Posted 1:31 pm Monday, November 26, 2012
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Proposed Rusk County refinery unable to close on Ike bonds
The Angelina & Neches River Authority, as the conduit bond issuer for the Gregg County Refining, LLC. was notified by the Texas Bond Review Board the refinery project planned for development in Rusk County was unable to close on the Hurricane Ike Bonds by the required deadline of Nov. 15, ANRA announced this afternoon.
The project was designated for funding under the Hurricane Ike Disaster Area Bond Program. The proposed $181 million refinery project is slated to be located 1.25 miles southeast of the City of New London in Rusk County.
“The 150-day timeline for finalizing the documents required for the public bond offering was a very aggressive timeline from the outset. All of the parties involved worked tirelessly to finalize the myriad of documents ranging from loan agreements to detailed construction contracts as well as crude and off take agreements,” Ken Williams, owner of Gregg County Refining, said in a news release.
“While the expiration of the Hurricane Ike Bond designation is a disappointment, it by no means indicates that the project is dead. The refinery is a good project in an exceptional location. The outpouring of support from local community leaders has been outstanding. We are committed to delivering the project and working with ANRA and local community leaders to bring this project to fruition.”
ANRA General Manager Kelley Holcomb added in the release, “While the Hurricane Ike Bond Program offered tax exempt investment opportunities for virtually all of the Rusk County refinery projects' estimated capital costs, the time allotted for the tax exempt public bond offering was limited in light of the Program's expiration at the end of the year.”
According to a news release, ANRA Industrial Development Corporation offers several other funding mechanisms without the same time constraints attached to them.
“The project owners are working with ANRA to finalize a funding package that meets the projects objectives…,” Holcomb said in a news release.
“I want to thank Governor Rick Perry, his staff and the Texas Bond Review Board for their commitment and hard work on the refinery project. I believe they are still committed to the project and we intend to work closely with them to look for other financing options.”
“While the expiration of the Hurricane Ike Bond designation is a disappointment, it by no means indicates that the project is dead. The refinery is a good project in an exceptional location. The outpouring of support from local community leaders has been outstanding. We are committed to delivering the project and working with ANRA and local community leaders to bring this project to fruition.”
ANRA General Manager Kelley Holcomb added in the release, “While the Hurricane Ike Bond Program offered tax exempt investment opportunities for virtually all of the Rusk County refinery projects' estimated capital costs, the time allotted for the tax exempt public bond offering was limited in light of the Program's expiration at the end of the year.”
According to a news release, ANRA Industrial Development Corporation offers several other funding mechanisms without the same time constraints attached to them.
“The project owners are working with ANRA to finalize a funding package that meets the projects objectives…,” Holcomb said in a news release.
“I want to thank Governor Rick Perry, his staff and the Texas Bond Review Board for their commitment and hard work on the refinery project. I believe they are still committed to the project and we intend to work closely with them to look for other financing options.”
