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.
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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.
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(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)
