(A) Prior to consideration by the Board of Trustees of the Town of Clayton of any ordinance relating to the issuance of revenue bonds, as authorized by NMSA § 14-30-1, there shall have been submitted to the Board of Trustees of the town, at a regularly scheduled meeting at least 30 days before the date of the meeting at which the adoption of the ordinance is to be considered, the following information.
(1) A 5-year audited statement of revenues as well as assets of the prospective lessee. In the event that the lessee is a closely held subsidiary of a foreign or other corporation or has no assets, such information shall be furnished with regard to the parent corporation, or the principal stockholders.
(2) The capability and experience level of the management and principals involved in the lessee’s management shall be investigated and due report of the investigation made to the Board.
(3) An underwriting proposal from a responsible investment banker shall be presented to the Board in order that the Board be able to determine what portion of the proceeds will be available for the construction of the proposed facility. Best efforts proposals will not be acceptable.
(4) The proposed lessee shall report to the Board in writing whether or not it desires to use any portion of the revenue bond proceeds for operating capital. The Board establishes by this section, a policy against allowing bond proceeds to be used as operating capital; however, each case shall be evaluated on its merits.
(5) A statement shall be furnished by the prospective lessee indicating the amounts of operating capital and other assets to be committed to the project by the lessee company.
(6) The prospective lessee will present evidence that arrangements have been made to retain reputable recognized municipal bond attorneys to handle the preparation of the necessary documents pertaining to the issuance of an industrial revenue bond series, and the prospective lessee shall also indicate to the Board in writing its agreement to pay the fees of the reputable, recognized municipal attorneys.
(B) No ordinance will be considered by the Board of Trustees for the Town of Clayton which authorizes the issuance of industrial revenue bonds unless the foregoing procedure established by this Board has been substantially compiled with in all respects.
(Ord. 493, passed 11-10-1975)