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AI# 11157  Regular City Council Meeting 6.7. 12/06/2022:

Information

Agenda Item

Resolution - Business Development: Consider adoption of a Resolution approving the resolution of the Lubbock Economic Development Alliance, Inc., authorizing the issuance of sales tax revenue bonds in a principal amount not to exceed $32,500,000 for the purpose of funding projects for the promotion and development of new and expanded business enterprises, including the acquisition of interests in land and the design, construction, acquisition, rehabilitation, renovation, expansion, improvement and equipment of streets, roads, water and sewer utilities, and related infrastructure and improvements; approving a Sales Tax Remittance Agreement; and resolving other matters related thereto.

Item Summary

This resolution authorizes Lubbock Economic Development Alliance (LEDA) for the issuance and sale of the LEDA’s Sales Tax Revenue Bonds (Bonds). The Bonds will have no recourse to the City of Lubbock and all debt service obligations will be solely secured by LEDA’s voter-authorized 1/8 of 1-cent sales tax.   The LEDA Bonds will provide funds to: Finance the costs of the purchase of land for the promotion and development of new and expanded business enterprises, to wit: development, retention, or expansion of projects authorized by Section 501.101 of the Local Government Code that will create or retain primary jobs (the “Land Projects”) Finance the costs of designing, constructing, acquiring, and improving infrastructure within the City, including streets and roads, storm sewer, sanitary sewer and water utilities, detention and drainage improvements, site improvements, and related improvements to promote or develop new or expanded business enterprises (“Infrastructure Projects”) Pay costs of issuing the Bonds, in conformity with the Constitution and laws of the State of Texas, including the Act, the Texas Nonprofit Corporation Act, and Chapter 22 of the Texas Business Organizations Code.

Fiscal Impact

The total amount of the Bonds will not exceed the $32,500,000 total principal amount for one or more series of Sales Tax Revenue Bonds. The annual debt service payments will be paid solely from LEDA’s authorized 1/8 of 1-cent sales tax, and the debt carried by LEDA will have no recourse to or obligation from the City of Lubbock.

Staff/Board Recommending

D. Blu Kostelich, Chief Financial Officer  Lubbock Economic Development Alliance Board of Directors

Attachments COL Resolution LEDA Resolution

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