Subject: An Ordinance approving the issuance of bonds and notes by the Saint George Place Redevelopment Authority
RECOMMENDATION: That City Council adopt an Ordinance approving and authorizing the Saint George Place Redevelopment Authority to issue additional bonds and notes in an aggregate principal amount not to exceed $30 million outstanding at any one time.
SPECIFIC EXPLANATION:
By various prior ordinances, City Council has authorized the Saint George Place Redevelopment Authority (the “Authority”) to issue bonds and notes in an aggregate principal amount not to exceed a principal amount necessary to refund the City’s $2,280,000 Reinvestment Zone No. 1, City of Houston, Texas, Tax Increment Bonds, Series 1992 Lamar Terrace Project, plus $8 million outstanding at any one time, in addition to $1M in notes authorized by the amended and restated tri-party agreement between the City, the Authority, and Reinvestment Zone Number One, City of Houston, Texas (Saint George Place Zone, or Zone). The Authority currently has no bonds and notes outstanding. To continue implementing the Project Plan and Reinvestment Zone Financing Plan for the Zone, and to implement its Fiscal Year 2019 Operating Budget and five-year Capital Improvement Plan Budget for Fiscal Years 2019-2023 for the Zone, the Authority will need to obtain financing to fund the design and construction of various public improvement projects in the Zone, consisting primarily of drainage system improvements and roadway replacement and reconstruction projects. This initiative will require increasing the total amount of bonds and notes the Authority is currently authorized to issue to an aggregate principal amount of $30 million.
Approval of this ordinance will allow the Authority to issue up to $30 million in bonds and notes to provide the capital needed to support the design and construction of these projects.
The debt issued by the Authority pursuant to this bond authorization will be repaid by the Authority utilizing tax increment from the Zone during the remaining life of the Zone, which will terminate on December 31, 2045.
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Andrew F. Icken, Chief Development Officer