Subject: An Ordinance approving the issuance of bonds and notes by the Upper Kirby Redevelopment Authority for Reinvestment Zone Number Nineteen, City of Houston, Texas (“Upper Kirby Zone”).
RECOMMENDATION: That City Council adopt an Ordinance approving and authorizing the Upper Kirby Redevelopment Authority to issue additional bonds and notes to a total aggregate principal amount not to exceed $90 million outstanding at any one time.
SPECIFIC EXPLANATION: By various prior ordinances, City Council has authorized the Upper Kirby Redevelopment Authority (the “Authority”) to issue bonds and notes in an aggregate principal amount not to exceed $45 million outstanding at any one time. The Authority currently has approximately $42 million in bonds and notes outstanding. To continue implementing the Project Plan and Reinvestment Zone Financing Plan for the Upper Kirby Zone and to implement its Fiscal Year 2019 Operating Budget and five-year Capital Improvement Plan Budget as approved by the City Council, the Authority will need to obtain financing to fund its design and construction plans which will require an increase of an additional $45 million in the total amount of bonds and notes the Authority is currently authorized to issue.
Approval of this Ordinance will allow the Authority to issue up to a total aggregate principal amount not to exceed $90 million in bonds and notes outstanding at any one time to provide the capital needed to support redevelopment projects in Reinvestment Zone Number Nineteen, consisting primarily of drainage system improvements, roadway replacement and reconstruction projects such as Westheimer Drainage System Improvements, West Alabama Reconstruction from Buffalo Speedway to Shepherd, and Greenbriar Drainage System Improvements.
The bond authorization and subsequent issuance will be made within the remaining life of the Upper Kirby Zone and with increment collected by the Zone.
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Andrew F. Icken, Chief Development Officer