(A) All Local Economic Development Act projects receiving assistance from the city shall be subject to an annual performance review conducted by city staff. This review shall evaluate whether the project is attaining the goals and objectives set forth in the project participation agreement. This review shall be presented to the Council. The Council at a public hearing may terminate assistance to the Local Economic Development Act project by passage of an ordinance which terminates the agreement and specifies the disposition of all assets and obligations of the project as set forth in the termination section of §§ 2-14-1-1 et seq.
(B) The city shall retain a security interest which shall be specified in the project participation agreement. The type of security given shall depend upon the nature of the Local Economic Development Act project and assistance provided by the city. Types of security may include, but are not limited to:
(1) Letter of credit in the city's name;
(2) Performance bond equal to the city's contribution;
(3) A mortgage or lien on property or equipment;
(4) Pro-rated reimbursement of donation if the qualifying entity reduces its work force or leaves the community before the agreed term expires; and
(5) Other security agreeable to both parties.
(C) Should a qualifying entity move, sell, lease or transfer a majority interest in the Local Economic Development Act project before the expiration of project participation agreement, the city retains the right to deny any and all assignments, sales, leases or transfers of any interests in the Local Economic Development Act project until adequate assurances are made that the transferee, assignee or lessee is a qualifying entity and that the terms of the agreement will be satisfied by the transferee, assignee or lessee. At its discretion, the city may choose to deny said assignment, lease or transfer or may negotiate a new agreement with the new operator, or the city may reclaim the facility and enter into an agreement with a new qualifying entity.
(D) Any qualifying entity seeking assistance from public resources shall commit to operate in accordance with its project participation agreement for a period of time defined below from the date the ordinance adopting the project participation agreement is passed by the Council:
(1) If the project is solely supported by state funds, the term shall be set by the State Economic Impact Analysis (EIA);
(2) If city funds are included in the award and the total award for the company is more than $500,000, the term shall be a minimum of ten years;
(3) If city funds are included in the award, the total award for the company is no more than $500,000, and the pay-back period has been shown to be less than ten years, the term shall be recommended by the Albuquerque Economic Development Department in consultation with the Economic Impact Analysis;
(4) If city funds are included in the award, the company has been determined to be an Albuquerque legacy company, and the pay-back period
has been shown to be less than ten years, the term shall be recommended by the Albuquerque Economic Development Department in consultation with the State Economic Impact Analysis.
(Ord. 33-2004; Am. Ord. 2023-007)