SUBJECT
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Public Hearing and Introductory Ordinance of the City Council of the City of Laredo, Texas, authorizing the City Manager to amend the City of Laredo FY2025 Capital Improvement Fund to accept and appropriate revenues in the amount of $8,500,000.00 for the State Infrastructure Bank Loan Agreement for the West Laredo Multimodal Trade Corridor - Phase II and Phase III. Funding will be allocated in the Capital Improvement Fund. Providing that this ordinance shall be cumulative; providing a severability clause; providing for publication; and declaring an effective date.
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PREVIOUS COUNCIL ACTION
On April 22, 2025, City Council will be considering a final reading of an ordinance approving and authorizing the execution of a State Infrastructure Bank loan agreement; approving the levy of a tax for payment thereof; and approving certain matters related thereto.
On April 7, 2025, City Council approved a resolution of the City Council of The City of Laredo, Texas, authorizing the amendments, revisions, and completion, and filing of an application for financial assistance from the State Infrastructure Bank in the amount of eight million five hundred thousand dollars and zero cents ($8,500,000.00); Authorizing City Manager to act on behalf of the City of Laredo in all matters relating to the participation, including the negotiation and execution of any resultant State Infrastructure Bank Loan Agreement; Authorizing City Manager to revise and amend such application, to request that the type of issuance be a “Direct Loan” under Section 222.0745 of the Texas Transportation Code, as amended.
On August 5, 2024, City Council approved a Resolution of the City Council of the City of Laredo, Texas, authorizing the filing of an application for financial assistance from the State Infrastructure Bank in the amount of eight million five hundred thousand dollars and zero cents ($8,500,000.00) for West Laredo Multimodal Trade Corridor - Phase II (Flecha/Las Cruces Realignment Project) and West Laredo Multimodal Trade Corridor - Phase III (Calton Grade Separation Project).
BACKGROUND
The State Infrastructure Bank, operated by the Texas Department of Transportation, is a revolving loan fund. The City of Laredo deems it proper and in the best interest of the City to apply for a loan from the State Infrastructure Bank in the amount of $8,500,000.00, for the following purposes:(i) three million seven hundred thousand dollars and zero cents ($3,700,000.00) as the City’s responsibility for all federal or non-state participation costs associated with the West Laredo Multimodal Trade Corridor-Phase II (Flecha/Las Cruces Realignment Project) -Advanced Funding Agreement (CSJ 0922-33-076) including any overruns in excess of the approved local project budget, and (ii) four million eight hundred thousand dollars and zero cents ($4,800,000.00) as City’s responsibility for all non- federal or non-state participation costs associated with the West Laredo Multimodal Trade Corridor -Phase III (Calton Grade Separation Project) -Advanced Funding Agreement (CSJ 0922-33-093) including any overruns in excess of the approved local project budget. The City is qualified to apply for and obtain financial assistance from the State Infrastructure Bank for this purpose.
COMMITTEE RECOMMENDATION
N/A
STAFF RECOMMENDATION
recommendation
Approval of this motion.
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Fiscal Impact
Fiscal Year: 2025
Budgeted Y/N?: Y
Source of Funds: Capital Improvement Fund
Account #: 402-2760-535-9301
Change Order: Exceeds 25% Y/N:
FINANCIAL IMPACT:
Revenues:
SIB Proceeds 402-2260-395-0900 Project TP2502 $3,700,000
SIB Proceeds 402-2260-395-0900 Project TP2503 $4,800,000
Expenditures:
Improvement OT Bldgs 402-2760-535-9301 Project TP2502 $3,700,000
Improvement OT Bldgs 402-2760-535-9301 Project TP2503 $4,800,000