City of Burlington, NJ
Burlington County
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Table of Contents
Table of Contents
[HISTORY: Adopted by the Common Council of the City of Burlington as indicated in article histories. Amendments noted where applicable.]
[Adopted by Ord. No. 8-1997 (Ch. 3.16 of the 1996 Municipal Code)]

§ 37-1 Findings.

[Amended by Ord. No. 14-1999; Ord. No. 14-2004]
A. 
The City has been the recipient of urban development action grant, "UDAG," funds to spur economic development within the City.
B. 
UDAG funds have been utilized to make loans to REABC-1 and to the Burlington Coat Factory Warehouse Corporation of New Jersey, Inc.
C. 
The provision of the UDAG agreements entered into by the City require that upon repayment of the UDAG funds to the City those monies are to be utilized only for activities eligible under Title I of the Housing and Community Development Act of 1974, as amended, but shall not be required to comply with the regulations set forth in 24 CFR Part 570.
D. 
The Common Council has determined that it is in the best interest of the City to establish a program to administer the utilization of UDAG funds to encourage future economic growth.
E. 
The Common Council has determined that proper and efficient administration of the UDAG assistant fund requires that the Common Council establish a maximum loan amount or loan cap amount.
F. 
The Common Council has further determined that it is in the best interests of the City and that the efficient and proper administration of the UDAG program will be fostered by the appointment of a consultant/professional with appropriate qualifications to review applications submitted pursuant to the UDAG program and to make recommendations to the Common Council concerning such applications and/or other matters relevant to the administration of the UDAG assistance fund and program.

§ 37-2 Establishment of UDAG assistance fund program; source of funds.

[Amended by Ord. No. 14-2004]
A. 
Creation; funding. There is created the UDAG assistance fund program and fund allocation plan, "fund," which is to be funded by revenues generated from the repayment of UDAG loans made to REABC-1 and to Burlington Coat Factory Warehouse Corporation of New Jersey, Inc. Subsequent to receipt of UDAG repayments, the fund will be recapitalized through repayments of loans and/or in accordance with the provisions of the specific agreement developed for each project activity. Payments made in lieu of taxes shall not be considered fund revenue.
B. 
Administration. The fund shall be administered by the Chief Financial Officer of the City. UDAG loan repayments and subsequent recapitalizations will be retained in an interest-bearing account as a dedicated fund for use in implementing economic development activities which comply with the requirement of the Department of Housing and Urban Development.
C. 
Appointment of consultant. The Common Council is hereby empowered to and shall appoint by resolution a consultant/professional with the appropriate qualifications and credentials at the appropriate times and in accordance with applicable law and who shall review applications submitted pursuant to the UDAG assistance program and who shall make recommendations to the Common Council concerning such applications and such other matters relevant to the UDAG assistance program as the Common Council may require or request.

§ 37-3 Application for funding.

[Amended by Ord. No. 14-2004]
A. 
Applications. Written project applications will be considered in a timely fashion following submission of an application which includes at a minimum:
(1) 
A description of the proposed project;
(2) 
An estimate of the total project cost, including fund contribution, private capital and other sources of public funding, if any;
(3) 
A financial statement and other pertinent economic data of each person having an interest in the proposed project;
(4) 
A description of other sources of private capital, including evidence of private commitments, such as equity, lender commitment, etc. The proposal should also demonstrate the need for fund assistance in order to implement the project;
(5) 
A statement describing how the project will further the City's policies by addressing municipal/economic needs and general goals for continued economic revitalization.
B. 
Review of application. The appointed consultant/professional shall be responsible for reviewing applications to the fund to determine if the proposed economic development activities comply with the criteria set forth hereinafter. With reference to projects submitted by the private sector, the appointed consultant/professional shall make a recommendation to the Common Council as to whether the project should be funded. The Common Council shall then determine if the project shall be funded.
C. 
Review criteria. Projects submitted by the private sector will be evaluated from a standpoint of general economic feasibility and overall economic impact, including jobs created, new ratables and private sector investment leverage.

§ 37-4 Categories of projects.

[Amended by Ord. No. 14-1999]
A. 
Private sector economic development projects.
(1) 
These include direct assistance to corporations, businesses and industry for activities designed to create new ratables, new employment opportunities and to stimulate new private investment. Projects may include, for example:
(a) 
Road and infrastructure for commercial industrial purposes, such as new access to a future industrial site;
(b) 
Joint venture projects between the private sector, nonprofit entities, state and/or federal economic development agencies and the City;
(c) 
Building renovation and/or construction;
(d) 
Equipment with an Internal Revenue Service certification of five years or more excluding rolling stock;
(e) 
Acquisition of land for commercial or industrial purposes.
(2) 
Private economic development does not include funding for inventory or working capital but may include expenses incurred in connection with architectural, engineering, legal and other professional consultants and the cost of obtaining permits in connection with an economic development project.
B. 
Public facility projects. The fund will be available for public projects designed to stimulate economic development activities. Projects may include, for example:
(1) 
Infrastructure projects to serve and accommodate the needs of a private or public development project;
(2) 
Land acquisition;
(3) 
Building construction;
(4) 
Electric, water or sewer utility extensions;
(5) 
Elimination of blight to provide land for future industrial use;
(6) 
Municipally sponsored economic development initiatives.

§ 37-5 Prohibited uses.

[Amended by Ord. No. 14-1999]
The fund may not be used for general operating expenses of the City or for general public facility projects designated to improve City services or other public purposes where the primary purpose is not to further economic development activities.

§ 37-6 Implementation of fund activities/loans.

[Amended by Ord. No. 14-2004]
A. 
Economic development projects. All fund moneys dedicated to economic development projects shall be offered as loans requiring repayment. The fund may provide permanent financing and/or construction financing. To the extent feasible, the loan term will generally not exceed a period of five to seven years, unless exceptional reasons shall justify a longer term, and will be adjusted in terms of repayment provisions, based upon the needs set forth in the economic development application and financial proforma. The rate of interest, if any, shall be determined based on the specific merits and general economic implications of the project.
B. 
Public facilities projects. Public facility projects are available in the form of a grant, unless recaptured, at which time the money shall be repaid to the fund. It is the intent of the fund to provide a continual source of money for economic development and public facility projects within the City. Recaptured funds, including principal, interest or other income generated from the fund, may be used for similar eligible projects that are self-liquidating and which continue to further the purposes set forth in the original UDAG agreements.
C. 
Fees. An application/processing fee representing 1/2 of 1% of the total fund loan requested shall be charged to an economic development project developer, which fee shall be placed in the fund.
D. 
Maximum loan amount/loan cap. The Common Council is hereby empowered to and has in fact established a maximum loan amount/loan cap of $50,000, which shall apply to all loans provided and issued through the fund and which shall be the maximum amount that can be provided to an applicant through the fund for any single loan or in connection with any single project proposed by an applicant.
E. 
Other loans. An applicant's application for or receipt of funds or a loan through the fund shall not prevent or prohibit an applicant from seeking or obtaining funding or loans from other sources or programs. Nor shall an applicant's receipt or pursuit of funds from other funding sources, in and of itself, prohibit an applicant from receiving a loan or funds through the UDAG fund.

§ 37-7 Maintenance of fund.

The fund will be retained in an interest-bearing account or accounts maintained by the Chief Financial Officer of the City. Loans may be serviced by financial institutions which the Chief Financial Officer has determined meet the requirements of a legal depository for public moneys.

§ 37-8 Written agreements; security agreements.

[Amended by Ord. No. 14-1999]
Except for public facilities projects, and when determined to be in the best interest of the City in furtherance of a joint venture project between the private sector, nonprofit entities, state and/or federal economic development agencies and the City, all other loans shall be secured by an agreement between the City and the private sector developer. Such agreement will require that adequate security instruments be recorded to insure, to the maximum extent feasible, the payment of funds loaned for economic development purposes. Funds made available for economic development projects may be subordinated to private sector financing as a means of facilitating development plans and financial commitments.

§ 37-9 Annual statements.

[Amended by Ord. No. 14-2004]
The Chief Financial Officer shall submit to the Common Council on or before January 31 of each year a written statement accounting for the disbursement of all money in the fund.