(A) Management of the Fund.
(1) The Mayor, with the approval of the City Council shall appoint a Board of Management for the Fund, with each member serving a one (1) year term. One (1) member shall be a City Council member; two (2) members shall be from the public at large; and one (1) designee shall be appointed from each participating bank. Upon the expiration of a member's term, the Mayor, with approval of the City Council, may elect to renew the term for an additional year. The Director of the Shelby Development Corporation shall serve as the staff for the Board and act as liaison between potential applicants for assistance from the Fund and the Board, as well as serving as the Board's liaison with City Council. City Council has the final, exclusive obligation to approve or disapprove any applications for assistance through the SEDF.
(2) In conjunction with the SEDF, participating local financial institutions will create a loan pool to assist the Fund. One (1) representative from each organization will serve on the Board of Management. The institutions involved to date are Citizens Union, Republic Bank, Shelby County Trust and the Bank of Shelbyville. The bank representatives must provide a unanimous vote to approve the lending of bank funds. A veto of a loan application by the bank members concerning bank funds cannot be overridden by City Council.
(B) Financial resources available to the Fund.
(1) The City Council may, from time to time as it deems appropriate, allocate funds to the SEDF to be used by the Fund for the provision of financial assistance to eligible business concerns. The Fund shall, at all times, be discretionary city dollars which must be returned to the city upon City Council's request. It is the goal of the SEDF that the Fund become self-supporting through revenue realized from repayment of loans made from the Fund, interest income from the investment of idle monies held by the Fund and the infusion of any outside capital from other funding sources.
(2) Each financial institution participating in the loan pool will provide the Shelby Development Corporation with a line of credit for twenty-five thousand dollars ($25,000.00). Loans will be made at prime as noted in the Courier-Journal. The bank fund will continue to revolve into other projects until such time that the SEDF should dissolve, or the individual bank requests its funds be returned.
(3) The intent of the combination of city and private dollars is to increase the potential of the Fund. The SEDF is designed to allow these dollars to increase the potential of the Fund and to allow these dollars to work together to assist in developing projects which are deemed worthy by the Board of Management, but would be unable to be undertaken without additional assistance.
(Ord. 87-006, passed 1-28-87)