(A) All economic development projects receiving assistance from the city shall be subject to an annual performance review conducted by the REDC. This review shall evaluate whether the project is attaining the goals and objectives set forth in the project participation agreement. This review shall be presented to the governing body for its consideration. The governing body at a public hearing may terminate assistance to the economic development project by provisions set forth in the agreement, which terminates the agreement and specifies the disposition of all assets and obligations of the project.
(B) The city shall retain a security interest, which shall be specific in the project participation agreement. The type of security given shall depend upon the nature of the economic development project and assistance provided by the city. Types of security may include, but are not limited to:
(1) Letter of credit in the city's name;
(2) Performance bond equal to the city's contribution;
(3) A mortgage or lien on the property or equipment;
(4) Pro-rated reimbursement of donation if company reduces work force or leaves the community before the term agreed to; and
(5) Other security agreeable to both parties.
(C) Should a qualifying entity move, sell, lease, or transfer a majority interest in the economic development project before the expiration of the project participation agreement, the city retains the right to deny any and all assignments, sales, leases or transfers of any interests in the economic development project until adequate assurances are made that the transferee, assignee or lessee is a qualifying entity and that the terms of the agreement will be satisfied by the transferee, assignee or lessee. At its discretion, the city may choose to deny said assignment, lease or transfer, or may negotiate a new agreement with the new operator, or the city may reclaim the facility and enter into an agreement with the new qualifying entity.
(D) Any qualifying entity seeking assistance from public resources shall commit to operate in accordance with its project participation agreement for a minimum of 10 years from the date the ordinance is adopted and the governing body passes the project participation agreement.
(Ord. 959, passed 7-28-2009; Am. Ord. 2015-991, passed 6-23-2015)