It is hereby found, determined and declared:
(1) 
That the present and prospective right to gainful employment and general welfare of the people of the city requires as a public purpose the promotion and development of new and expanded business enterprises;
(2) 
That the existence, development, and expansion of business, commerce, and industry are essential to the economic growth of the city and to the full employment, welfare, and prosperity of its citizens;
(3) 
That the means and measures authorized by the state legislature and the assistance provided in the one-fourth of one percent sales tax for economic development are in the public interest and serve a public purpose in promoting the welfare of the citizens of the city economically by the securing and retaining of business enterprises and the resulting maintenance of a higher level of employment, economic activity, and stability;
(4) 
That the Industrial Foundation and the city have themselves invested substantial funds in economic development projects and have experienced difficulty in undertaking such additional projects by reason of the partial inadequacy of their own funds; and
(5) 
That the city is at a critical disadvantage in competing with other communities for the location or expansion of such enterprises by virtue of the availability and prevalent use in other communities of financing and other special incentives.
Therefore, the creation of an economic development corporation to promote and develop new and expended business enterprises to provide and encourage employment and the public welfare is hereby declared to be in the public interest and a public purpose.
(Ordinance 376, sec. 1, adopted 9/4/01)
An economic development corporation is hereby created to carry out the public purposes of this division and the Development Corporation Act of 1979 as amended.
(Ordinance 376, sec. 2, adopted 9/4/01)
The powers and organization of the corporation are:
(1) 
The economic development corporation has the powers and the limitations of a corporation created under the Development Corporation Act of 1979, as amended.
(2) 
The board of directors of the corporation consists of five (5) directors who are appointed by the city council and who serve at the pleasure of the city council. Three (3) directors constitute a quorum and no action of the corporation shall be valid or binding unless adopted by the affirmative vote of three (3) or more of the directors. Each year at the first meeting in October the board of directors will organize, appointing a chairman, vice-chairman, secretary, and treasurer. All meetings of the board of directors will be held within the corporate limits of the city and all meetings will be conducted under the provisions of the Open Meetings Act. The board of directors will make and alter bylaws, with the approval of the city council, for the administration and regulation of the affairs of the corporation. The board of directors is subject to the provisions of the Conflict of Interest Act.
(3) 
The corporation will develop a five (5) year economic development plan which will be updated annually and will be used to develop the annual budget of the corporation. The annual budget of the corporation will be submitted to the city for review and approval by the city council during the annual budget process of the city. The corporation will be audited as part of the city annual audit.
(4) 
Upon receipt of the proceeds of the one-fourth of one percent sales and use tax for economic development imposed by the voters of the city, the corporation will deposit the funds immediately in a depository previously selected and secured as provided for under law for municipal funds. Tax proceeds may be used to pay the principal of, interest on, and other costs relating to the corporation bonds, but neither the bonds nor any instrument related to the bonds may give a bondholder a right to demand payment from tax proceeds in excess of those collected from its one-fourth of one percent sales and use tax for economic development.
(5) 
The tax funds and all other funds entrusted to the corporation will be used to further economic development within the city and its extraterritorial jurisdiction. The corporation may contract with other existing private corporations to carry out economic development programs consistent with the intent of this division and the Economic Development Act as amended. No more than ten percent (10%) of the corporate revenues may be spent on promotional purposes. The corporation may not undertake a project the primary purpose of which is to provide transportation facilities, sewage or solid waste disposal facilities, air or water pollution control facilities, facilities for furnishing water, or recreational facilities for the general public. However, the corporation may provide those facilities to benefit property acquired for a project having another primary purpose.
(6) 
The disbursement of corporate funds will be in accordance with state law except that any limitations of purchasing and contracting in city ordinances requiring approval of the city council shall apply to the corporation and shall require approval of the board of directors in place of the city council.
(7) 
The city staff will act as special advisers to the corporation in their areas of expertise unless other duties preclude their doing so.
(Ordinance 376, sec. 3, adopted 9/4/01; Ordinance adopting Code)