(A) There is hereby created the Revolving Loan Fund, pursuant to I.C. 4-35-8.5-4.
(B) Recipient of funds.
(1) The city may lend the money in the Revolving Loan Fund to any borrower if the City Council finds that the loan will be used by the borrower for one or more of the following economic development purposes:
(a) Promoting significant opportunities for the gainful employment of county or city residents;
(b) Attracting a major new business enterprise to the city;
(c) Retaining or expanding a significant business enterprise of the city.
(2) All applicants for receipt of funds must complete the Revolving Loan Fund Application.
(3) All recipients of the funds from the Revolving Loan Fund must enter into a loan agreement in accordance with division (D) below.
(C) Use of funds by recipient.
(1) A recipient of funds under division (B) above may only use the funds for the following activities:
(a) Acquisition of land;
(b) Acquisition of property interests;
(c) Site improvements;
(d) Infrastructure improvements;
(e) Buildings;
(f) Structures;
(g) Rehabilitation, renovation, or enlargement of buildings or structures;
(h) Machinery;
(i) Equipment;
(j) Furnishings.
(D) Terms and conditions of the loan.
(1) All loans must be approved by the Common Council by resolution.
(2) A resolution of the Common Council approving a loan from the Revolving Loan Fund must contain the following:
(a) The term of the loan;
(b) The interest rate, if any;
(c) Approval of the loan agreement;
(d) Any other provisions not inconsistent with this section.
(3) Nothing in this section shall be read to prevent a loan from being forgivable.
(E) Initial transfer from Racino Fund.
(1) An initial transfer of $500,000 shall be transferred from the city’s Racino Fund to the Revolving Fund.
(2) Additional amounts may be transferred upon a resolution of the Common Council.
(Ord. 20-2877, passed 3-17-20)