As used in this chapter, certain terms are defined as follows;
some terms may be found in the Glossary:
COMMERCIAL ENTERPRISE
Any business, other than an industrial or service enterprise,
which by its nature or size has created, or offers reasonable likelihood
of creating, substantial employment opportunities. The term may include
wholesale, retail and other mercantile activities, office buildings
(if not in violation of other prohibitions, i.e., no investor/developers),
department stores (also if not otherwise in violation) and international,
national and regional headquarters facilities.
CONSTRUCTION
Includes the acquisition, erection, extension, renovation,
enlargement, or substantial repair of structures utilized in, or related
to, eligible business projects. The term does not include cost of
demolition or removal of structures.
ELIGIBLE BUSINESS
Any commercial, industrial or service business locating or
expanding in the City.
ELIGIBLE PROJECT
Activities undertaken by an eligible business and conducted
pursuant to the definition of "use of funds," as well as expense related
to inventory and working capital. The latter, however, are not considered
as eligible use of funds. In the case of a mixed-use structure, the
costs associated with renovation of the residential portion of the
structure may be counted as eligible project costs, but RLP funds
are limited to costs associated with the business portion of the project.
FINANCIAL INSTITUTION
Any bank, savings and loan or similar institution, one of
whose primary business functions is the making of loans to business
enterprises.
INDUSTRIAL ENTERPRISE
A business, other than a commercial or service enterprise,
which by its nature or size requires substantial capital and which
by its nature or size has created or offers a reasonable likelihood
of creating substantial employment opportunities. The term may include
manufacturing activities and research and development as well as warehouse
facilities, distribution facilities, and international, national and
regional headquarters facilities.
INVESTOR/DEVELOPER
Any person engaged in the development of a project to be
occupied by a person or persons other than the loan recipient.
LOAN REVIEW COMMITTEE or LRC
The committee of five members appointed by the Mayor and
confirmed by City Council, consisting of two representatives of the
community and three representatives of the business community. The
LRC will reflect the demographic makeup of the community at large.
Term of office shall be three years. Terms of office shall be staggered.
LOW- AND MODERATE-INCOME PERSON
A person falling within the low- and moderate-income guidelines
as defined by the United States Department of Housing and Urban Development.
MANUFACTURING ACTIVITY
The giving of new shapes, new qualities or new combination
to matter by the application of skill and labor thereto through the
use of equipment or otherwise.
MINORITY
Any person who is:
A.
African American: All persons having origins in any of the black
racial groups of Africa, the West Indies or the Caribbean Basin;
B.
Hispanic American: All persons of Mexican, Puerto Rican, Cuban,
Central or South American, or other Spanish culture or origin, regardless
of race;
C.
Asian American: All persons having origins in any of the original
peoples of the Far East, Southeast Asia and the Indian Subcontinent;
D.
Native American: All persons having origins in any of the original
peoples of North America and who maintain cultural identification
through tribal affiliation or community recognition; or
E.
American Aleut: All persons having origins in any of the original
peoples of the Pacific Islands.
MINORITY BUSINESS ENTERPRISE
A sole proprietorship, partnership, joint venture, corporation,
or other entity run and controlled by minorities wherein:
A.
At least 51% of the enterprise is owned by minorities;
B.
Minority owners share in the risks and profits of the enterprise
to the extent of their individual holdings;
C.
Control by the minority owners of the enterprise is active and
not passive, and such control is not wholly dependent on the consent
of majority group members who also have holdings in the enterprise;
and
D.
The minority owners provide the primary input into the day-to-day
operation of the business.
OCCUPANT
Any person, partnership or corporation engaged in an industrial,
commercial, service, or retail enterprise and determined by the LRC
to be financially responsible to assume all obligations prescribed
by the LRC (and this chapter) in the lease, sale and operation of
an eligible project.
PERMANENT JOB
A position or positions providing not less than 25 hours
of gainful employment per week for a period of at least three years.
SERVICE ENTERPRISE
Any enterprise, other than a commercial or industrial enterprise,
that provides essential and necessary services to the business and
residential community and which by its nature offers reasonable likelihood
of creating substantial employment opportunities. The term includes,
but is not limited to, legal counsel, engineering, architectural,
investment, and counseling services.
USE OF FUNDS
Includes the expense of construction and of acquisition of
all structures, land and other property rights and interests in land
necessary to the project. The term does not include the expense of
demolishing, removing or relocating any buildings or structures on
land, machinery and equipment, financing charges, cost of engineering,
financial and legal services, plans, specifications, studies, surveys
necessary to determining the feasibility of a project, administrative
expenses, reserves for interest and for extensions of payment thereof,
enlargements, additions and improvements, and other such expenses
that may be necessary to the project. Use by investor/developers is
not permitted.
WOMEN BUSINESS ENTERPRISE
A sole proprietorship, partnership, joint venture, corporation,
or other entity run and controlled by women wherein:
A.
At least 51% of the enterprise is owned by women;
B.
Women owners share in the risks and profits of the enterprise
to the extent of their individual holdings;
C.
The control of the women owners in the enterprise is active
and not passive, and such participation is not wholly dependent on
the consent of men who also have holdings in the enterprise; and
D.
The women owners provide the primary input into the day-to-day
operation of the business.
The RLP and SPRLP are available generally to a project which
involves the investment of private capital in the fixed assets of
a business venture within the City. They are intended to finance projects
which would have a positive impact on the City by leveraging a significant
amount of private investment and creating new employment opportunities
for City residents or strengthening existing jobs. At least 51% of
all jobs created or retained must be provided to low- and moderate-income
persons who are residents of the City of Harrisburg. Loans are permitted
for both job retention as well as job creation. For every three jobs
retained, one new job must be created.
The application process shall consist of the following steps:
A. Completion of an application and submission to MOEEO staff for review.
An application fee of $50 must accompany an RLP application; the fee
for an SPRLP application is $100. Loan applications will be evaluated
by MOEEO staff prior to submission to the Loan Review Committee. Applications
will be considered by the LRC at its regularly scheduled meeting.
B. Review and consideration of application by MOEEO and the LRC at a
public meeting.
C. Issuance of a preliminary approval letter to the applicant following
approval by the LRC.
D. Execution of a loan agreement with required evidentiary materials,
following approval by the City Solicitor.
E. Receipt by MOEEO of loan funds approximately two weeks following
approval of the Solicitor and receipt of approved expenditures.
Applicants will be evaluated individually by the LRC to determine
creditworthiness, project feasibility, the ratio of new, permanent
jobs to be created per dollar borrowed, the number of City residents
to be hired as a result of the project, the retention of jobs for
low- or moderate-income individuals, the ability of the project to
leverage private investment and tax revenues, and other benefits generated.
All applications will be reviewed on a first-come-first-served basis.
All official notifications, approvals, rejections, and other communications
to the applicant will come from the LRC.
The LRC will adopt guidelines for action in cases of noncompliance
with these requirements by the borrower. In such cases, the interest
rate on the loan awarded shall be recalculated at the New York Prime
Rate from the date of the loan or from the date of discovery of the
noncompliance, whichever is later. The guidelines adopted by the Loan
Review Committee will further explain this program element.
The LRC will submit to City Council an annual report on program
status. Such report shall include a review of loans made during the
reporting period as well as payment progress on loans made in prior
reporting periods.