For the purpose of this subchapter, the following definitions
shall apply unless the context clearly indicates or requires a different
meaning.
An allocation of the state ceiling by the state board of
finance to the county to issue private activity bonds.
One or more persons or entities or their successors, assigns
or agents, who propose to acquire or construct a project financed
by or proposed to be financed by the proceeds of bonds.
The board of county commissioners.
The County of Santa Fe, New Mexico.
Any revenues received by the county from the applicant including,
but not limited to payments in lieu of taxes, supplemental rents,
grants, donations or other contributions and guaranties.
A resolution of the board setting forth the good-faith intent
of the board to issue bonds under the authority of the County Industrial
Revenue Bond Act, upon the prior satisfaction of all applicable land
use and development requirements of the county, other than the issuance
of a building permit.
Bonds issued by a county under the authority of the County
Industrial Revenue Bond Act, NMSA, sections 4-59-1 through 4-59-16.
Bonds issued by a county under the authority of the Municipal
Housing Law, NMSA, sections 3-45-1 through 3-45-25.
The form used to provide a notice of intent to adopt an ordinance
providing for the issuance of bonds, other than county industrial
revenue bonds, to be published in accordance with applicable law upon
approval by the board.
Bonds issued by a county under the authority of the County
Pollution Control Revenue Bonds Act, NMSA, sections 4-60-1 through
4-60-15.
Bonds issued under the authority of the Private Activity
Bond Act, NMSA, sections 6-20-1 through 6-20-11.
The plan describing a project which shall include:
A general description and location of the project;
A map locating the project area;
Conceptual site plans for the project;
A statement of the project’s potential impact on the environment
and the natural resources within the county; identification of any
product associated with the project, including a description of any
manufacturing or other processing to be conducted;
The current use and conditions and current and proposed zoning
of the project site;
Any relocation of individuals or businesses at the proposed
site;
The current assessed value of the project site;
The estimated value of the project site after completion of
the project;
A proposed construction schedule with the proposed starting
date and estimated completion date;
The number and type of new jobs, both temporary and permanent,
to be created;
The estimated percentage of jobs, both temporary and permanent,
to be filled by persons who are residents of the county;
An analysis on how the project will influence competition in
the type of commerce or industry already existing within the county
and its environs;
The effect of the project on existing industry and commerce
in the county during and after the construction period;
Information documenting the feasibility of the proposed project,
including information establishing the ability of the project to generate
revenues to render the project self- liquidating;
The maximum amount of the bonds to be issued for the project;
The amount of private investment in the project, in addition
to bond financing;
The total dollar amount of the proposed improvements included
as part of the project;
A statement of when the bonds are proposed to be issued;
Identification of the underwriters purchasing the bonds;
Resumes showing the experience of the development entity or
principals and the experience of the architect, contractor and leasing
agent, if relevant;
A statement of plans for project management; and
Information as may be relevant to the project or requested by
the project review team.
Bonds issued by the county under the authority of NMSA, sections
4-62-1 et seq., including bonds for housing projects.
A staff review team consisting of representatives from the
county manager’s office and appointees as designated by the
county manager.
(Ordinance 1998-01 adopted 1/13/98)
(A)
The
applicant shall complete the bond application form, the “bond
application,” which incorporates the project plan and complete
the financing form, the “financing application.”
(B)
(1)
A
request to issue bonds for a project shall be made by filing five
copies of the completed bond application and financing application,
a proposed inducement resolution or notice of intent and the fees
and deposits required by this subchapter.
(2)
Upon
receipt of the above, the county manager shall submit a copy of the
proposed inducement resolution or notice of intent and copies of the
bond application and financing application to the project review team.
(C)
If private activity bonds or project revenue bonds are proposed for a multi-family housing facility, the applicant shall, in addition to the submittal of information required in subsection (B) above, submit to the project review team satisfactory information:
(1)
The
proposed project is located within the county;
(2)
The
proposed project is not inconsistent with the long-term development
plans of the county and the land development code;
(3)
The
private sector is not meeting the housing needs of elderly or the
low or moderate income family housing needs in the immediate area
of the county for which the project is proposed;
(4)
All
tenants will be offered comparable services without any discrimination
as to income of the tenant, except where tenants must qualify as low
or moderate income tenants, as defined by the U.S. Department of Housing
and Urban Development;
(5)
The
proposed project will not adversely affect existing multi-family housing
in the area of the proposed project;
(6)
The
applicant will be required to submit to the trustee of the bonds at
least annually evidence that the percentage of low and moderate income
tenants is in compliance with the requirements of federal law for
federally tax exempt bonds; and
(7)
As
a condition of the issuance of the bonds, the financing agreement
will be structured so that the applicant will pay all ad valorem taxes
and special assessments and gross receipts and compensating use taxes
on the project and that the applicant will pay all property taxes
on the project and will have the project assessed for the purposes
in the name of the applicant in accordance with the provisions of
the Property Tax Code, NMSA, sections 7-35-1 through 7-38-93.
(Ordinance 1998-01 adopted 1/13/98)
(A)
The project review team shall review all bond projects to determine that application forms are complete and meet the requirements of the county land development code and shall prepare an economic and fiscal analysis of the proposed project, except as provided for in subsection (B) below.
(B)
The
project review team, with the concurrence of the county manager, may
contract with independent consultants to prepare an economic and fiscal
analysis of the proposed project.
(Ordinance 1998-01 adopted 1/13/98)
(A)
The
project review team shall apply the following criteria when reviewing
bond projects.
(B)
The
primary criterion for the issuance of bonds is the benefit to the
county provided by the project. The following criteria shall be used
to evaluate the relative benefit to the county.
(C)
Include
in the project plan the following information:
(1)
Project use and design.
(a)
Land use.
1.
Please indicate whether the project meets the current county land
development code, county extraterritorial subdivision regulations
and county extraterritorial zoning ordinances.
2.
Please indicate whether the project meets the goals of the county
general plan. If the project is contrary to these goals, please specify.
3.
Projects must conform to the provisions of the county land development
code, county extraterritorial subdivision regulations and county extraterritorial
zoning ordinances. Additional submittals may be required to document
compliance. Projects that meet the goals of the county general plan
will be viewed more favorably than projects that do not.
(c)
Environmental impact.
1.
Please indicate whether the project is in compliance with all local,
state and federal environmental regulations regarding air quality,
water quality, solid and liquid waste disposal and soil and terrain
management. Please indicate what, if any, negative environmental impact
the project or the project’s production processes [will] have
on the local area and the region. Specify what impact the project
will have on water quality, air quality and the terrain. Specify whether
the project will generate high levels of noise, odor or waste pollution
or traffic congestion. Please indicate whether the project or its
end product will contribute to improving environmental conditions
or problems.
2.
Projects must be in compliance with all local, state and federal
environmental regulations. Additional submittals may be required to
document compliance. Projects that meet environmental regulations,
but will have a negative environmental impact on the local area and
the region, will be viewed less favorably than projects that do not.
Projects or their end products that contribute to improving environmental
conditions or problems will be viewed more favorably than projects
that do not.
(d)
Infrastructure.
1.
Please indicate whether the project’s location will use existing
infrastructure. If the project requires infrastructure extension,
replacement or upgrading, please specify what is required.
2.
If the county must legally provide for infrastructure extension,
replacement, upgrading and maintenance, then projects that will provide
for cost sharing with the developer will be viewed more favorably
than projects that do not.
(e)
Design.
1.
Please provide site plans and designs of any new buildings and any
plans to renovate or expand existing facilities. Please indicate whether
preservation guidelines will be met if the project includes a historic
building.
2.
The project’s scale and general design must comply with the
county land development code. Projects that meet preservation guidelines
regarding historic building will be viewed more favorably than projects
that do not.
(f)
Demolition.
1.
Please state whether the project plans to demolish buildings. Please
provide the justification for demolition and the proposed schedule
for demolition. Please indicate whether the project plans to demolish
historic buildings.
2.
Projects that plan to demolish viable or historic buildings will
be viewed less favorably than projects that do not.
(g)
Relocation.
1.
Please state whether any individuals or other businesses must be
relocated from the project site as the result of the project.
2.
Projects that require relocation of individuals or other businesses
that are not part of the project will be viewed less favorably than
projects that do not. Projects that assist in finding new housing
or business locations for those affected will be viewed more favorably
than projects that do not.
(2)
Economic benefits.
(a)
Competition.
1.
Please list all direct competitors located in the county.
2.
The county does not provide bonds that would give one project an
inequitable advantage over competitors using conventional financing.
Projects that would have a significant advantage over competitors
in the local market will be viewed less favorably than projects that
do not. In the case of hospital or health care facilities, a need
for the facility must be demonstrated.
(b)
Job.
1.
Please provide the following information:
a.
The number of permanent jobs that will be created by the project;
b.
The job categories (professional, clerical and the like) under which
permanent jobs fall; (Use state department of labor job categories.)
c.
The number of permanent full time and part time jobs;
d.
The salary range for each job category;
e.
The number of existing, permanent county jobs relocated to the project
site;
f.
The number and type of job positions that the applicant expects to
fill with transfers from other facilities or by out-of-county recruitment;
g.
The number and type of new job positions that the applicant expects
to fill with county residents;
h.
The timetable for the creation of new permanent jobs;
i.
The number of temporary (e.g. construction jobs) full time and part
time jobs that will be created by the project;
j.
The estimated payroll for temporary jobs;
k.
The number of contractors or subcontractors retained by the applicant
who will be local county businesses or businesses located outside
the county;
l.
Any local recruitment and hiring plans for county residents in the
low to moderate income bracket; and
m.
Any training plans for the advancement of county residents in the
low to moderate income bracket.
2.
The applicant must demonstrate a genuine effort to hire from the
local job pool. Projects that demonstrate opportunities for county
residents in the low to moderate income brackets will be viewed more
favorably than projects that do not.
(d)
Commitment to county.
1.
Please describe your level of commitment to the county.
2.
The applicant must commit to remaining in the county for at least
the term of the bonds. The terms and schedule for county tax benefit
reduction in the event of early cessation of a project financed by
county issued bonds will be provided in the lease between the applicant
and the county.
(e)
Local ownership and/or import substitution.
1.
Please estimate how much capital will be retained within the county.
Please indicate whether this project will decrease the net importation
of goods and services to the county.
2.
Projects that retain capital in the county or have products that
decrease the net importation of goods and services to the county will
be viewed more favorably than projects that do not.
(f)
Economic incentives.
1.
Please state what abatement of local or state taxes, such as real
and personal property ad valorem taxes or gross receipts taxes the
applicant is requesting. Please specify the effect these tax abatements
will have on county tax revenues. Please specify any economic incentive
or revenue alternatives the applicant will provide to mitigate the
adverse impact on county tax revenues.
2.
Applicants that can provide reasonable revenue alternatives, such
as payments in lieu of taxes, contributions to local governments or
other economic incentives, where tax abatement affects county tax
revenues will be viewed more favorably than projects that do not.
(3)
Project feasibility.
(a)
Feasibility and financing.
1.
Please provide a cash flow analysis including the debt service and
bond retirement schedule. Please provide pro forma financial statements
for the first five years of the project. Please provide information
on the project’s financing commitment.
2.
Projects must present convincing evidence that the project will generate
sufficient cash flow to service its project debt and any other debt.
Projects must show the ability to maintain a solvent business and
to retire the bonds in a timely manner. Projects must provide firm
financing commitment such as financing guarantees. The applicant may
be required to submit a feasibility study.
(b)
Cost.
1.
Please provide the estimated cost to complete the project and the
requested bond amount. Please provide the estimated appraisal value
of the project after completion.
2.
Bond amounts will be no more than required to complete the project.
If the project includes an equity investment or conventional financing
in addition to the bonds, then those amounts should not be included
in the bond request. The inducement resolution or notice of intent
for the project will not be for an authorized maximum bond amount
larger than the expected bond issue nor for an amount in excess of
that required for the project.
(c)
Project applicant’s record.
1.
Please describe your experiences with projects similar to this project.
Please provide your financial backing.
2.
The applicant must have a good record with projects of this type
or present convincing evidence that the project will be completed.
Reference from financial institutions or local firms may be required.
(4)
Multiple-family housing; board of finance allocation.
(a)
Please describe any impact the proposed project may have on the county’s
allocation of federally tax exempt, private activity bonds that may
be available for other projects.
(b)
The applicant must work with the county before an allocation is requested
in order to assure that the financing transaction can be completed
before the volume allocation expires.
(c)
Projects that provide the most benefit to the county will be given
priority with regard to the private activity bond volume ceiling.
(5)
Redevelopment.
(a)
Elderly.
1.
Please state whether other projects are meeting the housing needs
of the elderly in the immediate area of the project. Describe all
housing projects in the county that meet the housing needs of the
elderly.
2.
Housing for the elderly must not adversely affect existing housing
of the elderly in the area of the project. Projects that provide needed
housing for the elderly will be viewed more favorably than housing
projects that do not.
(b)
Low and moderate income.
1.
Please state whether other projects are meeting the housing needs
of low or moderate income families in the immediate area of the project.
Describe all housing projects in the county that meet the housing
needs of low or moderate income families.
2.
Housing for low or moderate income families must not adversely affect
existing housing for low or moderate income families in the area of
the project. Projects that provide needed housing for families with
low to moderate incomes will be viewed more favorably than housing
projects that do not.
(Ordinance 1998-01 adopted 1/13/98)
Upon receipt of the completed economic and fiscal analysis,
the county manager shall submit to the board, for discussion during
the next regularly scheduled meeting of the board, the project plan,
the completed analysis and the project review team’s recommendation
to approve, conditionally approve or disapprove the proposed project.
The project review team’s recommendation and the board’s
final action to approve, conditionally approve or to disapprove a
project and inducement resolution or notice of intent shall take into
consideration the county’s development plans and policies and
the promotion of health, safety, security and general
welfare of the citizens of the county and the state.
(Ordinance 1998-01 adopted 1/13/98)
(A)
The
county’s bond counsel shall prepare or direct the preparation
of all appropriate resolutions, notices of intent, ordinances, trust
indentures or other necessary documents relating to the bonds and
the issuance thereof.
(B)
All
resolutions, notices of intent, ordinances, financing agreements,
closing documents and other documents relating to the county and relating
to the bonds and issuance thereof shall be submitted to the county
attorney and the county’s bond counsel, in sufficient time for
review by the attorneys prior to the board taking any required action
on the documents or execution of the documents by county officials,
as applicable.
(Ordinance 1998-01 adopted 1/13/98)
The project review team may establish rules, not inconsistent
with any county ordinance or this subchapter, as it may deem necessary
to carry out the requirements of this subchapter.
(Ordinance 1998-01 adopted 1/13/98)
(A)
The
principal and interest of the bonds approved by the board shall be
payable solely out of the revenue derived from the project for which
the bonds are issued, from applicable tax revenues, from any guarantee
agreement or agreements, insurance, surety or a credit enhancement
device or devices upon which the guarantor or obligator is other than
the county.
(B)
The
bonds shall never constitute a debt or indebtedness of the county
within the meaning of any provision or limitation of the state constitution,
statutes of the state or any county ordinance and the bonds shall
not constitute nor give rise to a pecuniary liability of the county
or a charge against its general credit or taxing powers.
(Ordinance 1998-01 adopted 1/13/98)
(A)
In addition
to any other fee imposed pursuant to ordinance or resolution, the
applicant shall pay the county:
(1)
A
fee equal to 0.125% of the face amount of the bonds to be issued to
compensate the county for its reasonable administration expenses incurred
in the approval of the project and the issuance of the bonds; provided
that, the fee shall not be less than $2,500.00, nor more than $10,000.00;
and
(2)
A
deposit of $2,500.00 to be applied against the payment of costs associated
with issuing the request for proposals and obtaining the analysis,
upon the county manager’s determination, as provided by this
subchapter and for any attorney fees associated with processing the
request. If the lowest cost for conducting an analysis of the project
exceeds this deposit, the applicant shall pay the county, before the
analysis is initiated, any additional amount that is necessary to
conduct the analysis and pay any attorney fees associated with processing
the request.
(B)
In addition
to the fee set forth in this section, the applicant shall pay all
attorneys’ fees and expenses of the attorneys reviewing the
bond documents, including any refunding bond documents whether or
not the bonds are issued.
(Ordinance 1998-01 adopted 1/13/98)
(A)
The
inducement resolution shall set a final date for issuance of the proposed
bonds, which shall constitute a “sunset date” or termination
date for the inducement resolution if the bonds are not issued within
the specified time.
(B)
The
“sunset date” may be extended if the applicant presents
a revised project schedule with supporting evidence to the satisfaction
of the board that the extension is justified for good cause and necessary
for project completion.
(Ordinance 1998-01 adopted 1/13/98)
(A)
In addition
to any other law authorizing the county to issue revenue bonds, the
county may issue revenue bonds pursuant to the powers granted to counties
in NMSA, section 4-37-1, to provide for the safety, preserve the health,
promote the prosperity and improve the morals, order, comfort and
convenience of the county and its inhabitants.
(B)
Incentive
payment revenue bonds may be issued by the county for the exercise
of any essential governmental function.
(C)
The
county may pledge irrevocably any or all of the revenues from incentive
payments for payment of principal, premium, if any, and interest due
in connection with, and other expenses related to incentive payment
revenue bonds. These bonds may be referred to as “Santa Fe County,
New Mexico, Incentive Payment Revenue Bonds.”
(D)
Incentive
payment revenue bonds and terms:
(1)
May
have interest, appreciated principal value or any part thereof, payable
at intervals or at maturity as may be determined by the board in the
ordinance;
(2)
May
be subject to prior redemption at the county’s option at such
time and upon such terms and conditions with or without the payment
of premium as may be provided by ordinance;
(3)
May
mature at any time not exceeding the latest date of receipt of revenues
from incentive payments;
(4)
May
be serial in form and maturity or may consist of one bond payable
at one time or in installments or may be in such other form as may
be determined by the board;
(5)
Shall
be sold for cash at, above or below par and at a price that results
in a net effective interest rate that does not exceed the maximum
permitted by the Public Securities Act, NMSA, sections 6-14-1 through
6-14-3; and/or
(6)
May
be sold at public or negotiated sale.
(E)
(1)
At
a regular or special meeting called for the purpose of issuing incentive
payment revenue bonds, the board may adopt an ordinance that:
(2)
Any
revenue in excess of the amount necessary to meet all annual principal
and interest payments and other requirements incident to repayment
of the incentive payment revenue bonds may be transferred to any other
fund of the county.
(F)
(1)
Incentive
payment revenue bonds or incentive payment refunding revenue bonds
are:
(a)
Not general obligations of the county; and
(b)
Collectible only from the properly pledged incentive payment revenues
and each bond shall state that it is payable solely from the properly
pledged incentive payment revenues and that the bondholders may not
look to any other county fund for the payment of the interest and
principal of the bonds.
(2)
The
bonds shall be executed by the chair of the board and treasurer or
the clerk and may be authenticated by any public or private transfer
agent or registrar, or its successor, named or otherwise designated
by the board. The bonds may be executed as provided under the Uniform
Facsimile Signature of Public Officials Act, NMSA, sections 6-9-1
through 6-9-6, and the coupons, if any, shall bear the facsimile signature
of the treasurer of the county.
(G)
(1)
The
county having issued incentive payment revenue bonds, as herein authorized,
may issue refunding revenue bonds for the purpose of refinancing,
paying and discharging all or any part of the outstanding bonds of
any outstanding issues. These bonds may be referred to as “Santa
Fe County, New Mexico, Incentive Payment Refunding Revenue Bonds.”
(2)
The
county may pledge irrevocably for the payment of interest and principal
on refunding bonds the appropriate pledged revenues that may be pledged
to an original issue of bonds.
(3)
Bonds
for refunding and bonds for any purpose permitted herein may be issued
separately or issued in combination in one or more series.
(H)
(1)
Refunding
bonds issued hereunder shall be authorized by ordinance. Any bonds
that are refunded under the provisions of this subsection (H) shall
be paid at maturity or on any permitted prior redemption date in the
amounts, at the time and places and, if called prior to maturity,
in accordance with any applicable notice provisions, all as provided
in the proceedings authorizing the issuance of the refunded bonds
or otherwise appertaining thereto, except for any bond that is voluntarily
surrendered for exchange or payment by the holder or owner.
(2)
Provisions shall be made for paying the bonds refunded at the time provided in subsection (1) above. The principal amount of the refunding bonds may exceed the principal amount of the refunded bonds and may also be less than or the same as the principal amount of the bonds being refunded so long as provision is duly and sufficiently made for the payment of the refunded bonds.
(3)
(a)
The proceeds of refunding bonds, including any accrued interest and
premium appertaining to the sale of refunding bonds shall either be
immediately applied to the retirement of the bonds being refunded
or be placed in escrow in a commercial bank or trust company that
possesses and exercises trust powers and that is a member of the Federal
Deposit Insurance Corporation to be applied to the payment of the
principal of, interest on and any prior redemption premium due in
connection with the bonds being refunded.
(b)
The refunding bonds proceeds, including any accrued interest and
any premium appertaining to a sale of refunding bonds, may be applied
to the establishment and maintenance of a reserve fund and to the
payment of expenses incidental to the refunding and the issuance of
the refunding bonds, the interest thereon and the principal thereof
or both interest and principal as the county may determine.
(c)
Nothing in this section requires the establishment of an escrow if
the refunded bonds become due and payable within one year from the
date of the refunding bonds and if the amounts necessary to retire
the refunded bonds and if the amounts necessary to retire the refunded
bonds within that time are deposited with the paying agent for the
refunded bonds. Any escrow shall not be limited to proceeds of refunding
bonds, but may include any other money available for its purpose.
Any proceeds in escrow, pending the use, may be invested or reinvested
in bills, certificates of indebtedness, notes or bonds that are direct
obligations of, or the principal and interest of interest of which
obligations are unconditionally guaranteed by, the United States or
in certificates of deposit is collateralized by a pledge of obligations
of, or the payment of which is unconditionally guaranteed by, the
United States, the par value of which obligations is at least 75%
of the par value of the certificates of deposit.
(d)
The proceeds and investments in escrow together with any interest
or other income to be derived from any investment shall be in an amount
at all times sufficient as to principal, interest, any prior redemption
premium due and any charges of the escrow agent payable therefrom
to pay the bonds being refunded as they become due at their respective
maturities or due at any designated prior redemption date in connection
with which the county shall exercise a prior ordinance authorizing
the issuance of the incentive payment refunding revenue bonds.
(Ordinance 1998-01 adopted 1/13/98)
