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HomeMy Public PortalAbout036-1985- AMENDING ORDINANCE 58-1984 IN ITS ENTIRETYO.RDINANCE.NO. 36Y1985 AN ORDINANCE AMENDING ORDINANCE NO. 58-1984 IN ITS ENTIRETY MITCH SS AN ORDINANCE ESTABLISHING A COMMUNITY AND ECONOMIC DEVELOPMENT k-UND FOR THE CITY OF RICliMOND, INDIANA WHEREAS, it is necessary and beneficial to establish andl''of-ficially adopt a community and economic,development fund for .the ICity of Richmond, Indiana; and, WHEREAS, the economic development.plan for the City of Richmond, Indiana, adopted the 16t4 day of January 1984, in amended Resolution No. 1--198..4, states in Section 5 that the plan will include a self- supporting economic development revolving fund established for two purposes: (a) To provido.a local non -tax dollar source of funds necessary for the administrative and professional aspects of economic development; and, (b) To provide necessary monies to assist with the location of new business and industry and expansion ofexisting business and industry. WHEREAS, the community and economic development fund will be structured and administered as follows: (a) Funding will be provided through tax revenues as designated by Council,.donations', pay.menes-in-lieu,of':taxes, interest income, repayment.pf.loans including'princ�.ple and.interest, and Federpl and State assisted loans and grants, Urban Development Action Crants (UDAG), historic: preservation funds currently on deposit at 'First National Bank and Second National')Bank of Richmond, Indiana, representing funds re- maining from former community development block grants (CDBG), proceeds from sale of surplus property as designated by Council, other federal .assistance. as may be made available, interest from the investment of surplus community and economic development fund.money, funds provided by.the Urban Enterprise Association of Richmond, Inc., And,tempor#y transfers from other funds,. (b) Expenditures out of this fund will include but not necessarily be limited to: (1) Low interest loans in conjunction with conventional loans through private leaders. (2) Historic preservation loans in conjunction with con- ventional loans through private lenders. (3) Housing rehabilitation loans. (4) Eligible community, economic and rehabilitation and preservation activities as defined pursuant to 24 CFR 570.201, 570.202, 570.203 and 570.204'. (5) Local matching funds necessary to obtain State and/or federal grants relating to community and economic development. (6) Necessary administrative and professional costs associ- ated with community and economic development activities. (7) Provide loan guarantees of private sector funds, but not exceeding the financial capability ofthe fund and not encumbering other City funds, resources and/or property. (8) Expenditures out of this fund utilizing money provided to this fund by the Urban Enterprise Association of Richmond, Ind. shall only be used within the designated enterprise zone in accordance with the program standards established by the Urban Enterprise Association of Richmond, Inc. (c) THE C0M1U1MITY AND ECONOMIC DEVELOPMENT LOAN BOARD, herein- after referred to as the BOAIW, is hereby created consisting of nine (9) members as follows: (1) The Mayor of the City of Richmond, Indiana, by virtue of his/her: Office. (2) The City Controller of the City of Richmond, Tndiana, by virtue of his/her Office. (3) The Director of the Department of Planning, Permits and Tnspectiona, by virtue of his/her. Office. (4) A representative from the membership of the Common Council of the City of Richmond, Indiana, appointed .annually for a.oue (1) year term by the President of Common Council. (5) Two (2) citizen members shall be appointed by the Mayor for four (4) year staggering terms. lnitially one (1) shall be appointed for a two (2) year term and thereafter appointed for a four (4)_ year term; and, one (1) shall be appointed for a four (4) year term and thereafter appointed for a four (4) year term,' (6) Wwo (2) representatives from the local financial Institutions shall be appointed by the Mayor for four.(4) year staggering terms. Initially one (1) shall be appointed for a two (2) year term and thereafter appointed for a four (4) year term; and, one 11) shall be appointed for a four (4) year term and thereafter appointed for a four (4) year term. (7) A representative from the membership of the ,Board of Directors of the Urban Enterprise Association of Richmond, -Inc., appointed annually for a one (1) year term by the Board of Directors of the Urban Enterprise Association of Richmond, Inc. The make --up of the BOARD shall at a minimum provide for one (1) minority or female representative, an& one business or industry representative. The BOARD is charged with the sole responsoility of the expenditure of community and economic development funds including, but not limited to, approving loan applications using the loan -criteria as set forth in SeFtions (f), (g) and (h) and preparation of loan agreements!including the amount of loans, repayment terms, interestand the securing of the necessary.collateral. j (d) A one time loan processing fee of one (1) point on all loans will`be charged to the borrower and will be payable at clos- ing or added to the principal amount of the loan to form an enlarged principal balance. The fee will be used to offset administrative costs associated with the program. Any incid- ental costs incurred by either the applicant or the City of Richmond with regard to a loan will be the, responsibility of.the applicant. Such costs include, but are not limited to; recording fees, legal fees and closing fees. (e) The applicant must be a business ❑r industry located within the City limits of the City of Richmond, Indiana or the sur- rounding two mile fringe. The BOARD may establish target areas and/or target businesses and.industries for loan priorities. A residential property owner may be an applicant if funds for housing rehabilitation or historic preservation are available .for loans. (f) Loan criteria will. be established by the BpAR➢ and will include, but riot be limited to, the numberiof jobs created and/or retained, the types of jobs to be cleated, the ratio of loan fund dollars to jobs created, the 'ratio of loan funds to private investment funds, the- grawth potential of the business, the generation of tax revenuie and tax assess- ment base to further the long term economic growth of the City of Richmond, Indiana, and the need of; loan funds to make the project economically feasible, Tie BOARD shall comply with''the loan criteria as established by Federal and/or State funding agencies in relation to the expendi- ture of funds provided by said agencies, a.ad the loan criteria established by the Urban Enterprise Association of Richmond, Inc. in relation to the expenditure of Enterprise Zone funds. (g) .Each loan application will be evaluated or its own merits without regard to other. loans, (h) The maximum amount of the loan fund .inject�on into any one business or industrial project will bellimited to $500,000 or thirty (30%) percent of the total project capital cost, whichever is greater, The maximum amount of the loan fund injection into any one residential or historic preservation project shall be determined by the BOARD. (i) Other additional criteria regarding loans p<ay be developed by the BOARD. WHEREAS, the City Controller will be responsible for the financial management of the funds in but not limited to, the proper accounting of funds and the investment of surplus funds. NOW, ThEREFORE, BE IT ORDAINED by the Common Council of the City of Richmond, Indiana that it hereby establishes and adopts the aforementioned community and economic development fund for the City of Richmond, Indiana. i'ASSED and ADOPTED by the Co%Aou Council of the City of Richmond, Indiana this day of 1985, President' of Common Codncil ATTEST: ` )d✓Z �y_A_ r.r_�ca ct�_�_ City G116rk Presented by me to the Mayor of the City of Richmond, Indiana this / G day of 1985. City Cle k Approved by me, Frank H. Walterman, Mayor of the City of Richmond, Indiana this / .P 6-' day of , 1985. yar, A7FEST: City Cle k a rt R iiLL 4Ah .