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HomeMy WebLinkAboutPR 17102: PORT PUBLIC HEARING REGARDING BONDS BY SANGER TEXAS INDUSTRIAL DEVELOPMENT Interoffice MEMORANDUM 6 To: Mayor, City Council, and Acting City Manager_ A ' From: Valecia R. Tizeno, City Attorney Date: June 7, 2012 Subject: P. R. No. 17102; Council Meeting June 12, 2012 Attached is P. R. No. 17102 authorizing the City Manager to attend and conduct a public hearing at the offices of the Port of Port Arthur, on June 14, 2012 at 9:00 a.m. regarding the issuance of bonds by the Sanger Texas Industrial Development Corporation for Texas Pellets, Inc. VRT:gt Attachment s.pr17102_memo P.R. No. 17102 06/07/12 gt RESOLUTION NO. A RESOLUTION AUTHORIZING THE CITY MANAGER TO ATTEND AND CONDUCT A PUBLIC HEARING AT THE OFFICES OF THE PORT OF PORT ARTHUR, ON JUNE 14, 2012 AT 9:00 A . M . REGARDING THE ISSUANCE OF BONDS BY THE SANGER TEXAS INDUSTRIAL DEVELOPMENT CORPORATION FOR TEXAS PELLETS, INC. WHEREAS, upon information and belief, the Sanger Texas _Industrial Development Corporation (the "Issuer ") was created by the City of Sanger, Texas (the "Unit ") pursuant to the Development Corporation Act, Chapters 501 through 507, Texas Local Government Code, as amended, formerly Article 5190.6, Vernon's Texas Civil Statutes (the "Act "), to finance projects located within the State of Texas and within the limits of the Unit or the limits of a different governmental body thereof that the Issuer exercise its powers; and WHEREAS, upon information and belief, the Issuer has received a request from Texas Pellets, Inc. (the "Company "), to finance the acquisition, construction, expansion, and equipment of (i) a five silo storage facility for biomass pellets of the Company, located within the city limits of the City of Port Arthur, Texas (the "Storage Facility ") and (ii) a facility for the manufacturing of biomass pellets to be constructed near Woodville, Texas (the "Manufacturing Facility" and, together with the Storage Facility, the "Project "), to be operated by German Pellets Texas, LLC (the "Operator "), and WHEREAS, pursuant to the provisions of Section 147(f) of the Internal Revenue Code of 1986, as amended (the "Code "), a notice of a public hearing was duly published in the newspaper of circulation in City in May 30, 2012 for a public hearing, which is scheduled to be held on June 14, 2012 at 9:00 a.m. on behalf of the City on the proposed issuance by the Issuer of its Industrial Development Revenue Bonds (Texas Pellet Project), Series 2012 (the "Bonds ") in an aggregate principal amount not to exceed $200,000,000 for the purpose of financing the Project; and s.pr17102 WHEREAS, the Bonds are to be issued by the Issuer on behalf of the Unit pursuant to the provisions of the Act; and WHEREAS, the City Council of the City of Port Arthur, Texas (the "City ") supports and requests that the Storage Facility be financed by the Issuer, and WHEREAS, no tax funds or governmental revenue shall be used to pay the principal or interest on the Bonds and the City shall not be liable for payment of the Bonds or any costs associated with the issuance of the Bonds; and WHEREAS, the Bonds shall not be considered to constitute a debt of the State of Texas, of the Unit, of the City, or of any other municipal corporation, quasi- municipal corporation, subdivision, or agency of the State of Texas or to pledge any or all of the faith and credit of any of these entities; and WHEREAS, the principal of and interest on the Bonds shall be payable solely out of the revenues pledged thereof by the Company, including amounts received under the terms of a loan agreement between the Issuer and the Company and by reason of any additional security furnished by the Company in connection with the Bonds; and WHEREAS, neither the State of Texas, the Unit, the City, or any other municipal corporation, subdivision, or agency of the State of Texas is obligated to pay the principal of, premium, if any, or interest on the Bonds or the costs incident thereto; and WHEREAS, neither any or all of the faith and credit, nor any taxing power of the State of Texas, of the Unit, of the City, or of any other municipal corporation, quasi- municipal corporation, subdivision, or agency of the State of Texas is pledged to the payment of the principal of, premium, if any, or interest of the Bonds; and WHEREAS, the City Council desires to make a record by this Resolution that (i) it is requesting that the Issuer issue the Bonds to finance the Project in accordance with the Act and (ii) that it is authorizing the City Manger or any other employee or officer of the City to hold a hearing regarding the issuance of the Bonds to finance the Storage Facility for the purposes of Section 147(f) of the Code. s.pr17102 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR, JEFFERSON COUNTY, TEXAS, AS FOLLOWS: Section 1. Pursuant to Section 501.159 of the Act, the Issuer is hereby requested to finance the Storage Facility and the consent of the governing body of the City of Port Arthur, Texas is hereby given to the financing by the Issuer of the Storage Facility. Notwithstanding such request and approval, the City of Port Arthur, Texas shall have no financial or other liability whatsoever to any entity connected with the Storage Facility, nor to the Operator, nor to the Issuer, nor to the Company. Section 2. The City Council does hereby authorize the public hearing to be held as scheduled and to be conducted by the City Manager or any employee or officer of the City regarding the issuance of the Bonds to finance the Storage Facility for the purposes of Section 147(f) of the Code. Section 3. The preamble to this Resolution is incorporated by reference and made a part hereof for all purposes. Section 4. This Resolution shall become effective immediately upon its adoption and approval. Section 5. That a copy of the caption of this Resolution shall be spread upon the Minutes of the City Council. READ, ADOPTED, AND APPROVED, this 12 day of June, 2012 AD, at a Regular Meeting of the City Council of the City of Port Arthur, Texas by the following vote: AYES: Mayor: Councilmembers: NOES: Deloris "Bobbie" Prince, Mayor s.pr17102 ATTEST: Sherri Bellard, City Secretary APPROVED AS TO FORM: f Valecia R. Tizeno, At__ ney APPROVED FOR ADMINISTRATION: John A. Comeaux, P.E., Acting City Manager s.pr17102