CC Resolution No. 1816 84
RESOLUTION NO. 1816
RESOLUTION BY THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS,
APPROVING THE MODIFICATION OF TWO PRIOR BOND ISSUES ISSUED BY
THE MILFORD HIGHER EDUCATION FACILITIES CORPORATION FOR
BAYTOWN CHRISTIAN ACADEMY, INC., APPROVING THE ISSUANCE OF A
NEW TAX EXEMPT NOTE BY THE MILFORD HIGHER EDUCATION FACILITIES
CORPORATION FOR BAYTOWN CHRISTIAN ACADEMY, INC., AND
PROVIDING FOR THE EFFECTIVE DATE THEREOF
WHEREAS, Baytown Christian Academy, Inc. (the "School") is an accredited primary or
secondary school located within the City of Baytown, Texas (the "City") and has constructed a school
campus consisting of five buildings including classrooms, library, computer lab, cafetorium,
administrative facilities, parking facilities and a gymnasium, located at the new school campus at 5555 N.
Main, Baytown,Texas 77521 (the "Project"); and
WHEREAS, the Project was financed by the issuance of tax exempt bonds including the Milford
Higher Education Facilities Corporation Education Revenue Bonds (Baytown Christian Academy Project)
Series 2003 (the "Series 2003 Bonds") and the Milford Higher Education Facilities Corporation Education
Revenue Bonds (Baytown Christian Academy Project) Series 2004 (the"Series 2004 Bonds"); and
WHEREAS, the Bank, the School, and the Milford Higher Education Facilities Corporation all
desire to modify the terms of the Series 2003 Bonds and the Series 2004 Bonds to extend the time for
repayment thereof and to re-determine the interest rate on such bonds; and
WHEREAS, Citizens National Bank of Texas further made a conventional loan to the School
which both the School and the Bank desire to refinance into a new tax exempt obligation to provide for
completion of the Project; and
WHEREAS, the modification of the two prior bond issues and the issuance of the new tax
exempt loan must be approved by the City of Baytown, Texas pursuant to the provisions of Section
147(f) of the Internal Revenue Code of 1986 as amended; and
WHEREAS, the City is willing to consider the School's request in order that the bonds may be
modified and the new tax exempt loan may be issued; and
WHEREAS, a public hearing has been held by this City Council with regard to the modification
of the bonds and the issuance of the new tax exempt loan for the Project, all in the manner required by
law; NOW, THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN,TEXAS:
Section I: Solely for the purpose of satisfying the provisions of Section 147(f) of the
Internal Revenue Code of 1986 as amended, the City hereby approves the modifications to the Series
2003 Bonds and the Series 2004 Bonds, each evidenced by "Bond Modification Agreements" dated as of
October 20, 2006. The present outstanding principal balance of the Series 2003 Bonds is $2,392,280.80.
The present outstanding principal balance of the Series 2004 Bonds is $962,882.72.
Section 2: Solely for the purpose of satisfying the provisions of Section 147(f) of the
Internal Revenue Code of 1986 as amended, the City hereby approves the issuance of a tax exempt note
(the "2006 Issuer Note") by the Milford Higher Education Facilities Corporation. The 2006 Issuer Note
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will be issued in a maximum principal amount not to exceed $575,000 and will be used to refund a
previous taxable note issued in the amount of$565,753.55 and used by the School to finance the Project.
Section 3: The proceeds of the Bonds as modified, and the proceeds of the 2006 Issuer Note
are all being used to finance or refinance completion of construction of the Project. The sole user of the
Project is Baytown Christian Academy, Inc., a Texas nonprofit corporation.
Section 4: This Resolution is passed based on the express understanding and representation
by the School and the Milford Higher Education Facilities Corporation that the Bonds and the 2006 Issuer
Note do not and will not constitute in any way a liability or obligation of the City in any manner
whatsoever, and do not and will not count against the City's bonding authority in any way whatsoever.
The School shall indemnify the City from all liabilities regarding the Bonds and the 2006 Issuer Note in a
manner and form acceptable to the City Attorney.
Section 5: The City does not by this Resolution waive any requirement of the City relating
to the construction or acquisition of the School's Project, including but not limited to any requirement for
building permits or certificates of occupancy.
Section 6: This Resolution shall take effect immediately from and after its passage by the
City Council of the City of Baytown.
INTRODUCED, READ and PASSED, by the a4ehe City Council of the City of
Baytown this the 12thday of October, 2006.
CARLOS, Mayor
EST: N
y •.
a II D , City Clerk
APPROVED
AS TO FORM:
efGI�ACIO RAMIREZ, SR., i y Attorney
R:\Karen\Files\City Council\Reao1utions\2006\0ctober 12\Baytow Christi nAcademyFinaneing.DOC