[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)]
[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.
[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.
[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.
[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.
[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.
[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.
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.
[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.
[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.
