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2083ORDINANCE NO. 2083 COUNCIL MEMBER ABBOTT INTRODUCED THE FOLLOWING ORDINANCE: AN ORDINANCE AMENDING THE ECONOMIC DEVELOPMENT PROGRAM FOR THE CITY OF BLAIR, ESTABLISHING THE TERMS AND CONDITIONS THEREOF, CREATING AND ESTABLISHING A CITIZEN ADVISORY REVIEW COMMITTEE TO REVIEW THE FUNCTION AND PROGRESS OF THE ECONOMIC DEVELOPMENT PROGRAM AND TO ADVISE THE MAYOR AND CITY COUNCIL THEREON, REPEALING ALL ORDINANCES OR PARTS OF ORDINANCES IN CONFLICT HEREWITH, AND PROVIDING WHEN THIS ORDINANCE IS IN FULL FORCE AND EFFECT. Whereas, pursuant to Sec. 18 -2701 et seq., known as the Local Option Municipal Economic Development Act passed and approved by the Nebraska State Legislature, allowed for the submission of the approval of an Economic Development Plan to the registered voters of the municipality; and, Whereas, the question as to whether the City of Blair should amend its Economic Development Program was submitted to said voters on May 9, 2006, pursuant to the terms and conditions of Resolution No. 2006 -10; and, Whereas, the proposed Economic Development Program was approved at such election. NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF BLAIR, NEBRASKA: SECTION 1. An Economic Development Program for the City of Blair is hereby established to create jobs and generate employment opportunities within the labor market of Blair and Washington County, to attract new retail businesses, to attract new capital investment to the community, to broaden the tax base and provide economic diversification to ensure economic stability and vitality for the community of Blair and the surrounding area. SECTION 2. A qualifying business under the Blair Economic Development Plan shall mean any corporation, partnership, limited liability company, or sole proprietorship which derives its principal source of income from any of the following: retail; the manufacturing of articles of commerce; the conduct of research and development; the processing, storage, transport or sale of goods or commodities which are sold or traded in interstate commerce; the sale of services in interstate commerce; headquarter facilities relating to eligible activities as listed in this section; telecommunications activities; tourism- related activities; any other business deemed as a qualifying business in the Local Option Municipal Economic Development Act or through future action of the —1— Nebraska legislature. A qualifying business does not have to be located within the territorial boundaries of the city if the Blair City Council determines that there is a clear economic benefit to the city, but it must be located in the City's two -mile extraterritorial jurisdiction or on land held in the name of the city. Eligible qualifying businesses may apply more than once and receive program benefits more than once. SECTION 3. "City" shall mean the City of Blair, Nebraska. SECTION 4. Financial institution means a state or federally chartered bank, a capital stock state building and loan association, a capital stock federal savings and loan association, a capital stock federal savings bank, a federally insured capital stock industrial loan and investment company, and a capital stock state savings bank. SECTION 5. The City of Blair shall contract with Gateway Development Corporation, a non - profit economic development organization, to administer this Economic Development Program. Gateway Development Corporation, in conjunction with the Mayor of Blair and the Blair City Council, will develop an Advisory Committee to administer the application process of the program. The committee shall consist of seven (7) residents from the City of Blair who shall be appointed by the Mayor of Blair subject to approval from the Blair City Council. At least one member of the committee shall have expertise in the field of business finance or accounting. The Mayor of Blair, with the approval of the Blair City Council, will designate an appropriate City Official to assist in the administration of the Economic Development Program and also serve on the Advisory Committee as an ex- officio member. The City Official will be responsible for providing assistance, information and advice on the Economic Development Program. Also serving on the Advisory Committee as an ex- officio member will be Gateway Development Corporation's Executive Director, who will serve as the Economic Development Program Administrator. SECTION 6. Funding for the Economic Development Program is hereby limited to revenue from the local option City Sales and Use Tax. Miscellaneous revenues and funds, including but not limited to repayment of loans, return on investments, fees for activities such as loan guarantees, and sales proceeds from properties, may continue to be used for activities contained within this Economic Development Program during the life of this program. The City of Blair shall establish an Economic Development Fund and shall contribute an amount not to exceed one -tenth of one percent (0.1 %) of the taxable valuation of the city per year for —2— the life of the program, as appropriated annually by the City Council. The annual amount of local option sales tax to be placed into this fund shall be included in the City of Blair's budget each year and approved by the Blair City Council. Any proceeds from the issuance of bonds to provide funds to carry out this Economic Development Program and any proceeds from land or building sales associated with this Economic Development Program shall be deposited in this fund. The City of Blair shall not transfer or remove funds other than for the specific uses outlined in this program during the life of this program. The Blair City Council may authorize the issuance of bonds to carry out the Economic Development Program. Future contributions of the local option City Sales and Use Tax into the Economic Development Fund shall be used to payoff these bonds. SECTION 7. The Economic Development Program shall be audited annually by an outside independent qualified private auditing business. The auditing business shall not, at the time of the audit or for any period during the term subject to the audit, have any contractual or business relationship with any qualifying business receiving funds or assistant under the Economic Development Program or any financial institution directly involved with a qualifying business receiving funds or assistance under the Economic Development Program. The results of such audit shall be filed with the City Clerk and shall be available for public review during normal business hours. SECTION 8. The Economic Development Plan as established hereby shall be in existence for a period of twenty (20) years commencing on June 1, 2006, and shall terminate on September 30, 2025. SECTION 9. The priority expenditure of funds under the Economic Development Program may include, but shall not be limited to the following. 1) The purchase of real estate, options for such purchases and the renewal or extension of such options. 2) Expenses for business recruitment activities. 3) Expenses for attracting and locating a qualifying business into the area. 4) Equity investment or loan guarantees in a qualifying business. 5) The authority to issue bonds pursuant to the act. 6) Grants or agreements for job training. 7) Small business development, including expansion of existing businesses. —3— 8) The eligible activities described above are considered priority activities for the use of funds generated under the Local Option Municipal Economic Development Act. The City of Blair recognizes that the attraction of new businesses to a community or the expansion of existing businesses takes place in a very competitive market place. In order to keep Blair as competitive as possible in that market place, and in the creation of new jobs in the area, the City retains the right to include as eligible activities those additional activities allowable by law under the Local Option Municipal Economic Development Act. 9) The Local Option Municipal Economic Development Act has been changed in several Legislative sessions since it was signed into law on June 3, 1991. It is reasonable to assume the law will change during the course of Blair's Economic Development Program. This program is written with the intent that future changes to the Act which are beneficial to the City and citizens of Blair are expressly included in this program. Funds may also be used for eligible projects or programs for businesses which are expanding or which are locating in Blair directly or indirectly. Funds may also be used to provide infrastructure to sites for new or expanding businesses and may include, but shall not be limited to streets, storm drainage, water mains and lines, sewer mains, gas lines, electric facilities or railroad extensions. Such infrastructure improvements and costs may extend beyond the corporate limits of Blair. Funds may also be used to construct facilities, structures, and /or appurtenance for new or proposed development or on a speculative basis to attract new business or industry and such facilities and structures shall not be required to be within the corporate limits of Blair. SECTION 10. To be considered for financial assistance through Blair's Economic Development Program, applicants must provide the following information. 1. A detailed description of the proposed project. 2. A business plan that includes employment and financial projections, current financial statements, financing requirements for the project and total projected costs. 3. A complete City of Blair Local Option Municipal Economic Development Program application. In determining eligibility, additional information may be requested by Gateway Development Corporation and the Blair City Council. The Advisory Committee will review applications in the —4— order they are received. Approval /disapproval of an application will be based on project feasibility and the potential future economic benefit that the project will provide to the community. Applications that are approved by the Advisory Committee will be subject to a financial verification process that will be completed by Gateway Development Corporation. The financial verification process will be completed prior to the application being presented to the Blair City Council for approval. Once the Advisory Committee approves an application and the financial verification process is complete, Gateway Development Corporation or a designated representative will present the application to the Blair City Council for approval. The Blair City Council will use the same qualification requirements as the Advisory Committee used for the initial approval process. Once approved, the Blair City Council will notify Gateway Development Corporation or the designated representative of their decision and provide a suitable timeframe to disburse funds that meet the requirements of the applicant. Gateway Development Corporation will be responsible to execute the agreements made between the applicant and the City of Blair. Gateway Development Corporation will also be responsible to report to applicants whose applications have been disapproved. SECTION 11. The following criteria shall be applied for the purchase of or option to purchase real estate: 1. The property shall be properly zoned without any excessive easements, covenants or other encumbrances. 2. The property shall conform to the City or County's Comprehensive Plan. 3. Selection of sites shall be based upon sound economic development location criteria or specifications for special projects. 4. All purchases and options for purchase shall be approved by the Economic Development Program Advisory Committee and the City Council. Proceeds from the sale of real property purchased pursuant to the Economic Development Program shall be returned to the City of Blair's Economic Development Fund for future use. SECTION 12. It is the intent of the Economic Development Program that the majority of the funds are used to support eligible activities and that only a minimal amount is spent on administrative costs. The administration of this program will be shared by three separate entities. The entities are as follows. Program Administrator — Gateway Development Corporation's Executive Director 1. Will be responsible for the day -to -day operations of the program. —5— 2. Will assist applicants and recruit potential applicants. 3. Will serve as an ex- officio, non - voting member of the Advisory Committee and will provide the Advisory Committee with all necessary advice and information. Advisory Committee The Advisory Committee will be comprised of seven (7) residents from the City of Blair. The Mayor of Blair will appoint the committee members after receiving approval from the Blair City Council. Advisory Committee members may not be elected or appointed officials, employees of the City of Blair, an official or employee of any qualifying business receiving financial assistance under this Economic Development Program or an official or employee of any financial institution participating directly in the Economic Development Program. The committee will have at least one individual with expertise or experience in the field of business finance or accounting. The Advisory Committee will also have a Blair City Official and a representative from Gateway Development Corporation serving as ex- officio members. 2. The Advisory Committee will meet as needed to review and approve /disapprove applications using the standard criteria set forth previously in the application process. The Committee will also meet on a quarterly basis to review the progress of the Economic Development Program. The committee will present findings and suggestions to the Blair City Council on a semi - annual basis. Blair City Council 1. Will have final authority on expenditure of funds in support of the economic development program. 2. Will contract with Gateway Development Corporation to act as Program Administrator and will approve the membership of the Advisory Committee. 3. Will have ultimate responsibility for the Economic Development Program. SECTION 13. To ensure applicant confidentiality, the following measures will be instituted and enforced. 1. Each member of the Advisory Committee (including ex- officio members) will sign a "Statement of Confidentiality ". 2. Applicant' s business and financial information will be available to the Advisory Committee during the approval /disapproval process only. After the approval/disapproval 1. —6— process, Gateway Development Corporation will keep all permanent files and records. Access to these files and records will be limited and on a need to know basis only. Gateway Development Corporation, in conjunction with the Advisory Committee, will establish procedures to ensure that the municipality and the qualifying business are meeting all applicable laws, regulations and requirements. These procedures are subject to review and approval by the Blair City Council. Gateway Development Corporation and /or the Advisory Committee may utilize the services of the City Attorney to review contracts, official documents, land transaction procedures or any other official actions as deemed necessary. Separate counsel may also be retained with the permission of the Blair City Council. SECTION 14. All ordinances or parts of ordinances in conflict herewith are hereby repealed. SECTION 15. This ordinance shall be in full force and effect from and following the passage and publication hereof in pamphlet foilu as required by law. ATTEST: PASSED AND APPROVED this 22nd day of August, 2006 BRENDA R. WHEELER, CITY CLERK (SEAL) —7— CITY OF BLAIR, NEBRASKA E. REALPH, MAYOR STATE OF NEBRASKA ) SS COUNTY OF WASHINGTON ) BRENDA R. WHEELER hereby certifies that she is the duly appointed, qualified and acting City Clerk of the City of Blair, Nebraska and that the above and foregoing Ordinance was passed at a regular meeting of the Mayor and City Council of said City held on the 22nd day of August, 2006. 411, BRENDA R. WHEELER, CITY CLERK