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(A) Financing by the city through loans for eligible projects will require documentation as well as liens and security interests substantially similar to that found in bank financings. All financing documents must be approved by the city's legal counsel. In some cases, the city may determine that personal guarantees are required.
(B) The city will determine the manner in which all loans will be made, and such documentation as may be necessary to obtain any draw of loan proceeds. In that regard, the city may require a draw request to be accompanied by a lien release, affidavit or other documentation for the city's protection.
(C) Any construction contract funded by a loan from the city must provide for performance and payment bonds in the amount of the cost of the work with both the business and city as beneficiary and provide for at least a 5% retainage. The business must also provide or cause to be provided property insurance on the financed project in the amount of the replacement cost, which insurance must name the city as a loss payee. Liability insurance naming the city as an additional insured will also be required.
(Ord. 2021-20, passed 4-13-21)