2012-04-30 DEVELOPMENT AUTHORITY OF PEARLAND SPECIAL MEETING MINUTES MINUTES OF A SPECIAL MEETING OF THE DEVELOPMENT AUTHORITY OF
PEARLAND, CITY OF PEARLAND TEXAS, HELD ON MONDAY, APRIL 30, 2012, 4:00
P.M., IN THE FIRST FLOOR CONFERENCE ROOM AT PEARLAND CITY HALL, 3519
LIBERTY DRIVE, PEARLAND, TEXAS.
Mayor Reid called the meeting to order at 4:00 p.m. with the following present.
Chairman Tom Reid
Secretary Ed Baker
Boardmember Tom Pool
Boardmember Tony Carbone
Boardmember Bill Sloan
Others in attendance: Bill Eisen City of Pearland City Manager; Claire Bogard City of
Pearland Finance Director; Rick Overgaard City of Pearland Assistant Finance Director;
Young Lorfing City of Pearland City Secretary; Maria E. Rodriguez City of Pearland Deputy
City Secretary; Ryan O'Hara BOSC, Inc,; Frank Ildebrando, BOSC, Inc,; Trey Lary Allen
Boone Humphries Robinson; Rick Witte, Andrews Kurth LLP; Drew Pelter Shadow Creek
Ranch Development Company.
NEW BUSINESS:
BOARD ACTION—RESOLUTION NO. RDAP-2012-10—A RESOLUTION AUTHORIZING
THE ISSUANCE OF DEVELOPMENT AUTHORITY OF PEARLAND TAX INCREMENT
CONTRACT REVENUE AND REFUNDING BONDS, SERIES 2012; APPROVING
DOCUMENTS RELATING TO THE SERIES 2012 BONDS; AND CONTAINING OTHER
PROVISIONS RELATED. Mr. Ryan O'Hara, Managing Director, Texas Public Finance.
Ryan O'Hara stated that there are five outstanding issues by the Development Authority of
Pearland. Two of the issues have cash reserves $1,374,330 and three have surety
policies with reserve requirements. He stated they had been looking,for a buyer for all the
outstanding bonds, Capital One has come forth with the best offer of 3.07% for 10 years
until May 2022, then 65% of 6 month LIBOR plus 2.00% maximum rate of 6.00%. Today's
rate is below 2.50% and the Bonds are callable anytime. Capital One is not requiring the
Reserve requirements freeing up the $4.2 million dollars. The proposed refunding will
lower the debt service requirements creating the capacity to issue $3.25 million in new
money. He gave an overview of the Tax Increment Contract Revenue and Refunding
Bonds Series for 2012. Mr. O'Hara stated the total benefit to the Development Authority of
Pearland is$4,975,670. He stated the funds that are freed up could be used to reimburse
the developer.
Discussion ensued between Boardmember Sloan, Rick Witte,Andrews Kurth, LLP, Ryan
O'Hara, Managing Director, BOSC, Inc, and Frank Ildebrando, BOSC, Inc. regarding the
requirements and proposal by Capital One.
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Boardmember Carbone asked if in terms of ratings the agency looks at these bonds
completely separate from other uses by the City and if the reserves carried here have any
effect on other City uses. Boardmember Carbone also asked if the proceeds received from
the Alvin Independent School District could be used for debt service.
Rick Witte, Andrews Kurth LLP, stated yes, the bonds being looked at separate and yes,
the proceeds from the Alvin Independent School can be used for Debt service. He stated
there has not been a situation to where it has needed to be done in the past. The
proceeds are held in a suspense account for about a year because Alvin Independent
School District has the ability to pull out of the transaction. Once the money has been
freed up by calendar, it is free for cash reimbursements or debt service.
Trey Lary, Allen Boone Humphries Robinson LLP, stated in order to proceed further with
this transaction the Board needs to this Resolution authorizing the issuance of the bond; it
authorizes all of the ancillary documents like the escrow agreements, the purchase letter
with Capital One along with a lot of the authorizing requirement to proceed with this
transaction. He stated he is available for any regarding the resolution or any other aspect
on the legal side of the transaction.
Boardmember Pool, made the motion, seconded by Boardmember Carbone, to approve
Resolution No. RDAP-2012-10.
Voting "Aye" Boardmembers Baker, Pool, Sloan, Carbone, and Reid
Voting "No" None.
Motion Passed 5 to 0.
ADJOURNMENT
Meeting was adjourned at 4:45 p.m.
Minutes approved as submitted and/or corrected this 17th of Sept er .D., 2012
Tom Reid
Chairman
ATTEESS�T:
4-14--
Ed Baker
Secretary
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