HomeMy WebLinkAboutres2001-061WHATCOM COUNTY COUNCIL AGENDA BILL NO. 2001 -426
CLFARANCF
Initial
Date
Date Received in Council Office
Agenda Date
Assi edm:
Ortgmator:
Division Head:
Dy
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DEC -4 2001
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�YNII %ICOM COUNTY
COUNCIL.
12111
Finance Council
Dept. Head:
Prosecutor
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Putchasing/Rudgm:
I utive:
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SUBJECT.•
Resolution regarding issuance of non - recourse revenue bonds of the Industrial Development Corporation of the
Port of Bellingham, the proceeds of which will be used for industrial development facilities by Atlantic Richfield
Company
ATTACHMENTS:
Resolution and letter
SEPA review required? ( ) Yes ( ) NO
SEPA review completed? ( ) Yes ( ) NO
Should Clerk schedule a hearing ? ( ) Yes (x ) NO
Requested Date:
SUMAIARYSTATEMENT.•
Resolution regarding issuance of non - recourse revenue bonds of
the Industrial Development Corporation o the Port o Bellingham,
P f f S
the proceeds of which will be used for industrial development
facilities by Atlantic Richfield Company
Distribution Request
copy
Indicate those who shouldreceive a e ter council action.
List pieha names to the
ADS Facilities Management
ADS Finance
ADS Human Resources
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Assessor
Auditor
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Rxecutive
Dewey Disler
Francine Kimmal
Health
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Jail
COUNCIL ACTION TAKEN:
2001 - 426 12111/2001: Approved 6 -0, Imhof absent, Res. #2001 -061
Related County Contract #:
Juvenile
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Sheri
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Related File Numbers:
Ordinance or Res pluti n Numb th'
item):
SPONSORED BY: Executive
PROPOSED BY: Executive
DATE: DR ber 11, 2ooi
RESOLUTION NO. 2001 -061
A RESOLUTION of the County Council of Whatcom County,
Washington, approving, as planning jurisdiction solely for the
purposes of RCW 39.84.060, the issuance of nomecourse revenue
bonds of the Industrial Development Corporation of the Port of
Bellingham, the proceeds of which will be used for industrial
development facilities within the County by Atlantic Richfield
Company.
WHEREAS, the Legislature of the State of Washington has provided for the creation of
public corporations by municipalities, including counties, pursuant to Chapter 300, Laws of
Washington, 1981 (Regular Session) codified as Chapter 39.84 RCW, as amended (the "Act "), for
the purpose of facilitating economic development and employment opportunities in the State of
Washington; and
WHEREAS, Whatcom County (the "County") has been advised that, pursuant to the Act,
the Port Commission of the Port of Bellingham has created and approved the charter of a
development corporation, designated as the "Industrial Development Corporation of the Port of
Bellingham" (the "Development Corporation ") to carry out the purposes of the Act; and
WHEREAS, the County has been advised that the Development Corporation has received
an application from Atlantic Richfield Company ( "Atlantic Richfield ") for the financing the
acquisition of equipment and improvements, including solids product handling, solid waste,
industrial sewage disposal facilities, dock and storage facilities at the existing Cherry Point
Refinery of Atlantic Richfield (collectively, the "Project ") located at 4519 Grandview Road,
Blaine, which location is within the unincorporated area of the County; and
WHEREAS, the Development Corporation's bond counsel has provided the County with
its proposed opinion that the Project qualifies as an "industrial development facility" within the
meaning of the Act; and
WHEREAS, the County has been provided with a copy of the Development Corporation's
original resolution taking official action on October 7, 1997 and providing preliminary approval
for the issuance of its nomecourse revenue bonds in the amount of up to $70,000,000; and
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WHEREAS, the County has been advised that Atlantic Richfield has expended funds for
the Project and expects to expend additional funds on the Project in the future; and
WHEREAS, the County has been further advised that volume cap has recently been made
available for the financing of Project by the State of Washington Department of Community,
Trade and Economic Development, as amounts released by other jurisdictions within the State
whose projects are not proceeding to completion in 2001; and
WHEREAS, the County has been provided with a copy of the Development Corporation's
resolution approved on December 4, 2001 confirming its original intent to issue nomecomse
revenue bonds, increasing the dollar amount of bonds to be issued to a total amount of not to
exceed $130,000,000 (the "Bonds ") and authorizing the issuance of a first series of the Bonds (the
"Series 2001 Bonds ") in the principal amount of $23,000,000; and
WHEREAS, the Act provides that no revenue bonds may be issued by the Development
Corporation for such Project unless each county, city or town within whose planning jurisdiction
the Project is to be located has approved the issuance of revenue bonds; and
WHEREAS, the Development Corporation, as the intended issuer of the Bonds for the
Project, acting through its bond counsel, has requested the approval of the City pursuant to the
Act; and
WHEREAS, the County has been assured that there will be no financial liability accruing
to the County as a result of such approval and that this approval shall constitute approval solely
for the purpose of permitting the Development Corporation to proceed with the issuance of the
Bonds;
NOW, THEREFORE, BE IT RESOLVED BY THE COUNTY COUNCIL OF
WHATCOM COUNTY, WASHINGTON, as follows:
Section 1. The County Council, pursuant to Chapter 39.84 RCW, does hereby approve, as
planning jurisdiction, the issuance of the Bonds by the Development Corporation for the purposes
of financing the Project under the Act.
The County has been informed that the Bonds are anticipated to be issued by the
Development Corporation in a principal amount not to exceed $130,000,000 pursuant to
resolutions of the Board of Directors of the Development Corporation for the purposes of
financing the Project under the Act.
The County has been informed that the proceeds of the Bonds will be loaned to Atlantic
Richfield, pursuant to loan agreements with the Development Corporation, and used for the
purposes of paying all or a part of the costs of the Project within the boundaries of the County.
The County has been informed that the Bonds shall be payable solely from Atlantic Richfield's
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payments under the loan agreements and will be further secured, as to principal, interest and the
payment of the purchase price therefore, by a guaranty by BP plc. The Bonds shall not constitute
an obligation of the County, and no tax funds or other revenues of the County shall be used to pay
the principal of, premium, if any, or interest on the Bonds. Neither the faith and credit nor any
taxing power or revenues of the County shall ever be pledged to pay the principal of, premium, if
any, or interest on the Bonds.
Section 2. This resolution is intended solely to constitute approval of the issuance of the
Bonds within the meaning of RCW 39.84.060. This approval shall not in any way be deemed to
be a review or final approval of any development permit for any portion of the Project which may
be in process, or may be submitted at a future date.
ADOPTED by the County Council of Whatcom County, Washington, this 11th day of
December. 2001.
WHATCOM COUNTY COUNCIL
ATTEST: WHATCOM COUNTY, WASHINGTON
Dana Brown- Davis, Clerk o to ounc' [- L. Ward Nelson, C ncil Chair
APPROVED AS TO FORM:
W litz
Civil Deputy Pros for
Page 3
WHATCOM COUNTY G Pete Kremen
EXECUTIVE'S OFFICE County Executive
County Courthouse
311 Grand Avenue, Suite #108 Bellingham, WA 98225 -4082
MEMORANDUM
To: L. Ward Nelson, Council Chair
Members of County Council
From: Pete Kremen, County Execute
Subject: Industrial Development Corporation of the Port of Bellingham
Variable Rate Demand Sold Waste Revenue Bonds
(Atlantic Richfield Corporation Project)
Date: November 28, 2001
The Port of Bellingham maintains a development corporation under RCW Ch. 39.84,
the Industrial Development Corporation of the Port of Bellingham (the 'Development
Corporation'). The Development Corporation has received an application for tax - exempt
financing from Atlantic Richfield Company for the financing of environmental facilities at the
Cherry Point Refinery located at 4519 Grandview Road, Blaine. The Company is seeking
tax - exempt financing in order to lower its costs of borrowing, and Goldman Sachs & Co. is
acting as underwriter to sell the Bonds.
Because the Project lies within the unincorporated boundaries of Whatcom County,
the County Council has planning jurisdiction over the Project. Therefore, the Development
Corporation is required to obtain the approval of the Council pursuant to RCW 39.84.060.
The attached resolution will provide sufficient approval forthe issuance of the Bonds
by the Development Corporation. Within the text of the resolution, the right and authority of
the County has been specifically reserved to consider independently any subsequent
development permit that may be presented for the Project.
In addition, the resolution contains specific language that provides that the County
shall have no liability under any circumstance for the payment of any debt service on the
Bonds, nor shall it incur any liability in connection with the Project. This language is
repetitive of Ch. 39.84, which specifically states that no public money shall ever be used to
pay the debt service on this type of bond.
I support this resolution as it will assist with an important project as well as
contribute to the economic development of this Cherry Point area.
Office (360) 676 -6717 County (360) 384 -1403 FAX (360) 676 -6775 TDD (360) 738 -4555