Discussion and possible action to approve Resolution No. 2017-2, a resolution of the Board of Directors of the San Luis Facility Development Corporation (the “Corporation”) authorizing and approving (i) the possible sale and/or auction of the San Luis Regional Detention Facility, (ii) an amendment to the Corporation’s filed Articles of Incorporation to permit such a sale, (iii) the conditional redemption in full of the Corporation’s outstanding $26,090,000 Senior Lien Taxable Refunding Revenue Bonds (San Luis Regional Detention Center Project) Series 2014 and the Corporation’s outstanding $20,835,000 Senior Lien Taxable Refunding Revenue Bonds (San Luis Regional Detention Center Project) Series 2014A with the proceeds of any such sale, and (iv) the marketing for sale and/or auctioning for sale of the San Luis Regional Detention Facility. (Kay Marion Macuil, Corporation Attorney)
 

The documents attached to this agenda item were prepared by Attorneys Dan Howerda and Pat Ray with Kutak Rock.  Kutak Rock was the firm who did the Bond legal work for the Corporation.

Resolution 2017-02 does three (3) things:

1. it authorizes the possibility of a sale;
2. it amends the Articles of Incorporation to allow for a sale; and
3. it approves the form of notice to the bond-holders to be used only if there is a sale.

Under Article Sixteen (16)  of the Articles of Incorporation, in order to change the Articles of Incorporation there must be a unanimous vote of all the Directors.