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Home My Public Portal About19-1988-28 RESOLUTION NO. 1988-28 "��11Jv ' .:.. RESOLUTION APPROVING AMENDED PLAN FOR USE OF RECAPTURED FUNDS FROM TECHNOTRIM, INC. LOAN WHEREAS, the City of Greencastle, Indiana, has received grants from the Indiana Department of Commerce to assist the expansion of industry to Greencastle and included in these grants is Grant Number II 86-009 enabling a loan to TechnoTrim, Inc. in the total amount of Two Hundred Thousand Dollars ($200,000.00) ; and WHEREAS, Ordinance 1987-18 approved a plan for utilizing One Hundred Thousand Dollars ($100,000.00) of the recaptured loan as a training grant from the City of Greencastle to TechnoTrim, Inc. ; and WHEREAS, the City of Greencastle was obligated to adopt a plan for the use of the balance of the recaptured funds in the amount of One Hundred Thousand Dollars ($100,000.00) ; and WHEREAS, the City of Greencastle adopted a plan for the use of recaptured funds by the passage of Resolution No. 1988-14 -- "Resolution Approving Plan For Use of Recaptured Funds From Techno-Trim, Inc. Loan" at its special meeting held on the 24th day of March, 1988; WHEREAS, the City of Greencastle desires to amend its plan for use of recaptured funds from the Techno-Trim, Inc. loan; WHEREAS, the City of Greencastle hereby adopts the amended plan for the utilization of recaptured funds from the TechnoTrim, Inc. loan as set forth in the attached Exhibit "A". NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Greencastle that the attached amended plan for the use of recaptured funds for the remaining $100,000.00 to be recaptured from the loan to TechnoTrim, Inc. (Grant II 86-009) is hereby in all things ratified and approved. 1. PASSED and ADOPTED by the Common Council of the City of Greencastle at its regular meeting this 14th day of June, 1988. COMMON COUNCIL OF THE CITY OF GREENCASTLE, INDI e Z. Roach Tim Conway Conway Susan V. Murray :S Robert P. Sedlack /k LOX_ / QgAL Mic ael W. Rok c ck� Approved and signed by me this 14th day of June, 1988, at 10; IS o'clock, P .m. 5 ::- G :Z_ll- Michael M. Harmless, ., n Mayor "--- ATTEST: 111 1 OSA,Cay Jill; Berry, Cl- Treasurer s^'\ 2. PLAN FOR RECAPTURED FUNDS DOC PROJECT 11-86-009 City of Greencastle, Indiana 1. GENERAL INFORMATION: The Indiana Department of Commerce (DOC) has awarded a grant under its Investment Incentive Program (IIP) to the City of Greencastle for a loan to a private industry (Participating Party) conducting business in Greencastle. Under this program, the City of Greencastle is to receive a principal amount of $100,000 over a 5.,year period, along with interest due thereupon. Under this loan program, the City of Greencastle, will retain all proceeds from the loan (Principal and Interest) over the applicable periods of amortization ("Recaptured Funds"). Such Recaptured Funds are to be utilized (expended) for those activities/projects which conform to this "Recapture Plan". Under its grant contract agreement with DOC, the City of Greencastle is to utilize (expend) Recaptured Funds for economic development activities outlined in Section 105 (a) (17) of the ACT which states the following, "Provision of assistance to private, for-profit entities, when the assistance is necessary or appropriate to carry out an economic development project". 2. GOAL OF RECAPTURE PLAN-CITY OF GREENCASTLE. The City of Greencastle proposes to use such Recaptured Funds to assist private firms in projects tied directly to the creation, expansion and/or retention of jobs in the community. The utilization of these funds will be geared directly toward stimulating the private sector in Greencastle via expenditure of the funds to local industries subject to the amount (and cash flow) of Recaptured Funds available. Greencastle's Recapture Plan will induce stimulation of economic development projects (and employment levels) via direct application of these funds as well as expenditure of Recaptured Funds in a manner which stimulates additional private investments (leveraging) for specific economic development projects. IAmm0 3. OBJECTIVES OF RECAPTURE PLAN-CITY OF GREENCASTLE: a. Expansion/retention of Greencastle's industrial base. b. Creation/expansion/retention of jobs for the community. c. Stimulation of local economy via a. and b. above. 4 4. ELIGIBLE FUNDING ACTIVITIES-GREENCASTLE'S RECAPTURE PLAN: • a. Loans for private economic development projects. b. Public improvements tied directly to specific economic development projects. c. Matching funds for other economic development projects. d. Program administration. 4 5. ECONOMIC DEVELOPMENT LOANS: a. ECONOMIC DEVELOPMENT FUND: L!!!' (1) The City of Greencastle, shall place Recaptured Funds in a separate fund (apart from the City General Fund) for accounting purposes; this fund will be called the Development Loan Payback Fund for Recaptured Interest Funds and CDBG for Recaptured Principal Fund. (2) Recaptured Funds will be placed in an interest-bearing account with a local, approved depository. The City may . also arrange for a separate bank account for this program. (3) From thee. monies, low-interest loans will be made to new or expanding private businesses for purposes of on-site improvements, construction, asset acquisition and/or asset refurbishing which is directly tied to creation, expansion and/or retention of employment levels. (4) Priority will be given to existing manufacturers/industrial firms. (5) Priority will be given to loans for economic development projects which are leveraged by other private sources of financing. In certain cases, such low-interest loans may be made to private businesses which are leveraged with other private financing at higher interest rates to produce a lower overall "blended" interest rate for an economic development project. (6) See Program Administration for other loan criteria. b. PUBLIC IMPROVEMENTS: (1) The City of Greencastle may expend Recaptured Funds for purposes of public improvements, however, such improvements must be directly tied to specific economic development %mei projects. (2) Eligible public improvements may include off-site improvements to water/sewer lines, surface drainage, streets, and other similar public improvements and infrastructure improvements. c. MATCHING FUNDS-OTHER ECONOMIC DEVELOPMENT PROJECTS: (1) Recaptured Funds may be used as matching funds to secure additional federal/state/other funds specifically for . economic development projects (e.g. Industrial Development Infrastructure Programs, Investment Incentive Programs, etc.). (2) Such a use of Recaptured Funds shall occur if necessary to acquire such projects(s) and if the acquisition of said project will create or expand or retain a number of jobs sufficient to justify such a use for Recaptured Funds. _ill d. PROGRAM ADMINISTRATION: (1) The Economic Development Fund (Recaptured IIP Funds) will be administered by the City of Greencastle through its Citizens Advisory Commission for Industrial Development (CACFID). (2) CACFID will develop policies and procedures respective to economic development loans which will include the following: (a) Loan application procedures. (b) Application review by CACFID and approval/disapproval criteria which shall be based upon (1) scope, in financial terms, of total project and (2) number of employees anticipated by applicant at developing site. (c) The CACFID will make loans to applicants for no more than twenty five percent (25i) of their total project needs. (d) Each applicant must sign a promissory note to be secured by a mortgage in a figure to no more than one other mortgagee. Sufficient equity in the developed property to cover the loan shall exist. (e) An interest rate of five percent (5%) annum or fifty percent (50%) of the current prime interest rate as charged by the Morgan Rank & Trust Company, of New York City, whichever is greater, shall be the interest rate charged the applicant. (f) An amortization period of no more than five (5) years shall be allowed. (g) Prepayment of incentives (if any). (h) Rights of subordination. (i) Default provisions. (j) Foreclosure provisions. (k) Local requirements respective to total and minority • employment resulting from such loan(s) and local monitoring thereof. (1) Use of escrow funds for loan administration (if applicable). • (m) Other applicable requirements for loans. (3) CACFID will also approve/disapprove projects initiated whose purpose is to use Recaptured Funds for both purposes of Public Improvements and/or Matching Funds for other economic development projects. _1111 • (4) The amount of Recaptured Funds used to administer various economic development projects (administration/staff expenses) which accrue directly from said Recaptured Funds shell not exceed twenty percent (20%) of the interest received LIN! from the Recaptured Funds under project II 86-009. (5) Administrative Expenses shall include those expenses which are includable under DOC grant programs and those required by adherence to IC 36-7-14 governing Redevelopment Commissions. 1111 • _4111