(A) Fund organization and administration. There is hereby created the County Economic Development Fund, which will be structured and administered as follows.
(1) Funding will be provided through appropriations approved by the County Council, donations, payments-in-lieu of taxes, interest income, repayment of loans including principal and interest, federal and state assisted loans and grants including, without limitation, urban development action grants (UDAG) and community development block grants (CDBG), proceeds from sale of surplus property as designated by Council, other federal assistance as may be made available, interest from the investment of surplus community and economic development fund money, temporary transfers from other funds and funds contributed or provided by local communities or organizations.
(2) Expenditures out of this fund will include, but not necessarily be limited to:
(a) Low interest loans in conjunction with conventional loans through private lenders;
(b) Local matching funds necessary to obtain state and/or federal grants relating to community and economic development;
(c) Necessary administrative and professional costs associated with community and economic development activities;
(d) Satisfying loan guarantees of private sector funds; provided that, such guarantees shall not exceed the financial capability of the fund and shall not encumber any other county funds, resources and/or property;
(e) Historic preservation loans in conjunction with conventional loans through private lenders;
(f) Housing rehabilitation loans; and
(g) Eligible community, economic and rehabilitation and preservation activities, as defined pursuant to 24 C.F.R. §§ 570.201, 570.202, 570.203 and 570.204.
(3) The Economic Development Fund shall be structured and administered as a revolving loan fund whereby the moneys loaned to approved projects will be repaid into said fund in accordance with loan documents and made available once again for use by the hereinafter described Economic Development
Loan Board in conformity with this section and the loan criteria established by said Board.
(4) The County Auditor shall establish a separate fund to be known as the Economic Development Revolving Loan Fund for the purpose of receiving and disbursing funds pursuant to this section. This Economic Development Revolving Loan Fund shall be used only for the purposes set forth in this section and shall not be commingled with any other funds received by the county. Disbursement records shall be kept in such manner that expenditures by major budget categories shall be reasonably available.
(5) The County Treasurer shall invest moneys in the fund in the same manner that other moneys of the county are invested with the interest earned from such investment to be deposited in the Economic Development Revolving Loan Fund.
(1982 Code, § 37.01)
(B) Board organization and administration. There is hereby created the County Economic Development Loan Board (hereinafter referred to as the “Board”), to be constituted, organized and administered as follows.
(1) The Board shall consist of nine members:
(a) One member of the Board of Commissioners of the county as selected by a majority of the members of said Board;
(b) A representative from the County Council appointed annually for a one-year term by the President of the County Council;
(c) The Auditor of the county by virtue of his or her office;
(d) Two representatives from local financial institutions shall be appointed by the Board of Commissioners of the county for four- year staggering terms. Initially, one member shall be
appointed for a two-year term and thereafter appointed for a four-year term; and, one member shall be appointed for a four-year term and thereafter appointed for a four-year term;
(e) Three citizen members shall be appointed by the Board of Commissioners of the county representing each Commissioners’ district for four-year staggering terms. Initially, one member shall be appointed for a one-year term and thereafter reappointed for a four-year term; one member shall be appointed for a two-year term and thereafter for a four-year term; one member shall be appointed for a four-year term; and
(f) One citizen member shall be appointed by the County Council for a four- year term.
(2) All appointed members of the Board shall serve until the expiration of their respective terms or until a successor is appointed, whichever occurs later; provided, however, that, all appointed members of the Board may, for good cause shown, be removed from the Board by the respective member’s appointive body. Notwithstanding the foregoing, the terms of the initial Board members shall be considered on a calendar year basis and shall extend to December 31 of the year their terms would otherwise expire. Terms thereafter shall be on a calendar year basis.
(3) The citizen members appointed to the Board shall possess and demonstrate sufficient financial skills, background and experience to adequately perform the duties herein contemplated.
(4) The county shall indemnify members of the County Economic Development Loan Board from, for and against any and all civil claims, in tort, contract or otherwise growing out of or related to such member’s acts or omissions, if the member’s conduct was in good faith and the member reasonably believed his or her conduct was in the best interest of the Economic Development Loan Board. Notwithstanding the foregoing, the county shall not indemnify a member as above provided unless the Board of Commissioners of the county determines that the member’s conduct in the specific case was in accordance with the above-stated standard of conduct. This subsection shall not be construed to limit the authority to pay or reimburse expenses incurred by a member in connection with the member’s appearance as a witness in a proceeding at a time when the member has not been made a named defendant or respondent to the proceeding.
(1982 Code, § 37.02)
(C) Financial procedure. The Board is charged with the sole responsibility of the expenditure of economic development funds provided for herein including, without limitation, approving loan applications, using the loan criteria as set forth in divisions (C)(3), (C)(4), (C)(5) and (C)(6) below, and preparation of loan agreements which shall minimally provide for the amount of loans, repayment terms, interest and the securing of the necessary collateral.
(1) A one time loan processing fee of one point on all loans will be charged to the borrower and will be payable at closing or added to the principal amount of the loan to form an enlarged principal balance. The fee will be used to offset administrative costs associated with the program. Any incidental costs incurred by the applicant, the Board or the county with regard to a loan will be the responsibility of the applicant. Such costs include, but are not limited to: recording fees; legal fees; and closing fees.
(2) The applicant must be a business or industry located within the county. The Board may establish target areas and/or target businesses and industries for loan priorities. Priority shall be given to those businesses or industries located or locating in those areas of the county where community and economic development loan programs similar to the ones provided for herein are not otherwise available.
(3) Loan criteria will be established by the Board and shall include, without limitation, the number of jobs created and/or retained, the types of jobs to be created, the ratio of loan fund dollars to jobs created, the ratio of loan funds to private investment funds, the growth potential of the business, the generation of tax revenue and tax assessment base to further the long-term economic growth of the county and the need of loan funds to make the project economically feasible. The Board shall comply with the loan criteria as established by federal and/or state funding agencies in relation to the expenditure of funds provided by said agencies.
(4) Each loan application will be evaluated on its own merits without regard to other loans.
(5) The maximum amount of the loan fund injection into any one business or industrial project will be limited to $500,000 or 30% of the total project capital cost, whichever is greater.
(6) Other additional criteria regarding loans consistent with the provisions of this section may be developed by the Board. All such criteria will be approved by the Board and provided in writing to all loan applicants.
(1982 Code, § 37.03)
(D) Accounting procedures. The County Auditor will be responsible for the financial management of the funds including, but not limited to, the proper accounting of funds.
(1982 Code, § 37.04)
(Ord. passed 2-13-1989; Ord. passed 8-7-1989)