary Secretary Present
Donna Cole Member Present
Don Becket Member Present
Susana Perez Member Absent
And with five board members present a quorum was established and the following items
were addressed:
1.0 ROUTINE ANNOUNCEMENTS, RECOGNITIONS
Call to Order
4.0 REGULAR COMMUNITY DEVELOPMENT CORPORATION (TYPE B)
AGENDA ITEMS
4.1 Discuss and consider a resolution authorizing the president to execute
documents necessary for the conveyance of an approximately 79.614 acre
tract of land consistent with a real estate contract of sale dated September 26,
2012 -
Motion to approve the resolution authorizing the president to execute any and all
documents necessary for the conveyance of the approximately 79.614 acre tract of land
presented - Braby; second - Leary; motion passes with all ayes.
4.2 Discuss and consider a resolution authorizing and approving a first
amendment to real estate contract of sale, amended and restated promissory
note, correction special warranty deed, correction deed of trust, and all
necessary documents concerning the acquisition from 121 Acquisition
Company, LLC, a Texas limited liability company, an undivided interest in
an approximately 346.70 acre tract of land generally located along the south
side of and adjacent to the Sam Rayburn Tollway (State Highway 121), north
of and adjacent to Plano Parkway, and west of Spring Creek Parkway,
concerning the Nebraska Furniture Mart Texas Project -
Motion to approve the resolution authorizing the president to execute the first amendment
to real estate contract of sale, amended and restated promissory note, correction special
warranty deed, correction deed of trust, and all necessary doCUinents concerning the
acquisition from 121 Acquisition Company, LLC, an undivided interest in the
approximately 346.70 acre tract of land, as presented.
1
February 7, 2013 EXHIBIT C
8.1 Discuss and consider all matter incident and related to the issuance and sale
of "THE COLONY COMMUNITY DEVELOPMENT CORPORATION
SALES TAX REVENUE BONDS (NEBRASKA FURNITURE MART
TEXAS PROJECT INFRASTRUCTURE BONDS), SERIES 2013" including
the approval of a bond indenture and supplement, a purchase contract, a
reimbursement agreement, a disclosure agreement and authorizing the
issuance of such bonds -
Motion to approve a resolution authorizing the issuance of $29,580,000 of "The Colony
Community Development Corporation Sales Tax Revenue Bonds (Nebraska Furniture
Mart Texas Project Infrastructure Bonds), Series 2013 " and approving and authorizing
the execution of any and all related documents, including the indenture of trust and
security agreement, first supplemental trust indenture, purchase contract, continuing
disclosure agreement, and public improvement district reimbursement agreement, and
resolving other matters incident and related thereto - Beckel; second - Sohn; motion
passes with all ayes.
There being no further business to discuss, the meeting was adjourned at 7:59p.m.
Kathy Neal, Recording Secretary TeRon Lawrence, President
2