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BE IT REMEMBERED that a special meeting of the White County Council was held at the White County Building at Monticello at 6:00 P.M. on April 22, 2013 for the purpose of discussing taxable economic development revenue bonds and other business that might come before the membership.

Council President Dennis Carter called the Council meeting to order. The following members were present:

 

Dennis E Carter Kevin L Crabb Art A Anderson

Bruce D Clear James G Annis James B Davis

MAG PELLET, LLC BONDS

Barnes & Thornburgh Attorney Rick Hall has been advising the County along with County Attorney Loy on the bond process for Mag Pellet, LLC. Financial advisor Todd Samuelson from H.J. Umbaugh & Associates has assisted with the Economic Development agreement as well.

Attorney Hall said the Economic Development incentive offered to Mag Pellet, LLC was the issuance of bonds payable from their Taxable Incremental Finance (TIF) revenues generated from the new investment as a result of the project. The estimated bond amount is $23,470,000. The bond proceeds will allow the company to pay for the project. (It basically allows them to use the tax revenues to pay for the project.) They will buy the bonds themselves. The bonds will be payable from 80% of the TIF generated from their investment. The other 20% will be available to the County through the Redevelopment Commission. The Economic Development Commission met and recommends approval of the bonds. The Redevelopment Commission also took action and approved the pledge of TIF revenues to the bonds.

General Manager for the Mag Pellet project, Terry Nanti, said they are currently working on site development which will probably continue through September. There are fifty contractors now and will be over 300 contractors by August. When they start hanging steel, the number will move up to 700 or 800 people. He estimates the Company is spending about a million dollars a day.

Attorney Hall said the ordinance will allow the issuance of bonds in the amount of $23,470,000 not to exceed $24,000,000 to be sold to Mag Pellet, LLC. There are no other taxes or County money to be used in repaying these funds other than the 80% of the TIF. It also authorizes other actions that are necessary to complete the financing. The payback term is 20 years, but could be sooner if more funding is generated.

Councilor Crabb made a motion to suspend the rules to consider adoption of the ordinance upon the first reading. Councilor Annis seconded the motion. Vote: Unanimous

Councilor Anderson made a motion authorizing the issuance of the White County, Indiana taxable economic development revenue bonds, series 2013 (Mag Pellet, LLC project), and the lending of the proceeds thereof to Mag Pellet, LLC and authorizing and approving other actions in respect thereto. Councilor Annis seconded the motion. Vote: Unanimous

 

ADJOURNMENT

There being no further business to bring before the Council, Councilor Anderson made a motion to adjourn. Councilor Crabb seconded the motion. Vote: Unanimous

 

 

 

___________________________ ___________________________ ___________________________

DENNIS E CARTER, PRESIDENT JAMES ANNIS ART A ANDERSON

___________________________ ___________________________ ________(absent)___________

JAMES B DAVIS KEVIN L CRABB RAYMOND L KRAMER JR

___________________________ Attest: ___________________________

BRUCE D CLEAR GAYLE E ROGERS, AUDITOR