Sale of land in Public Works Authority name
Counselors,
A trustee municipality wishes to sell land to a concrete company. I have been told that the town must first declare the property a surplus and that there is no public purpose for the land, then execute and approve the contract. The deed to the property is in the town's public works authority name. I cannot find any statute or caselaw to guide me in achieving this. Can anyone provide any help regarding the sale of this land?
Best Regards,
Rodrigo Carrillo
Petty & Carrillo, PLLC
P. O. Box 1187
301 N.W. 5th Street
Guymon, OK 73942
(580) 338-5484
(580) 338-0066
rodrigo@pettyandcarrillo.com
This email is intended only for the above named individual and may be privileged or confidential. If you are not the intended recipient, please notify us and do not copy, distribute or take any action based on this email.
Look at the public works authority trust indenture to see if there are any restrictions.
Ray
From: Rodrigo Carrillo
Sent: Friday, February 10, 2023 10:19 AM
To: oama@lists.imla.org
Subject: [Oama] Sale of land in Public Works Authority name
Counselors,
A trustee municipality wishes to sell land to a concrete company. I have been told that the town must first declare the property a surplus and that there is no public purpose for the land, then execute and approve the contract. The deed to the property is in the town’s public works authority name. I cannot find any statute or caselaw to guide me in achieving this. Can anyone provide any help regarding the sale of this land?
Best Regards,
Rodrigo Carrillo
Petty & Carrillo, PLLC
P. O. Box 1187
301 N.W. 5th Street
Guymon, OK 73942
(580) 338-5484
(580) 338-0066
This email is intended only for the above named individual and may be privileged or confidential. If you are not the intended recipient, please notify us and do not copy, distribute or take any action based on this email.
--
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Rodrigo, What source of funds was originally used to purchase the land? if Art. 10, Sec. 27, GO Bond revenues were used to make the original purchase by the municipality, see Sec. 27 in conjunction with Okl. Const. Art. 10, Sec. 16 and the PROTEST OF REID case decided under Sec. 16. The original bond purpose follows the assets perpetually, and any sale proceeds when the asset is disposed of must be used for the same purpose or paid into the sinking fund to reimburse the taxpayers for paying off the bonds. (Now, not following this is usually overlooked by taxpayers, but it is the law.). We deal with this issue frequently because this surplus land is usually wanted for economic development deals.
If the original funding source was other than Sec. 27 bond revenues, disregard this advice - but we usually find that now-surplus municipal land was originally acquired with Sec. 27 GO bond funds. Talk with Amy Douglas in our office if you need more info on the Gai bond issue. For other general info about selling municipal utility land, talk to Craig Keith in our office.
From: rayvincent@coxinet.net rayvincent@coxinet.net
Sent: Friday, February 10, 2023 12:12:10 PM
To: Rodrigo Carrillo rodrigo@pettyandcarrillo.com; oama@lists.imla.org oama@lists.imla.org
Subject: [Oama] Re: Sale of land in Public Works Authority name
Look at the public works authority trust indenture to see if there are any restrictions.
Ray
From: Rodrigo Carrillo
Sent: Friday, February 10, 2023 10:19 AM
To: oama@lists.imla.org
Subject: [Oama] Sale of land in Public Works Authority name
Counselors,
A trustee municipality wishes to sell land to a concrete company. I have been told that the town must first declare the property a surplus and that there is no public purpose for the land, then execute and approve the contract. The deed to the property is in the town’s public works authority name. I cannot find any statute or caselaw to guide me in achieving this. Can anyone provide any help regarding the sale of this land?
Best Regards,
Rodrigo Carrillo
Petty & Carrillo, PLLC
P. O. Box 1187
301 N.W. 5th Street
Guymon, OK 73942
(580) 338-5484
(580) 338-0066
This email is intended only for the above named individual and may be privileged or confidential. If you are not the intended recipient, please notify us and do not copy, distribute or take any action based on this email.
--
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CONFIDENTIALITY NOTE: This e-mail message and any attachments are intended solely for the person to which it is addressed and may contain privileged and confidential information protected by law. If you have received this communication in error, please notify the sender immediately by telephone or e-mail, destroy this message and delete any copies held in your electronic files. Unauthorized use and/or re-disclosure may subject you to penalties under applicable state and federal laws.
And consult your bond counsel. They should have a record of the operating statement and limitations of the expenditure of bonded funds - as well as limits on the usage of proceeds from the sale of the bonds. SEC Rule 15c2-12 also requires you to report to your underwriter, and your underwriter to report to the Municipal Securities Rulemaking Board any of a list of "events" that includes: Release, substitution, or sale of property securing repayment of the securities, if materialhttps://www.law.cornell.edu/definitions/index.php?width=840&height=800&iframe=true&def_id=c9640e72263ad5d1d09ddc21586591d9&term_occur=999&term_src=Title:17:Chapter:II:Part:240:Subjgrp:99:240.15c2-12. I'm not going to get into what constitutes materiality. But the point, as Kenny points out, is that municipal bond issuers cannot use funds that were acquired on a tax exempt basis for subsequent projects that do not qualify for the tax-exemption.
Lowell Peterson
22309 E. 67th Street S.
Broken Arrow, OK 74014
lpeterson@live.commailto:lpeterson@live.com
Cell (918) 805-4090
From: Jordan, Kenneth kenneth.jordan@okc.gov
Sent: Friday, February 10, 2023 1:22 PM
To: rayvincent@coxinet.net; Rodrigo Carrillo rodrigo@pettyandcarrillo.com; oama@lists.imla.org
Cc: Douglas, Amy G Amy.Douglas@okc.gov
Subject: [Oama] Re: Sale of land in Public Works Authority name
Rodrigo, What source of funds was originally used to purchase the land? if Art. 10, Sec. 27, GO Bond revenues were used to make the original purchase by the municipality, see Sec. 27 in conjunction with Okl. Const. Art. 10, Sec. 16 and the PROTEST OF REID case decided under Sec. 16. The original bond purpose follows the assets perpetually, and any sale proceeds when the asset is disposed of must be used for the same purpose or paid into the sinking fund to reimburse the taxpayers for paying off the bonds. (Now, not following this is usually overlooked by taxpayers, but it is the law.). We deal with this issue frequently because this surplus land is usually wanted for economic development deals.
If the original funding source was other than Sec. 27 bond revenues, disregard this advice - but we usually find that now-surplus municipal land was originally acquired with Sec. 27 GO bond funds. Talk with Amy Douglas in our office if you need more info on the Gai bond issue. For other general info about selling municipal utility land, talk to Craig Keith in our office.
From: rayvincent@coxinet.netmailto:rayvincent@coxinet.net <rayvincent@coxinet.netmailto:rayvincent@coxinet.net>
Sent: Friday, February 10, 2023 12:12:10 PM
To: Rodrigo Carrillo <rodrigo@pettyandcarrillo.commailto:rodrigo@pettyandcarrillo.com>; oama@lists.imla.orgmailto:oama@lists.imla.org <oama@lists.imla.orgmailto:oama@lists.imla.org>
Subject: [Oama] Re: Sale of land in Public Works Authority name
Look at the public works authority trust indenture to see if there are any restrictions.
Ray
From: Rodrigo Carrillo
Sent: Friday, February 10, 2023 10:19 AM
To: oama@lists.imla.orgmailto:oama@lists.imla.org
Subject: [Oama] Sale of land in Public Works Authority name
Counselors,
A trustee municipality wishes to sell land to a concrete company. I have been told that the town must first declare the property a surplus and that there is no public purpose for the land, then execute and approve the contract. The deed to the property is in the town's public works authority name. I cannot find any statute or caselaw to guide me in achieving this. Can anyone provide any help regarding the sale of this land?
Best Regards,
Rodrigo Carrillo
Petty & Carrillo, PLLC
P. O. Box 1187
301 N.W. 5th Street
Guymon, OK 73942
(580) 338-5484
(580) 338-0066
rodrigo@pettyandcarrillo.commailto:rodrigo@pettyandcarrillo.com
This email is intended only for the above named individual and may be privileged or confidential. If you are not the intended recipient, please notify us and do not copy, distribute or take any action based on this email.
--
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CONFIDENTIALITY NOTE: This e-mail message and any attachments are intended solely for the person to which it is addressed and may contain privileged and confidential information protected by law. If you have received this communication in error, please notify the sender immediately by telephone or e-mail, destroy this message and delete any copies held in your electronic files. Unauthorized use and/or re-disclosure may subject you to penalties under applicable state and federal laws.
And if it is GO BOND land, be sure to read PROTEST OF REID before declaring it surplus and selling it. I’ve probably told the clients or junior lawyers about this same legal restriction 50 times over the last 30 years. The clients are always confounded by it.
Get Outlook for iOShttps://aka.ms/o0ukef
From: Lowell Peterson lpeterson@live.com
Sent: Saturday, February 11, 2023 3:56:22 PM
To: Jordan, Kenneth kenneth.jordan@okc.gov; rayvincent@coxinet.net rayvincent@coxinet.net; Rodrigo Carrillo rodrigo@pettyandcarrillo.com; oama@lists.imla.org oama@lists.imla.org
Cc: Douglas, Amy G Amy.Douglas@okc.gov
Subject: RE: [Oama] Re: Sale of land in Public Works Authority name
And consult your bond counsel. They should have a record of the operating statement and limitations of the expenditure of bonded funds – as well as limits on the usage of proceeds from the sale of the bonds. SEC Rule 15c2-12 also requires you to report to your underwriter, and your underwriter to report to the Municipal Securities Rulemaking Board any of a list of “events” that includes: Release, substitution, or sale of property securing repayment of the securities, if materialhttps://gcc02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.law.cornell.edu%2Fdefinitions%2Findex.php%3Fwidth%3D840%26height%3D800%26iframe%3Dtrue%26def_id%3Dc9640e72263ad5d1d09ddc21586591d9%26term_occur%3D999%26term_src%3DTitle%3A17%3AChapter%3AII%3APart%3A240%3ASubjgrp%3A99%3A240.15c2-12&data=05%7C01%7Ckenneth.jordan%40okc.gov%7C407c526c237e4ab1698408db0c7ad1bc%7C837e0d97dd9d4d0097e688f05a32ee59%7C0%7C0%7C638117493904105211%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000%7C%7C%7C&sdata=k8w07W4r4EQSMagm921aSBSzcpnxQXqDqaciBggUXJA%3D&reserved=0. I’m not going to get into what constitutes materiality. But the point, as Kenny points out, is that municipal bond issuers cannot use funds that were acquired on a tax exempt basis for subsequent projects that do not qualify for the tax-exemption.
Lowell Peterson
22309 E. 67th Street S.
Broken Arrow, OK 74014
lpeterson@live.commailto:lpeterson@live.com
Cell (918) 805-4090
From: Jordan, Kenneth kenneth.jordan@okc.gov
Sent: Friday, February 10, 2023 1:22 PM
To: rayvincent@coxinet.net; Rodrigo Carrillo rodrigo@pettyandcarrillo.com; oama@lists.imla.org
Cc: Douglas, Amy G Amy.Douglas@okc.gov
Subject: [Oama] Re: Sale of land in Public Works Authority name
Rodrigo, What source of funds was originally used to purchase the land? if Art. 10, Sec. 27, GO Bond revenues were used to make the original purchase by the municipality, see Sec. 27 in conjunction with Okl. Const. Art. 10, Sec. 16 and the PROTEST OF REID case decided under Sec. 16. The original bond purpose follows the assets perpetually, and any sale proceeds when the asset is disposed of must be used for the same purpose or paid into the sinking fund to reimburse the taxpayers for paying off the bonds. (Now, not following this is usually overlooked by taxpayers, but it is the law.). We deal with this issue frequently because this surplus land is usually wanted for economic development deals.
If the original funding source was other than Sec. 27 bond revenues, disregard this advice - but we usually find that now-surplus municipal land was originally acquired with Sec. 27 GO bond funds. Talk with Amy Douglas in our office if you need more info on the Gai bond issue. For other general info about selling municipal utility land, talk to Craig Keith in our office.
From: rayvincent@coxinet.netmailto:rayvincent@coxinet.net <rayvincent@coxinet.netmailto:rayvincent@coxinet.net>
Sent: Friday, February 10, 2023 12:12:10 PM
To: Rodrigo Carrillo <rodrigo@pettyandcarrillo.commailto:rodrigo@pettyandcarrillo.com>; oama@lists.imla.orgmailto:oama@lists.imla.org <oama@lists.imla.orgmailto:oama@lists.imla.org>
Subject: [Oama] Re: Sale of land in Public Works Authority name
Look at the public works authority trust indenture to see if there are any restrictions.
Ray
From: Rodrigo Carrillo
Sent: Friday, February 10, 2023 10:19 AM
To: oama@lists.imla.orgmailto:oama@lists.imla.org
Subject: [Oama] Sale of land in Public Works Authority name
Counselors,
A trustee municipality wishes to sell land to a concrete company. I have been told that the town must first declare the property a surplus and that there is no public purpose for the land, then execute and approve the contract. The deed to the property is in the town’s public works authority name. I cannot find any statute or caselaw to guide me in achieving this. Can anyone provide any help regarding the sale of this land?
Best Regards,
Rodrigo Carrillo
Petty & Carrillo, PLLC
P. O. Box 1187
301 N.W. 5th Street
Guymon, OK 73942
(580) 338-5484
(580) 338-0066
rodrigo@pettyandcarrillo.commailto:rodrigo@pettyandcarrillo.com
This email is intended only for the above named individual and may be privileged or confidential. If you are not the intended recipient, please notify us and do not copy, distribute or take any action based on this email.
--
Oama mailing list -- oama@lists.imla.orgmailto:oama@lists.imla.org
To unsubscribe send an email to oama-leave@lists.imla.orgmailto:oama-leave@lists.imla.org
CONFIDENTIALITY NOTE: This e-mail message and any attachments are intended solely for the person to which it is addressed and may contain privileged and confidential information protected by law. If you have received this communication in error, please notify the sender immediately by telephone or e-mail, destroy this message and delete any copies held in your electronic files. Unauthorized use and/or re-disclosure may subject you to penalties under applicable state and federal laws.
CONFIDENTIALITY NOTE: This e-mail message and any attachments are intended solely for the person to which it is addressed and may contain privileged and confidential information protected by law. If you have received this communication in error, please notify the sender immediately by telephone or e-mail, destroy this message and delete any copies held in your electronic files. Unauthorized use and/or re-disclosure may subject you to penalties under applicable state and federal laws.
Yeah, it's not a simple concept.
Respectfully Yours,
Lowell
22309 E. 67th Street
Broken Arrow, OK 74014
(918) 805-4090
Lpeterson@live.com
-------- Original message --------
From: "Jordan, Kenneth" kenneth.jordan@okc.gov
Date: 2/11/23 4:16 PM (GMT-06:00)
To: Lowell Peterson lpeterson@live.com, rayvincent@coxinet.net, Rodrigo Carrillo rodrigo@pettyandcarrillo.com, oama@lists.imla.org
Cc: "Douglas, Amy G" Amy.Douglas@okc.gov
Subject: Re: [Oama] Re: Sale of land in Public Works Authority name
And if it is GO BOND land, be sure to read PROTEST OF REID before declaring it surplus and selling it. I’ve probably told the clients or junior lawyers about this same legal restriction 50 times over the last 30 years. The clients are always confounded by it.
From: Lowell Peterson lpeterson@live.com
Sent: Saturday, February 11, 2023 3:56:22 PM
To: Jordan, Kenneth kenneth.jordan@okc.gov; rayvincent@coxinet.net rayvincent@coxinet.net; Rodrigo Carrillo rodrigo@pettyandcarrillo.com; oama@lists.imla.org oama@lists.imla.org
Cc: Douglas, Amy G Amy.Douglas@okc.gov
Subject: RE: [Oama] Re: Sale of land in Public Works Authority name
And consult your bond counsel. They should have a record of the operating statement and limitations of the expenditure of bonded funds – as well as limits on the usage of proceeds from the sale of the bonds. SEC Rule 15c2-12 also requires you to report to your underwriter, and your underwriter to report to the Municipal Securities Rulemaking Board any of a list of “events” that includes: Release, substitution, or sale of property securing repayment of the securities, if materialhttps://na01.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.law.cornell.edu%2Fdefinitions%2Findex.php%3Fwidth%3D840%26height%3D800%26iframe%3Dtrue%26def_id%3Dc9640e72263ad5d1d09ddc21586591d9%26term_occur%3D999%26term_src%3DTitle%3A17%3AChapter%3AII%3APart%3A240%3ASubjgrp%3A99%3A240.15c2-12&data=05%7C01%7C%7C310f6a1def12452ceac208db0c7dac80%7C84df9e7fe9f640afb435aaaaaaaaaaaa%7C1%7C0%7C638117506134160329%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000%7C%7C%7C&sdata=WKINmQeMTnrByfkTK8yN%2B9h%2FFuMx%2BVYH5THOAiHl%2BDg%3D&reserved=0. I’m not going to get into what constitutes materiality. But the point, as Kenny points out, is that municipal bond issuers cannot use funds that were acquired on a tax exempt basis for subsequent projects that do not qualify for the tax-exemption.
Lowell Peterson
22309 E. 67th Street S.
Broken Arrow, OK 74014
lpeterson@live.commailto:lpeterson@live.com
Cell (918) 805-4090
From: Jordan, Kenneth kenneth.jordan@okc.gov
Sent: Friday, February 10, 2023 1:22 PM
To: rayvincent@coxinet.net; Rodrigo Carrillo rodrigo@pettyandcarrillo.com; oama@lists.imla.org
Cc: Douglas, Amy G Amy.Douglas@okc.gov
Subject: [Oama] Re: Sale of land in Public Works Authority name
Rodrigo, What source of funds was originally used to purchase the land? if Art. 10, Sec. 27, GO Bond revenues were used to make the original purchase by the municipality, see Sec. 27 in conjunction with Okl. Const. Art. 10, Sec. 16 and the PROTEST OF REID case decided under Sec. 16. The original bond purpose follows the assets perpetually, and any sale proceeds when the asset is disposed of must be used for the same purpose or paid into the sinking fund to reimburse the taxpayers for paying off the bonds. (Now, not following this is usually overlooked by taxpayers, but it is the law.). We deal with this issue frequently because this surplus land is usually wanted for economic development deals.
If the original funding source was other than Sec. 27 bond revenues, disregard this advice - but we usually find that now-surplus municipal land was originally acquired with Sec. 27 GO bond funds. Talk with Amy Douglas in our office if you need more info on the Gai bond issue. For other general info about selling municipal utility land, talk to Craig Keith in our office.
From: rayvincent@coxinet.netmailto:rayvincent@coxinet.net <rayvincent@coxinet.netmailto:rayvincent@coxinet.net>
Sent: Friday, February 10, 2023 12:12:10 PM
To: Rodrigo Carrillo <rodrigo@pettyandcarrillo.commailto:rodrigo@pettyandcarrillo.com>; oama@lists.imla.orgmailto:oama@lists.imla.org <oama@lists.imla.orgmailto:oama@lists.imla.org>
Subject: [Oama] Re: Sale of land in Public Works Authority name
Look at the public works authority trust indenture to see if there are any restrictions.
Ray
From: Rodrigo Carrillo
Sent: Friday, February 10, 2023 10:19 AM
To: oama@lists.imla.orgmailto:oama@lists.imla.org
Subject: [Oama] Sale of land in Public Works Authority name
Counselors,
A trustee municipality wishes to sell land to a concrete company. I have been told that the town must first declare the property a surplus and that there is no public purpose for the land, then execute and approve the contract. The deed to the property is in the town’s public works authority name. I cannot find any statute or caselaw to guide me in achieving this. Can anyone provide any help regarding the sale of this land?
Best Regards,
Rodrigo Carrillo
Petty & Carrillo, PLLC
P. O. Box 1187
301 N.W. 5th Street
Guymon, OK 73942
(580) 338-5484
(580) 338-0066
rodrigo@pettyandcarrillo.commailto:rodrigo@pettyandcarrillo.com
This email is intended only for the above named individual and may be privileged or confidential. If you are not the intended recipient, please notify us and do not copy, distribute or take any action based on this email.
--
Oama mailing list -- oama@lists.imla.orgmailto:oama@lists.imla.org
To unsubscribe send an email to oama-leave@lists.imla.orgmailto:oama-leave@lists.imla.org
CONFIDENTIALITY NOTE: This e-mail message and any attachments are intended solely for the person to which it is addressed and may contain privileged and confidential information protected by law. If you have received this communication in error, please notify the sender immediately by telephone or e-mail, destroy this message and delete any copies held in your electronic files. Unauthorized use and/or re-disclosure may subject you to penalties under applicable state and federal laws.
CONFIDENTIALITY NOTE: This e-mail message and any attachments are intended solely for the person to which it is addressed and may contain privileged and confidential information protected by law. If you have received this communication in error, please notify the sender immediately by telephone or e-mail, destroy this message and delete any copies held in your electronic files. Unauthorized use and/or re-disclosure may subject you to penalties under applicable state and federal laws.