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Home My WebLink About1980-01-23 - Special City CouncilSPECIAL SESSION - WEDNESDAY JANUARY 23, 1980 - 3:00 P.M. CHAMBER OF THE CITY COUNCIL CITY HALL, STEPHENVILLE, TEXAS The City Council met in Special Session, Wednesday, January 23, 1980 at 3 o'clock p.m. with Mayor Donald R. Jones present and presiding. Mike Leese Calvin A. McGee W. M. Irwin Raymond Anderson COUNCILMEMBERS PRESENT COUNCILMEMBERS ABSENT OTHERS ATTENDING City Administrator Marshall Shelton Administrative Assistant Kurt Ackermann City Attorney Joseph Chandler Mr. .Gerald Cook Mr. Jerry Singleton Mr. Dan Almon Mr. Ralph Kemp Mr. Gary Gleason Mr. Pete Tort Charles Riggins Larry Hammett E. W. Ferguson Linda J. Chew Mayor Jones opened the meeting by explaining that Mr. Taylor Almon had met with the Industrial Development Bond Committee chaired by Councilman Riggins to provide information regarding the formation of an Industrial Development Corporation and to assist the committee by providing other input. Mayor Jones called upon Mr. Dan Almon to explain to the Council the concept behind recent legislation which established the provisions of Industrial Development Bonds. Mr. Almon explained that the concept of Industrial Development Bonds is not new and has been used in several other states but that Texas had just this year passed enabling legislation which would provide for In- dustrial Development Bonds. Mr. Almon stated that the legislation basically makes industrial type development available to'-smaller communities that may not under normal circumstances, be able to attract such development. The Council would create a nonprofit corporation which would issue bonds and which neither the corporation or council would be responsible for. In turn, the bond proceeds would be used to build a facility that a company would design and utilize for some time. The bonds are secured by the marketable name of the company being financed. Mayor Jones cited an article in Town & Countr Ma azine which reported that cities or other local governments are not fable or repayment of any bonds that may go into default however that civil liability could personally accrue to a city official associated with a local nonprofit corporation. Mr Almon stated that the question of civil liability was valid and recommend that Mr. Pete Tort, a bond attorney, address the Council. M Mr. Tort explained to the council that the act exempts facilities built under the bond program from state taxation, however, the Texas Supreme Court has ruled in a case that exemption does not apply to advalorem taxes. A question still exists with regard to sales tax, however, an opinion has been requested from the Attorney General. Mr. Tort explained that he suspected the Attorney General's opinion will exempt only those facilities operated and managed by the non- profit corporation. After additional discussion, Mr. Tort told the Council that under the act, councilmembers and the Industrial Development Board are exempt from liability, however, during these times of growing "consumer awareness ", the Council and Board would probably be subject to personal liability in terms of gross negligence. He suggested that the Council obtain liability coverage. Additionally, if a non - profit corporation is operating for the city then most major carriers will extend coverage to the directors of that corporation. Mayor Jones asked that in the event of tax default, what recourse does the city have to collect delinquent taxes in view of the fact that the city cannot foreclose on the property? Mr. Tort responded by saying that the only way a company could default was by defaulting on its lease payment. Under this type of financing, lease payment is tantamount to ownership due to the length of the lease payment time arrangement. A specific formula is used to compute property taxes, therefore if taxes were not paid the city could place a lien and foreclose against the property. Following additional discussion Mr. Scott Allen, representing the Stephenville Chamber of Commerce, told the council that many prospects had already inquired with regard to this type of financing. Additionally, approximately 57 communities had already approved industrial development bonds and 30 more had applied. City Administrator Marshall Shelton presented an ordinance which added property to the Long Street extension project. Councilman Riggins made a motion to adopt the ordinance which dedicates 0.05 acres, a parcel of Lot 2, Block 51, City Addition, as part of East Long Street, with metes and bounds description, and ded- icates it as part of Long Street. Seconded by Councilman Leese. Motion carried unanimously by those members present. At this time Mayor Jones closed the open meeting and declared an Executive Session for the purpose of personnel matters. The meeting adjourned at 4:55 p.m. and the Council went into Executive Session. ATTEST: NEE ORDINANCE DEDICATING A PARCEL OF LAND OWNED BY THE CITY OF STEPHENVILLE AND BEING 2,115 SQUARE FEET OR 0.05 ACRE OUT OF LOT 2, BLOCK 51, CITY OF STEPHENVILLE, ERATH COUNTY, TEXAS, AS A PART OF EAST LONG STREET IN THE CITY OF STEPHENVILLE. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF STEPHENVILLE: That parcel of land situated in the City of Stephenville, Texas, and being described as follows: BEING 2,115 square feet of land, more or less, situated in the County of Erath, State of Texas, and being a part of Lot 2, Block 51, City Addition of the City of Stephenville, and being apart of a tract of land conveyed to the City of Stephenville from the Sheriff of Erath County, Texas, by deed dated July 1, 1958 and recorded in Volume 369, Page 338 of the Deed Records of Erath County and is more particularly described as follows: BEGINNING at a point for a corner in the existing north right of way line of Long Street 25;00 feet northerly and normal to.its centerline survey station 142 +00, said point also being in the south line of Lot 2, Block 51, City Addition of the City of Stephenville and lying N 60° 14' E, 105.32 feet along said existing north right of way line of Long Street from a southeast corner of a tract of land conveyed to J. R. Barb by deed recorded in Volume 369, Page 602 of the Deed Records of Erath County; THENCE N 510 42' E, 101.12 feet along the proposed north right of way line of Long Street to a point for a corner, 40.00 feet northerly and normal to Long Street centerline survey station 143 +00; THENCE N 60° 14' E, 91.00 feet along the proposed north right of way line of Long Street to a point for a corner, 40.00 feet northerly and normal to its center- line survey station 143 +91, said point also being in the center of the Bosque River; THENCE S 29° 46' E, 15.00 feet along the existing centerline of the Bosque River to a point for a corner in the existing north right of way line of Long Street, 25.00 feet northerly and normal to its centerline survey station 143+91; THENCE S 60° 14' W, 191.00 feet along the existing north right of way line of Long Street, the south line of Lot 2, Block 51, City Addition of the City of Stephenville to the place of beginning, containing 2115 square feet or 0.05 acre of land, more or less, all of which is new right of way; is hereby dedicated as a part of East Long Street and said land is dedicated to the use of the public as a part of said street, for street purposes and same shall from henceforth be a part of East Long Street. PASSED AND APPROVED this ATTEST: Joyce Pemberton, City Secretary 66k day of Donald R. Jones., Mayor 1. /i