HomeMy WebLinkAboutResolution 5507-11-2021 A Resolution
NO. 5507-11-2021
DIRECTING STAFF TO PREPARE AND PRESENT FOR CENTRAL
CITY LOCAL GOVERNMENT CORPORATION BOARD AND CITY
COUNCIL CONSIDERATION DOCUMENTS FOR ISSUANCE OF
CORPORATION REVENUE BONDS IN AN AGGREGATE
PRINCIPAL AMOUNT NOT TO EXCEED $25,000,000 FOR THE
PURCHASE OF TWO PARKING GARAGES ASSOCIATED WITH
THE CRESCENT HOTEL AND MIXED-USE PROJECT IN THE FORT
WORTH CULTURAL DISTRICT, WITH SUCH REVENUE BONDS
TO BE SUPPORTED BY CITY LEASE PAYMENTS; EXPRESSING
INTENT TO APPROVE ISSUANCE AND SALE OF DEBT ON OR
BEFORE JUNE 30, 2024; AND ORDAINING MATTERS RELATED
THERETO
WHEREAS, the Central City Local Government Corporation (the "Corporation")
was incorporated on May 3, 2005 under the provisions of Subchapter D, Chapter 431 of
the Texas Transportation Code ("Chapter 431 ") and Chapter 394 of the Texas Local
Government Code ("Chapter 394") and organized for the benefit of the City of Fort
Worth (the "City"), specifically for the purpose of aiding, assisting, and acting on behalf
of the City in the exercise of its powers to accomplish any governmental purpose of the
City and in the promotion of the common good and general welfare of the City; and
WHEREAS, Crescent Real Estate, LLC, directly or through one or more affiliates
("Developer") is developing a mixed-use complex in the Fort Worth cultural district
featuring a minimum 200 room hotel with approximately 8,500 square feet of combined
meeting space and an approximately 4,500 square foot full-service restaurant;
approximately 169 units of multi-family apartments; an approximately 150,000 square
foot office building; and two parking garages containing an aggregated minimum 800
spaces that will service the owners and tenants and that will offer paid public parking
during designated hours (the "Project"); and
WHEREAS, on March 23, 2021, the Board adopted a resolution authorizing
execution of a purchase agreement with Developer for the purchase of the two parking
garages for the lesser of the fair market value or Twenty-Five Million Dollars
($25,000,000.00) ("Purchase Price") and indicating bonds would be issued for such
purpose, the same being Resolution No. FWCCLGC-2021-01 and also authorizing
execution of an agreement with the City of Fort Worth for the lease of the garages with
option to purchase and sublease to Developer (the "Resolution"); and
WHEREAS, on March 2, 2021, the City Council approved execution of the lease;
a sublease with Developer, including a 380 Grant component; and other agreements related
to the Project (M&C 21-0142); and
WHEREAS, under the terms of the agreements between the Corporation and
Developer, the parking garages are required to be substantially complete on or before June
30, 2024; and
WHEREAS, Developer has advised the City that the parking garages are presently
anticipated to actually be substantially complete in the Summer of 2023; and
WHEREAS, the balance of the Project is forecasted by Developer to be completed
within four months of the garages' completion; and
WHEREAS, both Chapter 431 and Chapter 394 authorize the Corporation to issue
bonds to carry out its purpose; and
WHEREAS, the Board plans to issue revenue-based debt obligations ("revenue
bonds") to pay the Purchase Price, with the City's rental payments under the lease to be
pledged as security and payment for said revenue bonds; and
WHEREAS, because the City's payments under the lease serve as security and
payment for the revenue bonds, City Council approval of the revenue bonds will be
necessary and advisable; and
WHEREAS, financial projections and modeling indicate that the lease rental
payments will support issuance of financially viable revenue bonds with an aggregate
principal amount equal to the Purchase Price on a schedule that coordinates with the
projected completion date and purchase of the parking garages by the Corporation; and
WHEREAS, on November 30, 2021, the Corporation Board will be considering a
resolution expressing its intent to authorize issuance and sale of the revenue bonds to
support purchase of the parking garages at the appropriate time and authorizing related
matters; and
WHEREAS, the City wishes to express its support of the project and affirm its
present intent to approved the Corporation debt as described above.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF FORT WORTH THAT:
1. Staff is directed and authorized to cooperate with the Corporation in the process
of engaging debt underwriters and preparing documents necessary to issue,
market, and sell the Corporation's revenue bonds related to the parking garages
and the City's lease payments.
2. Staff is directed to prepare and to present for consideration of the Corporation
Board and City Council instruments to approve issuance and sale of Corporation
revenue bonds to produce the Purchase Price, on a schedule that coordinates with
the completion and acquisition of the parking garages (presently anticipated to
occur in the Summer of 2023), and under no circumstances any later than June 30,
2024.
3. The City Council hereby expresses its present intent to approve the
Corporation's issuance of revenue bonds, with the City's rental payments under
the lease serving as security and payment, in connection with the Corporation's
acquisition of the parking garages described herein above; with the sale to be
consummated at or near completion of the garages (presently anticipated to
occur in the Summer of 2023) and under no circumstances any later than June
30, 2024; and with the proceeds therefrom to be made available by the
Corporation to remit the Purchase Price to Developer.
Adopted this 30th day of November 2021.
ATTEST: �`.. OF FO
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By: J ette S.Goodall(Dec 1,202116: ST)
annette Goodall, City Secretary
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