O-89-2435 - 11/21/1989ORDINANCE NO. 2435
CERTIFICATE FOR ORDINANCE
THE STATE OF TEXAS
COUNTY OF WILLIAMSON
CITY OF ROUND ROCK
We, the undersigned officers of said City, hereby certify
as follows:
1. The City Council of said City convened in REGULAR
MEETING ON THE 21ST DAY OF NOVEMBER, 1989, at the City Hall,
and the roll was called of the duly constituted officers and
members of said City Council, to -wit:
Mike Robinson, Mayor
Charles Culpepper, Mayor Pro Tem
Joanne Land, Secretary
John Hood
Ronnie Jean
Jimmy Joseph
Tish Oatman
Pete Correa
and all of said persons were present, except the following
absentees:
thus constituting a quorum. Whereupon, among other business,
the following was transacted at said Meeting: a written
ORDINANCE
RESCINDING A PRIOR ORDINANCE AND
APPROVING AND AUTHORIZING THE SALE AND DELIVERY
OF GOLF COURSE TRUST CERTIFICATES, THE EXECUTION OF
A TRUST AGREEMENT, A GROUND LEASE AGREEMENT, A GOLF
COURSE CONSTRUCTION LEASE/PURCHASE AGREEMENT, A MANAGEMENT
AGREEMENT, A TRUST CERTIFICATE PURCHASE AGREEMENT,
AND OTHER MATTERS RELATED THERETO
was duly introduced for the consideration of said City Council
and read in full. It was then duly moved and seconded that
said Ordinance be adopted; and, after due discussion, said
motion, carrying with it the adoption of said Resolution
prevailed and carried by the following vote:
AYES: All members of said City Council shown present
above
LO voted"Aye," except:
NOES: WYt-6.0C 6j I QJk> CCL,ncu
tJ
ABSTENTIONS:
The City Council
MEETING 0 - DAY OF
and the roll was c- • of
members of said City Counc
persons were present, exc
of said City convened in SPECI
, 1989, at the all,
the duly const' - • officers and
esc '=_• above and all of said
e •wing absentees:
constituting a
quorum.
upon, among other business, the
ing was
cted at said Meeting: a written Ordinance, as descr
ab• , was duly introduced for the consideration of said Ci
Counci •n a second and final reading and read in ful It
was then •. moved and seconded that said Or•' ance be
adopted; and, a - due discussion, said motio carrying with
it the adoption of s Ordinance prevail-. .nd carried by the
following vote:
AYES: All members • sal. 'ty Council shown present
above v• --d "Aye," exc
NOES:
STENTIONS:
3. That a true, full, and correct copy of the aforesaid
Ordinance adopted at the Meeting described in the above and
foregoing paragraph is attached to and follows this
Certificate; that said Ordinance has been duly recorded in
said City Council's minutes of said Meeting; that the above
and foregoing paragraph is a true, full, and correct excerpt
from said City Council's minutes of said Meeting pertaining
to the adoption of said Ordinance that the persons named in
the above and foregoing paragraph are the duly chosen,
qualified, and acting officers and members of said City
Council as indicated therein; that each of the officers and
members of said City Council was duly and sufficiently
notified officially and personally, in advance, of the time,
place, and purpose of the aforesaid Meeting, and that said
Ordinance would be introduced and considered for adoption at
said Meeting, and each of said officers and members consented,
in advance, to the holding of said Meeting for such purpose;
and that said Meeting was open to the public, and public
notice of the time, place, and purpose of said meeting was
given, all as required by Vernon's Ann. Civ. St. Article 6252-
17, as amended.
4. That the Mayor of said City has approved, and hereby
approves, the aforesaid Ordinance; that the Mayor and the City
Secretary of said City have duly signed said Ordinance; and
that the Mayor and the City Secretary of said City hereby
declare that their signing of this Certificate shall
constitute the signing of the attached and following copy of
said Ordinance for all purposes.
5. That the Ordinance has not been modified, amended or
repealed and is in full force and effect on and as of the date
hereof.
SIGNED AND
SEALED THE a/ day of NOV6/Y1F3ER 1989.
City Secretary
JOANNE LAND
(SEAL)
MIKE ROBINSON, Mayor
City of Round Rock, Texas
ORDINANCE NO. (2 1-3,L
ORDINANCE
RESCINDING A PRIOR ORDINANCE
APPROVING AND AUTHORIZING THE SALE AND DELIVERY
OF GOLF COURSE TRUST CERTIFICATES, THE EXECUTION OF
A TRUST AGREEMENT, A GROUND LEASE AGREEMENT, A GOLF
COURSE CONSTRUCTION LEASE/PURCHASE AGREEMENT, A MANAGEMENT
AGREEMENT, A TRUST CERTIFICATE PURCHASE AGREEMENT,
AND OTHER MATTERS RELATED THERETO
THE STATE OF TEXAS §
COUNTY OF WILLIAMSON §
CITY OF ROUND ROCK §
WHEREAS, in the exercise of its lawful authority, the
City of Round Rock, Texas (the "City") will become the owner
of real property as described on Exhibit A of the attached
Ground Lease Agreement (the "Property"); and
WHEREAS, upon due consideration, the City Council of the
City, in the exercise of its lawful functions, has determined
that a public golf course is desirable and appropriate in the
full development and use of the Property for the benefit and
use of the general public; and
WHEREAS, the City is authorized pursuant to Vernon's Ann.
Civ. St. article 1269j-4.1 to establish, acquire and operate,
or cause to be operated on its behalf, a public golf course;
and
WHEREAS, the City is authorized pursuant to Vernon's Ann.
Civ. St. article 1269j-4.1 to lease and purchase and otherwise
acquire property necessary for such purposes; and
WHEREAS, on October 31, 1989, the City Council of the
City, by ordinance, number (the "Prior Ordinance"),
authorized and approved the sale and delivery of golf course
trust certificates, the execution of a trust agreement, a
ground lease agreement, a golf course construction
lease/purchase agreement, an agreement of sublease, a trust
certificate purchase agreement, and other matters related
thereto; and
WHEREAS, the City Council has recently been informed that
pursuant to further negotiations regarding the related public
golf course transaction (the "Transaction"), the Transaction
as previously presented to the City Council has been modified;
and
WHEREAS, the City Council has deemed it advisable and
necessary to rescind the Prior Ordinance and approve the
Transaction pursuant to this Ordinance; and
WHEREAS, the City desires to enter into a Ground Lease
Agreement with a State of Texas non-profit corporation to be
created on behalf of the City (the "Corporation"), in which
the City will lease the Property to the Corporation for a term
set forth therein; and
WHEREAS, the Corporation will lease the Property from
the City in order to construct and finance the improvements
(the "Improvements"), and the equipment (the "Equipment"),
described in Exhibit A to the Golf Course Construction and
Lease/Purchase Agreement between the City and the Corporation
(the "Lease Agreement"), and sublease the Property and lease
and sell the Improvements and Equipment (collectively referred
to as the "Project") to the City, pursuant to the Lease
Agreement; and
WHEREAS, the City has determined that it is necessary and
desirable to lease and acquire from the Corporation the
Project in order to provide a public golf course; and
WHEREAS, the City desires to enter into a Management
Agreement with CCA Silband/GolfCorp/Round Rock, Inc. (the
"Operator"), for the management, operation and maintenance of
the Project; and
WHEREAS, the City and the Corporation desire to enter
into a Trust Agreement with First City, Texas - Austin,
Austin, Texas, as trustee (the "Trustee"), where by, among
other things, the Corporation will assign grant and transfer
its rights, title and interest under the Lease Agreement,
including its rights to receive Lease Payments (as defined in
the Lease Agreement) from the City to the Trustee; and
WHEREAS, in relation to the acquisition, lease and use
of the Property, Golf Course Trust Certificates representing
a proportionate interest in the Lease Payments to be made by
the City under and pursuant to the Lease Agreement have been
offered and sold and a trust certificate purchase agreement
has been submitted to the City Council for approval and
acceptance; now, therefore,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ROUND
ROCK, TEXAS:
Section 1. Approval and Execution of Ground Lease. The
Ground Lease Agreement, dated as of November 1, 1989, by and
between the Corporation, as Lessee, and the City, as Lessor
(the "Ground Lease"), attached hereto as Exhibit A and
incorporated herein by reference as a part of this Ordinance
for all purposes, is hereby approved as to form and content,
and such Ground Lease in substantially the form and substance
attached hereto, together with such revisions or changes as
2
may be necessary to complete or conform the provisions thereof
in accordance with the other documents herein approved, is
hereby authorized to be executed by the Mayor and City
Secretary for and on behalf of the City and as the act and
deed of this City Council, and such Ground Lease as executed
by such officials shall be deemed approved by the City Council
and constitute the Ground Lease herein approved.
Section 2. Approval and Execution of Golf Course
Construction and Lease/Purchase Agreement. The Golf Course
Construction and Lease/Purchase Agreement, dated as of
November 1, 1989, by and between the Corporation, as Lessor,
and the City, as Lessee (the "Lease Agreement"), attached
hereto as Exhibit B and incorporated herein by reference as
a part of this Ordinance for all purposes, is hereby approved
as to form and content, and such Lease Agreement in
substantially the form and substance attached hereto, together
with such revisions or changes as may be necessary to complete
or conform the provisions thereof in accordance with the other
documents herein approved, is hereby authorized to be executed
by the Mayor and City Secretary for and on behalf of the City
and as the act and deed of this City Council, and such Lease
Agreement as executed by such officials shall be deemed
approved by the City Council and constitute the Lease
Agreement herein approved.
Section 3. Approval and Execution of Management
Agreement. The Management Agreement dated as of November 1,
1989, by and between CCA Silband/GolfCorp/Round Rock, Inc.,
as Operator, and the City (the "Management Agreement"),
attached hereto as Exhibit C and incorporated herein by
reference as a part of this Ordinance for all purposes, is
hereby approved as to form and content, and such Management
Agreement in substantially the form and substance attached
hereto, together with such revisions or changes as may be
necessary to complete or conform the provisions thereof in
accordance with the other documents herein approved, is hereby
authorized to be executed by the Mayor and City Secretary for
and on behalf of the City and as the act and deed of this City
Council, and such Management Agreement as executed by such
officials shall be deemed approved by the City Council and
constitute the Management Agreement herein approved.
Section 4. Approval and Execution of Trust Agreement.
The Trust Agreement, dated as of November 1, 1989, by and
between the Trustee, the Corporation and the City, Texas (the
"Trust Agreement"), attached hereto as Exhibit D and
incorporated herein by reference as a part of this Ordinance
for all purposes, is hereby approved as to form and content,
and such Trust Agreement in substantially the form and
substance attached hereto, together with such revisions or
changes as may be necessary to complete or conform the
3
provisions thereof in accordance with the other documents
herein approved, is hereby authorized to be executed by the
Mayor and City Secretary for and on behalf of the City and as
the act and deed of this City Council, and such Trust
Agreement as executed by such officials shall be deemed
approved by the City Council and constitute the Trust
Agreement herein approved.
Section 5. Approval and Sale of Trust Certificates and
Trust Certificate Purchase Agreement. The sale of $6,740,000
in principal amount of "Golf Course Trust Certificates" (the
"Certificates") evidencing a proportionate interest of the
owners thereof in the Lease Payments to be made by the City
pursuant to the Lease Agreement and bearing interest at the
per annum rate(s) identified in the Purchase Agreement,
submitted by Seidler-Fitzgerald (the "Purchaser") attached
hereto as Exhibit E and incorporated herein by reference as
a part of this Ordinance for all purposes, is hereby approved,
and the Purchaser's offer to purchase the Certificates subject
to the terms of the Purchase Agreement is hereby acknowledged
to be acceptable to the City, and the Mayor and City Secretary
are hereby authorized and directed to evidence the City's
acceptance of such offer by signing the same for and on behalf
of the City and as the act and deed of this Council.
In regard to the approval of the sale of the Certificates
and the acceptance of the offer submitted by Seidler-
Fitzgerald, the Council further finds, determines and declares
that the representations, warranties and agreements contained
in paragraph 5 of the Purchase Agreement with respect to the
City are true and correct in all material respects as of the
date hereof and with respect to such agreements, the City
shall comply and perform such obligations identified therein.
Section 6. Approval of Official Statement. The use of
the Official Statement in connection with the public offering
and sale of the Certificates is hereby ratified, confirmed and
approved in all respects. The Official Statement, shall be
and is hereby in all respects approved and the Purchaser is
hereby authorized to use and distribute said final Official
Statement in the reoffering, sale and delivery of the
Certificates to the public. The Mayor and City Secretary are
further authorized and directed to manually execute and
deliver for and on behalf of the City copies of said Official
Statement in final form as may be required by the Purchaser,
and such final Official Statement in the form and content
manually executed by said officials shall be deemed to be
approved by the City Council and constitute the Official
Statement authorized for distribution and use by the
Purchaser.
Section 7. Authority to Close Transaction. The Mayor
is hereby authorized to take such action, or cause such action
to be taken, on behalf of the City as may be necessary to
close this transaction at the earliest possible date.
The Mayor, City Clerk, City Manager, Director of Finance
and City Attorney, any one or more of said officials, are
hereby authorized and directed to furnish and execute such
documents relating to the City an its financial affairs as may
be necessary for the approval of this transaction by the
Attorney General of the State of Texas, and the execution and
delivery of the Lease Agreement, Ground Lease, Management
Agreement and Trust Agreement and comply with the agreements
and conditions contained in the Purchase Agreement and,
together with the City's financial advisor, bond counsel and
the Trustee, make the necessary arrangements for printing of
definitive Certificates and for the authentication and
delivery by the Trustee of the Certificates to the Purchaser,
in accordance with the Trust Agreement and Purchase Agreement.
Section 8. Prior Ordinance. The Prior Ordinance is
hereby rescinded and shall be be null and void immediately
upon the second reading and adoption of this Ordinance.
Section 9. Effect. This Ordinance shall take effect
immediately upon the second reading and adoption hereof.
5
DATE: November 17, 1989
SUBJECT: City Council Agenda, November 21, 1989
ITEM: 10C. Consider an ordinance authorizing the issuance of golf course
trust course and construction lease/purchase agreement, ground
lease agreement, and the management agreement, and other matters
related thereto. (First Reading)
STAFF RESOURCE PERSON: Bob Bennett
STAFF RECOMMENDATION:
The necessary documents should be in hand on Monday. They will
be forwarded to you as soon as they are received.