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.
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A7FEST:
City Cle k
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