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Home My WebLink AboutPR 15120: PUBLIC HEARING - EXEMPT FACILITIES REVENUE BONDSinteroffice MEMORANDUM 1 '~ To: Mayor, City Council, and City Man ~~-A 'y / From: .Mark T. Sokolow, City Attorney ,v(.."~~ e, Date: February 20, 2009 Subject: P. .R. No. 15120; Council'Meeting February 24, 2009 Attached is P. R. No. 15120 authorizing the Mayor~or the City Manager to attend and conduct a Public Hearing at the offices of the Port of Port Arthur, 221 Houston Avenue, Port Arthur, on March 12, 2009 at 9:00 a.m: regarding the issuance and approval of Port of ,. Port Arthur Navigation District. of Jefferson County, Texas Exempt Facilities Revenue Bonds (TOTAL Petrochemicals USA, Inc. Project) -Series 2009 in the aggregate principal amount of $50,000,000, as per 26 USCS Section 147. MTS:ts ' Attachment f cc: Gregory B. Salinas Scot Sheldon z.pr1512 o_memo P. R.-No. 15120 02/20/09 is . RESOLUTION NO. A RESOLUTION AUTHORIZING THE MAYOR AND OR THE CITY. MANAGER TO ATTEND AND CONDUCT 'A PUBLIC HEARING AT THE OFFICES OF THE PORT OF PORT ARTHUR„ 221' HOUSTON AVENUE, PORT ARTHUR, ON MARCH 12, 2009 AT 9:00 A.M. REGARDING THE ISSUANCE AND APPROVAL OF PORT OF PORT ' ARTHUR NAVIGATION DISTRICT OF JEFFERSON.COUNTY, TEXAS EXEMPT .FACILITIES REVENUE BONDS (TOTAL PETROCHEMICALS USA, INC. PROJECT) SERIES 2009 IN <THE ,AGGREGATE PRINCIPAL AMOUNT OF $50,000,000,. AS PER 26 USCS, - SECTION 147" WHEREAS, the. City Council•of the, City of Port Arthur finds it to be in the best interests of the citizens of the City of Port Arthur to ,authorize the' Mayor and/or• the City Manager to attend and conduct a public hearing at .9:00 a.m. on March 12, 2009, regarding the issuance and approval of Port of Port Arthur Navigation District of•Jefferson County; Texas Exempt Facilities Revenue .Bonds (TOTAL Petrochemicals USA, Inc. Project) Series 2009 in the aggregate principal.amotint of $50,000,000, as per 26 USCS Section 147,, as more fully discussed in the memorandum attached hereto as Exhibit "A".' NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR: Section 1. That the facts and opinions in the preamble are true and correct. Section 2. That the City Council herein authorizes the Mayor and/or the City Manager .to attend and conduct a public. hearing at 9:00 a.m. on March 12, 2009, at the offices of the Port of Port Arthur, regarding the issuance and approval of Port of Port Arthur Navigation District of Jefferson County, Texas Exempt Facilities Revenue Bonds (TOTAL Petrochemicals USA, Inc. Project) Series? 2009 in the aggregate principal- amount of $50,000,000, as per 26 USCS Section 147.• Section 3. That the City, by its approval of these bonds, shall not be liable for the payment thereof and that the sole parties liable therefore shall be TOTAL Petrochemicals USA, Inc. and/or TOTAL, S". A. .Section 4. That a copy of the caption of this Resolution be spread upon the Minutes of the City Council. READ', ADOPTED AND APPROVED on this. 24th day of February, 2009, at a Regular Meeting of the City Council of the City of ,Port Arthur, Texas, by the following vote: AYES: Mayor City Council 1 ; NOES: z.pr15120 ATTEST: ACTING CITY SECRETARY APPROV~E-D'J~A~~S~TO FORM: ~ . / ...+~ °~ MARK T. SOKOLOW, CITY ATTORNEY - t APPROVED FOR ADMINISTRATION: STEVE FITZGIBBONS, CITY MANAGER y ~~ n y ~ ~~ ~ .. .. f ~ x t 1. ' ~ P ' ~ iAW OFFICES - M-CALL; PARKHURST & NORTON L.L.P. ]1] NORTH HARW OOD 600 CONGRESS AVENUE NINTH FLOOR 1800 ONE AMERICAN GENTER DALLAS, TEXAS ]5201658] ~ AUSTIN, TEXAS TB]OL3248 TELEPHONE: 214 ]54-9200 TELEPHONE: 512 a]6-3805 FACSIMILE: 214 ]54-9250 FACSIMILE: 512 4]2-08]1 MEMORANDUM To: Mark Sokolow ,' City Attorney, City of Port Arthur, Texas , Cc: Scot Sheldon Sheldon & Dunham PLLC. From: Gregory B. Salinas - ` McCall, Parkhurst & Horton L.L.P. Date:. February 19, 2009' ]00 N. ST. MARY'S STREET 1225 ONE RIV ERW ALK PLACE SAN ANTONIO, TEXAS ]8205-3503 TELEPHONE: 210 225-2800 FACSIMILE: 210 225-2984 Re: $50,000,000 Port of Port Arthur Navigation District of Jefferson County, Texas Exempt Facilities Revenue Bonds (TOTAL Petrochemicals USA, Incr Project), Series 2009 (the "Bonds") ~ ~ , The following memorandum describes the federal tax law provisions requiring the City ofPort Arthur, Texas (the "City") to hold public hearings with respect to the above captioned bonds as well as obtaining the approval of such Bonds by the Mayor of the City. The memorandum also discusses the necessary steps to hold such hearings. The federal tax law requirements and the process, however, are substantially identical to the actions required of the City in April and May of last year (as well as similar actions held in 1998, 2000, 2002 and 2003) relating to the issuance of bonds by the Port of Port Arthur Navigation District ofJefferson County, Texas (the "District") for the benefit of TOTAL Petrochemicals USA, Inc. (the "Company"), formally known as ATOFINA Petrochemicals, Inc., and/or BASF Corporation. The Bonds being issued to continue the financing ofthe on-going, major plant expansion ofthe Company, including the construction of a new state-of- the-art Coker. The District will approve and authorize the Bonds pursuant to action to be taken by the District on February 18, 2009. The Bonds wIll be issued to finance the costs of major improvements to the Compan}~s existing plant complex, as described above, adjacent to the boundary ofthe District, but within the extra-territorial jurisdiction of the City . Also on February 18, 2009 and prior to the 1 issuance and deliver of the Bonds; the District will hold.a pubhc hearing regarding such bonds and the projects to be financed and refinanced with such bonds. The public hearing is a requirement of the federal Tax Equity and Fiscal Responsibility Act of 1984, now codified as Section 147(f) of the Internal Revenue Code of 1986, as amended ("Section 147(f)"). Section 147(f) requires that a public hearing be held within the jurisdiction of the issuer of private activity bonds, in this case the District, and, if such facilities lie outside the boundaries of the issuer, within the jurisdiction (including extra-territorial jurisdiction) ofa political subdivision where the facilities to be financed or refinanced with such bonds are located. Notice of the public hearing is required to be published in a newspaper of general circulation not less than fourteen days prior to the hearing. In addition, Section 147(f) requires that the highest governmental official of the jurisdiction holding the hearing, after considering the comments made at such hearing; approve the bonds. The approval is only for purposes of Section 147(f) and does not create any liability on the part of such official or the'related political subdivision. Therefore, the District; on behalf of the Company is requesting4hat the City authorize the holding ofthe appropriate public hearings and authorize the Mayor ofthe City to approve such bonds after due consideration of any testimony at such pubhc hearings. _ - , ~ As stated above, Section 147(f) requires that the hearingto be held not less than 14 days after published notice of such heazing. For other federal tax reasons, the Bonds are scheduled to close on March 26, 2009. Because ofthe time frame in which to get the required notices published, it would be preferable that a time and date for the pubhc hearings be determined prior to the City Council meeting of the City on February 24, 2009. However, if such a time and date must be determined at that meeting,-the publication deadlines for the Port Arthur News would permit timely hearings,the second week ofIviarch 2009. The location of the public heazings is currently blank in the forms of notices (although the address to the District's offices are bracketed). The heazings held in May of 2000; April of 2002 and 2003, and May of last year by the City were held at the District's offices and the hearings this year could also be held there, but the hearings can be held anywhere within the City. As for the City Council meeting on February 24, 2009,-the only action of the City Council would be the authorization for the holding ofthe pubhc hearings,. designation of a'hearing officer, presumably the Mayor, if available, (and an alternate hearing officer in case the hearing officer is unavailable for some reason) and authorizing the Mayor's approval of the subject bonds for purposes of Section 147(f). The following is suggested agenda language: "Approval of holding certain public hearings relating to certain private activity revenue bonds to be issued by the Port of Port Arthur Navigation District for the benefit of TOTAL Petrochemicals USA, Inc., appointing hearing officers therefor and authorizing the Mayor to approve such bonds for certain federal tax purposes only." ' t r ` . Scot Sheldon of Sheldon, Dunham & Edwardson, L.L.P., the District's general counsel, and/or Gregory Salinas of McCall, Parkhurst & Horton L.L.P., the District's bond counsel, will be available at the February`24, 2009 City Council meeting,to answer any questions. Also attached are the forms of the approval certificates of the Mayor with respect to the Bonds which, after the required City public hearings, the Mayor shall be asked to execute. If you have any questions or comments,-please do not hesitate to call Scot Sheldon or Gregory Salinas. 5 PUBLIC HEARING NOTICE The City of Port Arthur, Texas (the "City") will hold a public hearing at a.m. on 2009, at the administrative offices of the Port of Port Arthur. Navigation District of Jefferson County, Texas (the "District"), 221 Houston Avenue, Port Arthur, Texas 77640. Among the items to be discussed will be the proposal for the issuance by the District ofits revenue bonds to finance the acquisition and construction of certain solid waste disposal and sewage facilities related to a refinery expansion, including a new cokes (the "Project"), which are located at the TOTAL Petrochemicals USA, Inc.'s plant site complex at 7600 32nd Street in Port Arthur, Texas (the "Project"). The maximum aggregate face amount of the bonds to be issued in one or moreseries is anticipated to be $50,000,000. The bonds and the interest thereon shall nevei constitute and shall not be considered as general. obligations of the District. the City, Jefferson County or the State of Texas. Al] interested parties are invited to attend the public hearing, or submit written comments prior to the hearing; and express any comments they may have regarding the Project and the issuance of the bonds. ~ - - City of Port Arthur, Texas P.O. Box 1089 Port Arthur, Texas 77641 Attention: City Attorney