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Home My Public Portal About058-1984 - ORDINANCE ESTABLISHING A COMMUNITY AND ECONOMIC DEVELOPMENT FUND FOR THE CITYAMENDED ORDINANCE N0.-58-1984 AN ORDINANCE ESTABLISHING A COMMUNITY AND ECONOMIC DEVELOPMENT FUND FOR THE CITY OF RICHMOND, INDIANA.. WHEREAS, it is necessary and beneficial to establish and officially adopt a community and economic development fund for the City of Richmond, Indiana; and, WHEREAS, the economic development plan for the City of Richmond, Indiana, adopted the 16th day of January, 1984, in amended Resolution No. 1-1984, states in Section 5 that the plan will include a self- supporting economic development revolving fund established for two purposes: (a) To provide 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 of existing 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, donation , payments -in -lieu of taxes, interest income, repayment of loans including principle and interest, state assisted loans and grants, Urban Developmnt Action Grants (UDAG), historic preservation funds currently on deposit at First National Bank and Second National Bank of Richmond, Indiana, representing funds remaining 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, and temporary 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 lenders. (2) Historic preservation loans in coniunction with convent- ional loans through private lenders. (3) Eligbile community, economic and rehabilitation and preservation activities as defined pursuant to 24 CFR 570.201, 570.202, 570,203 and 570.204. (4) Local matching funds necessary to obtain State and/or federal grants relating to community and economic development. (5) Necessary administrative and professional cost associated with community and economic development activities. (6) Provide loan guarantees of private sector funds, but not exceeding the financial capability of the fund and not encumbering other City funds resources and/or property. (c) A loan committee consisting of the following individuals will be the governing body for expenditures. They will be charged with the responsibility 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 sections (f), (g) and (h) and preparation of loan agreements including the amount of loans, repayment terms, interest and the securing of the necessary collateral. The loan copunittee will consist of the Mayor, the City Controller, the Director of the Planning and Economic Development Department, a representative from Common Council, and a citizen member appointed by the Mayor. The representative from Common Council will serve a four year term. the first term will expire December 31, 1987. The Citizen member appointee will serve a two year term. The first term will expire December 31, 1985. This loan committee will be assisted by up to three (3) non- voting advisory members consisting of representatives from local financial institutions to be appointed by the Mayor. (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 closing. The fee will be used to off -set administrative costs associated with the program. Any incidential 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 or industry located within the City limits of the City of Richmond, Indiaan or the srrrounding two mile fringe. (f) Loan criteria will include, but not be limited to, the number of jobs created and/or retained, the types of jobs to be created, the ratio of loan fund dollars to jobs created, the ratio of loan funds to private investment funds, the growth potential of the business, the generation of tax revenue and tax assessment base to further the long term economic growth of the City of Richmond, Indiana, and the need of loan funds to make the project econom- ically feasbile. (g) Each loan application will be evaluated on its own merits with- out regard to other loans. (h) The maximum amount of the loan fund injection into any one project will be limited to $500,000. or thirty (30%) percent of the total project capital cost, whichever is smaller. (i) Other additional criteria regarding loans may be developed by the loan commettee. WHEREAS, the City Controller will be responsible for the financial managment of the funds including, but not limited to, the proper accounting of funds adn 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. PASSED AND ADOPTED by the Common Council of the City of Richmond, Indiana this-.f-?L--,- day of 1984. ent o on ncil ATTEST: City Clerk PRESENTED by me to the Mayor of the City of Richmond, Indiana, this �� day o 1 1984. APPROVED by me, Frank H. Waltermann, Mayor of the City of Richmond, Indiana, this Z�1tt day of 1984. Ayor ATTEST: City Clerk PROPOSED CHANGES TO ORDINANCE 58-1984 Additional, Paragraph to Section(c) The representative from Common Council will serve a four year term, The first terns will expire December 31, 1987. The citizen member appointee will serve a two year term. The first term will expire December 31, 1985. Amend Section (h) to read: The maxilm + amount of the loan find injection into any one ,project Will be limited to $500,000. or thirty (30%) percent of the total project capital cost, whichever is smaller. Example - $2,000,000. Project Capital Costs: 307. $600,000. Doan $5000-000. Example - $1,000,000. 3M. Loan $300,000. $300,000. PROPOSED CHANGES TO ORDINANCE 5'8-1984 Additional Paragraph to Section (b) (c) The representative from Common Council will serve a four year term. The first term will expire December 31, 1987. The citizen member appointee will serve a two year term. The first term will expire December 31, 1985. Amend Section (b) (h) to read: The maximum amount of the loan fund injection into any one project will be limited to $500,000. or thirty (30%) percent of the total project capital cost, whichever is smaller. Example - $2,000,000, Project Capital Costs: 30% $600,000. Loan $500,000. Example -- $1,000,000. 30% $300,000, Loan $300,000, COMMON COUNCIL VOTING RECORD ORDINANCE; — .LIFITE:—_�-L% WILLIAMS' OCKBAW HANKINSON WHITFSELL PARKER BODIKER LEMCINE MORRIS ELSTRO Susp. rules, 1st read. iTitle only Seconded (Proof of Publication .............. Seconded ....... ....... ........ ....... Move to 2nd read. } ....... ....... ....... ...................... 'Seconded ....... ....... V ....... ...... ....... ....... 'ingrossment t .... .............. Seconded ...... ....... ....... ....... T/ ....... — .....,. ...... ....... ....... ;usp. rules, 3rd read. ^ — 'Title only .......,.... ...... ............ t--, Seconded ✓ . ... .............. ..... AMENDED ..... I .............. ...... ...... ....... .... Seconded / ...... ....... ....... ....... ....... .....1 (TABLED ........................... Geconded .. ...... ..... •...... ..,.... ....... ....... �. I.. OR.. ,.D.. ;nCJECTION V � I I I4 SOLUTION:___ WILLIAMS BROOKBANK HANKINSDN WHIIE5ELL PARKER BODIKER LLMOINE i'Ur',f:i,5 ELSTRC LATE: �Suspend Rules Title only .................... 5econdetl ............. ......, ... .................... FABLED— I...................... (Seconded ....... ...:... ...... ....... ....... ...... ................... ....... Adoption `IlMovedfgr ........................ Seconded ....... ........... ...... i ...................