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RESOLUTION AUTHORIZING GEORGETOWN INDUSTRIAL DEVEOPMENT
CORPORATION INDUSTRIAL DEVELOPMENT REVENUE BONDS (TEXAS
BENCHMARK INNS PROJECT) SERIES 1983; A LOAN AGREEMENT;
A TRUST INDENTURE; A GUARANTY AGREEMENT; APPROVAL OF A
DEED OF TRUST AND SECURITY AGREEMENT; AND MATTERS IN
CONNECTION THEREWITH
WHEREAS, the Georgetown Industrial Development Corporation (the "Issurer"),
on behalf of the City Council of the City of Georgetown, Texas (the "Unit"), is
empowered to finance the cost of projects to promote and develop commercial
enterprises to promote and encourage empoyment and the public welfare by the
issuance of obligations of the Issuer which projects will be inside the Unit's
boundaries; and
WHEREAS, Texas Benchmark Inns, a Texas joint venture (the "Company"), has
requested the Issuer to finance the cost of a 100 room motel and related facilities
(the "Project") which will be in furtherance of the public purposes of the Development
Corporation Act of 1979, Article 5190.6, Vernon's Annotated Texas Civil Statutes,
as amended (the "Act"); and
WHEREAS, on September 27, 1983, the Issuer adopted a "Resoluton with Respect
to the Issuance of Bonds" (the "Initial Resolution");
WHEREAS, in order to finance the Project, the Issuer proposes to issue bonds
styled, "Georgetown Industrial Development Corporation Industrial Development
Revenue Bonds (Texas Benchmark Inns Project) Series 1983" (the "Bonds"); and
WHEREAS, the City Council of the City of Georgetown, Texas, being the governing
body of said home -rule city, found and determined, after public hearing in accordance
with the Act, that the Project is in an economically depressed area, as defined by
the Act, and approved the Project; and
WHEREAS, there have been presented to the Issuer proposed forms of each
of the following:
1. Loan Agreement, dated as of December 1, 1983, (the "Agreement"), between
the Issuer and the Company;
2. Trust Indenture dated as of December 1, 1983, (the "Indenture"), between
the Issuer and Allied Bank of Texas, as trustee (the "Trustee");
3. Guaranty Agreement, dated as of December 1, 1983 (the "Guaranty Agreement"),
among Larry A. Richardson, J. K. Richardson, Michael A. Barnett and J. Michael
Lengen, four individuals (the "Guarantors") and the Trustee;
4. A Deed of Trust and Security Agreement dated as of December 1, 1983 (the
"Mortgage") from the Company to James H. Albert, as Mortgage Trustee for the use
and benefit of the Issuer; and
5. A Memorandum of Trust Indenture dated as of December 1, 1983 (the
"Memorandum") executed by the Issuer and the Company.
THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE GEORGETOWN
INDUSTRIAL DEVELOPMENT CORPORATION THAT:
Sectionl. Based soley upon the representations made to the Board of
Directors (the "Board") and to the Texas Economic Development Commission by
the Company, it appears and the Board hereby finds that:
(i) The Project is required or suitable for the promotion of commercia
development and expansion or for the development and expansion of
commercial facilities and related facilities;
(ii) The Project will contribute to the economic growth or stability of the
Unit by (a) increasing or stabilizing employment opportunity; (b) sig-
nificantly increasing or stabilizing the property tax base; and (c) pro-
moting commerce within the Unit and the State of Texas;
(iii) The Project sought to be financed pursuant to the Agreement is in fur-
therance of the public purposes of the Act; and