O-2014-3525 issuance of private activity tax exempt obligations by Public Finance Authority

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PECK, SHAFFER & WILLIAMS LLP Corby D. Alexander City of LaPorte, Texas January 14, 2014 Page 2 First, Section 147(f) of the Code requires that a public hearing be held in the local area where the project being financed or refinanced with tax-exempt obligations is located, at least 14 days after publication of notice in accordance with the Code's requirements. Second, the Code requires that an elected representative, such as the City Council, formally approve the issuance of the Bonds. To satisfy these tax law requirements, the Borrower requests the City Council to cause the notice to be published, hold (or cause to be held) a public hearing and consider an ordinance approving the Bonds. The public hearing mandated by the Code only requires the City Council (or its designated representative) to give interested parties the right to make statements about the La Porte Project or the Bonds and does not require the City Council to conduct a debate or make a determination on the merits of the La Porte Project. The approval given by the City Council is merely needed to meet the Code requirements. Such approval does not obligate the City to make any payments with respect to the Bonds, nor will the Bonds become the indebtedness of the City. We have included with this letter the forms of the public notice and approval ordinance. We hope to work with you and the City to schedule the public hearing as soon as possible, which means that the notice will need to be published shortly as well. We would be happy to undertake the process of getting the notice published at your direction. Thank you for your assistance. Please do not hesitate to contact us if we may answer any questions you might have. We look forward to completing this project with you. Sincerely, PECK, SHAFFER & WILLIAMS LLP '! l r�•f' r1�. F• Per Diana B. Silveira DBS/clp Attachments 30168