Travis County Commssioners Court
May 11, 2004
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Item 30
30. Consider and take appropriate action on request by st. Edward's university for resolution supporting loans for financing of education facilities within Travis County, pursuant to section 147(f) of the united states internal revenue code of 1986. Good morning.
>> good morning, I’m harvey Davis, manager for the Travis County corporations, I’m here with nancy heyquist an attorney with the winstead law firm and is representing st. Edward's university. This request is similar to a request that the court heard several weeks ago involving goodwill industries in which st. Edward's is -- is requesting the court's approval for a loan that they are going to want to execute with frost national bank through the san leanna education facilities corporation. This loan is for $12.5 million. The financing arrangement provides a -- a -- due to this financing arrangement to this corporation, provides income tax benefit to frost national bank and of course lowers the interest rates for st. Edward's university.
>> and for the record the reason why they are going through san leanna as opposed to the formidable Travis County counterpart is?
>> my understanding of the law is that there's a $10 million cap and the Travis County corporations would not be able to issue this because this would encompass all of the bonds issued by the county and the county corporations, this financing arrangement they are planning to do over a two year period so that the $12.5 million in any one year are the amounts -- or the amounts would be less than $10 million in any one year.
>> we have done one of these before.
>> yes.
>> it was another one, it wasn't san leanna, but it was somebody else.
>> hackberry or hack billions worth.
>> may have been hackberry.
>> the -- the fact that I’m alumni does not prohibit me from voting.
>> the law requires that the county in which the institution is located basically approve the transaction, that's why it's here.
>> yes, sir. The internal revenue code, that's part of the requirements of complying with the internal revenue code.
>> we have done one or more of these.
>> uh-huh.
>> any reason why we should not do this one, mr. Davis, that you know of?
>> none that I know of. And cliff blunt, our attorney for the corporation, has reviewed this transaction.
>> that why I move approval.
>> second.
>> any more discussion? All in favor? That passes by unanimous vote. Thank you very much.
Last Modified: Wednesday, May 12, 2004 7:23 AM