Travis County Commissioners Court
August 21, 2007
Health Facilities Corporation
We do need the Travis County health facilities corporation. One item, consider and take appropriate action to approve resolution authorizing issuance of the corporation's retirement facilities, revenue bonds, longhorn village project, series 2007-a. And variable rate demand retirement facilities revenue bonds, longhorn village project, series 2007-d. And other matters in connection therewith.
>> mike gonzales, I'm here with cliff blunt, attorney for the corporation and
>> [inaudible] financial advisor. We actually held the public hearing for this as required by the internal revenue code last may. And today what's before the board for approval is the resolution to approve the issuance of the bonds. The project is for proposed senior living facility located on quinn and park in steiner ranch. The note is not to exceed amount of $170 million. With that I'll turn it over to cliff.
>> the documents are fairly standard for this type of transaction. They do provide for indemnification of the corporation in that the corporation will only be liable to the extent it receives bond proceeds. There's no additional liability to the corporation or the county on this transaction. So from a legal perspective, I believe the documents are fine and I think lad has a report on the financial side.
>> on the financial side, as you probably well know, the credit market has been taking a real roller coaster ride this last month and that's proved difficult for this and other transactions, but the underwriters on this are riding it out and these won't be priced for about three weeks, and keeping an eye on the markets. We've been keeping an eye on the fees and expenses in the transaction and everything looks in good order and I will continue to monitor that with harvey and cliff.
>> so who is responsible for paying this huge amount of money, mr. Blunt?
>> well, the borrower will, under the loan agreement related to the project, is also executing a note and will repay the proceeds based on project revenues is how the transaction is structured.
>> okay. And the law authorizes the corporation to approve the issuance of this debt.
>> yes, sir.
>> the funding to -- what's the relationship with j.p. Morgan.
>> the underwriter. The banker.
>> I will be a stain.
>> we have representatives from fullbright and the Texas exes to to an update on the project.
>> we've heard from them before, right in any reason we should not do this?
>>
>> [inaudible].
>> move approval.
>> second.
>> discussion? All in favor. Show Commissioner Gomez, Daugherty, eckhardt and yours truly voting in favor. Commissioner Davis --
>> I'm abstaining because of the relationship I have with j.p. Morgan so there's no way in the world I can vote on this. That is the only reason I won't support it is because of that relationship. Thank you.
>> thank you all very much and good luck to you. Seconded by director Daugherty. All in favor? That passes by unanimous vote. Let's call back to order the voting session of the Travis County Commissioners court.
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Last Modified:
Wednesday, August 22, 2007, 18:30 AM