(a) Notwithstanding any other provisions of this chapter, the City of Oregon hereby allocates from its funds eligible for investment under Section 179.05
up to the amount of one million dollars ($1,000,000) for municipal linked deposits in the Commercial/ Industrial zoned district and Parcel 44-04364 owned by the Oregon Foundation and located at Cedar Point and Dupont Roads. The Treasurer is hereby directed to organize his investments in such a way as to insure that the funds allocated by this section will be available for investment through municipal linked deposits as such deposits are approved in the manner set forth below.
(b) Investments in municipal linked deposits shall be made only on the following terms:
(1) Deposits shall be made on the basis of twenty thousand dollars ($20,000) of deposit for each new job created in the City provided that no deposit shall exceed one million dollars ($1,000,000) per year in amount nor seven years in term.
(2) Deposits shall be in institutions otherwise eligible for deposit of the City's funds pursuant to this chapter, including but not limited to Section 179.05 (f)(7).
(3) The City's interest rate on the linked deposit shall not be less than three percent (3%) below market rates for a certificate of deposit of this term.
(4) Loans linked to the deposit shall amortize and the amount of the linked deposit in excess of the loan balance at any point shall be returned to a separate deposit at market rates.
(5) The municipal linked deposit agreement shall be approved as to form by the Director of Law.
(6) Loans linked to the loan in an authorized depository shall be made for the purpose of acquiring and/or constructing land, building fixtures and site improvements within Commercial /Industrial zoning and Parcel 44- 04364.
(7) All credit underwriting shall be the responsibility of the institution and the funds of the City shall not in any way be pledged to the repayment of the loan.
(c) In the event that the Finance Director and Treasurer determine, pursuant to Section 179.03
that the amounts set forth for allocations to municipal linked deposits cannot be so allocated because of the City's requirements for active deposits or if the funds so allocated have been deposited then they shall forthwith notify the Mayor and Council.
(d) The Treasurer and Finance Director are authorized to enter into linked deposit agreements in accordance with the provisions of this section and on such terms as they deem proper. The Treasurer is further authorized to make such deposits pursuant to such agreements from funds allocated in subsection (a) hereof in accordance with the terms of subsection (b) hereof upon presentation of a certification by the proposed borrower as to the number of jobs to be created and a commitment letter approving the loan issued by an eligible institution.
(Ord. 177-1996. Passed 9-23-96.)