Title
Resolution - Approval of Sale of Land and Improvements and Release from Lien for Property in Hays County - C Powell
Other Info
Submitted By: Christian Powell
Department: Chief Compliance Officer
Financial Impact and Cost/Benefit Considerations: As discussed in Executive Session
Discussion
The City of Kyle is seeking to acquire, either through a negotiated transaction or eminent domain, real property located in Hays County, Texas (Bunton Creek Road Property) owned by Pedernales Electric Cooperative, Inc. (PEC or the Cooperative). The Cooperative owns the real property and improvements at the Bunton Creek Road Property. The Bunton Creek Road Property is subject to a lien as defined in the Master Indenture of Trust (effective as of January 1, 1993, and as supplemented from time to time (Master Indenture)) between the Cooperative and The Bank of New York Mellon, formerly The Bank of New York, as successor to Frost National Bank of San Antonio (Trustee) and of the Deed of Trust, Security Agreement, Assignment of the Rents and Leases, Fixture Filing and Financing Statement (Deed of Trust). If the Bunton Creek Road Property is sold, Cooperative must be released from the Lien.
Body
WHEREAS, PEC intends to sell the Bunton Creek Road Property to the City of Kyle through a negotiated transaction in reasonable anticipation of the taking of such property by eminent domain;
WHEREAS, the Cooperative's Board of Directors has reviewed the Term Sheet for the sale of the Bunton Creek Road Property in Hays County as provided in Executive Session;
WHEREAS, the Cooperative's Board of Directors hereby concludes that the sale price represents the fair value for the Land and Improvements;
WHEREAS, the Bunton Creek Road Property constitutes less than all of the property in the Cooperative's possession that constitutes the Trust Estate (as defined in the Master Indenture); and
WHEREAS, the Cooperative's Board of Directors desires to obtain a release of the Lien (as d...
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