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Home My WebLink AboutPR12136: AUTH PUBLIC HEARINGinteroffice MEMORANDUM To: From= Sub] ec Date~ Mayor, City Council, City Manager Mark T. Sokolow, City Attorney f~ ~ P. R. No. 12136; April 7, 2003 Special Joint City Council and EDC Meeting April 2, 2003 Attached is P. R. No. 12136 authorizing the Mayor and/or City Manager to attend and conduct a public hearing at the offices of the Port of Port Arthur, 221 Houston Avenue, Port Arthur, on April 23, 2003 at 9:00 a.m., regarding the issuance and approval of Port of Port Arthur Navigation District Texas Multi-Mode Variable Rate Demand Revenue Bonds (BASF Corporation Project) Series 2003A in the aggregate principal amount of $15,000,000, as well as the Port of Port Arthur Navigation District Texas Multi-Mode Variable Rate Demand Revenue Bonds (ATOFINA Petrochemicals, Inc. Project) Series 2003B in the aggregate principal amount of $10,000,000 as per 26 USCS Section 147. MTS/ts Attachment CC: VIA FACSIMILE (409) 835-3838 Scot Sheldon SHELDON, JOP. DAN & DUNHAM, L.L.P. VIA FACSIMILE (512) 472-0671 Gregory Salinas MCCALL, PARKHURST & HORTON, 600 Congress Avenue 1250 One American Center Austin, TX 78701-3248 L.L.P. z .pr12136 .memo P. R. No. 12136 04/02/03 ts RESOLUTION NO. A RESOLUTION AUTHORIZING THE MAYOR AND/OR THE CITY MANAGER TO ATTEND AND CONDUCT A PUBLIC REARING AT THE OFFICES OF THE PORT OF PORT ARTHUR, 221 HOUSTON AVENUE, PORT ARTHUR, ON APRIL 23, 2003 AT 9=00 A.M. REGARDING THE ISSUANCE AND APPROVAL OF PORT OF PORT ARTHUR NAVIGATION DISTRICT TEXAS MULTI-MODE VARIABLE RATE DEMAND REVENUE BONDS (BASF CORPORATION PROJECT) SERIES 2003A IN THE AGGREGATE PRINCIPAL AMOUNT OF $15,000,000, AS W~LL AS THE PORT OF PORT ARTHUR NAVIGATION DISTRICT TEXAS MULTI-MODE VARIABLE RATE DEMAND REVENDE BONDS (ATOFINA PETROCHEMICALS, INC. PROJECT) SERIES 2003B IN THE AGGREGATE PRINCIPAL AMOUNT OF $10,000,000 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. the issuance and approval of Port District Texas Multi-Mode Variable Rate Demand Revenue Bonds on April 23, 2003, regarding of Port Arthur Navigation (BASF Corporation Project) Series 2003A in the aggregate principal amount of $15,000,000, as well as the Port of Port Arthur Navigation District Texas Multi-Mode Variable Rate Demand Revenue Bonds (ATOFINA Petrochemicals, Inc. Project) Series 2003B in the aggregate principal amount of $10,000,000 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 April 23, 2003, at the offices of the Port of Port Arthur, regarding the issuance and approval of Port of Port Arthur Navigation District Texas Multi-Mode Variable Rate Demand Revenue Bonds (BASF Corporation Project) Series 2003A in the aggregate principal amount of $15,000,000, as well as the Port of Port Arthur Navigation District Multi-Mode Variable Rate Demand Revenue Bonds (ATOFINA Petrochemicals, Inc. Series 2003B in the aggregate principal amount of 26 USCS Section 147. Section 3. shall not be Project) $10,000,000 per That the City, by its approval of these bonds, parties liable Petrochemicals, Section 4. liable for the payment thereof and that the sole therefore shall be BASF Corporation and/or ATOFINA Inc. That a copy of the caption of this Resolution be spread upon the Minutes of the City Council. READ, ADOPTED AND APPROVED on this __ day of A.D., 2003, at of Port Arthur, Mayor a Regular Meeting of the City Council of the City Texas, by the following vote: AYES: , City Council ; NOES: z.pr12136 OSCAR ORTIZ, MAYOR ATTEST: EVANGELINE GREEN, CITY SECRETARY APPROVED AS TO FORM: MARK T. SOKOLOW, CITY ATTORNEY APPROVED FOR ADMINISTRATION: STEVE FITZGIBBONS, CITY MANAGER z.pr12136 EXHIBIT "A" Ma-CALL, PARKHUI~ST 8, HeR%ON L,L P MEMORANDUM To: Mark ~>okolow City A [mm~', City of Port Arthur, Texas Scot ShcMon SJtcldon. Jordal~ & Dunhmn LLP. t"r~mrlGrego~y B, Satina. s McCa, Parkhm's. & Honon L.LP. l):{~e: \pall !, 2003 ;'. l: ,00(i. )0O Port et' Port ~Lrthur Navigation D~strict of Jefferson CounU, Texas Muhi-Mode ~ ariabie Rate Demand RCwcnuc Bonds (BASF Corporation Project), Sones 2003A (the "BASF ~o ~ds ' } and $10.00(L0(~!) Port of Port A~thur Navigation District of Jettbrson County. I-exas Multi Mode \'a~able ILate Demand Rove:me Bonds (AT(')FINA Petrochemicals. Inc. ProjectL Sertcs 2003B 0be "A FOFINA Bonds"~ i lie foltowing memorandum describes ~hc t~der~d tax law provision~ xequirmg thc City of Port ~,rthur, I exes (thc "Ch}." ) to h~}ld public hcarml2s w, id~ re,',pect to the above captioned bonds as well as nbi~u~l~ 'the approva! of such l*ollds by the Mayor et' thc City. The memorandum also discusse~ the ne(~ssaD~ steps to b,)id such hearings. The federal tax law requirements and the process, however, are identical to tl~e :~:tinns required of the City iii April ot'2002 (as :veil as sinfilar actions held in 1998 and rcI~ti~g to the i~suance of bonds by the Port of Port A~rhur NaviL~ation Dis~'~ct of Jefl-krson Count. y, (the "DiaLtii2") l;.)r tht: L~cnc[~l of BAS}' Co~poranon ("BASF") and ATOFINA Pe~ro¢]qChn. icalS, loc ] he District will approve and authorize die BASF Bonds and The ATOFINA Bot:~ds pursuant to action to, be t:;iken by ff~c Dismct on April 23, 2003. The BASF Bonds and the ATOFINA Bonds will t.,c iss,aed to f'mal:cc thc co~ts of major implovements to the dieting iMility, jointly owned by BASF and ,'tTOf iNA, bei*~g construcled on Stare Highway 73, adjacent to the bounda~' of the Di*,mct, but x,nthill the exmt terrtrorJaljurisdkxion of the Cit~ ofPorl ~Mthur, Texas (the *'City"). On April 23. 2003 mid prior :o fl~e w.suancc m~d deliverofany of such bonds, the Dish-ici w;Ol hold a public hemh~g rcgarding such bonds and the projccts to be finat~ced m~d refinanced withsuch bonds. The public hearing is a requirement ofthe lcdcmt Tax EquiD' and Fiscal Responsibility Act of 1984, now codified as Section 147(0 of the Internal Revenue Code of 19S6. as amended I"Section 147(f)') 54ection 147(15 requires that u public hearing be held witlm~ the juriM~clion of thc is,suer of prix, ate ac~,. ay bo~ds, m thi.s cruse thc DisMcl, m~d. il'such facilities tic outside thc bo~mdaries of the issue,', witlma thc .luri~lict/on (inclndi~\g cxtra terr/tm'ial .iurisdictkm) ora political subdivision whcrc the facilaics to be iinzmccd or [efinanccd withsuch bonds arc located Notice of the public hearing is rcqt:ired to bc pubfished h: ;~ r;ex~,spapcc ot)zenem!circulationnot le~s tba~l lburteen days prior to the he,ring. In addition, Section 147(0 requires ~'hat the higheo't govermnentalofficialofthe jufisdiction holding the hearit~g, niter considering the comments made at such hearing approve thc bonds. The approval is only for pmposcs of Section ~47! 0 and does not t;~eatc any liability on thc part of such official or the rclated political subdivision. Therefore, thc Di3~fict, onbchaltfofBA SF and ATOFiNA, is requesting that the Ci~'a,athorize the holdm~ ol'~e appropriate public hearings a~d authodT~ the Mayor of~he City to approve such bonds ai'tcr &~c ,;o~i,idem~.lon of am tesfim,ny a! such [~ublic hcanngs. As stated above. Scctl(:,i11470) requircs that the bearing to be held riot less ~han 14 days aticr ptiblislled notice of such being I%r other federal t~x m~ons, the BASF Bonds a~ scheduled to close on May 5 6, 2(103 and the ATOFINABonds aze schcduled to close onMay6-7, 2003. Beca~;sc of the time fr~m~e h~ which to get the required notices published, it would be pretbmble thru a tinlc ~d dine tbr ff~e pubt~c hemings bc determined prior m ~he CiW Cauncil meeting of thc City on April 8, 2003. Howev~. d'such a time and date must be c~mnnmed at tha~ meeting, ~e publication deadlines tbr fl~e Pt2t'l Arthur M:'~c', woukl ~mfit timely hcanng> late Apnl or vc~ e~ly in May (May ] or 2). The locanon of'the public hc~lr~ is cunentiy blank in the lbnns ofl~c~ticcs (although thc address tr~ thc District's ~ffices arc bracketed) Thc hearings held iii May of 2000 a~ld ANSI o£2002 by thc Cily w~:~e held at thc Dis'uSers offices and the hearings tins year could also be held thc, re, but thc hearings can be l~c:](i ;ulvwhere ,afthin the City. As ~"br the City Council meming on ~prd 8. £002. thc only action of thc Ciw Council ~ould bc !he ,~uthomafion tb~ the holding of the public ~e:mngs, desigp, ation ora bearing officer, presumably thc Mayor, ifa~ ailable. !ired i~.n alternate hearing officer in ca~e tile hem%g officer k~ unavailable for some rcxson) and ~:ulhor~zm3 d~c Mayor's approwd of the sub. iect bonds for purposes of Section 147(0 lhc following Is suggested agenda language: "Approval of holding certain public hearings relating 1o certain privale activiD' reventte bonds to be issued by the Port of Port Artbm-Navigation District for tile benefit of BASF Cra'potation and ATOFINA Petrochemicals, Inc., appointing llearing officers therefor and authorizing the Mayor to approve such bonds for certain federal tax purposes o~l) ." Scot Shcldonof Sh¢ldun, .lo,dan & Dunl~trn L L P., thc District's generalcounscl. ~k~ be available at th~: April ~, 2003 City Council meeting lo answer afly qucstious. Also attached are thc/'brms of the ai ?royal ccniikmes of the Mayor ~,,ith respect to the BASF Btmds w*d *he A'['OI: INA Bonds which, after the required CiD~ public hearings, thc Mayor shall be askcd If you ha~e any ~,t~3es'~lO/l:~ or comments, plea.sc dc> not hesitate to call me or Scot Shcldon. 3 PUBLIC HEARING NOTICE The Ciw of Port ;M'thur. Texas (the "City") ~vill hold a public heroine at ..... m. n, ...... 2003, at the [ahnmam, fiv~ o~ces oIkh¢ Po~ of Pon A~thur Navigation District ofJeffkrson CounW, TeX~ (ibc "i)is~c/"}, 221 Housi,on Avenue, Prat A~ur, Texm; 77~0]. Among the it~s to be discussed will be fl~e proposal tbr tlie issmnce by the Dis~cA of its ~venue bonds to finance the acquisition and censtmction of ce~ain solid waste disposal l~ci~tig5 at the ole~ pl~t compkx o~qled by BASF Co~poralion mqd ATOF~A Pe=ochemicMs. ~m. located on S~tte Hwv. 73 (Hwy. 87) on a site adjacem to the ATOFINA Pctrod~emicals, Inc. plmxt site complex (located at Farm-to-Market Road 306 ~md 32nd Stieet} ~1 Po~ .~mr, ~l'~xas (the "Project"), The m~ximtm~ a!~m-gate Ihce mnount of the bonds to be lf,~ued hi oae or moro beiios is m~ticipa~ed to be S23.000,000. l'he bond~ and the interest thereon shall m~ve~ c~mstit'utc ired skil not be considered ~ genoral obligations of the Dis~cL thc CJ~v, Cotmt9 ov lhe SIat¢ of Texas. All interest¢<l p~ies are invited to anend Ibc public hear~, or submit wrmcn cor)m~ns prior ~o fl~e M~, m~d express Fray commeu~ ~ey may have mg~mg ~e PrCUcct m~d zl~e issuance ol Ibc City of Port Arthur, Tcxas PO. Box1089 Pori, Arth,ar Texas '/7641 Atte~ ti'ion: Cl~' Atlomey N/IN UTES OF PUBLIC ltEARING S 15,000,000 Pm~. of Port Arthur Navigation District of Jefferscal CounVy. Tcxas Multi- Mode Vaiable Rate Demand P. evcnue Bonds (BASF Con?oration th-ojecg, Series 2 ) b.a wit $ t0.00J,(t00 Port of Port Arthur Navigation District of Jefferson County. Texas Multi-Mode Vm'iablc Rate Demm~d Revcnue Bonds (ATOFINA Petrochemicals, Inc. Proiect), Series 2003B I, the daly appoimcd heating ofi~cer (the "Heating Otl~ccr") oftt~ CiD, of Port Arthur, Texas callo.'l thc Pubhc He:using to order at ..... .m. on ......... 2003. with respcct 'to the referenced bands (the "Bonds" }, The HemSng Officer declared ttmt tile Public Hearing, required undcr Section 147(.I) of the Internal Re~ emlc Code of1986, was opcntbr purposes ofdrscussing the Bonda and the project to be financed with ihe proceed~ of the Bonds, to-wit: the fro?racing of the acquisitkm, conslmcticm, and impm~ ement of solid aaste disposal li<ihtiea {the "fYoject"} located at ~hc olcFms plant, jointly ow~ed by BASF Corporation and A }-OFiN4 PctTochemicals lnc, located ou Sate Hwy. 73 (l-k~T. 87) in/efl'e~.'son County, Texas, The lteamJg Officer declared that thc requi~ed noticc of the Public Hearfllg for thc Project was pnblkshcd tn the P_,.2O..~_A_rthur News, being a nexvspaper of geneial circulation in the specific locanon of the Pro!cci and in 5le jurisdiction m which the public hearing w,'zs held. Comment~ mid d}scussions with respect to tile Bonds mad the Project are summadzed ha .FxhiNt ~q., :i;tached hc:'cto, A.~5.,r s dEcient time was given tbr a!i present to make their conunenr.$ with respect to thc Bonds the Project 1 declared the Public Hearing closed. CITer' OF PORT ARTItlUR, TEX~LS '[itle: EXItlBIY A No co ~ ne ~rs wcrc made by the gcncr, d public a: thc hearing xvith respect to this Project MAYOR:S CERTIFICA. TE P~)r! of Porl z\rthm Naxipat~on District of Jefferson Counh. Texas 21! l?.uu~<ton Average Port Arthur, "re×as ,/040 Port of Pm't At~thur Navigatiou Disn'ict of/cf/arson County, Texas Multi-Mode VaFiablc Rate Demand Revenue Bonds {BASF Corporation Project), Series 2003A 'n ti' e aggregate principa~ amount of $15.000d)00 Ladies and C;Cl. ltlcme:'~; P'orsu~nt to Section Mt(f) of the United States Internal Revenue Code of 1986, as a~nended (thc "Co, de'). I hereby cerhl} that I have bccn duly elected as Mayor of the City of Port Arthur. Tcxas (the "City")andassuchconst~mtethechiefelectedcxecutiveofficerofthcCity 1 have been intbnned by you [i'.at thc Po:t of'Pot1 A[tht.~r Navigation District of Jefferson County, lexas has adopted a Resolution aut!/.,rizmg thc issuance oithe captioned bonds/the "Bonds") under the provisions of Chapter 197, Acts of the >8t'.'~ l.eg,,stamre c, fthe Slate of Texas, Regular Session. 1963, as amended, £or the purpose of fina:~cing the acquisition, construction and improvement of certain solid waste disposal facihties toct~ted at tt~e o!efi:,-,; !'~iant. iomt]y owned by BASF Corporation and ATOF~'NA Pein-oci~emicats, [nc. located on Stat.; H~¥. 7~ (Hxvy :.s'7) ~m a site adjacent to the ATOFINA Pewochemicals, Inc plato silc ;;omplex {;oc,~tcd at Farm4o Market Road 360 and 32nd Sweet) in Port Arlhur, Texas I have been reformed tha~ a public hearing re~,.arding the issuance of the Bonds was held by thc Issuer on ,2003 a~ ...... m. CDT i hereby apprme die issuance of the Bmzds for tlac purpose of Section 147(f of thc Code, Such o t such S<cnon 147{1 and [he City shall have no IJabihtv forpaymcnt of the appravalu solely forpurposes ' "' ' . . Bond~ or otherwise no~ shall any of ns asset~ be pledged to thc pasment or'thc Bonds, Vco' lruiy yoms Mayor DA I'F: ........... 2f i)~ F!P~ ?1 JOU5 lS:Sh, P,o~q'@-q MAYOR'S CERTIFICATE Port of Port Arthw' Navigation District of leftbrson County, 221 Houston Avenue P~wt Arthur, texas 7'7fl4~ R E' Po.,1 of Port Arthur Na¼gation District of Jefferson Count, Texas Multi-Mode Variable Rate Demand Revenue Bonds (ATOFINA Petrochemicals. Inc Project), Series 2003B in the aggregate principal amount of $10,000,000 Pursuant to Sect/on 147(0 of the United States Internal Revenue Code of 1986, as amended (the "Cod¢"k I hereby c~'rdfy that 1 have been duly clcctcd as Mayor of the Ci~ of Prat Arthur, Texas (the "City') and as sut:h constitute the ch/et eleclcd executive officer of the City. ir have been informed by you that the Prat of Port Arthm Naviga~mn District of Jefferson County~ Texas has adopted a Resnlution atfliloi(zing thc ~ssuance ortho captioned bonds !the "Bonds") under the provisions of Chapter 19;, Acts of the 58th Legis!alum of thc State o£Texas, Regular Session, 1963, as amended, for the purpose nf Ii:ranting the acquisiut, n, construction and improvement of certain solid waste disposal facilities located at the olcfins plato, jointly owned by BASF Corporation and AS'OFINA Petrochemicals, inc. located on State lqwy 73 dj. wy 87) on a site adjacent to thc ATOFINA Petrochemicals, }'nc. plan! site complcx :Tacarcd at Fan~* to-Market Road 365 and 32nd Strcet) in Port Arthur. Texas. [ ?me been infi~rmcd that a public hea:'/ng regarding the issuance of thc Bonds was hekl hy thc lssue~ on 20013 at ......... .m. CIY[ I iicreb~, auprovc, ti~c issuance ortho Bonds 1hr thc p urpose, of' Section 147(15 of the ('(~(lc.' Such appz ovai m solely fm purposes otsuch Section 147(P~ and the City shall have no liability forpayment of thc Bonds or otherv,/se nor shadl a:y of its assets be pledged ta the payment of thc Bonds Very md> yours. Mayor [.)Al'E: ....... 21 t. ~: TOTAL P.09