05/21/2012-4A-Agenda Packet-Regular•
AGENDA
4A SANGER INDUSTRIAL DEVELOPMENT CORPORATION
MONDAY, MAY 21, 2012
1:00 P.M.
502ELM
1. Call Meeting to Order.
2. Approve Minutes: January 10, 2012
March 19, 2012 (Special Called with City Council)
3. Consider, Discuss and Possibly Act on Approving Resolution #R0S-07-12 -
Authorizing the Issuance of the Sanger, Texas Industrial Development Corporation
Industrial Development Revenue Bonds, Series 2012 (Texas Pellets Project),
Approving and Authorizing an Indenture of Trust, a Loan Agreement, a Private
Placement Memorandum, a Tax Regulatory Agreement, a Contract of Purchase,
Authorizing the Execution of Documents and Instruments Necessary or Convenient
to Carry out the Issuance of the Bonds and Other Matters in Connection Therewith.
4. Update on Hollingsworth Lease.
5. Review Financials.
6. Adjourn.
I, the undersigned authority, do hereby certify that this Notice of Meeting was posted on
the bulletin board, at the City Hall of the City of Sanger, Texas, a place convenient and
readily accessible to the general public at all times, and said notice was posted on the
following date and time: ~ /Z c:20/ ~ at /:oop.m.
and shall remain posted untilmeeing is aaJ 191¥irned. ' ,,11H 11,11 ,,,,,, of S,4.,, :,,,."/,
,,'--.\_ ....... ,'VQ ✓,.,. l~w···. ···.<"~--\ llnu \ah f 0 /· l -..,_1> :~
,I~-.• : -::: .
Tami Taber, City Secretary i \ _: /
City of Sanger, Texas ~ \ / 2 ~ •••• .,•· .::;r-~ r······ ,~· ... ,,,,,, £ X /\. S ,,,,,,,
,,,,,,,11'' '"''''
This facility is wheelchair accessible and accessible parking spaces are available. Requests for
accommodations or interpretive services must be made 48 hours prior to this meeting. Please
contact the City Secretary's office at (940) 458-7930 for further information.
MINUTES: 4A
SANGER TEXAS INDUSTRIAL DEVELOPMENT CORPORATION
January 10, 2012
MEMBERS
PRESENT: Vickie Jenkins, Don Gillum and John Jacobs
Fred Yeatts ABSENT:
OTHERS
PRESENT: Mike Brice City Manager, Tami Taber City Secretary,.Steve Watkins of Elk
River and Gary Bilyeu
1. Call Meeting to Order.
Vickie Jenkins called the meeting to order at 1:00 p.m.
2. Approval of Minutes: August 12, 2011
Don Gillum made a motion to approve minutes. Seconded by John Jacobs.
Motion carried unanimously.
3. Consider, Discuss and Possibly Act on Proposed Lease of 103 Bolivar to
Hollingsworth Manufacturing.
City Manager advised that Hollingsworth needs to expand and will be hiring an
additional 15-30 employees.
The deal points at this time are:
• 39 month lease with the first 3 months free rent beginning February 1, 2012
• $2.00 /sf base rent
• Tenant to provide finish out of approximately $160,000. Reimbursed $70,000
and amortized over the term of the lease in rent reduction
• Tenant is responsible for the property taxes
• No upfront cash or incentives included
• Tenant has option to buy at $1,250,000 throughout the term of the lease
The attorney is working on the final paperwork.
The City will be responsible for the liability insurance on the building and the
shell/exterior of the building.
•
4. Review Financials.
City Manager advised that 2011 was the largest year ever in sales taxes, still have
good reserves and the income from the lease will also help.
5. Adjourn.
Meeting was adjourned at 1:12 p.m .
•
MINUTES: 4A
SANGER INDUSTRIAL DEVELOPMENT CORPORATION
March 19, 2012
PRESENT: President Vickie Jenkins, John Jacobs, Robert Patton, Fred Yeatts
ABSENT: Don Gillum
OTHERS
PRESENT: Mayor Thomas Muir, Councilwoman Marjory Johnson, Councilman
Russell Martin, Councilman Gary Bilyeu, Councilman Andy Garza,
Mike Brice City Manager, Cheryl Price Deputy City Secretary, Ronald Dillard
City Attorney
1. Call Meeting to Order.
President Vickie Jenkins called the 4ASanger Industrial Development Corporation
meeting to order at 6:00 p.m.
2. EXECUTIVE SESSION: CLOSED SESSION
Pursuant to the Open Meetings Act, Chapter 551 , the City Council and 4A will Meet
in a Closed Executive Session in Accordance With the Texas Government Code:
Section 551.087 -Deliberation Regarding Economic Development.
4A President Vicki Jenkins called the Executive Session at 6:02 p.m.
3 RECONVENE: OPEN MEETING
4A reconvened at 6:46 p.m. No action taken, discussion only.
4. Adjourn.
President Jenkins adjourned the 4A Industrial Development Corporation Meeting at
6:46 p.m .
Investments as of March 31, 2012
4A Certificates of Deeoslt1 Monex_f.llarkett and Cash
Name Acct.# Maturity Vleld Balance Restricted
Claim on Cash 00-1000 $ 25,685.60
Cash #900020693 00-1010 0.50% $ 36,479.06 y
4A Money Market #902551273 00-1012 0.75% $ 480,781.23 y
Sanger TX Ind Corp CD#486639 00-1013 6MO 1.30% $ 93,000.44 y
Sanger TX Ind Corp CD#568058 00-1014 90Day 1.00% Redeemed y
I • -TOTAL INVES'l'ED . $ 635,946.33 I
. . ~48 Certificates of De0oslt. Monev Market. and-cash Acct. ,; ·-~ ~~~---·--......_,.-~~,.,..,~~'------·--' ---------. --·---~-· ._
Name Acct.# Maturity Vleld Balance Restricted
Clalm on Cash 00-1000 $ -y
Cash MMKT 2379694 00-1010 0.75% $ 206,351.04 y
48 co 461024 (6669) 00-1012 300 1.00% Redeemed y
48 co #653500 00-1013 1 YR 0.70% $ 21,022.31 y
48 CD #659924 00-1014 1 YR 1.30% $ 20,878.39 y
48 CO# 664243 00-1015 1 YR 0.90% $ 20,930.27 y
48 CO# 673277 00-1016 1YR 1.00% $ 20,899.15 y
4B CD#686115 00-1017 1 YR 0.70% $ 20,883.18 y
48 CD#689521 00-1018 1 YR 1.30% $ 20,806.08 y
4B CD#694371 00-1019 1YR 1.05% $ 20,830.99 y
4B CO #697230 00-1020 1YR 1.20% $ 20,841.42 y
48 CD #899934 00-1021 1 YR 1.30% $ 20,838.57 y
4B CD #702285 00-1022 1 YR 1.30% $ 20,718.23 y
48 CD#706078 00-1023 1YR 0.90% $ 20,547.67 y
48 CD#720097 00-1024 1YR 1.00% $ 20,360.21 V
4B CO#720119 00-1025 1YR 1.20% $ 20,404.15 y
I -TOTAL INVE$TED -$ 476;311.&6 I
4A & 48 SALES TAX DEPOSITS
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
JAN. I $10,348.821 $10,188.221 $25,847.62! $13,993.78! $16,264.50! $16,691.411$ 17,436.57 l $22,880.041$ 16,389.97 l $ 19,387.961$ 25,025.96 r : .
FEB. I $14,870.78! $14,840.341 $17,485.76! $21,779.911 $21,513.62! $19,601.101$ 22,071.09 l $23,228.79 l $21,815.961$ 26,603.55 I$ 32,149.94 c__ .
MARCH l $ 9,209.15! $ 12,446.36! $13,382.911 $ 14,254.43! $ 16,620.93! $ 16,472.34! $ 19,892.63 l $ 24,179.62 l $ 20,921.54 l $ 21,179.21 l $ 20,213.05 ! I ··~·········· .. ··--I
APRIL I $9,195.021 $ 9,202.14J $12,224.77! $14,166.10! $17,198.17! $15,482.00! $ 18,511.54 l $ 16,279.44 l $ 17,032.72 l $ 28,149.80 I$ 22,754.60 l
MAY l $10,623.56! $16,125.041 $20,311.37! $20,656.14! $17,428.36! i :: . s 26,767.83! s 22,166.33 ls 24,744.75 ls 21,612.61 1 s 22,136.18 I
rJ~~ ~ _·1"'"1 -s...,.1..,..1,.,,..91...,.1-.0=61~s-14.,...,3 .... 5-5,-11 ... 1-s...-18-,2-1-6.-94 ... l -s-1-5-,5-55-,5-4-1 _s_2_3_,o_63-.9--9-I _s_1_1_, 1-12-.6-1-1 s-19-,3-3-8.-14-1 s....,...20-,5-3 .... 1 . .,..05--1 ... s~19~,8=2.,,..3.-:-:41=-1r-::s::---:-2=-2,':":80:--::6-=. 1::-,9 1
JULY I $10,597.471 $11,370.28! $16,692.36! $16,914.66! $17,896.761 $19,127.611$ 20,703.08 l $20,159.79 l $19,610.351$ 21,839.041
I :
AUGUST l $14,962.171 $16,13_2.421 $19,354.71! $ 20,375.58! $ 24,003.15! $ 24,581.42! $25,288.44 ! $ 24,028.48 l $ 22,563.59 l $ 27,492.84 l
SEPT.
OCT.
NOV.
C:
DEC.
TOTAL
-
$12,928.161 $13,140.49! $15,725.62! $16,977.99! $19,746.74! $ 26,990.12! $ 21,583.44 l $ 22,688.85 l $ 19,530.29 l $ 25,835.52 l
$13,940.441 $11,426.72! $16,084.64! $17,074.51! $11,042.77! $24,397.631$ 21,510.391$ 17,688.521$ 20,753.82 l $ 25,345.93 l
I s14,246.9ol s11,184.88l s22,100.131 s20,661.06I s24,265.79I s22,a46.79l s 24,645.131 s 20,293.53 Is 21,437.93 Is 21,321.94 I
I s 10,198.241 s 12,510.111 s 16,119.85! s 19,822.011 s 11,830.911 s 11,961.611 s 19,213.55 ls 11,150.911 s 18,032.131 s 19,379.681 j
s 143,031.11 s 161.9a6.11~s 214J{f,2a s 212,1s1.n s 221,s1&.se s 24a,092.&3 s 262,310.93 s 2&3,a&e.a3 s 239,&2.j;fa s 2a2,01a.44 s 100,143.&&
•
•
1.
2.
AGENDA
4A SANGERINDUSTRIAL DEVELOPMENT CORPORATION
MONDAY, MARCH 19, 2012
6:00 P.M.
502ELM
Call Meeting to Order.
EXECUTIVE SESSION: CLOSED SESSION
Pursuant to the Open Meetings Act, Chapter 551 , the City Council and 4A will
Meet in a Closed Executive Session in Accordance With the Texas Government
Code:
Section 551.087 -Deliberation Regarding Economic Development.
3. RECONVENE: OPEN MEETING
Any Action Taken.
4. Adjourn.
I, the undersigned authority, do hereby certify that this Notice of Meeting was posted on
the bulletin board, at the City Hall of the City of Sanger, Texas, a place convenient and
readily accessible to the gene~ublic at all times, and said notice was posted on the
following date and time: w/!l /1;:, 1 ;2-0 /:;L at CJ : :3 O ,4_.m.
and shall remain posted until meeting is adjou'rned.
-
-r-Mr--:~· r -\\\\lllllll//// ,,,, r: C' ,,,, ,,,, o, 0 A111 l,1/,
--~--------==---'--~~''-r=..\~..... . ·" '.•.
T~mi Taber, City Secreta11j~~-·w·_..-· ····<;-~;~\:
City of Sanger, Texas § ; ~ ___.-;; :_ ·f: = . . ~·= -. . -~ ·. : .:: -;. ·.. .: :: ~ ·. .. s ~ ... ,. ' ~~✓,,,, ff x'~s ,,,,,,~ . .
This facility is wheelchair accessib't'&,aruJi.a~~~ssible parking spaces are available. Requests for
accommodations or interpretive services must be mad~ 48 hours prior to this meeting. Please
contact the City Secretary's office at (940) 458-7930 for further information .
MINUTES: 4A
SANGER TEXAS INDUSTRIAL DEVELOPMENT CORPORATION
January 10, 2012
MEMBERS
PRESENT: Vickie Jenkins, Don Gillum and John Jacobs
ABSENT: Fred Yeatts
OTHERS
PRESENT: Mike Brice City Manager, Tami Taber City Secretary, Steve Watkins of Elk
River and Gary Bilyeu
1. Call Meeting to Order.
Vickie Jenkins called the meeting to order at 1:00 p.m.
2. Approval of Minutes: August 12, 2011
Don Gillum made a motion to approve minutes. Seconded by John Jacobs.
Motion carried unanimously.
3. Consider, Discuss and Possibly Act on Proposed Lease of 103 Bolivar to
Hollingsworth Manufacturing.
City Manager advised that Hollingsworth needs to expand and will be hiring an
additional 15-30 employees.
The deal points at this time are:
• 39 month lease with the first 3 months free rent beginning February 1, 2012
• $2.00 /sf base rent
• Tenant to provide finish out of approximately $160,000. Reimbursed $70,000
and amortized over the term of the lease in rent reduction
• Tenant is responsible for the property taxes
• No upfront cash or incentives included
• Tenant has option to buy at $1,250,000 throughout the term of the lease
The attorney is working on the final paperwork.
The City will be responsible for the hazard insurance on the building and the
shell/exterior of the building.
I
•
4. Review Financials.
City Manager advised that 2011 was the largest year ever in sales taxes, still have
good reserves and the income from the lease will also help.
5. Adjourn.
Meeting was adjourned at 1:12 p.m .
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May 185 2012
Ms, Vickie Jenkins
President, Board of Directors
Sanger Texas Industrial Development Corporation
P.O. Box 1729
Sanger, Texas 76266
RE: $200,000,000 Application for Tax -Exempt and/or Taxable Bond Revenue Bond
Allocation (Texas Pellets Project)
Dear Ms. Jenkins:
Texas Pellets, Inc. (the "Borrower"), is seeking the issuance oftax-exempt and/or taxable
revenue bonds in one or more series in an aggregate amount not to exceed $200,000,000. The
Borrower, therefore, respectfully requests that the Sanger Texas Industrial Development
Corporation adopt at its upcoming board meeting an Authorizing Resolution with respect to
the Project, as described on the enclosed Exhibit A — Project Description.
If you have any questions or require additional information, please do not hesitate to contact
Bob Ferguson of DKFM Switzerland AG at (908) 914-6160.
Thank you.
Best regards,
,CEO
On behalf of German Pellets Group
Enclosure
Exhibit A
Texas Pellets, Inc.
Project Description
Bonds proceeds are expected to be applied to finance the acquisition, construction,
improvement, and expansion of (i) a facility of the Borrower located in Woodville, Texas, the
primary purpose of which is the processing of wood waste to manufacture biomass pellets,
and (ii) a five silo pellet storage facility located in Port Arthur, Texas (collectively, the
"Project").
Exhibit B
Texas Pellets, Inc.
Texas Pellets, Inc. (the "Borrower") anticipates that the financing will create a significant
number of primary jobs in both Tyler County and Jefferson County, The Borrower currently
anticipates that the Project will facilitate the creation and retention of 40 direct jobs to be
created by the Project. The Borrower expects to create an additional one hundred and ninety-
four (194) indirect jobs consisting of approximately one hundred and fifty (150) full time jobs
in logging and other support industries and forty-four (44) full time jobs related to the
transportation of the finished project to the harbor.