Travis County Commissioners Court
Tuesday, November 8, 2011 (Agenda)
Health Facilities Development Corporation
Now let's call to order the Travis County health facilities development corporation.
item number 1, a, approve setting a public hearing on November 29, 2011, to receive comments regarding a proposed reissuance of tax exempt bonds for the benefit of longhorn village, a continuing care retirement community located at 501 north quinlan park road.
and 1 b, approve a resolution providing notice of intention to issue bonds, and 1 c, authorize other matters in connection there with related to longhorn village.
good afternoon.
>> this is a request coming from longhorn village.
the corporation financed the construction of that project in precinct 2 four years ago, I believe in '07 when that closed, and they are asking to do a refunding.
and so this -- we need to follow certain steps, one of which is to have a public hearing under the internal revenue code which is -- we do fairly often so they've requested that be done on November 29th.
also under the health facilities development corporation, there's a notices of intention to issue bonds that needs to be filed with the county clerk and so this brief resolution also provides authority to get that signed and filed.
one other -- and the intention is at this pont to come before you on the 29th not only to do the public hearing but also to ask for the documents and the transactions -- transaction to be approved.
at this point we have not seen documents, but over the next couple of weeks lad and I will be working with the bond counsel and other lawyers to get those documents in good shame before the 29th.
one other request that's been made that falls under 1 c, the applicant has asked for a waiver of the $10,000 application fee for this project, and we discussed it this morning, I don't know if you recall, but a majority of those application fees goes both to my firm and to ladd's firm, kind of a retainer and is meeted out against fees at the closing.
that's 8,000 of the 10,000, so our recommendation is you waive the $8,000 portion of the application fee since this is a refunding and ask them to pay the $2,000 that's retained by the corporation to pay for the assistive costs of processing the -- administrative costs of processing the applications and time of the staff and that sort of thing.
I don't know if there's any questions at this point, but this is a preliminary action to prepare for the 29th.
>> so have we been getting that $10,000?
>> on refundings?
it's been pretty common to waive that on refundings under the theory we collected it the first time the project came before you for financing.
>> so is the idea that the timing effort necessary for refunding is less than the $10,000 fee would merit?
>> yes.
>> should we come up with a different fee structure for refunds?
>> there is a different fee -- that's paid at closing.
this is the application fee that's generally required.
I can get that information for you, but there is a lesser fee required at closing for a refunding than for an initial financing for a project.
and I can get you that information.
>> so the costs that we incur would be the 2,000 or 8,000?
>> 2,000 would cover those costs.
you are obviously free to do what you would like, but that was kind of our thought.
it would get the corporation the money it usually gets on an application.
>> but you are saying the issuer has agreed to pay that fee that covers our expenses.
>> they requested waiver of the whole fee, but they informed me if that wasn't granted, they would get the application fee over medley.
-- immediately.
>> so do we have until the public hearing to make that decision?
>> sure.
>> move that we approve setting of the public hearing on November 29th, 2011.
>> second.
>> that we approve the resolution providing notice of intention to issue bonds.
and that we indicate our intention to take action on the request for fee waiver on November 29th.
second to all of that?
Commissioner Gomez?
>> uh-huh.
>> discussion on the motion?
all in favor?
that passes by unanimous vote.
with director Davis temporarily off the dais.
thank you.
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