Travis County Commissioners Court
August 19, 2008
TRAVIS COUNTY BEE CAVE ROAD DISTRICT #1 (GALLERIA)
>> good afternoon. We do not need the northwest Travis County road district number 3 as there are no investments and no claims. The only items posted we do need the Travis County bee cave road district number 1 the galleria, however. Let's call it to order. The one item is to 1. Consider and take action on an order authorizing the issuance and sale of Travis County bee cave road district no. 1 unlimited tax road bonds, series 2008; levying a tax and providing for the security and payment thereof; approving the official statement and purchase contract; and enacting other provisions relating thereto. Approving official statements and purchase contract and enacting our provisions relating there to. Our lawyers have been very busy based on this agenda language.
>> not a word, judge.
>> good afternoon, judge. For the record I'm lad patillo financial advisor to the county. We're here today to kind of consummate this process on this road district that was created in 2006. The cast that I have here today with me, of course, glen oppel bond council, sheryl allen with southwest securities the underwriter and has been the financial advisor really to the developer for two or three years now. Charlene collins from armbrister and brown and the developer himself from opus west, joel.
>> welcome one and all.
>> we have -- we have gone over all of the numbers. And verified and in this huge book that I have here, shows that what they are asking for reimbursement for, then -- mr. Despain for his corporation petitioned the court or the board to issue these bonds. It meets all of the requirements of the operations, road district operations agreement, which you passed, approved on October 31st, 2006. It's in compliance with the Travis County road district policy. All of the expenses that would be reimbursed pursuant to that agreement have been independently audited by the accounting firm of pena and swazey, that's what basically is in this book, a big report that I have gone over and collaborated with john hilly from the county attorney's office to make certain that all of the conditions were met. Southwest securities in collaboration with me yesterday offered the bonds to the market and had -- had a successful sale. We bring that to you here today. I will tell you that one of the big requirements we put in there was that we could issue these bonds when there's enough value on the ground to produce a tax rate less than 50 cents per hundred. That was the condition that I insisted on, along with david escamilla back in 2006 and they have met that condition. I would like to introduce to you sheryl allen from southwest securities to explain to you the results of the sale. She's provided you with a pricing booklet here to go through. Sheryl?
>> good afternoon, gentlemen. Ladies. As lad said, we were in the market yesterday to -- to issue the bonds. We have obviously been working on this for some time prior to that. We had very good retail interests, as you know. Retail is individuals and were able to place about 20% of the bonds in the retail market. We still have some institutional interest in it. But we did agree to underwrite the bonds. There's about $7.5 million left in bonds to be sold. So anyone who would like to buy some please see me before I leave today.
>> [laughter] but anyway we are --
>> I would like to interject that certainly shows a commitment on their part to go ahead and commit to buy the bonds at these levels without having purchasers for that many of them.
>> but in any case we were able to underwrite them at a level that met the 50-cent tax rate test and so we're happy to be here today to tell you we've completed that process, we've provided the judge with the bond purchase agreement with the terms under which we're willing to buy the bonds and I think at this point we're asking for your approval to do that.
>> and, judge, also I delivered I think as part of your backup my one thing that was required that I give you my opinion, which I delivered last week, regarding the fact that these -- this bond issue would be sold in the -- in a manner consistent with the district's current plan of financing, mainly it would not adversely affect the county's credit and it would not adversely affect the county's ability to conduct its overall operations. Also from southwest securities a check for a -- for $294,500 that they have given to us as good faith that we will close this deal on the fourth of September. And glen oppel is here also to explain to you the bond order which he has brought forward for you and explain, if you have any questions about that. But my final word is that I would recommend that you accept this offer to buy the bonds from southwest securities.
>> okay. Thank you.
>> the action item that you have on the agenda today is the adoption of the order authorizing the issuance of the Travis County bee cave road district number 1 unlimited tax road bonds series 2008 in the principal amount of $14,725,000. The proceeds be used among other things to pay the cost of issuance, to pay capitalized interest for 12 months on the bond and to pay or reimburse the development for the amount of costs of the project as set forth and described in the road district operations agreement and in accordance with the numbers that were audited by pena swazey, this order accommodates all of those activities and authorizes the issuance of bonds and the payment of those amounts.
>> before I move approval on this, I do want to say a big round, give a big rounds of thanks to everybody that's worked on this thing. Sheryl especially for you guys' involvement in this thing. But I can't tell you what -- what this -- what this project has meant and has done to that area out there at 71, 620 and bee cave road. I mean, I don't know that those -- that there are roads that would be a delight to travel anywhere in Travis County. This gets the closest compared to what we've had out there up until the last year. Without joel and y'all's ability to really pull this thing off, and, you know, with our financial teamworking with this and sheryl I mean I know there are a lot of people out there very, very happy and this is a great example of what you can do when you have got the right people at the table to make these kind of things work. So I just want to tell you that I really, really appreciate that. And I would move approval.
>> questions? Discussion of the motion? All in favor? Commissioner Davis abstains or voting against.
>> abstaining.
>> show the rest of the -- other three present Commissioners eckhardt, Daugherty, yours truly voting in favor with director eckhardt absent.
>> you said eckhardt but I think you meant Gomez. Gomez and I and --
>> Commissioner Gomez, Daugherty and myself.
>> thank you all very much.
>> thank you,.
>> thank you.
>> I did go ahead and sign these, there be costing your runner overtime. I did it in the name of good government. Did we get a motion to adjourn.
>> so move.
>> second.
>> all in favor? Show unanimous court with director eckhardt absent.
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Last Modified:
Wednesday, August 20, 2008 8:37 AM