(A) The city hereby establishes a linked deposit program wherein the city, when possible and according to the conditions and requirements listed in this section, shall place reduced-rate investments with eligible lenders to be linked to lower interest loans for eligible small business owners.
(B) The city hereby establishes a five member board. Members are: the Mayor, City Manager, Finance Director, Economic Development Chairperson, and President of the Business Association. Members shall serve without compensation.
(C) In order to participate in the program, a lending institution must have at least one branch office located within the city, must have a Memorandum of Agreement for Deposit of Public Funds on file with the city, must sign the Lender Application for the city’s linked deposit program, and must agree that as the principal is paid down by the business, that portion of the funds shall be available for withdrawal by the city, quarterly or semiannually.
(D) In order for a small business to be eligible for consideration for the city’s linked deposit program, it must, as a prerequisite, meet the following:
(1) Complete the city’s and financial institution’s application for participation in the program;
(2) Forward a completed plan of improvements to the city;
(3) The small business must be retaining or creating jobs within the city;
(4) The small business shall be organized for profit; and
(5) Improve facade appearance according to specification of committee.
(E) Once the business applicant has fulfilled the above requirements, and the eligible lender has forwarded a completed application to the city, the City Manager and Finance Director shall evaluate the application along with lender to determine if the business is eligible for the program, whether the city is financially capable of linking deposits to assist the business, and whether it is in the city’s best interest to accept the particular applicant. The City Manager shall then make a recommendation to the City Council. No such link deposit application shall be approved without an authorizing resolution from City Council. Upon approval, the Finance Director shall communicate with the lender to make the necessary deposit. The city shall have the discretion to deny an application if it determines that the applicant is not eligible or if the city is not financially able to assist the business.
(F) The city shall place no more than $25,000 into reduced-rate investments which are linked to lower interest loans.
(G) Each approval linked deposit is valid for two years with two renewal periods. The initial renewal may be for a two year period. The final renewal may be for a one year period. No linked deposit shall extend for more than five years. Any request for renewal shall be made in writing to the City Manager at least 90 days before the expiration period. Renewal shall be based on the prerequisites in division (C), and if all conditions have been met, the City Manager shall renew the linked deposit. All recipients of a linked deposit shall comply with all city Building and Zoning Codes and the requirements of the specific lender’s loan. Failure to do so may result in the withdrawal of city funds from the linked deposit.
(Ord. 99-1299, passed 11-16-99)