(A) An applicant interested in exploring the feasibility of industrial revenue bond financing of a project should first contact the City Manager or his designee at least five working days in advance of the submission of the application so that adequate staff review and procedural scheduling may be assured in the processing of the application.
(B) Formal negotiations for industrial revenue bond approval are initiated when the applicant submits a detailed proposal in the form of a letter of inducement to the City Manager or his designee.
(1) The letter of inducement should be submitted at least ten (10) working days prior to the submission of the inducement ordinance and agreement.
(2) The letter of inducement should contain:
(a) An estimation of benefits of the community, such as benefits to consumers of the project's products or services, and the employment impact, including both jobs retained and new jobs created.
(b) An itemized cost/benefit analysis, detailing what the bonds will be used to finance and the anticipated benefits to accrue, and describing the impact of the project on the gross revenues of the company and on business license fees and property tax revenue to the city.
(c) A description of the public service impact of the project, including the public utilities and services available to and needed at the project site.
(C) The letter of inducement is to be accompanied by a completed industrial revenue bond
application on application forms approved by the Commission. The applicant should include with his completed application forms:
(1) An independent audit and certified financial statement or review financial statement of the applicant(s) for the most current complete year, prepared and certified by an independent certified public accounting firm; audited statements prepared by an independent certified public accounting firm for the last three completed years are preferred, and may be requested by staff during its review process or by the Commission.
(2) A letter from any proposed purchaser of the bonds, if known at the time of the application, or if not known, as soon as possible thereafter, confirming intent to purchase the issue and giving evidence of the purchaser's financial ability to purchase the bonds; and financial statements of the purchaser(s) for the last three completed years either audited or prepared by an independent certified public accountant, may be requested by the staff or the Commission.
(3) The financial disclosure information contained in divisions (C)(1) and (2) above shall be treated by the city as confidential. The confidential financial information shall not be treated as part of the public record, nor shall it be publicly disclosed unless by agreement of the applicant.
(D) Copies of the letter of inducement and completed application will be submitted for staff review and circulated to the Commission.
(E) The letter of inducement and application with all attachments shall be submitted with an original and 20 copies to the City Manager as specified in divisions (A) and (B) above.
(F) An application fee of $2,500 must accompany each application to partially reimburse the city for costs of handling the application. If bonds are issued, this fee shall be considered as a portion of the issuing fee.
(G) The city requires an issuing fee of one-fourth of one percent (1%) of the gross principal
amount of the bond issue to satisfy all cost, including attorney's fees, incurred by the city in conjunction with the issuance of the bond. On refinancing issues the principal amount shall be the amount refinanced.
(Ord. 161-1997, passed 11-20-97)