HomeMy Public PortalAboutORD12884 BILL NO. _98-161
SUBSTITUTE
lJ"TE
SPONSORED BY COUNCILMAN Nilges
ORDINANCE NO. I1 �
AN ORDINANCE OF THE CITY OF JEFFERSON, MISSOURI, ESTABLISHING
ADDITIONAL PROCESSES FOR ISSUANCE OF ECONOMIC ASSISTANCE LOANS AND !
AUTHORIZING A CONTRACT WITH THE CHAMBER OF COMMERCE TO EFFECTUATE
THE PROGRAM. {
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WHEREAS, The Council has determined that it is in the best interest of the City to j
encourage small businesses and infrastructure improvements within the City; and
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WHEREAS, The Council has determined the best way to achieve its objectives is through .
modification of its economic assistance ordinance to establish two additional loan I
programs.
NOW THEREFORE, BE IT ENACTED BY THE COUNCIL OF THE CITY OF JEFFERSON,
' MISSOURI, AS FOLLOWS:
Section 1. Purpose. The purpose of this ordinance is to advance the health, safety
and welfare of the people of the City of Jefferson and Cole County by encouraging growth
and expansion of private enterprise within the community, recognizing that the community
benefits by the creation of new jobs, retention and expansion of existing jobs, stimulatio
of economic activity and an increase in private sector investment. In order to achieve and
carry out this purpose, the following loan processes are authorized:
A. Loans for small business. Small business shall include all business enterprises
with 25 or less employees.
B. Loans for infrastructure improvements within the Urban Renewal Area of the City
as it now exists or as it maybe amended in the future. r
Section 2, To carry out this program the Mayor and City Clerk are authorized to
gxecute a contract or contract amendment with the Jefferson fterson City Area Chamber of ,
�F Commerce to administer the new loan programs under the following guidelines:
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Section 1.Qualified Business.A"qualified business"includes an new
or existing corporation partnership,
p proprietorship,cooperative or association +r.
which demonstrates.the ability to advance the ob'ectives":.of t� `i
repay any loan funds. ie City �nc9
Section 2. Application. Before an R {
{ y qualified business shall be eligible
for a loan as set out, it shall first make an application in writing on forms to
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be provided, to the Loan Review Committee. upon submission of an ".
application,the Loan Review Committee shall promptly review the same and F
determine whether or not the applicant is deecried"qualified"and eligible for
a loan. All eligibility determinations shall be made within sixty (60) days of
the receipt of the completed application. Applicants shall promptly provide j
all supporting data and documents reasonably requested by the Loan Review j
Committee. 1
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Section 3. Loan Review Committee. There is hereby established a J
Loan Review Committee consisting of the City Finance Director, who shall
i serve as Chairman, and three members from the community who shall be
T appointed by the Mayor, confirmed by the Council, and serve three-year
staggered terms. The purpose of this committee is to promulgate rules,
regulations and forms; determine eligibility; review the credit worthiness of
the applicant; recommend terms, conditions and interest rates; and develop
loan agreement packages.
Section 4. Application
processing/loan handling fees. The Loan
Review Committee is authorized and directed to establish a fee schedule to
offset the actual cost of processing each application. 'The Loan Review
' Committee may likewise establish handling fees for the billing and collection
of loan payments.
Section 5. Joint Participation. In addition to direct loans,
consideration shall be given to joint participation with local financial
t„ institutions in financing packages meeting the objectives of this program.
t Section 6. Priority. Recognizing that funds are limited, the following
items and applications shall be given priority:
`. A. Businesses located within the city limits shall be givers r
priority over businesses in adjoining areas,.
` S. Jobs created within the City of Jeffers
azn shall be given
y priority over jobs created in adjoining areas.
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,t 111 C. Priority of funding will also be given in the
consideration based on the number of new jobs created by the
qualified business.
D. Applications from businesses located within the Urban r ;c
�u Renewal Area'. ,
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: Section 7. Interest Rate. Interest rates charged on any loans made }
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under this program shall be at thecurrent published rate for ninety (90) day :. 1`}
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'treasury Bills ,plus or minus 2%. In addition to setting the rate the Loan ; l
Review Committee may also authorize the deferment of interest for up to I
"µ eighteen(18)months,provided any deferred interest shall become part of the
principal to be amortized. In determining the Intorest rate and any F
1 deferrals of Interest the Loan Review Committee shall not discriminate 1
on the grounds or because of race, creed, color, national origin or
ancestry,sex,religion,handicap,age or political affiliation. The criteria
for setting loan rates and deferral periods shall be thffr merits of the
proposed project and the financial considerations related thereto.
Section 8 . Right to Reject.Nothing contained in this ordinance
shall require the granting of any loan. The right to reject any and all
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applications shall not be affected by this ordinance.
Section 9. Limit on Loan Amount. No single applicant shall be '
: ) eligible for a loans is excess of twenty-five thousand dollars (25,000.00)
in the outstanding aggregate.
Section 10. Reports. Not less than quarterly the Loan Review
s' Committee shall provide a written report to the City Administrator of
all loan activities under the programs.
Section 3. The rules and .regulations and any forms developed for the
program under the auspices of the Chamber through the Loan Review Committee
i shall not be effective until ninety (90) days after their submission to the Council
unless approved by resolution earlier. The Council may reject the proposed rules
and regulations by passage of a resolution prior to the expiration of the ninety (90)
days. ,
Section 4.This Ordinance shall be in full force and effect from and after the
date of its passage and approval.
Passed: Approved- F 1
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Presiding Officer Mayor
ATTEST: APPROVED AS TO �PRM:
ity Czt�
k tity Counselor
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LOAN ADMINISTRATION AGREEI�]FN''
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This agreement is by and between the City of Jefferson, Missouri ("the City"), and the Jefferson City 1
rea Chamber of Commerce ("the Chamber").
I WHEREAS, on February 1, 1999,the City, by and through its City Council, adopted Ordinance Number
12884, which ordinance was executed on February 3, 1999; and which ordinance generally called for establishing
additional processes for issuance of economic assistance loans from the City's MODAG funds; and
WHEREAS, Ordinance Number 12884 authorizes the Mayor and City Cleric to execute a contract or
contract amendment with the Chamber to administer the new loan programs under certain guidelines specifically
set forth in the ordinance and the program rules and procedures as approved by Resolution RS99-5; and
WHEREAS, the City and the Chamber now wish to memorialize the agreement authorized by Ordinance j
Number 12884.
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NOW, THEREFORE, based on mutual consideration more particularly set forth herein, the City and the
Chamber agree as follows:
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1. Transfer of Funds to the Chamber as Custodian.
The City will, as soon as practical after the execution of this agreement, transfer to the Chamber
$300,000.00 from the City's MODAG fund balance. The City may from time to time transfer additional
funds in its sole discretion. Any such additional transfers shall be on the same terms and conditions as
the original funds. The Chamber will at all times act as limited agent and custodian for such funds
pursuant to the terms and conditions of this agreement; and legal. title to the'funds shall remain vested in
the City. Such funds are hereinafter referred to as the "Program Funds."
2. Loan Promotion and Administration.
The Chamber will advertise and promote participation in the loan prograrr,s by qualified applicants. The r
Chamber will disburse, collect and generally administer the Program Funds pursuant to the provisions of
Ordinance Number 12884 and the program rules and procedures approved by Resolution RS99-5, the
terms of which are hereby incorporated by reference, and pursuant to the terms of this agreement. 'The
Chamber will at all times act in accordance with the directives of the Loan Review Committee }
established by Ordinance Number 12884 and Resolution RS99-5.
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s 3. Loan Servicing.
The Chamber will engage the services of an independent contractor to service loans made in accordance
j with this agreement, provided however that the independent contractor and any agreement with the
independent contractor will be approved in advance by the Loan Review Committee. The City shall not
be liable directly or indirectly for any fees associated with servicing the loans.
4. Administration Femme. ;
The Chamber will be entitled to an administration fee for its services as set forth in this agreement,
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which amount shall be separate and apart from any servicing fee referenced in,the preceding paragraph.
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The Chamber's administration fee shall be calculated as follows:
A. Fifty percent(50%) of each $25,00 application .fee for both the.Property Improvement, '
Program and the Small Business Program.
B. Twenty-five percent(25%)of the two percent(2%)Closing Fee, which is associated with
only the Small Business Program.
C. A monthly fee of Five Dollars ($5.00) for every outstanding loambeing administered by the
Chamber. This includes both the Small Business Loans and the Property Improvement Loans.
Any fee to which the Chamber is entitled shall be payable solely from Program Funds.
5. Program Fund Investment.
All Program Funds shall be kept in interest bearing accounts or instruments. All interest received, all {{
loan payments and any other moneys attributable to Program Funds shall be deposited into and with the
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Program Funds. ! J
u. Right to Withdraw Funds.
The City, at its sole initiative and discretion, reserves the right to withdraw any or all of the Program I
Funds that have not been committed to loans at any time upon.fibre(5) days notice.
1 7. Assignment.
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I The Chamber shall not assign any interest in this contract, paid shall not transfer any interest in the same I
(whether by assignment or novation),without prior written consent of the City thereto. Any such
assignment is expressly subject to all rights and remedies of the City under this agreement, including the
right to change or delete activities from the contract or to terminate the same as provided herein, and no
such assignment shall require the City to give any notice to "y such assignee of any actions which the
City may take under this agreement, though City will attempt to so nrtify any such assignee.
8. Identification of Payee.
Consistent with the Chamber's role as custodian of funds owned by the City, all depository accounts,
notes, loan agreements, deeds of trusts or other security agreements will.identify the Owner of the feuds,
or the payee of any note or security agreement, as "the Jefferson City Area Chamber of Commerce,
Custodian and Limited Agent for the City of Jefferson, Missouri." °J
' 7. Ownership of Records: Access.
All records and documents related to the loan programs or the Program Funds shall remain the equita"ble
property of the City; and the City will be entitled to inspect, copy or retrieve any or All such records anal
documents at any time upon reasonable notice during normal business hours.
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S. Term.
i This agreement will be effective upon execution by both parties and will have an initial terms ending, on j
s December 31, 2000. Thereafter,this agreement may be renewed on an annual basis unless it is terminated
by either party in accordance with the following paragraph.
9. Termination.
This agreement may be terminated by either party without cause upon ten days written notice. Upon
termination the Chamber will relinquish any instruments, books or records related to its performance
j under this agreement, and will execute and deliver such documentation as may be reasonably requested
by the City to assume record title and full custody of the Program Funds and any notes, security
i instruments, claims or causes of action in existence at the time of termination.
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10. Modification of Agreement.
This is the entire agreement of the parties into which all prior communications and negotiations have
' been merged. This agreement may be modified only in writing, executed by all parties. In the case of the
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City, consent for modification shall be only by ordinance or resolution.
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11. Law to Govern.
This Contract shall be governed b the laws of the State of Missouri as to both inte 'retation and '
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performance.
12. Notices.
All notices required to be in writing may be given by first class mail addressed to the City of Jefferson,
„d 320 East McCarty Street, Jefferson City, Missouri, 65101, and the Chamber at 213 Adams Street,
Jefferson City, Missouri, 65101. The date of delivery of any notice shall be the second full day after the.
, .� day of its mailing.
CTI'Y OF JEFFERSON MI O CHAMBER �F COMMERCE '
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ATTEST: ATTEST:
City C erk � Title: .
APP VED S T FORM:
. City C selor
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