In determining whether or not to recommend an application for approval, the EDPSC shall consider the following guidelines as to each such application.
(a) Job Creation. The number of jobs for City residents that will be created by use of RLF funds. At least fifty-one percent (51%) of jobs created must be for low or moderate income individuals. Job retention projects may be considered under these same guidelines if the jobs retained can be verified as jobs that will be (not may be or could be) lost. (Ord. 10-88. Passed 2-16-88.)
(b) Underlying Private Financial Commitment. At least a 1:1 ratio of private financial commitment to RLF funds is desirable. Higher ratios of private financial commitment should receive higher competitive ratings in the application review process. The private financial commitment shall not include CDBG, SBA, EDA, or other public dollars that are involved in the project.
(Ord. 38-06. Passed 3-20-06.)
(c) Eligible Economic Development. The following economic development activities, although not in order of priority, should be given priority over other types of eligible economic development activities:
(1) Fixed asset capital expenditures (land, buildings, equipment or other construction based elements); and
(2) Direct relocation costs and expenses incurred by companies relocating businesses into the City of Alliance; and
(3) Expenses incurred in updating building codes, health codes, fire codes and other code compliance in existing buildings located in the City of Alliance; and
(4) Land acquisition, including land acquisition by the City directly, or assistance to the loan applicant, or working in conjunction with the Greater Alliance Development Corporation as the City’s Community Improvement Corporation.
(5) Economic development activities in the area designated as the Downtown Development District.
No RLF loan funds shall be used to provide for inventory, refinancing or wages.
(Ord. 22-08. Passed 7-21-08.)
(d) Equity and Collateral. All economic development projects shall include a minimum of 10% developer equity, which shall be available and spent before RLF loan funds may be spent. Acceptable collateral, including but not limited to a mortgage, lien or UCC filing, should also be provided for at least the full amount of the RLF loan funds involved in the project. Economic development activities located in the Downtown Development District shall provide collateral in the form of a mortgage or lien. For any loan in excess of 50% of the eligible economic development activities described in subsection (c) hereof, the City may require that the City hold a mortgage and be in the first position.
(Ord. 38-06. Passed 3-20-06.)
(e) Firm Private Financial Commitments. All private financial commitments must be finalized in written form. However, such commitments may be contingent upon City approval of an RLF loan.
(f) Documented Need. The project application must provide documentation on the need for the RLF loan and assuring that the request is not just a substitute for private funds.
(g) Location. Any projects recommended for funding must be located within the corporate limits of the City of Alliance. Projects located outside of the City limits may be considered. Any project funded by an RLF loan will be required to remain in the City unless otherwise authorized by Council. Relocation outside the City not otherwise authorized will result in acceleration of the RLF loan balance.
(Ord. 10-88. Passed 2-16-88.)
(h) Downtown Development District. For projects located in the Downtown Development District, loans may be made for up to 90% of the eligible economic development activities described in subsection (c) hereof, subject to the provisions of Section 177.06. The Downtown Development District shall include the area of the City of Alliance with a zoning classification of B-1 and the Arch Avenue corridor with a B-4 zoning classification.
(Ord. 67-10. Passed 9-20-10.)
EDITOR’S NOTE: The Alliance Arts, Culture and Entertainment District was also created to coincide with the boundaries of the Downtown Development District and to be eligible for the same benefits as that district.
(Ord. 68-10. Passed 9-20-10.)
(i) City Officials and Employees Excluded. No loan, grant or other economic development assistance shall be provided under this program to any elected official of the City, any employee of the City or any member of the EDPSC or to any corporation or partnership or other entity or business owned or controlled by any of the foregoing, or to or by any member of the immediate family of any of the foregoing. No loan, grant or other economic development assistance shall be given to any corporation, partnership or other entity or business in which any of the foregoing have any interest whatsoever unless there shall be full disclosure of such interest to City Council. (Ord. 38-06. Passed 3-20-06.)
(j) Unless this section is waived by Council, applicants must attend and complete a financial counseling session as directed by the Program Administration.
(Ord. 22-08. Passed 7-21-08.)
(k) These guidelines shall not be deemed to be exclusive. Other factors may also be considered by the Economic Development Project Screening Committee.
(Ord. 38-06. Passed 3-20-06.)