HomeMy WebLinkAbout12-11-00 TSH Entity 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 11 th day of December,2000.
i
By: "6
[SEAL] To an Secretary, Tow f Westlakc, 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.
TAM 11/27/2000 v1
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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
7. 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
2. Don Redding 5925 Janet Court
Westlake,Texas 76262
ARTICLES OF INCORPORATION—Page 2
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3. Larry Sparrow 4035 Aspen Lane 76262
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 X1
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 take 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 XHI
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:
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(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)
(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 College Station,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 11th day of December,
2000.
Fred Held, Incorpor'a or
Don Redd' g, Incorporator
-a . '/11 1 Allk
Larry Sp ow Incorporator
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Buddy Brown, Incorporator
A,�l?,2"
iIl Frey, Inco a or
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 11th day of December,
2000, personally appeared before me FRED HELD, DON REDDING, 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 WEEREOF,I have hereunto set my hand and seal the date and year above written.
Notary Public, State of Texas
[SEAL]
Ginger 60sswy
GINGER CROSSWY My Commission Expires:
Notary Pubk
STATE OF TEXAS
Ky Coinrn.Exp.o2J22l G04
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BYLAWS
of
TEXAS STUDENT HOUSING CORPORATION-COLLEGE STATION PROJECT
ARTICLE I
POWERS AND OPERATIONS IN GENERAL
SECTION 1.1. Powers of Corporation. The Texas Student Housing Corporation- College Station Project
(the "Corporation")shall have all of the powers and authority granted to nonprofit corporations under Section
53.35(b),Texas Education Code, as amended(the "Act").
SECTION 1.2. Records. The Corporation shall keep complete corporate and financial records and minutes
of the proceedings of its board of directors (the "Board") and of committees (if any) of the Board in
accordance with applicable law. The records and minutes shall be made available for inspection at all
reasonable times by any member of the Board(any member, a"Director") or by the Director's authorized
agent or by any authorized representative of the Town of Westlake(the"Town").
SECTION 1.3. Regulations. The Corporation, by action of the Board, may promulgate regulations (the
"Regulations") governing the Corporation's operation. The Regulations shall not conflict with,and shall be
subject to,these Bylaws and the Corporation's Articles of Incorporation(the "Articles").
SECTION 1.4. Staffing Functions. Staff functions of the Corporation may be performed by employees of
the Town, under the direction of the Town Manager, subject to payment by the Corporation of the actual
costs of the staff functions to be performed, as from time to time may be billed to the Corporation by the
Town. The Corporation shall pay the bills upon receipt(or as promptly thereafter as practicable) from any
of its funds available for such payment.
SECTION 1.5. Administrative Fees. The Regulations may prescribe fees payable by applicants for financial
participation and/or assistance by the Corporation and such other fees and charges as the Board determines
appropriate to defray the administrative expenses incurred in the operation of the Corporation.
SECTION 1.6. Student Assistance Programs The Corporation shall promulgate Regulations establishing
and providing for the administration of a program designed to provide education and/or housing assistance
to deserving students residing in the Keller Independent School District, the Carroll Independent School
District,and the Northwest Independent School District at the institution(s)of higher education that are aided
by the Corporation(the "Student Assistance Program"). The Regulations governing the Student Assistance
Program shall provide a preference in the awarding of student assistance to students who reside in the Town
(and who otherwise qualify for assistance). The Student Assistance Program shall be funded exclusively
from those funds (if any) of the Corporation that are not subject to a lien and/or pledge securing the
Corporation's bonds or other obligations or required for the timely payment of the Corporation's operation
and maintenance expenses.
ARTICLE 11
BOARD OF DIRECTORS
SECTION 2.1. Management of Corporation. The Board is responsible for the management of the
Corporation.
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SECTION 2.2. Number,Appointment, Term,Disqualifications,,and Removal of Directors. The Board shall
consist of ten Directors. The Directors constituting the initial Board are those specified in the Articles.
Subsequent Directors(including Directors filling vacancies)shall be appointed by the governing body of the
Town. The term of each Director is two years, provided that a Director shall continue to serve until his/her
successor is appointed and assumes office. No officer or employee of the Town may serve as a Director.
Any Director may be removed at any time(with or without cause)by the governing body of the Town.
SECTION 2.3. Meetings of Directors. (a)The Board may hold its meetings at any place designated (from
time to time)by the Board. In the absence of any designation,meetings shall be held at the principal office
of the Corporation. Regular meetings of the Board shall be held at such times and places as designated by
resolution of the Board. A special meeting of the Board shall be held whenever called by the president or
the secretary of the Corporation or by the Board at the time and place specified by the authority calling the
special meeting. Unless otherwise indicated in the notice of a special meeting,any matter that may be acted
upon by the Board at a regular meeting may be acted upon at a special meeting.
(b) Except as otherwise provided by law, notice to Directors of a regular meeting is not required. Notice
of the time and place of each special meeting shall be given to each Director(either by personal delivery,
United States mail,telephone,or telecopy)not later than two hours in advance of the meeting. Notice of any
Board meeting to persons other than Directors shall be given if and to the extent required by law.
(c) Attendance of a Director at a meeting shall constitute a waiver by the Director of any notice of meeting,
unless the Director attends the meeting for the express purpose of objecting to the transaction of any business
on the grounds that the meeting is not lawfully called or convened. A waiver of a notice in writing, signed
by any person entitled to notice(whether before or after the time for giving the notice) shall be deemed to
be the equivalent to the giving of notice.
SECTION 2.4. Quorum. A majority of the number of Directors fixed by these bylaws as constituting the
Board shall constitute a quorum for the transacting of the business of the Corporation. The act of a majority
of the Directors present at a meeting at which a quorum is in attendance shall constitute the act of the Board
except as otherwise required by law or by these Bylaws or the Articles.
SECTION 2.5. Order of Business. The Board shall consider the matters before it in such order as the Board
may determine.
SECTION 2.6. Committees. The Board,by resolution adopted by a majority of the Directors in office, may
designate one or more committees that, to the extent provided in the resolution, shall have the authority of
the Board in the management of the Corporation. Each committee shall consist of two or more Directors.
Committees that do not have the authority of the Board in the management of the Corporation may be
designated by resolution of the Board or by the president of the Corporation, and membership on any
committee need not be limited to Directors.
SECTION 2.7 Compensation of Directors. Directors are not entitled to receive any compensation for their
services as Directors, except for reimbursement of their actual expenses incurred in the performance of their
official duties.
ARTICLE III
OFFICERS
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SECTION 3.1. Office Titles. The officers of the Corporation shall be a president, a vice president, a
secretary,a treasurer,and such other officers as the Board may from time to time appoint. The same person
may hold more than one office, except that the president shall not hold the office of secretary.
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 tittles 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.
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ARTICLE IV
MISCELLANEOUS PROVISIONS
SECTION 4.1. Time for Taking Effect. These Bylaws shall take effect upon their adoption by the Board.
SECTION 4.2. Resonation. 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 unti 1 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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