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Ordinance 93-69 ORDINANCE ~93 -__69 AN ORDINANCE TO BE KNOWN AS THE COLLIER COUNTY co ITY BLOCK GRANT ECONOMIC D ELOPMENT PROG INCOME DISPOSITION ORDINANCE; PROVIDING FOR ELIGIBILITY REQUIREMENTS; PROVIDING FOR A LOAN ADMINISTRATION BOARD; PROVIDING FOR LOAN SELECTION, APPROVAL, AND SERVICING PROCESS; PROVIDING FOR REPORTING REQUIREMENTS; PROVIDING FOR OTHER REQUIREMENTS; PROVIDING FOR CONFLICT AND SEVERABILITY; AND PROVIDING FOR AN EFFECTIVE DATE. W~EREAS, Collier County, Florida (hereinafter the "County"), has been awarded funds through the Florida Department of · Community Affairs Small Cities Community Development Block Grant Small cities Program; and ~ WHEREAS, the County and Florida Department of Community ~(i Affairs (hereinafter "DCA") entered into an agreement dated January 5, 1993 (hereinafter the "CDBG Award Agreement") , concerning the administration of the Community Development Block · Grant (hereinafter "CDBG") funds; and ~i' WHEREAS, a portion of the grant funds will be utilized for a ~" loan or loans as specified in the CDBG Award Agreement; and ~"".. WHEREAS, the County shall place the CDBG funds in a revolving ' ' loan fund (hereinafter "RLF"), to be distributed to qualified applicants in accordance with the terms of the CDBG Award Agreement, and upon repayment by the applicant, to · be ~ redistributed to qualified applicants pursuant to the terms of the CDBG Award Agreement and this Ordinance; and WHEREAS, the CDBG funds, including interest earned, are referred to as program income and are subject to the requirements of the ~ousing and Community Development Act of 1974 as amended (the "Act"); OMB Circular A-102; 24 C.F.R. Part 570; Fla. Admin. Code, Chapter 9B-43; ~UD Policy Index Memorandums 3-15, 3-18, 3-31, and 3-33; and HUD CPD Notice 89-42. Program income which is received after the grant generating the program income has " been administratively closed is not subject to the Act, notwithstanding any subsequent participation in any other 063 CDBG grant which may be in effect at the time of administrative .~ closeout of the grant generating the program income. WHEREAS, the Collier County Board of County Commissioners is '~ desirous of implementing guidelines for the disbursement of said funds upon repayment. NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF COUNTY ~ COMMISSIONERS OF COLLIER COUNTY, FLORIDA, that: SECTION 1. Purpose. '.- This Ordinance provides policy and program guidance for the ,:., implementation of the County's RLF program. · SECTION 2. Title and Citation. ' This ordinance shall be known and sited as the "Collier County Community Block Grant Economic Development Program Income Disposition Ordinance". ~ SECTION 3. Gpals and Objectives. '. -A. The establishment of the RLF is an effort to address the problem of credit availability and to provide additional capital to.the community which otherwise would not be available for local :'. economic development. B. The primary program objectives are private-sector Job creation for members of low and moderate income families and capital formation. Projects are expected to support specific economic development activities planned in the community, · including, but are not limited to, the following types of .' projects: ~ 1. Small business development, including the start up or expansion of locally-owned businesses; 2. Redevelopment of blighted and vacant facilities for productive use (eligible only if the redevelopment of the vacant facilities is completed as part of an eligible activity, i.e., demolishing structures and clearing land are eligible only as part of an activity to immediately put the land to use for an eligible purpose); and - 2 - 3. Development of businesses owned and operated by minorities, women and other economically disadvantaged groups. C. The County's lending policies and procedures shall include, but ars not limited to: 1. Providing innovative repayment terms, such as '' short-term deferral of initial principal and/or interest payments; 2. Taking"greater risks than banks are prepared to ..... take, but only when substantial economic development benefits will result if the applicant succeeds; 3. Providing below market interest rates; 4. Utilizing other state and federal programs in conjunction with the RLF program in order to maintain maximum dollars within the RLF; 5. Requiring a minimum i to I leverage of equity investment to borrowed RLF funds; 6. Not lending for the purpose of providing working capital, inventory, or supplies; and 7. Not utilizing RLF funds for purposes unless provided herein. D. All proceeds from interest payments on the principal of the RLF funds will be utilized in the following manner: 1. To cover administrative cost related to the RLF program; and 2. To provide funds for additional loans after the RLF funds are returned to the County. SECTION 4. Eliaibilitv Requirements. A. Eligible applicants for RLF assistance include: 1. Any legal corporate entity, individual, private organization, and federally-recognized Indian tribal group which resides or desires to locate within the geographic boundaries of the County; 2 Applicants will be considered without regard to race, color, religion, sex, national origin, age, handicap condition, familial status, or marital status; 3. Applicants must demonstrate that the project to be financed will result in private sector new Job creation or retention and contributes to the economic development efforts of the Board of County Commissioners; 4. Applicants must demonstrate that the request is "Necessary or Appropriate" as defined in 24 C.F.R. Part 570. (Exhibit 1-A must be completed and submitted with all the applications); and 5. Applicants must demonstrate that the request meets a "National Objective" as defined in 24 C.F.R. Part 570 (Exhibit 1-B must be completed and submitted with all applications). B. Eligible activities for RLF assistance within the County include: 1. Acquisition, or construction of commercial and industrial buildings and structures; 2. Purchase of capitalized machinery and equipment with. a useful life of at least 5 years; 3. Acquisition of real property; and 4. Removal of architectural barriers which restrict the mobility of elderly or handicapped persons; C. Ineligible activities for RLF assistance include: 1. Speculation activities such as land banking and the construction of speculative or unleased buildings; 2. Loans which assist the relocation of Jobs from another labor area in the State of Florida; 3. Loans for the purpose of investing in high interest accounts, certificates of deposit, or other investments not directly related to Job creation; 4. Loans which would create a potential conflict-of- interest for any officer or employee of the County or any current or for~er member of the Loan Administration Committee provided in Section $ of this Ordinance, or staff who reviews, approves, or otherwise participates in decisions on RLF loans; 5. Loans to any applicant who was an original recipient of a CDBG loan from the County and whose repayment is to be a capitalization source of the RLF~ and 6. Purchase or construction of any building the purpose for which will be the general conduct of government or whose initial occupant is any governmental unit, agency, instrumentality, or subdivision. D. The RLF capital may only be used for debt financing through direct loans. RLF capital cannot be used to: 1. Purchase or finance equity in private businesses; 2. Subsidize interest payments on existing loans; 3. Refinance loans made by other lenders; 4. Finance working capital, inventory, or supplies; and 5. Purchase an asset owned by the applicant or a principal of the applicant. E. The RLF program is available to make loans to eligible borrowers at interest rates and conditions determined by the Board of County Commissioners to be most appropriate in achieving the goals of the RLF. 1. The interest rate may be from 3 to 5.5 percent below the prime interest rate on the date of loan application, but in no case may the interest rate be less than 3 percent. 2. Where necessary, RLF financing should assist applicants with special credit problems, and therefore may involve greater risks and more lenient terms rather than conventional financing. ,~i Nothing in this section should be interpreted to encourage or advocate loans to individuals or firms ~ with adverse credit history or who are insolvent. !~',' 3. The RLF funds will not be commingled with other i'. County funds or with program income from other CDBG ;~' non-economic development activities. The funds will be deposited into a fund which is interest ' bearing. All earned interest will be accrued to the RLF. F. In the determination of collateral requirements, the Board of County Commissioners shall consider the merits and potential economic benefits of each request. When appropriate and practical, RLF financing shall be secured by liens, mortgages, or assignments of rights in assets of assisted firms as follows: ' 1. The lien position of the RLF may be subordinate and -. made inferior to a lien or liens securing other · ~. loans made in connection with the project prior to ~'~ or concurrent with the RLF loan; 2. The RLF shall obtain collateral such as liens on land, buildings, equipment, inventories, receivables, or other available assets .of applicants. Such liens may be subordinate only to : existing liens of record and other loans involved ':' in the project in accordance with the terms of the RLF contract and loan documents between the applicant and the County; and 3. In addition to the above types of security, the RLF may also require security in th~ form of assignment of patents and licenses, the acquisition of hazard and other forms of insurance, and such other additional security as the Board of County Commissioners determines is necessary to protect the RLF's interest. --6-- 4. RLF loan requests submitted by closely-held corporations, partnerships or proprietorships dependent for their continuing success on certain individuals will ordinarily be expected to provide and assign life insurance on these key persons to the RLF; and 5. Personal guarantees will also be required from principal owners. SECTION 5. Loan Administration Committee. A. The County will establish an RLF Loan Administrative Committee, hereinafter referred to as the "Committee". The Committee will consist of seven (7) members representing a cross section of business leaders, minorities, and the banking community. The duties of the Committee will be as follows: 1. Review all loan applications submitted for funding, establishing that each loan request has sufficient collateral, financial feasibility, and sound management practices. 2. Recommend approval or rejection of applicants to the Board. (All loans r~ceiving approval recommendations will be in compliance with the goals, policies, and procedures as set forth 'in this Ordinance); and 3. Establish, with the approval of the Board, rules, procedures, policies, goals, and forms to further the purpose of this Ordinance. SECTION 6. Loan Selection. APProval and Servtcin~ Process. A. The Committee will provide notice of the availability of the RLF program in a newspaper of general circulation setting forth the availability of the loan, the minimum qualifications, the purpose of the loan and the date by which applications must be received by the County. The Committee will review and recommend approval of loans to the Board, after: 1. Meeting and interviewing the applicants to gain an understanding of the project, its parameters, the principals, and the potential structure of the loan. The goals of this initial interview are to give the applicant specific information about the RLF Program, to determine the viability and feasibility of the proposed project, and to determine whether the proposed project meets goals of the RLF Program; and 2. Seeking, if necessary in the opinion of the Committee, technical and management assistance from various federal, state and local government agencies, university centers, and other groups composed of persons familiar with the effective administration of the funding process. These agencies may provide sources of funding, development of market feasibility studies, conduct labor and resource surveys, make environmental impact assessments, and refer applicants to qualified advisors (such as bankers or accountants). B. Applicants will submit an application as provided by the Collier County Housing and Urban Improvement Department or the Board's designee and such financial information and other documentation as 5:equired by the County within the time specified in the Committee's notice. C. No applicant may request a level of funding that exceeds the funds available on the date of the application. D. The Board may not agree to obligate funds that have not been received on the date of an application. E. The applicant will also be required to enter into a participating party agreement in form and content required by DCA upon submission of the application for the loan. SECTION 7. ReDortina Reauirements. A. The Committee shall report to the Board of County Commissioners on a quarterly basis. This report shall contain= 1. The current balance in the RLF; 2. The current balance on all loans made with RLF funds to date; 3. The delinquency status of all contractually past due loans; and 4 The status of all applications under review for funding. B. If the Board of County Commissioners has an existing CDBG grant, the Board shall report to DCA on a quarterly basis using the most current quarterly status report form provided to the Board of County Commissioners by DCA. This report shall contain any and all data on program income requested or required by the Department, but at a minimum shall contain: 1. Activities producing program income; 2. The schedule of payments, the estimated total of payments, and whether payments are occurring on schedule; 3. Amount of program income collected from the activity to date and during the reporting period; and 4. Proposed and actual uses of program income. C. The Board of County Commissioners shall prepare a semiannual report effective January i and July i of each year detailing the loans made from the RLF during the previous year, the status of all existing loans, interest income from each depository, loan repayments received, program income received from any other source, and the current available balance in the RLF. After approval, an original copy shall be forwarded to DCA. D. Program income reporting may be halted at the time when the program income on hand ceases to be regulated by CDBG requirements as defined in 24 C.F.R. Part 570. SECTION 8. Other Re=uirements. A. CIVIL RIGHTS. Assurance of equal opportunity in lending will be empowered by the following means: The Board of County Commissioners will insure that borrowers do not discriminate against employees or applicants for employment by including in each application a statement requiring compliance with all applicable state and federal laws and regulations. The Committee will monitor the .employment practices of approved borrowers annually. Periodic reviews of the applicant's procedures may be made to ensure that job opportunities are duly advertised and that an affirmative action plan is being followed. No applicant will be denied a loan on basis of race, color, national origin, religion, age, handicap, familial status, marital.status, or sex. B. ~ ENVIRONMENTAL CONSIDERATIONS. The Committee will be apprised of state and federal statutes concerning environmental impact of the proposed projects. All potential projects will undertake an environmental assessment pursuant to 24 C.F.R. Part 58 and will obtai~ a formal release of funds from DCA after completion of the assessment and applicable public notices and public hearings. Ail construction projects will require approval from the State Historical Preservation office to assure that no historic properties or archaeological factors are affected. Projects which have potential liquid or harmful waste will be required to obtain a letter of approval from the Department of Environmental Protection. In addition, all construction projects will be checked to ascertain location in relation to floodplains or wetlands. In floodplain or wetland locations, a letter of approval will be required from DCA. No project will be approved which produces an insurmountable, harmful alteration of the natural environment. C. RELOCATION. No portion of the RLF funds shall be used in any way to assist in a transfer of Jobs relocating from one labor market area to another within the State of Florida. D. FLOOD }L~ZARD INSURANCE. Prior to approval of any RLF project in a designated flood hazard area, the proposed applicant will be required to obtain flood hazard insurance. Thie insurance must be approved prior to disbursement of funds. E. ACCESS FOR THE HANDICAPPED. If the proposed RLF applicant requests financing for a construction project, the plans submitted to the Committee by the applicant must provide accessibility to the handicapped. F. LABOR STANDARDS PROVISIONS. If the proposed applicant requests funding for any activity that triggers compliance with the Davis - Bacon Act or other CDBG labor standards provisions, the applicant will agree to comply with those provisions and to cooperate with the Board of County Commissioners in its responsibility to monitor that compliance. G. FINANCIAL MANAGEMENT. The accounting and financial filing systems for each loan shall mirror the files of the most recently completed CDBG project. SECTION 9. ~gDflict and Severabilit¥. In the event this Ordinance conflicts with any other ordinance of Collier County or other applicable law, the more restrictive shall apply. If any phrase or portion of this Ordinance is held invalid or unconstitutional by any court of competent Jurisdiction, such portion shall be deemed a separate, distinct and independent provision and such holding shall not affect the validity of the remaining portion. SECTION 10. Effective Date. This Ordinance shall become effective upon receipt of notice from the Secretary of State that this Ordinance has been filed with the Secretary of State. PASSED AND DULY ADOPTED by the Board of County Commissioners of Collier County, Florida, this ~; . day of 1993. ,~TT~ST: .'/,,.... ' .DWI=HT EZ;BR.~K, Clerk BOARD OF COUN%'~ COHMISSIONERS .... ::.?:?t~.. :~:-.. ~ OF COLLIER COUNTY, FLO~RIDA · . ~/ / By: ·"-. '" ' .~.. --.:,-,...~7 "9~ .". .... ,~,'..'.'~-' ''/..... BURT L. SAUNDERS, Chairman '. ~;~ ~'{'~'~" ' / '4 legal' suffioimncy: Assistant County Attorney J~ Sec,,tory of St~t,% ~f~_.~ doy Ond ocknow!edgern~.~t~f t~t 063 293 - 12 - III I m¸ EXHIBIT 1-A PARTICIPATIN~ PARTY INFORMATION I. If any funds are =o be used for assistance (loans only}, the level of assistance to the participating party must be "necessary or appropriate", only provided £n =he amount required to make the project f£nancl&lly feasible, and need for the assistance mus~ be fully documented by including a= & min£mum~ =he following~ A. Financial Statements: 1.Three year pro~ec=ed financial using 100% private finaflcing~ 2.Three year projected financial with RLF fundsl 3.Current personal fin&ncial It&=ement and tax re=urge from each 4. Cer=£f£ca=ions of non-bankrup~cyz 5. Cred£= report on each principalz and 6. Financial S~a=ements for existing business. B. Third-party cost estimates for project and source of those es=lmates~ C. Terms of =he RLF loan with D. Description of bus,ness organisation~ E. Let=ers of co~ml=men~ from each par~ic£pa=lng par=7, applicant, and source of funds~ F.~arket feas~bllit7 s~udy prepared lndependsn~ sources~ O. Business Plan~ H.For Developer pro~ec=s only, ali lease commitments signed to da=e~ I.Information on current employees and Jobs~ and J. Narrative on pro~ec= and applicant's "Necessary and Appropriate" determ~nation INSTRUCTIONS !:~ :::' 1. Alsum£nq & 100t pr£vate financing and equity mix, provide pro~ect f£nanc£a~ statements (balance sheets, profit and loss statements and cash !~.' f~o~ pro~ect~onl) with alsumpt~ons on a month by month basin foe the licit .., yeas and quartesl¥, for all other years, based upon genesally accepted · ~ ' accounting practices and procedures. Profit and loss statements must ~ al~ debt service and projections both before and after taxes and include -. assumptions for sales 2. Assuming & reduced tare RLF loan In addition to private f£nancing and equity m£x, provide project f£nanclal statements (balance sheets, profit and ~oss statements and cash flo~ projections] with assumptions on a month by month basis for the first yeas and quasterly for all other years~ based upon generally accepted accounting practices and psoceduses. Profit and loss statements must show all debt service and pro)ect£ons bo~h before and after taxes and include assumptions for sales proJect£ona~ 3o A current personal financial statement {balance sheet only) from each · : princ£pal and the.pries three years tax saturns fsom each 4. A statement that for the last t~o years~ a. The existing business (if applicable} has not declared bank~uptcy~ b. Each principal has not declared bankruptcy~ and ' c. ~o principal has been a principal in any other business that has :~ declared bankruptcy. 5. A copy of a consumer credit report on each principal; and &. 1f a pasticlpatlng patty la an existing business, or w£11 be a spin- o~f or subsid£ary o~ an existing buatness, provide financial statements (balance sheets, profit and loss statements, and cash flow statement) and tax ~etutns for the prev£ous three yeats and current lnter£m financ£al ;. statements. " ?. If. real property Is be£ng acqulred~ ~nclude copies o£ property tax statements~ disinterested thisd pasty appra£sals# os an appsaisal from a certified appraiser that documents that the proposed puschase pr£ce Is based on the fair market value of the property. If building construction or rahab Is proposed, include signed cost estimates from a general contractor atch:tect. Zf acqu£sitlon of new machines7 and equipment ~a psoposed, include a cost estimate fsom a possible vendor. If acquisition of used machinet7 ot equipment £s proposed, Include a d£s£ntetested third patty appraisal demonsttat£ng the current fa£r market value. I~ £s psoposed, include cert£fled coat estimates from an engineer or cop£es of previous bids from contractoss. Estimates from a participating patty are not acceptable documentation. 8. Specify the borrower, amount of loan~ lntesest rate, type of £nterest~ number of yeats to pay, first payment date~ frequency of payment~ value of collateral, and lien position of the RLF loan. The interest ~ate may be no less than 5.5 pescent per annum below the palms interest rate as of the date of the application for this phase, but £n no case may it be less than 3 percent per annum. Rn amortization of the loan amount at the proposed rate and an amort£zat~on of the loan amount at market tares must be p~ovided. 9. P~ovlde a brief descr~pclon of each patt£clpat£ng patty and an explanat£on of the products or services offeted~ and how each part£c£patLng party will benef£t from the 10. All commitments must be bind~ng, but may be contingent upon the receipt · of the RLF funds, and include an expiration date, if any. The commitment °o. must £nclude an7 other requirements that m~st be met before performance under the commitment may be rewired. The Department retains the right to reject commitments as being incomplete or ineufficient. Comm£tmente ehall · ,~:~ A. A statement from each Participating Party providings :~' 1. A clear statemen~ of the concept, scope, and cost of pro~ect; 2. The nature of its commitment, including the total number of Jobs to be created/retained, number of Jobs to be created/retained for low and moderate income persone~ the amount and terms of its private financial commitment to the project, an agreement to locate within a specified period of time after the effective date of the grant, a willingness to provide the required documentation, and (if a corporation) a corporate resolution specifying who may act for and bind the corporation to the gran~ 3. A clear statement of willingness to sign a leqall¥ binding agreement upon award of the grant~ ,' -L" 4. Identify any collateral or any other requirements to be provided by the participating '~* . 5. Documentation of the existence and availability of the cash ~ investment by individuals that ia being pledged to the pro~ect~ 6. A statement from each principal that he will personally guarantee the RLF loan~ ?. The names, titles, and o~nerahip shares of all principala~ and ~ . 8. That the location was selected on the condition of the 'i~b, provision of the proposed infrastructure, if applicable. B. A statement from each lender, vendor, consortium, or private individual who will be a provider of funds or credit that is · claimed for leverage or is required for the successful completion of the project. This statement shall provides 1. The nature of its financial commitment, including the amount, terms, expiration, and special conditions if any, of its commitment. to the project; "' 2. Any collateral or other requirements to be provided by the ~i~' participating'part¥~ and 3. Name of & loan officer or contact person. '~,".,- C. A statement from each governmental ~urisdiction or grantor ~,~ providings 1. A clear'statement of the scope and nature of the pro}ect as it relates to its commitmenti - 2. A statement of its willingness to expend the funds that are · .,,a,_ referenced for points in the application or are required for successful completion of the proJect~ 3. That all activities conform to local zoning requirements and are in conformance with the moat recently adopted Comprehensive Plan~ 4. That there ia sufficient ~otable water capacity and ,. plant capacity to provide adequate service to the site where the participating party will locate, at the projected levels of . employment, busine.s usage, and customer us&gel and $. An7 commitment made to a participating party, individual, business ent£t¥, or another governmental Jur£sdiction, other than potent£ai RLF assistance, as an inducement for their participation in the pro~ect. O. The Department may require a statement of commitment from any other. .': entity whose participation is necessary for the successful completion of the project. ~,,,:" ~. Harket feasibility stud7 should include the following= i '. i. ,r...nt or pro ..d ,ar,.t ar.a and "~ 2. Residential mix analysis~ .~... 3. Industry strength analysis~ :?' 4. Competitive product analysis~ and "~; ' 5. Future market projections. '"" F. Business plan should lnclude~ " l. ~ype of firm (new~ existing, spin-off, subsidiary, ~"~ 2. Organization of business entity~ registered corporation, ,~;;:- propria~orship, co-operative, public agency, private :~" ' ' not-for-profit, or iubchapter-~ corporation and identity of all '~' principals~ : 3. Describe 'the cc~pan¥, its history, its organization~ operation, its product line including S~andard Industrial Code (SIC), its market and competition, and its sales history/ 4. Describe the relationship of any subsidiary or parent company," and attach the most recen~ financial statement for the affiliated organization, If applicable~ 5. Current ownership of the project site and if applicable, the statue of acquisition; ~.~ ' 6. ~hether the property is properly zoned for its intended use/ ~!!~. and ?. Identify all required permits, licenees, approvals, franchises, or other non-financial requirements which are applicable to this project, and any anticipated problems or delays in obtaining them. · H. Additional Information For Developer projects onl¥~ 1. Lease commitments from all participating parties who are providers of Jobs for L~I persona claimed for scoring purposes in the application~ 2. Commitment from the developer no= to request RLF funds until I~. 16 bLnd~n9 leases are e~gned by all prov£ders of Jobs for I~! persons; 3. Job comm£~ments from each ~.'~ 4, Developer resume descr£bLn9 developer qual£flca~£one and past :, '. exper£ence wL~h sLm£1ar proJec~s~ and 5. Those £tems Ln th£e appl£ca~£on cha~ are requ£red from any part£c£pa~£ng I. Information on current employees and Jobs for exLs~Lng bus£ness where L~! benef£t £1 partly derLved from Jobs being re~a~ned= ~, 1. LLsc all ~obs currently ex~s~Ln~ by c~le and numbers of j~. l~S£t£one v£~h£n each ~ob ~L~e ~ha~ ~Lll be ?~': 2. Documen~ the number of cu~ren~ employeel ~ho are members of 3. If ~he ~ob retention ~1 par~ of the LHI benefL~ to bi receLvld aa par~ o[ ~his pro~ec~, provide ~hlrd-pa~y documentation ~ha~ ~khou~ ~he infusion of ~F fundl, ~hose Jobs presently held b7 members o~' ~I famLl~el ~uld be NarratLve description of the proJec~ and ~he level of a~sLl2ance requested as l~ ~ela~a~ ~o "neces~ar~ or appropria~e". S~cLf~c reference should be made ~o ~he level, reason for~ and ~e~s of assistance. : ~,*; :. INSTRUCTIONS (CONTINUED) Jur£sdictLon, the following items, at a minimum, muir be lubmLtted for participating pasties which will create the Jobs for U4! persons. infrastructure availability and direct [lnanc£a! assistance are both being provided to the same Part£clpating Party, complete the information required in Part ! of exhibit l-A, and not this section. ,r.. A. Financial StaCements~ Th=..... p=o .ct.d .na.ci.l .tat*m. hr., 2. Current personal financial statement from each prlncipal~ 3. Certif£cations of non-bankruptcT; : , 4. Cred£t report on each pr£nc£pall and ':.:..:, 5. Financial Statements for existing B. Third-party cost estimates foe pro,eot and .~. source of those estimates; C. Description of business or~anization~ ?.': D. Letters of co~ltm~nt from each participating ¥::. party, applicant, and source of funds~ E. Independently prepared market feasibility F. Business Plan; c~ltments signed co date; ~. Zn~o~atLon on current em~loyeeo and .~obal and I. Nactative 063,',, 299 INSTRUCTIONS Infrastructure Pro~ects Only 1. Provide project financial statements (balance sheets, profit and loss ~ ' ' statements and cash flow projections with assumptions on a month by month basis for the first year.and quarterly for all other years), based upon generally. accepted accounting practlcel and procedures. Profit and loss statements must show all debt service and projections both before and after taxes and Include ' . as'sumptions for salel projections; '.,,, 2. A current personal financial statement (balance sheet only) on each ~' 3. A statement that for the last two years~ a. The existing business (if applicable) has not declared bankruptcy; ~i!'~ b. Each principal has not d~clared bankruptcy; and '~.:' c. No principal has been · principal in say other business that has ~': declared bankruptcy. 4. A copy of a consumer credit report on each principal; and ?.:<.(.: 5. If a participating party ia an existing bus,ness, or will be a spin-off ur i!'~'J, subsidiary of an existing business, provide financial statements (balance sheet, :~,. profit and loss statements, and cash flo~ statement) for the previous three ,/.'~ years and current interim financial statements. If the financial statements are not audited statements, provide business tax returns for the same period. 6. If real property is being acquired, include copies of property tax statements, disinterested third party appraisals, or an appraisal from a certified appraiser that documents that the proposed purchase price 1· based on the fair market value of the property. If building construction or rehab :': proposed, include signed cost estimates from a general contractor or architect. If acquisition of new machinery and equll~nent Is proposed, include a cost estimate, from a possible vendor. If acquisition Of used machinery or equipment l· proposed, include a disinterested third party appraisal demonstrating the current fair market value. For proposed infrastructure, include certified cost estimates from an engineer or copies of previous bids from contractors. Estimates from a participating party are not acceptable documentation. 7. Provide a brief description of each participating party and an explanation of the products or service· offered, and how each participating party . '~" benefit from the project. ~:{~.~ 8. AIl commitments must be binding, but may be contingent upon the receipt of ' RLF funds and include an expiration date, if any. The commitment must include i!~ any requirements that must be met before performance under the commitment may be required. The Department retains the right to reject a commitment as being incomplete or insufficient. Commitments shall include= a. A statement from each Participating Party providing= b. A clear statement of the concept, Icope, and cost of project; c. The nature of its commitment, Including the ~otal number of Jobs to be ~' created/retained, number of Jobs to be created/retained for low and · moderate income persons; the amount and terms of its private financial commitment to the project, an agreement to locate within a specified 063 300 period of time after the effectLve date of the grant, a w£1lLngness to · prov£de the requLred traLn£nq of Ll~l persons, documentat£on, and (£f i::.. acorporatLon) a corporate resolut£on spec£fyLng who may act for and bind the cotporat£on to the grant terms; d, A clear statement of willingness to s£gn a legally binding agreement upon award of ,the grant; e, Identify any collateral or an~ other requirements to be p~ovLdad by the partlc£pating party; f0 Documentation o! the existence and &vallabllLt¥ of the cash investment by LndLvlduala that Is beLng pledged to the g, The names, tLtlem~ and ownership shares of all prLnc£palsl and h, That the location wan selected on the condition of the provision of proposed ~. ' 2, A statement from each lender~ vendor~ consortium, or pr£vate LndlvLdual who ~';. " will be a prov£der of funds or credit that ls cla£med for leverage o~ rmquLred for the successful comple~Lon of the pro)act, ?hLa letter shal~ ~ provide~ &, The nature of Its financial commLtment~ lnclud£ng the amount~ explration~ and special conditions if an¥~ of its commLtment ~o ~he ~"' b, Any co~late~al or other ~equLrements to be met by the , ." part¥i and ':~:;' c, ~ame of & loan offLcs~ or contact person, ~'~;'~ . 3, A statement from each governmental Jurisd£ction or grantor p~ovldLn~= ~ ' &, A clea~ statement of the scope and nature of the p~oJect as It relater · ~o Its commLtmentl bo A statement of its wLILLngness to expend the funds that are ~eferenced :~'.~:. Ln the app1Lcat£on fo~ poL~ts o~ are required fo~ successful completion ~',. the c, That all actLvLtLes conform to local zoning requirements &nd are. conformance wLth the mos~ recently adopted Comprehensive Plani d. That there la sufficient potable ~ate~ capacity and sewage capacity to provLde adequate service to the I£te where the part~ ~Lll locate, at the pro~ected levels of employment~ busLness usage, and customer us·gel and e. Any comm£~men~ made to a partLc£pa~tng pa~¥, ind£v£dual, business entity, or another governmental JurLsdic~lon, other than potential RLF assistance, as an Inducement for their par~£c~pation Ln the project. . 4. ?he Department may requ£re a statemen~ from any othe~ party whose '/'" p&r~LcLpatlon Ls necessary fo~ the successful completLon of the project. .!:,' $. Harket feasibility stud~ should Include the '~ a. Present or proposed market area and ·hazel b. Residential mix analys£st 20 6. Industry strength analylll; :J:i .: 7.. Competitive product aflalylll; and ~%1,' ,8. Future market projections. 9. Business plan should include, !~ a. Type of firm (new, existing, spin-off, subsidiary, · .~'~ b. Organization o~ business entity~ registered corporation, :i:~" proprietorship, co-operative, public agency, private not-for-profit, or Subchapter-S corporation and identity of ail principals; product line including Standard Industrial Code (SIC), its market and d. Describe the relationship of any lubsidiary or parent company, and attach the most recent financial statement for the affiliated organization, if applicable; e. Curren~ ownership of the project sits and if applicable, the status of acquisition; ~. f. Whether the property is properly zoned for its intended use; and f~ g. Identify Ill required permitl, licenses, approvals, frsnchllel, or ' ~" other non-financial requirements which are applicable to this pro~ect, and : any anticipated probleml or delays in obtaining them. !"i/'%'. ~0. Additional Information For Developer projects only, i. ,., a. Lease commitments from all participating parties who are providers of . Jobs for LM! persons claimed for points in the application; b. Job commitments from each lessor'; c.. Developer resume describing developer qualifications and past experience with similar projects; and d. Those items in this application that are required from participating party. 11. Information on current employees and Jobs for existing business or where benefit is partly derived from Jobs being retained= ' a. List all Jobs currently existing by title and numbers of positions within each Job title that will be retained; b. Document the numbe~ of current employees who are members of families; ¢. If Job retention is part of the LM! benefit to be received as part of this pro,eot, provide third-party documen~ation that without the infusion of RLF funds, thole Jobs prelently held by members of LMI families would be lost. ~2. Narrative description of the project and the level of assistance requested as it relates to "necessary or appropriate". Specific reference should be made to the level, reason for, and terms of the assistance. 21 :: ~: ~OOK PAGC ~!... PUBLIC BENEFIT ZZX. Document the public benefit by including statements that~ A. Describe the number and types of ~obs to be made available in , Y relation to the needs of 1o~ and moderate income perlonl and other ti'. persona likely to be employed or retained for employment £n the :. B Describe the additional development which is likely to be stimulated in the area by the proposed pro~ectl c. What increases in the tax base including property, sales, and other taxes in the area are expected~ :~' :.::~ D. Explain the increases in needed ~obs, goods, and services that will ~. 1i. result from the pro~actl and E. ~hat additional infrastructure needs will be created or met through this pro~ect. ;';. INSTRUCTIONS FOR DOCUMENTING PUBLIC BENEFIT A. List ~ob titles and number of ~obe for which lo~ and moderate income persons will be given first priority in hiring. Specify the anticipated training needs of the low and moderate income persons. B., C., D., and E., respond as stated. ACHIEV£~£NT OF A H~?IOHAL OBJ£CTIV~ An appXlcant shall demonstrate that Its proposed project meets at least one of the following three Hational ObJect£vll. Delcr£be how the project, if funded, w£11 &chLeve one of the National ObJoct£ves. Provide aff£rmatlve below~ 1. Benefit to low and moderate income persons, when at least S1 percent of thole who benefit from any &ct£vit¥ are lo~ and moderate Income persons as Development and at least 60 percent of the funds requested for each shall benefit lo~ and moderate income perlons. 2. Aid in the prevent].on or elimination of 3. 8est urgent c~un[ty develo~ent needs where there Is a serious and l~ldia~e Chreat to the health and welfare of the co,unity, which are of recent o:[9[n o~ recently became urgent, and where other f~nancial resources are ~o= available. ,oo EXHT BZI' SOVRC£ AND USE O~P PROJI~C~ FUHDS Pac~ ~c~pan~ ~oun~ Soucce , ~ *~ 1. RL~ Loan $ 1. Ac~Lo~t~on o~ Rea~ P~o~ ~ ~ , (b) , ~ ~ i (b) ~ .... ~:~:~':~ . 4. S~te lmprovemeflcs ~ . , ~ 7::: s. w.~.~, s.~e~ ~ : --~ EXHIBIT 1-D SCOPE OF WORK-B£NEFXT FORM Jobs Created ok Retained: Use separate lines for each Job t£tle and sepakate lines for part-t£me and full-time ~obs within each ~ob title. Use additional pages £f needed. I · l# LHIIRe=a[nedlwk/mo/yr Part-tLme Payroll LMZ IDate [ JobslJobs : C/R I I I -- , , , , I , , I TOTALS ' I I I , ,, To calculate # of Jobs= Total number of hours to be worked on an annual bas~s by all LMI part-tfme employees / 2,080 ( ), plus the numbek of LM! full-time employees equal the total numbek of Jobs crested ok keta[ned for LM! persons m DISKs RICK 120 FILE: PROG INCM.ORD DATE: 04/30/92 'STATE OF FLORIDA COUNTY OF OOLLIER I, DWIGHT E. BROCK, Clerk of Courts tn and for the Twentieth Judicial Circuit, Collier County, Florida, do hereby certify that the foregoing ts a true copy of: Ordinance No, 93-69 which wa~ adopted by the Board of County Co~tsstoners on the 28th day of September, ~993, durtn~ Re~lar Session, WITNESS my hand and the official seal of the Board of Co~t~ Co~testoners of Collier County, F/or/da, this 29th day of September, ~993.