(A) In addition to the amounts set forth in § 4-10-6(B), ROA 1994, upon formation of a TIDD the developer/landowner shall deposit with the TIDD a nonrefundable administrative expense fee in the amount of $15,000. The administrative expense fee shall be applied by the TIDD to the costs and expenses incurred in connection with the formation, review of any feasibility study, election costs, administration, operation and maintenance of the TIDD or its public improvements. From time to time, upon depletion of the administrative expense fee, the TIDD may request, and the developer/landowner shall promptly deposit with the TIDD, additional amounts deemed by the city to be necessary for the purposes contemplated in this section.
(B) In order to provide for the TIDD to be self-supporting for its administrative, operation and maintenance expenses, and to finance services in addition to those provided by the city, the city and the TIDD, unless otherwise agreed, may require the imposition of up to $5.00 per $1,000 of net taxable value ad valorem tax, not as a tax or charge of the city, but in accordance with the provisions of Sections 12(A)(11) and 13(A) of the Act, as amended, upon the TIDD taxable property, for the administration of the TIDD, and the operation and maintenance of property which is not city-owned infrastructure otherwise maintained by the city. Failure to impose such tax shall not impose upon the city any obligations for operations.
(C) The amount and structure of debt of a TIDD shall not have a net negative impact on the debt or financing capabilities of the city, taking into account the basic purposes and operation of a TIDD as provided in the Act. Any debt issued shall be in accordance with the provisions of § 4-10-3(H), ROA 1994. The specific terms of each debt financing shall be set forth in the Development Agreement and shall include, but not be limited to, the following:
(1) The maturities, principal amounts and maximum interest rate on the bonds;
(2) Whether the bonds shall be publicly offered or privately placed;
(3) Whether the bonds will be issued, in whole or in part, in book-entry form;
(4) Whether the bonds are subject to prior redemption;
(5) Those items listed in § 4-10-7(D) and (E), ROA 1994;
(6) The form of all material documents to be used in connection with the issuance of the bonds, including, but not limited to, the TIDD Board bond resolution and prior to the actual issuance, the bond indenture; and
(7) Such other additional terms and provisions as may be determined necessary for inclusion by city staff.
(D) Gross receipts tax increment bonds shall be payable from the authorized gross receipts tax increment from the gross receipts taxes generated from taxable activities located within the TIDD. An applicant for gross receipts tax revenue bonds shall describe in each financial feasibility study required in § 4-10-5(E), ROA 1994, the following:
(1) The amount and timing of TIDD gross receipts tax increment bonds to be issued.
(2) The expected production of gross receipts tax increment within the TIDD, and its relationship to anticipated absorption of developed real property.
(3) The sources of gross receipts taxes or portions thereof to be pledged to the repayment of the gross receipts tax increment bonds.
(4) Whether the bonds shall be publicly offered or privately placed. Publicly offered bonds shall either (i) be rated (either on their own merits or by use of appropriate credit enhancement) in one of the four highest investment grade ratings from Standard & Poor's Ratings Group, Moody's Investors Service, Inc., Fitch Ratings, or other nationally recognized bond-rating services, or (ii) be issued in connection with a transaction which meets all of the following criteria: (a) the minimum equity contribution, excluding real property, of the developer is at least 20% of the estimated initial cost of the project; and (b) the developer and the TIDD shall enter into an appropriate contribution agreement, which may require a letter of credit or other third-party guarantee of the bonds by the developer.
Privately placed bonds need not be rated; however, the purchasers of such bonds must be "qualified institutional buyers" (as such term is defined in Rule 144A of the Securities Exchange Commission) and must agree not to resell the bonds except to "qualified institutional buyers" or "accredited investors", as such terms are defined by the SEC, in a private placement.
If appropriate, the applicant shall enter into a "Continuing Disclosure Undertaking" (as required by Rule 15c2-12 of the Securities Exchange Commission) relating to the issuance of the bonds.
(E) Property tax increment bonds shall be payable from the authorized property tax increment from taxable property located within the TIDD. Applicants for property tax increment bonds shall describe in each financial feasibility study as required by § 4-10-5(E), ROA 1994, the following:
(1) The amount and timing of TIDD property tax increment bonds to be issued.
(2) The expected market absorption of development within the TIDD.
(3) The sources of the property taxes or portions thereof to be pledged to the repayment of the property tax increment bonds.
(4) Whether the bonds shall be publicly offered or privately placed. Publicly offered bonds shall either (i) be rated (either on their own merits or by use of appropriate credit enhancement) in one of the four highest investment grade ratings from Standard & Poor's Ratings Group, Moody's Investors Service, Inc., Fitch Ratings, or other nationally recognized bond-rating services, or (ii) be issued in connection with a transaction which meets all of the following criteria: (a) the minimum equity contribution, excluding real property, of the developer is at least 20% of the estimated initial cost of the project; and (b) the developer and the TIDD shall enter into an appropriate contribution agreement, which may require a letter of credit or other third-party guarantee of the bonds by the developer.
Privately placed bonds need not be rated; however, the purchasers of such bonds must be "qualified institutional buyers" (as such term is defined in Rule 144A of the Securities Exchange Commission) and must agree not to resell the bonds except to "qualified institutional buyers" or "accredited investors", as such terms are defined by the SEC, in a private placement.
If appropriate, the applicant shall enter into a "Continuing Disclosure Undertaking" (as required by Rule 15c2-12 of the Securities Exchange Commission) relating to the issuance of the bonds.
(F) Unless otherwise determined by the city, the city shall retain its own counsel to advise it in connection with the formation of a TIDD and all activities taken by a TIDD formed by the city, the cost of which shall be paid by the TIDD and the city's bond counsel shall be bond counsel for the issuance of TIDD bonds. From time to time the city may request from bond counsel such opinions as it deems necessary in connection with the formation and activities of the TIDD.
(Ord. 36-2006)