HomeMy WebLinkAboutResolution 2542 Establishing uniform policy for issuance of IDR bond: 2-11-85
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COMMISSION RESOLUTION NO.
2542
A RESOLUTION OF THE CITY COMMISSION
OF THE CITY OF BOZEMAN, MONTANA,
ESTABLISHING A UNIFORM POLICY FOR THE
REVIEW OF APPLICATIONS, DEVELOPMENT
OF GUIDELINES AND PROVIDING FOR
APPLICATION AND ISSUANCE FEES FOR ALL
PROJECTS EXCEPT MULTI-FAMILY HOUSING
FOR WHICH INDUSTRIAL DEVELOPMENT REVENUE
BONDS MAY BE ISSUED.
WHEREAS, the City Commission of the City of Bozeman,
Montana, wishes to establish a mechanism for review of
applications for Industrial Development Revenue Bonds
(IDRB's); and
WHEREAS, housing projects are distinct from the other
projects authorized and may be subject to somewhat different
review guidelines which are being developed and will be
adopted separately; and
WHEREAS, certain practices, procedures and guidelines
for review have been developed over the time of previous
reviews and as a result of experience in that process.
NOW, THEREFORE, BE IT RESOLVED by the City Commission
of the City of Bozeman, Montana:
A. The general guidance as to review of all project
applications except those for mUlti-family housing shall
be adopted as follows:
1. It shall be the policy and intent of the City of
Bozeman to promote clean industry; develop trade
or other economic activity by inducing for-profit
or not-for-profit corporations, partnerships or
organizations to locate, expand or remain in the
City of Bozeman or its environs; secure and
maintain a balanced and stable economy; and to
maintain and enhance the community's natural
amenities.
2. All proposals shall meet and comply with all
applicable local, state and federal laws and
regulations.
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3. All proposed projects shall be of a type which
contribute in a significant manner to the long-
range economic needs of the community; e.g.,
provide an increase in primary jobs, increase the
tax base available to the City and generate a
business that benefits the community.
4. All proposed projects shall meet the same
financial criteria generally required by the
financial community.
5. All proposed projects shall be supported by an
opinion from a duly qualified investment banker
and/or bond counsel that the project is marketable
and falls within the intent and meaning of the
provisions for Industrial Development Revenue
Projects found in Section 90-50-101, et seq.,
M.C.A., as amended.
6. Prior to placing a request before the City
Commission the applicant(s) must be current on
all amounts due the City, including property
taxes and assessments.
B. Those guidelines shall be supplemented and enlarged by
the following evaluation guidelines:
1. IDRB's are not to be authorized only to give the
applicant access to lower interest rates.
2. The application must demonstrate significant
benefit from the project. These benefits must
be specifically identified in the application
and will be evaluated by the City in light of
the needs of the community. Significant public
benefit including preservation of natural
amenities must be demonstrated.
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3. Importing of capital investment from outside
sources will be a consideration.
4. Preference will be given to types of businesses
which will add new or expanded payrolls and add to
tax base without undue requirements upon public
facilities. The applicant shall show that the
project will create permanent new jobs, not just
new jobs during construction.
5. Industrial Development Revenue bonds will also
be considered for expansion of existing local
businesses.
6. Preference will be given to clean manufacturing,
research and technical development projects which
have a significant impact on the financial health
of the community, and to agriculture-related
projects or cooperatives which will assist in
stabilizing and maintaining the agricultural
base. All projects must provide a comprehensive
statement regarding environmental impacts the City
must be aware of.
7. Preference may be given to projects locating in
a desired redevelopment area.
8. A specific site must be secured before an
inducement resolution is acted upon.
c. Fees.
1. An application fee of $500 for Industrial Revenue
Development Bonds shall be submitted with each
application and is nonrefundable.
2. The issuance fee will be based on the gross
proceeds from the sale of Industrial Development
Revenue Bonds as follows:
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$0 through $500,000
1.00 percent
Additional fee for
$500,000.01 through
$1,000,000
.75 percent
$1,000,000.01 and greater
.50 percent
3. The application fee shall be deposited to the
General Fund. The issuance fee shall be deposited
to the Capital Improvements Fund.
PASSED AND ADOPTED by the City Commission of the City
of Bozeman, Montana, at a regular and stated session of said
City Commission, held on the
11th day of
February
1985.
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- KE 'i::TH L.~VE~ MAYOR-
ATTEST:
f~J~
RO IN L. SULLIVAN
CLERK OF THE CITY COMMISSION
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City AttOrn y
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