Title
Consider a memorandum/resolution authorizing and approving the creation of the Killeen Public Facility Corporation to act on behalf of the City of Killeen and approving the Certificate of Formation.
Summary
DATE: December 1, 2020
TO: Kent Cagle, City Manager
FROM: Traci Briggs, City Attorney
SUBJECT: A resolution authorizing and approving the creation of the Killeen Public Facility Corporation and approving the Certificate of Formation.
BACKGROUND AND FINDINGS:
On November 17, 2020, the City Council received a briefing on the concept of public facility corporations (PFC), a tool authorized by chapter 303 of the Texas Local Government Code. The purpose of PFCs, as stated in the statute, is to allow broad power to finance or to provide for the acquisition, construction, rehabilitation, renovation, repair, equipping, furnishing, and placement in service of public facilities in an orderly, planned manner and at the lowest possible borrowing price. A PFC can also be used as an economic development tool.
The PFC has been proposed specifically for a potential multifamily project by The NRP Group with the city. Consideration of that specific project will come forward at a later date, but the viability of the project is dependent on the city’s creation of a PFC because of the tax-exempt status the PFC can provide to a public facility.
In order to establish the Killeen Public Facility Corporation, the City Council must authorize and approve its creation and approve the certificate of formation. Upon approval by the City Council, the documentation is sent to the Secretary of State for filing, and after confirmation of filing, the PFC will then hold an organizational meeting to adopt bylaws, elect officers and any other action necessary, including consideration of the NRP project. The PFC will be a nonprofit public corporation, governed by a board of directors composed...
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