ESD Bond Finance Committee Meeting, Thursday, September 5, 2019 3:00 pm

ESD Bond Finance Committee Meeting, Thursday, September 5, 2019 3:00 pm

Good afternoon before i call this meeting to order i will note for the record that i will serve as committee chair for today’s meeting now i called order the meeting of the bond financing committee members of the new york state urban development corporation doing business as empire state development for thursday september 5th 2019 i would like to note for the record

That this meeting is being webcast the committee members have received the relevant written materials in advance of today’s meetings and are free to ask questions at any time we welcome public comment on today’s agenda item to ensure maximum opportunity for participation speakers representing themselves may speak up to two minutes each and those representing groups

May speak up to four minutes with one speaker four speakers comments may only address the item to consider at today’s meeting at this time i will ask my fellow committee members whether he or she has a potential conflict of interest with respect to today’s agenda item if so i will ask you to please make an appropriate disclosure on the record at this time and we will

Then remind you to recuse yourself any discussion or pose with regard to this item hearing no conflicts i will now ask jonathan bayer good today to present today’s agenda item which relates to the preliminary reactions for the issuance of state personal income tax and/or sales tax revenue bond jonathan thank north york thank you thank you sarah the bond financing

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Committee is being asked to is being asked to approve the submission of an application to the new york state public authorities control board p acb in connection with the proposed issuance of state sales tax revenue bonds and/or state personal income tax bonds or pip bonds and together with the sales tax bonds we were referring to these instruments as the bonds

And also to authorize the corporation to enter into contracts with bond council on connection with the issuance of these bonds please note that although the board is being to authorize both pitt and sales tax bonds the transaction is expected to be all sales tax bonds sales tax bonds are a new credit for esd esd was always authorized to issue these bonds secured

By sales tax revenues but this will be the first issuance the lockbox release provisions and repayment mechanisms are all substantially identical to pitt bonds but some new parallel sales tax tax documents will need to be executed the bonds are authorized by multiple project acts pursuant to these acts esd is authorized to assist in financing certain correctional

Youth facilities economic development projects housing various capital projects and equipment projects in addition the corporation may issue bonds to refund bonds previously issued by the corporation or other state entities in accordance with the project at the proceeds of the bonds will be used to fund the project’s refund bonds previously issued by the corporation

And pay all costs and expenses incurred by guillotine in connection with the issuance of the bonds the public authorities law requires the approval of p acb for the acquisition construction of financing of any project proposed by the corporation these bonds will have a fixed interest rate and the bonds will be issued in an amount not to exceed two billion dollars

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Including issuance costs the bonds will be payable from and secured by amounts paid to the corporation by the state acting buying through the division of budget pursuant to a financing agreement between the corporation in the state staff is proposing to retain to fund councils from esds pre-qualified lists for the transaction nixon peabody and bryan trevino which

Is an mwbe firm and this selection was based on the firm’s prior experience as bond counsel specifically sales tax bonds and personal income tax bonds the firm’s will be retained for a total cap fee of three hundred and eighty-five thousand dollars at esd standard rates and funded by bond proceeds accordingly we are now requesting authorization to submit the pacp

Application and contain counsel at a subsequent meeting we will request the committee to approve the transaction and operative guidance thank you are there any questions or comments related to this proposal are there any comments from the public if not i will entertain a motion for approval so moved do i hear a second you are the second i’m the second okay well

I second it and now all in favor aye aye any opposed thank you the motion carries and there be no further business i will call for a motion to adjourn this meeting cerullo’s approved at a wall for attending the fun council fund financing committee meeting of september 3 of 2019

Transcribed from video
ESD Bond Finance Committee Meeting, Thursday, September 5, 2019 3:00 pm By NYSESD