Res 11-001
Res 11-001
CITY COMMISSION AGENDA
- Meeting Date:
- 01/05/2011
- Title:
- Approval of Resolution Approving Amendment and Restatement of Bylaws of City of Texas City Industrial Development Corporation and Approving the Issuan
- Submitted By:
- Nick Finan, Management Services
- Department:
- Management Services
ACTION REQUEST (Brief Summary)
Del Papa is requesting that the City Commission approve a resolution allowing the sale of Hurricane Ike Bonds through the Texas City's Industrial Development Corporation. See Background for details.
BACKGROUND
The TC Industrial Development Corporation met with Del Papa representatives last fall and will again meet on January 4, 2011, to assist Del Papa in its financing for its new facility in Texas City at Century Blvd and I-45. Del Papa's bond counsel, Vinson & Elkins, has worked the bond sale of Hurricane Ike Bonds which allows Del Papa to finance the project with low interest bonds supported by the State of Texas. In the process of developing the sale of the Hurricane Ike Bonds through the IDC, they noticed an outdated requirement that matched the State's requirements in the 1990's, but is no longer a requirement in regard to these bonds and to expedite the sale has recommended a change that mirrors the current state regulations. See statement below from Vinson & Elkins:
"In reviewing the corporation's bylaws, we also noticed a few things that should be cleaned up in the bylaws to address changes in law and make the issuance process smoother. For example, the bylaws require the approval of the bonds by the Texas Department of Commerce (now the Governor's Economic Development and Tourism Office). Under the Development Corporation Act, Hurricane Ike bonds are exempt from review by the Economic Development and Tourism Office.
Because the bylaws state that they may be amended by a majority vote of the board of Directors, it would be helpful to amend the bylaws to reflect these changes in law at the TCIDC meeting on January 4. If you are okay with this approach, we'll send the proposed revisions to you along with the resolutions next week."
The bylaw changes require City Commission approval also.
The sale of the bonds will have no impact on the City or the Industrial Development Corporation and all costs are paid by Del Papa including legal.
The bond sale is for $24.5 million. The total for land, facility, and other improvements will be a little over $25 million. Work on the site will commence shortly after closing on the property scheduled for January 26th.
"In reviewing the corporation's bylaws, we also noticed a few things that should be cleaned up in the bylaws to address changes in law and make the issuance process smoother. For example, the bylaws require the approval of the bonds by the Texas Department of Commerce (now the Governor's Economic Development and Tourism Office). Under the Development Corporation Act, Hurricane Ike bonds are exempt from review by the Economic Development and Tourism Office.
Because the bylaws state that they may be amended by a majority vote of the board of Directors, it would be helpful to amend the bylaws to reflect these changes in law at the TCIDC meeting on January 4. If you are okay with this approach, we'll send the proposed revisions to you along with the resolutions next week."
The bylaw changes require City Commission approval also.
The sale of the bonds will have no impact on the City or the Industrial Development Corporation and all costs are paid by Del Papa including legal.
The bond sale is for $24.5 million. The total for land, facility, and other improvements will be a little over $25 million. Work on the site will commence shortly after closing on the property scheduled for January 26th.