Resolution 99-21
RESOLUTION NO. g9 - [; L (e )
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WYLIE,
COLLIN COUNTY, TEXAS, APPROVING THE RESOLUTION OF THE
\VYLIE ECONOMIC DEVELOPMENT CORPORATION TO OBTAIN A
LOAN FROM THE AMERICAN NATIONAL BANK OF TEXAS TO FUND
DEVELOPMENT OF INFRASTRUCTURE IN AN BUSINESS PARK; AND
DECLARING AN EFFECTIVE DATE.
\VHEREAS, the Wylie Economic Development Corporation was established by ordinance of the
Wylie City Councit'subsequent to an election to impose and assess a one-half sales tax for economic
development within the City of Wylie;
WHEREAS, one of the purposes for which the Wylie Economic Development Corporation was
established is to provide for the creation of jobs and increase the tax base of the City of Wylie;
\VHEREAS, the Board of Directors of the Wylie Economic Development Corporation intends
to recruit companies to construct facilities within a business park which will provide jobs and increase
the tax base (the "Project");
\VHEREAS, The American National Bank of Texas has committed to enter into a Loan
Agreement to assist in funding the Project;
WHEREAS, there has been presented to the City Council of the City of Wylie resolution of the
Wylie Economic Development Corporation providing for the approval of a loan proposal from The
American National Bank of Texas (Exhibit "A"), pursuant to which The American National Bank of
Texas will lend to the Wylie Economic Development Corporation an amount to be used to fund the
Project; and
\VHEREAS, Section 25(f) of the Economic Development Corporation Act of 1979, Article
5190.6, Texas Revised Civil Statutes, as amended, requires that the governing body of the City of
Wylie approve the resolutions of the Wylie Economic Development Corporation providing for the
approval of the indebtedness no more than sixty (60) days prior to the execution and delivery of the
documents evidencing such debt.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
WYLIE, COLLIN COUNTY, TEXAS, THAT:
Section 1. The City Council of the City of Wylie, Texas approve the resolution of the Board
of Directors of the Wylie Economic Development Corporation authorizing the Project and approving
a loan from The American National Bank of Texas pursuant to the loan proposal and pledging sales
tax money to the repayment of that loan from The Amer/n National Bank of Texas, adopted by the
Wylie Economic Development Corporation on -J 0 1.2- , 1999.
I
Resolution No.~~ - .2..1 (r:)
Page 2
Section 2. This resolution was approved by the City Council of the City of Wylie, Collin
County, Texas on 10/17- / , 1999, at which meeting a quorum was present and
voting. I I
ADOPTED BY THE CITY COUNCIL OF THE CITY OF WYLIE, TEXAS, ON THE I z..
DAY OF O:to~~ , 1999.
'\
Mondy, Mayor
ATTEST:
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THE
AMERICAN NATIONAL BANK
OF TEXAS
ESTABLISHED /875
July 7,1999
Board of Directors
Wylie Economic Development Corporation
VIA HAND DELIVERY
Gentlemen:
Thank you for the opportunity to consider the Wylie Economic Development Corporation's
("Borrower") loan request for the purchase of approximately five acres and improvements located
at 404 Hwy. 78, Wylie. We are pleased to advise you that your application for financing has been
approved by The American National Bank of Texas ("Lender") subject to the following terms and
conditions:
Loan Amount: $1,234,409.00
Term: Sixty (60) months
Interest Rate: Six and one-half percent (6.5%) fixed for the term of the Note
Repayment: Sixty (60) monthly payments of $9,203.00 beginning approximately thirty (30)
days after the date of the Note, with payments based on a twenty-year
amortization
Collateral: Assignment of Sales Tax Revenues and a first lien Deed of Trust and
Assignment of Rents covering the real property purchased
, -
There are a number of other issues relative to closing, funding and servicing of the credit facility
described above. These will be specifically addressed in the "Loan Agreemenf' and other
germane documents, which you will have the opportunity to review and comment on. All
documentation must be approved by The American National Bank of Texas in its sole discretion.
It should be noted that while American National Bank is taking a first lien Deed of Trust on the
subject property, the bank will not require you to provide an updated appraisal, environmental
study, mortgagee's title policy, survey, or certain other items customarily required on commercial
real estate loans.
This letter of understanding is issued solely for discussion purposes and is not intended to
represent or be construed as a binding commitment on behalf of The American National Bank of
Texas to make the loan contemplated hereby. No such binding commitment or undertaking shall
be deemed made until the conditions set forth herein have been satisfied, the Lender has elected,
in its sole discretion, to proceed to make the loan contemplated hereby, the Lender (or its
301 Hwy. 78 75098-3944 P.O. Box 1268 Wylie, Texas 75098-1268 Metro (972) 442-6565 Phone (972) 442-6565 Fax (972) 442-2391 Member FDIC
Page 2
Wylie Economic Development Corporation
counsel) has prepared loan agreements which have been executed by the Borrower and such
other parties as required by the Lender, and which have been returned to the Lender, and the
Lender has executed such documents or advanced funds in reliance thereon.
This term sheet is effective as of the date of this letter. It shall be considered expired as of the
close of business on Friday, July 23, 1999. It is our pleasure to be of service to you, and we look
forward to a long relationship. We appreciate your business.
Sincerely yours,
Accepted:
The American National Bank of Texas
Wylie Economic Development Corp.
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Preside
Laura McKethan
Vice President