Travis County Commissioners Court
December 20, 2005
Health Facilities Development Corporation
Now let's call to order the Travis County health facilities development corporation, one item. Number 1, that is to consider and take appropriate action to approve providing notice of intention to issue bond anticipation notes to fund a loan to longhorn village facilitator, llc, authorizing a public hearing and other matters in connection there with.
>> I’m here with mike watson, an attorney with fulbright & jaworski, representing longhorn village. Longhorn village has given the corporation an application to issue a bond anticipation notes up to $11 million. They have paid the full application fee. Our application fee. The plan is to establish a tax exempt nonprofit entity that will build and manage a continuing care retirement community located on 56 acres at steiner ranch. It will be adjacent to the u.t. Golf club. This project is being spearheaded, it's my understanding, by the university of Texas ex-students association. The plan it to build 210 independent units. In addition, 60 private skilled nursing homes, 20 sis ted living sweets and six alzheimer's care units. What their asking the board to approve today is not to approve the bond anticipation notes at this time. Today they're requesting that the board approve the -- giving them permission and to hold a public hearing which would be held on January 17th. And to accept the application. And the third item was to approve the filing of a notice of intent to issue bonds by the corporation to the county clerk. This is a requirement of the health facilities development corporation act. So in January they plan to come back and ask the board to approve the issuance of the bond anticipation notes. The way I understand the time line of this project is that they plan to close on the land January 19th, the 56 acres, and to issue the notes in late January, and the proceeds of the notes are -- will be used to acquire the land and to market the development or the project over the next year, couple of years or year and a half and that in early 2008, assuming that they sign up enough people to come in to -- I think they have to sign up at least 70% of the united states, people sign up to live there, then they would come back and ask the board to issue bonds that would be up to $140 million. This would be done in 2008, then they would start construction of the project in 2008. Construction would finish in 2010 and they would be set to go. In the audience for additional questions is people from the x student association and from the development company that is assisting them with this project.
>> counsel, anything to add?
>> yes, I would like to add that we have gotten our 501(c)3 determination and to say this is not a final approval of the deal, it's just approval of the notice of intent to issue bonds and be fine with Travis County. The acceptance of the application and also the publication of the notice for a hearing and then holding the hearing.
>> I will add that our attorney cliff blunt was not able to attend today. He has reviewed all the legal documents.
>> so harvey, once again, is the anticipation -- counsel, the anticipation is that the remainder of this, not the bond anticipation, is also coming through the corporation?
>> that is the intent as far as I know. And that would happen obviously in 2008. So to some extent we haven't gotten that far down the road, but that is the intent.
>> that is the intent. Okay.
>> so you want action on the notice of intention, authorization to conduct the public hearing, and was there a third matter?
>> the acceptance of the application, which has already been filed and feet that's been paid.
>> okay. Receipt of that check is not acceptance enough for you? [ laughter ] I guess further down the road, I guess closer to the time of debt issuance, we would need to conduct a financial feasibility study.
>> with respect to the 2008 issuance?
>> right.
>> I think that's correct.
>> and we do have a financial advisor who is out of the country now, but he will be back by then hopefully. Move approval of the requested items. Not to cut you off, sorry.
>> I was just going to say I believe our financial advisor will be back in town before they come back to request the final approval on the bond anticipation notes in January.
>> okay. Any comments from representatives from the ex-students association? As long as you promise not to ask ex-students for contributions during this court session. [ laughter ]
>> I’m a member of the alumni association. Jim has already gotten my money, lifetime.
>> any more discussion of the motion? All in favor? That passes by unanimous vote.
>> move adjourn?
>> all in favor? That passes unanimously too. Good luck to you.
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Last Modified:
Wednesday, December 21, 2005 11:44 AM