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ORDINANCE ~O. 2007-9 AN ORDINANCE OF THE CIty OF SAN MARCOS, TEXAS DESIGNATING PAYMENTS UND~R CERTAIN AGREEMENTS TO PAYMENT OF THE CITY'S COMBINATION TAX AND REVENUE CERTIFICATES OF OBLIGATION, ~AXABLE SERIES 2007A WHEREAS, the City of San Marcos, Tex~s (the "City") intends to issue it's Combination Tax and Revenue Certificates of Obligation, Taxable Series 2007 A (the "Taxable Series 2007 A Certificates"), and to use a portion of the proceeds of the Taxable Series 2007 A Certificates to pay a portion of the costs of constructing, acquiring and equipping a conference center facility and related improvements including parking facilities and utility and infrastructure improvements, WHEREAS, the City has entered into that certain Master Development Agreement Between JQH - San Marcos Development, LLC, a Missouri limited liability company and the City (the "Development Agreement") and expects to execute the Conference Center Lease Agreement between the City and JQH - San Marcos Development, LLt, a Missouri limited liability company, (the "Lease Agreement" and with the Development AgreemFnt, collectively, the "Agreement"), which Lease Agreement is attached to the Development Agreement, in connection with the conference center project, and WHEREAS, the City has determined that the payments to be made pursuant to the Lease Agreement shall be designated and deposited solely for the payment of the Taxable Series 2007 A Certificates, Now Therefore BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF SAN MARCOS: Section 1. All payments received by the City pursuant to the Lease Agreement, other than any payments for the operation and maintenance !of such project, shall be deposited to the credit of the "Interest and Sinking Fund" established for th~ exclusive benefit of the owners and holders of the Taxable Series 2007 A Certificates and shall be used to pay debt service on the Taxable Series 2007 A Certificates. Such payments shall be used solely for such purpose, unless the City obtains an opinion of nationally recognized bond counsel that the use of such payments for another purpose will not adversely affect the tax-exempt status of the City's Combination Tax and Revenue Certificates of Obligation, Series 2007 Section 2. In accordance with the provisiqns of Section 1201 028, Texas Government Code, this Ordinance shall be effective immediately updn its adoption by the City Council I I San Marcos CTRCO Taxable2007A. ORDINANCE DESIGNATING PA YMENTS