AGENDA CAPTION:
Title
Consider approval of Resolution 2024-185R, approving a Public Hearing regarding the reissuance of revenue bonds in a principal amount not to exceed $25,550,000.00 to be reissued by New Hope Cultural Education Facilities Finance Corporation for a residential senior living project, known as the Villas Del San Xavier Senior Residences and located at 2621 South IH-35 in San Marcos; and declaring an effective date.
Body
Meeting date: September 17, 2024
Department: Finance
Amount & Source of Funding
Funds Required: N/A
Account Number: N/A
Funds Available: N/A
Account Name: N/A
Fiscal Note:
Prior Council Action: October 16, 2018, approved Resolution 2018-198R supporting the submission of an application for Low Income Housing Tax Credits to the Texas Department of Housing and Community Affairs (TDHCA). December 19, 2018, approved Resolution 2018-238R, which was in the format required by TDHCA since the project would be seeking tax-exempt bonds. November 19, 2019, approved Resolution 2019-239R, approving the issuance of revenue bonds in an amount not to exceed $25,000,000. February 24, 2021, approved Resolution 2021-39R, approving the issuance of revenue bonds in an amount not to exceed $30,000,000.
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Background Information:
For private activity bonds such as the bonds providing the financing for the Villas Del San Xavier Senior Residences, Section 147(f) of the Internal Revenue Code requires the approval of the bonds by the issuer, New Hope Cultural Education Facilities Finance Corporation, and the governmental unit having jurisdiction over the area where the project is located, City of San Marcos, in order for the bonds to be tax exempt. Prior to the proposed reissuance of the bonds, City Council must approve holding a public hearing.
The reissuance of the bonds is to refinance the costs of the project and the terms of the bonds stay the same. The principal amount of the reissuance is capped at $25,550,000. The City has no financial responsibility for repayment of the bonds and is not involved in the bond reissuance.
The public hearing is estimated to be held prior to September 30, 2024, and the resolution names Robert D. Dransfield, bond counsel representative for the project, as hearing officer. The hearing officer will facilitate the public hearing and provide the City with minutes of the hearing. At a subsequent City Council meeting, there will be a resolution approving the proposed reissuance of the bonds. As stated earlier, the City is not financially responsible for the repayment of the bonds.
Council Committee, Board/Commission Action:
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Alternatives:
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Recommendation:
City Council approve the resolution authorizing a public hearing for the reissuance of revenue bonds for the Villas Del San Xavier Senior Residences.