HomeMy WebLinkAbout12-11-00 TSHC Min MINUTES AND CERTIFICATION
On December 11,2000 the Board of Aldermen of the Town of Westlake,Texas convened in regular meeting
at its regular meeting place in Westlake,Texas. The roll of the duly constituted officers and members of the
Board of Aldermen was called,which are as follows:
Name Title
Scott Bradley Mayor
Fred Held Alderman
Don Redding Alderman
Larry Sparrow Alderman
Bill Frey Alderman
Buddy Brown Alderman
all of who were present,thus constituting a quorum.
Among other business, a written Resolution bearing the following caption was introduced:
A Resolution ordering the creation of a nonprofit corporation pursuant to the Texas Education Code,
approving articles of incorporation and bylaws for,and appointing the initial directors of, such corporation,
appointing certain consultants, and resolving related matters
The Resolution was read by the Board of Aldermen.
After due discussion, it was duly moved and seconded that the Resolution be adopted. The Presiding Officer
put the motion to a vote of the Board of Aldermen, and the Resolution was adopted by the following vote:
AYES: 5
NOES; 0
ABSTENTIONS: 0
The Presiding Officer then declared the Resolution to be adopted.
MINUTES APPROVED AND CERTIFIED TO BE TRUE AND CORRECT and to correctly reflect the duly
constituted officers and members of the Board of Aldermen, and the attached copy of the Resolution is
hereby certified to be a correct copy of an official copy thereof, on file among the official records of the
Board of Aldermen,on this 1 lth day of December,2000.
By:
[SEAL] To Secretary, To of Westlake, Texas
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A RESOLUTION ORDERING THE CREATION OF A NONPROFIT CORPORATION PURSUANT TO
THE TEXAS EDUCATION CODE,APPROVING ARTICLES OF INCORPORATION AND BYLAWS
FOR, AND APPOINTING THE INITIAL DIRECTORS OF, THE CORPORATION, APPOINTING
CERTAIN CONSULTANTS, AND RESOLVING RELATED MATTERS
WHEREAS, TEX. EDUC. CODE ANN. Chapter 53 (Vernon), as amended (the "Act"), and particularly
Section 53.35(b), specifically authorize this Board of Aldermen, as the governing body of the Town of
Westlake,Texas(the "Town"),to order the creation of a nonprofit corporation(the "Corporation")under the
Act to act on behalf of the Town as its duly constituted authority and instrumentality,within the meaning
of the Internal Revenue Code of 1986,as amended,for the purpose of aiding nonprofit institutions of higher
education,accredited primary or secondary schools,or authorized charter schools,as those terms are defined
in the Act, in providing educational facilities and housing facilities and facilities incidental, subordinate or
related thereto or appropriate in connection therewith;
WHEREAS,the Act empowers, among other things,the Corporation to acquire educational facilities and
housing facilities to be used by the students, faculty, and staff of institutions of higher education and
facilities incidental,subordinate,or related thereto or appropriate in connection therewith(any such facilities,
"Facilities");
WHEREAS,the Act provides that the Facilities need not be located within the town limits of the Town;
WHEREAS, the Act authorizes the Corporation to issue revenue bonds("Bonds")and/or to enter into other
obligations ("Obligations") that, among other things, will facilitate the acquisition or construction of
Facilities;
WHEREAS, no Bonds or Obligations of the Corporation will constitute obligations (whether special,
general, or moral)of the Town;
WHEREAS, the Act provides that the directors of the Corporation are to be appointed by the Board of
Aldermen of the Town;
WHEREAS,this Board of Aldermen intends,by the adoption of this Resolution,to take all action necessary
to order the creation of the Corporation with all of the corporate powers and authority granted under the Act;
WHEREAS,the meeting at which this Resolution has been considered was open to the public as required
by law, and public notice of the time, place, and subject of the meeting has been given in accordance with
Chapter 551, Government Code;
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF ALDERMEN OF THE TOWN OF
WESTLAKE,TEXAS
SECTION 1. The findings and declarations contained in the preamble of this Resolution are hereby
incorporated as part of this Resolution.
SECTION 2. This Board of Aldermen hereby finds and determines that it is in the best interest of the Town
and its inhabitants that the Corporation, to be named as specified in the Corporation's articles of
incorporation (the "Articles"), be created pursuant to the Act to act on behalf of the Town as its duly
constituted authority and instrumentality for the purposes and with the powers and authority prescribed by
the Act.
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SECTION 3. This Board of Aldermen hereby orders the creation of the Corporation and approves the
Articles in substantially the form attached to this Resolution as an exhibit, and hereby authorizes the
incorporators of the Corporation(as identified in such Articles)to file the Articles with the Secretary of State
in accordance with law. If the name for the Corporation specified in the Articles is not available, the
incorporators are hereby authorized to change the Corporation's name in the Articles without the further
approval of the Town.
SECTION 4. This Board of Aldermen hereby appoints the persons identified in the Articles(none of whom
is an officer or employee of the Town) to serve as the initial members of the board of directors of the
Corporation.
SECTION 5. This Board of Aldermen hereby approves the initial bylaws of the Corporation in substantially
the form attached to this Resolution as an exhibit.
SECTION 6. It is intended that the Corporation be a duly constituted authority and instrumentality of the
Town within the meaning of regulations and/or revenue rulings of the Treasury Department and/or the
Internal Revenue Service of the United States promulgated under Sections 103 and 115 of the Internal
Revenue Code of 1986.
SECTION 7. With respect to the Town and its instrumentalities,the Board of Aldermen hereby appoints
Larry Williamson as financial advisor,Thomas Allen Moon as finance counsel, and Jenkens &Gilchrist, P.
C. as special finance counsel.
SECTION 8. This Resolution shall take effect immediately upon its adoption.
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ARTICLES OF INCORPORATION
of
TEXAS STUDENT HOUSING CORPORATION-
SAN MARCOS PROJECT
Pursuant to TEX.EDUC. CODE ANN. Section 53.35(b)(Vernon 1996),as amended(the"Act"),we,
the undersigned natural persons,of the age of eighteen(18)years or more,acting on behalf of and as directed
by the Town of Westlake, Texas (the "Town"), as the incorporators of a nonprofit corporation (the
"Corporation") under the Texas Non-Profit Corporation Act, TEX. REV. CIV. STAY ANN. Art. 1396
(Vernon 1997),as amended(the"Texas Non-Profit Corporation Act"),do hereby adopt the following Articles
of Incorporation for such corporation("Corporation"):
ARTICLE I
The name of the Corporation is "Texas Student Housing Corporation- San Marcos Project."
ARTICLE II
The Corporation is a nonprofit corporation created under the Act.
ARTICLE III
The duration of the Corporation is perpetual(subject to dissolution according to law as provided in these
Articles of Incorporation).
ARTICLE IV
The purpose of the Corporation is to act on behalf of the Town as its duly constituted authority and
instrumentality and,in connection therewith,to exercise all powers and authority granted,under the Act and
other applicable law,to corporations created under Section 53.35 (b)under the Act.
ARTICLE V
The Corporation shall have no members and is a nonstock corporation.
ARTICLE VI
The street address of the initial registered office of the Corporation is 3 Village Circle, Suite 207,
Westlake, Texas 76262, and the name of the initial registered agent at that address is Scott Bradley.
ARTICLE VII
All powers and authority of the Corporation shall be vested in a board of directors(the'Board"),subject
limitations imposed by law or otherwise, each member of which shall be appointed by resolution of the
governing body of the Town. The number of directors and their terms of office shall be fixed by the bylaws of
the Corporation consistent with the Act. The directors shall serve without compensation,except that they shall
be entitled to reimbursement for the actual expenses they incur in the performance of their official duties.
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ARTICLE VIII
The number of directors constituting the initial Board shall be ten. The respective names and addresses
of the initial directors,none of whom is an officer or employee of the Town, are as follows:
Name of Initial Director Address
1. James P. Carter 204 Fresh Meadow Dr.
Trophy Club, Texas 76262
2. Worth Blake 244 Oak Hill Drive
Trophy Club, Texas 76262
3. Annette Bush 203 Oak Hill Drive
Trophy Club, Texas 76262
4. Dr. Ted Gillum 1201 N. Carroll Ave.
Southlake, Texas 76092
5. Carroll Schubert 745 E. Mulberry Ave., Suite 850
San Antonio, Texas 78212
6, Dr. John Brooks 513 Sides Ct.
Lewisville, Texas 75057
T Charles R. Bradberry 304 Lorine
Keller, Texas 76248
8. Dr. Forrest Watson 1009 Adonis Dr,
Keller, Texas 76248
9, Dr. Patsy Sharp 416 Oak Haven
Keller, Texas 76248
10. Mike Farhat 3500 Grapevine Mills Pwky., Suite 100
Grapevine, Texas 76051
ARTICLE IX
The respective names and street addresses of the incorporators,each of who is a citizen of the State of Texas
and at least 18 years of age, are as follows:
Name of Incorporator Address
I, Fred Held 4105 Aspen Lane
Westlake, Texas 76262
1 Don Redding 5925 Janet Court
Westlake, Texas 76262
3. Larry Sparrow 4035 Aspen Lane 76262
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Westlake, Texas 76262
4. Buddy Brown 13298 Thornton Drive
Westlake,Texas 76262
5. Bill Frey 5924 Janet Court
Westlake,Texas 76262
ARTICLE X
On December 11,2000 the governing body of the Town duly adopted a resolution ordering the creation of the
Corporation, authorizing the Corporation to act on behalf of the Town as its duly constituted authority and
instrumentality, and approving the form of these Articles of Incorporation.
ARTICLE XI
These Articles of Incorporation may be amended from time to time by a majority vote of the entire
membership of the Board with the approval of the governing body of the Town. Neither the Corporation's
initial bylaws nor any amendment thereof shall tape effect until approved by the governing body of the Town.
ARTICLE XII
No dividends shall be paid by the Corporation and no part of its earnings shall be distributed to or inure to the
benefit of the Corporation's directors or officers or to any private person, firm, corporation, or association
except in reasonable amounts for services rendered.
ARTICLE XIII
The governing body of the Town, in its discretion and without any action by the Board, may at any time
change the structure,organization,programs,or activities of the Corporation or may dissolve the Corporation.
If the Board determines that the Corporation's purposes have been substantially accomplished,and all of the
Corporation's debts and claims have been satisfied, or satisfaction thereof has been provided for,the Board
shall, upon approval by the governing body of the Town, dissolve the Corporation. Any dissolution of the
Corporation shall be subject to any limitations on the impairment of contracts prescribed by the respective
constitutions and other applicable law of the United States of America and the State of Texas. If the
Corporation is dissolved when it has,or is entitled to, any interest in any funds or other property of any kind
(real, personal, or mixed), such interest shall not be transferred to private ownership but shall be transferred
and delivered to the Town(after satisfaction or provision for satisfaction of the Corporation's debts and claims
has been made).
ARTICLE XIV
Regardless of any other provisions of these Articles of Incorporation or the laws of the State of Texas, the
Corporation shall not:
(1) permit any part of the net earnings of the Corporation to inure to the benefit of any private individual
(except that reasonable compensation may be paid for personal services rendered to or for the
Corporation affecting one or more of its purposes);
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(2) devote more than an insubstantial part of its activities to attempting to influence legislation by
propaganda or otherwise; or
(3) participate in,or intervene in(including the publication or distribution of statements),any political
campaign on behalf of any candidate for public office.
ARTICLE XV
Notwithstanding any other provisions in these Articles to the contrary,(1)the Corporation shall not engage in
any activity other than the acquisition, ownership, and operation of a student housing project (the "Initial
Project')known as the"Jefferson Commons" located in San Marcos,Texas,as long as any debt,secured by a
mortgage against the Initial Project,is outstanding and has not been defeased,and(2)no amendment shall be
made to this Article XV without the unanimous consent of all directors.
ARTICLE XVI
Subject to the requirements of any agreement made by the Corporation relating to any bonds issued by the
Corporation or the requirements of any agreement between the Corporation and any institution of higher
education that is a political subdivision of the State of Texas or any political unit thereof, subsequent to the
repayment of all bonds issued by the Corporation,any property securing such bonds will revert,automatically,
to the Town.
IN WITNESS WHEREOF,we have executed these Articles of Incorporation on this 1 I th day of Decembers
2000.
Fred Held, Incor
Don Re ding, I orpor or
Larry Spa ' v, Incorporator
Buddy Bar wn, Incorporator
Bill Frey, In " rator
ARTICLES OF INCORPORATION—Page 4
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STATE OF TEXAS '
COUNTY OF TARRANT '
I,the undersigned,a Notary Public of the State of Texas,certify that on this 11'x'day of December,2000,
personally appeared before me FRED HELD,DON BEDDING,LARRY SPARROW,BUDDY BROWN,and
BILL FREY who, being by me first duly sworn, severally declared that they are the persons who signed the
foregoing document as incorporators and that the statements therein contained are true.
IN WITNESS WHEREOF, I have hereunto set my hand and seal the date and year above written,
Notary Public, State of Texas
[SEAL] '
Ginger Cr s wy
X04 P G;NGER CROSSWY My Commission Expires.:
r Notary Public
# , STATE OF TEXAS
OF My Gomm.Exp.CO2V2004
4
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SECTION 3.2. Appointment, Term, Removal, Vacancy of Offices. Each officer shall be appointed by the
Board for a term of two years and shall continue to serve until his/her successor is appointed and assumes
office. Each officer is subject to removal from office(with or without cause)at any time by the vote of a two-
thirds majority of the Directors in office. A vacancy in any office shall be filled in the same manner as the
original appointment for the unexpired term thereof.
SECTION 3.3 President. The president shall preside at all meetings of the Board. The president is the chief
executive officer of the Corporation and, subject to the control of the Board, shall have general charge and
supervision of the management of the affairs of the Corporation. The president shall cause all orders and
resolutions of the Board to be put into effect. The president shall sign and execute all legal documents and
instruments in the name of the Corporation when authorized to do so by the Board,except when the signing
and execution thereof is delegated by the Board to some other officer or to an agent of the Corporation.
SECTION 3.4. Vice-President. The vice-president shall, in the event of the absence or disability of the
president, discharge the powers and duties of the president, and the vice-president shall perform such
additional duties as may be assigned from time to time by the Board.
SECTION 3.5. Secretary. The secretary shall have charge of the records and correspondence of the
Corporation under the direction of the president. The secretary is responsible for the giving of notice of
meetings of the Board, and the secretary shall attend the Board meetings and shall take and keep minutes of,
and record all votes cast at,the meetings. The secretary shall discharge such other duties as may be assigned
from time to time by the president or the Board.
SECTION 3.6. Treasurer. (a) To the extent not otherwise provided in any resolution of the Board relating to
the issuance of bonds or other obligations of the Corporation or to_instruments authorized by the Board to
provide security therefor,the treasurer shall have the custody of all the funds and securities of the Corporation
and shall deposit them to the credit of the Corporation in such banks or other depositories as the Board may
designate.
(b) The treasurer shall keep proper books of account and other records showing at all times the amount of the
funds and other property belonging to the Corporation and of all receipts and disbursements of the Corporation.
The treasurer shall, under the direction of the Board, disburse all money and sign all checks and other
instruments drawn on or payable out of the funds of the Corporation and shall also make such transfers and
other dispositions of the securities of the Corporation as may be ordered by the Board.
(c) The treasurer shall also discharge such additional duties as may be assigned from time to time by the
Board. The treasurer shall give bond only if required to do so by the Board. The treasurer shall render to the
president and to the Directors an account of all transactions of the treasurer and of the financial condition of the
Corporation upon request.
SECTION 3.7. Compensation of Officers. Officers are not entitled to receive any compensation for their
services as officers, except for reimbursement of their actual expenses incurred in the performance of their
official duties.
ARTICLE IV
MISCELLANEOUS PROVISIONS
SECTION 4.1. Time for Taking Effect, These Bylaws shall take effect upon their adoption by the Board.
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SECTION 4.2. Resignation. Any Director or any officer of the Corporation may resign at any time. A
resignation shall be made by written instrument and shall take effect at the time specified therein or,if no time
is so specified,at the time of its receipt by the president or the secretary of the Corporation. The acceptance of
a resignation is not necessary to make it effective unless expressly so provided in the instrument of resignation.
SECTION 4.3. Fiscal Year. The fiscal year of the Corporation shall be the annual period determined by
resolution of the Board.
SECTION 4.4. Seal. The official seal of the Corporation shall be as determined by the Board. The seal shall
not be necessary to the proper execution by the officers of the Corporation of any document or instrument
unless otherwise specified by the Board.
SECTION 4.5. Special Requirements. The Corporation shall comply with the following special requirements:
(a) The Corporation shall maintain its books and records separate and apart from any other legal entity.
(b) The Corporation shall not commingle its assets with the assets of any other legal entity.
(c) The Corporation shall maintain financial records separate from any other legal entity.
(d) The Corporation shall maintain an"arm-length"relationship with all other legal entities except as it
otherwise required by law.
(e) The Corporation shall pay the salaries of its own employees.
SECTION 4.6. Amendments. These Bylaws may be amended at any time, and from time to time, by
resolution of the Board, which amendment shall not take effect until approved by the governing body of the
Town.
SECTION 4.7. Interpretation. These Bylaws shall be liberally construed to effect the purposes of the
Corporation. If any part of these Bylaws is ruled invalid by a court of competent Jurisdiction,the remainder of
these Bylaws shall remain in effect to the fullest extent possible under the application of such ruling.
References in these Bylaws to the singular number shall include the plural and vice versa(unless the context
otherwise requires).
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