The council finds that it is necessary and desirable that the city, in cooperation with the federal and state governments, use the means and measures set forth in this chapter to promote and enhance economic development and increase opportunities for useful employment. The council further finds that the alternative method of financing provided in this chapter is designed to benefit economically distressed areas of the city in the city's efforts to maintain and provide services to existing companies and to prevent the loss of existing jobs. The council further finds that the alternative method of financing provided in this chapter is designed to benefit those projects which would substantially employ underemployed persons living within an economically distressed area. The council further finds and determines that commerce and industry within and to come within this city needs and requires new methods to finance the capital outlays required to acquire, construct, or rehabilitate facilities which will increase employment opportunities or otherwise contribute to economic development, and the alternate method of financing provided in this chapter is in the public interest and serves a public purpose and will promote the health, welfare, and safety of the citizens of the city. The financing method is authorized by the Charter of this city.
(Ord. 82-O-115, 1982)
It is the purpose of this chapter to carry out and make effective the findings of the council and to that end to provide industry and commerce with an alternative method of financing in acquiring, constructing, or rehabilitating facilities in accordance with the criteria set forth below in this section, all to the benefit of the people of the city and to protect their health, welfare, and safety.
(1) 
The council declares that it is the policy of the city, consistent with environmental, resource conservation, and other policies, to facilitate for and on behalf of private enterprise the acquisition of property, either suitable for or evidencing an obligation respecting any one or more of the activities or uses set forth in Section 3.06.030, through the issuance of revenue bonds in accordance with the criteria set forth in subdivision (2) of this section, and that such additional method of financing when made available in accordance with such policy is designed to serve a public purpose and to promote the prosperity, health, welfare, and safety of the citizens of the city.
(2) 
The council declares that the criteria to be utilized to determine whether such method of financing may be made available shall include the following:
(A) 
Whether employment benefits arising out of the use of the facilities may ensue by securing or increasing (i) the number of employees of the company and any other direct users of the facilities or (ii) compensation for such employment, the value of which may be expressed in terms of aggregate direct employment earnings; or
(B) 
Whether energy, mineral or natural or cultivated resource conservation benefits arising out of the use of the facilities may ensue the reduction of waste, improvement of recovery or intensification of utilization of resources that otherwise would be less intensively utilized, or wasted, or not recovered, the value of which may be expressed in terms of the price and amount of the energy, minerals, or other resources saved or recovered, or the price and amount of equivalent energy, minerals or other resources which would be utilized were the resources not utilized as intensively; or
(C) 
Whether consumer benefits arising out of the use of the facilities may ensue by (i) improvement of the quantity or quality or reduction in the price of products, energy, or related services or facilities, the value of which may be expressed in terms of quantity and price differentials; and (ii) production of new or improved products, or related services or facilities, the value of which may be expressed in terms of quantity and price; or
(D) 
Whether existing facilities may be conserved through rehabilitation; or
(E) 
Whether facilities may assist businesses which have been displaced through government actions; or
(F) 
Whether an increased tax and revenue base will occur and enhance the financial resources of the city.
(Ord. 82-O-115, 1982)
The activities or uses for which property acquired pursuant to the provisions of this chapter shall be suitable are one or more of the following activities or uses:
(1) 
(A) 
Industrial or commercial uses including, without limitation, assembling, fabricating, manufacturing, processing, storing or selling and distributing activities, with respect to any services or to any products of agriculture, forestry, mining or manufacture.
(B) 
Energy development, production, collection, conversion (from one form of energy to another), storage, or conservation activities, or transmission, transportation, or conveyance as distinguished from distribution activities.
(2) 
(A) 
Residential real property for family unit or other housing activities;
(B) 
Sports activities;
(C) 
Convention or trade show activities;
(D) 
Airport, dock, wharves, mass commuting, or parking activities, or storage or training activities related to any thereof;
(E) 
Sewage or solid waste disposal activities or electric energy or gas furnishing activities;
(F) 
Air or water pollution control activities;
(G) 
Water furnishing activities;
(H) 
Telephone or community television furnishing activities;
(I) 
Industrial park land development activities;
(J) 
Any activities of persons qualifying as exempt persons under Section 501 of the Internal Revenue Code of 1954, as amended, undertaken by such persons.
(Ord. 82-O-115, 1982)
Unless the context otherwise requires, the definitions in this chapter shall govern the construction of this title, as follows:
"Acquire"
and its variants means acquire, construct, improve, furnish, equip, repair, reconstruct or rehabilitate.
"Administration expenses"
means the reasonable and necessary expenses incurred by the city in the administration of the provisions of this chapter including, without limitation, fees and costs of paying agents, trustees, attorneys, consultants, and others.
"Bond proceeds"
means all amounts received by the city upon sale or other disposition of any bonds.
"Bonds"
means the bonds, including principal (premium, if any) and interest authorized to be issued by the city under this chapter, including a single bond, a promissory note or notes, including bond anticipation notes, or other instruments evidencing an indebtedness or obligation.
"Company"
means a person, partnership, corporation, whether for profit or not, trust, or other private enterprise of whatever legal form for which a project is undertaken or proposed to be undertaken pursuant to this chapter or which is in possession of property owned by the city, and may include more than a single enterprise.
"Cost"
as applied to any project, may embrace:
(A) 
The cost of construction, improvement, repair and reconstruction;
(B) 
The cost of acquisition, including rights in land and other property, both real and personal and improved and unimproved, and franchises, and disposal rights;
(C) 
The cost of demolishing, removing, or relocating any building or structures on lands so acquired, including the cost of acquiring any lands to which such buildings or structures may be moved or relocated;
(D) 
The cost of machinery, equipment and furnishings, and of engineering and architectural surveys, plans, and specifications;
(E) 
The cost of consultant services, including, without limitation, legal, financial, engineering, accounting, and auditing, necessary or incident to a project and of the determination as to the feasibility or practicability of undertaking such project;
(F) 
The cost of financing, interest prior to, during, and for a reasonable period after completion of a project, and reserves for principal and interest and for extensions, enlargements, additions, repairs, replacements, renovations, and improvements, as well as for underwriter discounts, loan fees, and other finance related expenses;
(G) 
The cost of acquiring or refinancing existing obligations, incident to the undertaking and carrying out, including the financing of a project, and the reimbursement to any governmental entity or agency, or any company, of expenditures made by or on behalf of such entity, agency or company that are costs of such project hereunder, without regard to whether or not such expenditures may have been made before or after the undertaking of a project by the city or delivery of bonds, except for administration expenses incurred prior to the preliminary undertaking of a project by the city;
(H) 
The cost of making relocation assistance payments as provided by Chapter 16 (commencing with Section 7260) of Division 7 of Title 1 of the Government Code of the state.
"Facilities"
means property suitable for any one or more of the activities or uses described in Section 3.06.030 and includes incidental facilities.
"Governing body"
means the city council.
"Indenture"
means any mortgage, deed of trust, trust indenture, security agreement, or other instrument establishing a lien or security interest in, or on, property or any right, title, or interest in, or related to, property, including the revenues therefrom, given by the city as security for its bonds.
"Proceedings"
means the actions taken by the city in undertaking, carrying out, and completing a project, including, without limitation, the project agreements, indenture, bonds, and resolutions.
"Project"
means the acquisition, financing or refinancing of facilities by the issuance of revenue obligations upon the application of and to be repaid by payments from a company for the purposes of this chapter.
"Project agreements"
means the agreements between the city and a company respecting a project, and may include, without limitation, leases, subleases, options to, and installment or other contracts of, purchase, or sale, loan, or guaranty agreements, notes, mortgages, deeds of trust, and security agreements.
"Property"
means any land, air rights, water rights, disposal rights, improvements, buildings or other structures, and any personal property, and includes, but is not limited to, machinery and equipment, whether or not in existence or under construction, and interests in any of the foregoing, or promissory notes respecting such interests.
"Public agency"
means the city.
"Revenues"
means all rents, purchase payments, and other income derived by the city from, or with respect to, the sale, lease, or other voluntary or involuntary disposition of, or repayment of loans with respect to, property, bond proceeds, and any receipts derived from the investment of any such income or proceeds in any fund or account of the city, but does not include receipts designated to cover administration expenses.
(Ord. 82-O-115, 1982)
The city shall have all powers necessary or appropriate for carrying out the purposes of this chapter including, without limitation, the following powers, together with all powers incidental thereto:
(1) 
To acquire property by purchase, exchange, gift, lease, contract, or eminent domain;
(2) 
To maintain property;
(3) 
To dispose of property by lease, sale, exchange, donation, release, relinquishment, or otherwise;
(4) 
With respect to property, to:
(A) 
Charge and collect rent under any lease,
(B) 
Sell at public or private sale, with or without public notice,
(C) 
Sell at a premium or discount or below appraised value or for a nominal consideration, only,
(D) 
Sell on an installment payment or a conditional sales basis,
(E) 
Convey or provide for the transfer of property without further act of the city, upon exercise of an option,
(F) 
Sell at a fixed or formula price and receive for any such sale the note or notes of a company and mortgages, deeds of trust, or other security agreements respecting such property,
(G) 
Convey to another government agency;
(5) 
To encumber property, including funds, whether then owned or thereafter acquired;
(6) 
To advance funds secured by loan agreements to finance property and charge and collect interest on such funds;
(7) 
To exercise all rights and to perform all obligations of the city under the project agreements and indenture, including the right, upon any event of default by or the failure to comply with any of the obligations thereof by the lessee, purchaser, or other company thereunder, to dispose of all or part of the property to the extent authorized by the project agreements or indenture;
(8) 
To borrow money and issue its bonds for the purpose of paying all or any part of the costs of a project, and for any other authorized purpose, as provided in this chapter;
(9) 
To pledge and assign the revenues or any portion thereof, the project, or project agreements, and all other rights, as security for the payment of any bonds so issued and for performance of obligations under an indenture;
(10) 
To contract and pay compensation for professional, financial, and other services;
(11) 
To refund outstanding bonds of the city without regard to the purposes of this chapter when the governing body finds that such refunding will be of benefit to a company or holders of such bonds, subject to the provisions of the proceedings;
(12) 
To invest and reinvest funds under the control of the city and bond proceeds pending application thereof to the purposes for which such bonds shall have been issued, subject to the provisions of the proceedings;
(13) 
To acquire and hold obligations of any kind and pledge or assign the same as further security;
(14) 
To expressly waive any immunity of the city provided by the Constitution or laws of the United States of America to taxation by the United States of interest on bonds issued by the city, in obtaining federal benefits;
(15) 
To fund administration expenses:
(A) 
By the establishment and collection of an application fee to be a minimum of one thousand two hundred fifty dollars nonrefundable, plus an additional amount equal to a percentage of the amount of bonds to be issued, the amount to be established by the governing body in the rules and procedures; the additional amount will be refunded if the governing body does not provide preliminary approval to the project,
(B) 
By the acceptance of funds and other aid from the city and from other governmental sources authorized to provide such funds or aid,
(C) 
By the acceptance of contributions from business, trade, labor, community, or other associations, and
(D) 
By other authorized means.
(Ord. 82-O-115, 1982)
Companies may apply for financing pursuant to this chapter by filing with the city an application therefor which is in accordance with rules, regulations, forms, procedures, resolutions, and applications to be approved by the governing body and includes all of the following:
(1) 
Such financial, legal, and other information as is required by the city;
(2) 
An estimate of the maximum amount of bonds proposed to be issued, of the sources of amounts otherwise required for the project, and an itemization of the estimated cost and any other expenses;
(3) 
Sufficient other information as is necessary to a determination required to be made by subdivision (c) of Section 3.06.070.
(Ord. 82-O-115, 1982)
(a) 
Applications for projects or companies not in accordance with the reasonable priorities and criteria which the city may establish need not be accepted and further processed by the city.
(b) 
Acceptance of any application in no way obligates the city to preliminarily undertake the project proposed.
(c) 
Upon acceptance of any application, the governing body shall determine whether it is likely that the undertaking of the project will be a substantial factor in the accrual of any of the public benefits from the use of the facilities as proposed in the application, whether the activities or uses are in accord with Section 3.06.030, and whether the project is otherwise in accord with the purposes and requirements of this chapter.
(d) 
Upon an affirmative determination under subdivision (c) of this section, the governing body shall adopt a resolution of inducement. A copy of the resolution and a copy of the application as then amended or supplemented, so certified by the city clerk, shall be filed with the city, and a notice of the acceptance of the application and the filing with the city, naming the company, stating the estimated maximum bond issue and briefly summarizing the proposed project, shall be published pursuant to Section 6061 of the Government Code of the state.
(e) 
The company, not the city, shall be deemed the proposer of any project, a copy of the application for which is filed pursuant to subdivision (d) of this section.
(f) 
Action to approve or disapprove a project shall be taken within forty-five days of the publication provided in subdivision (d) of this section.
(g) 
Upon such approval, certification thereof by the clerk or deputy clerk of the city shall be made to the city, and copies of all assessments, supporting studies, notices, certifications, declarations and environmental impact reports, and statements of the lead agency and any responsible agency in connection with environmental matters shall be transmitted to the city.
(Ord. 82-O-115, 1982)
(a) 
A project shall be deemed to have been preliminarily undertaken by the city when the application has been accepted, the affirmative determinations required by subdivision (c) of Section 3.06.070 have been made, the approval of the city by resolution of inducement has been obtained, and a period of forty-five days from the date of publication of the notice referred to in subdivision (d) of Section 3.06.070 has expired.
(b) 
Preliminarily undertaking a project means that when the affirmative determinations required by subdivision (c) of Section 3.06.070 have been made, the city shall undertake the project by entry into project agreements.
(Ord. 82-O-115, 1982)
The city shall undertake projects by entry into project agreements in substance not inconsistent with the following:
(1) 
The company shall comply with (or cause to be complied with) all legal requirements relating to the project and the operation, repair and maintenance of the facility, including:
(A) 
Obtaining any rezonings or variances, building, development, and other permits and approvals, and licenses and other entitlements for use, without regard to any exemption for public projects; and
(B) 
Securing the issuance of any certificates of need, convenience, and necessity or other certificates or franchises; and shall provide satisfactory evidence of compliance.
(2) 
The company shall comply with all conditions imposed by the city in its approval of the project pursuant to subdivision (f) of Section 3.06.070.
(3) 
The company shall provide, or cause to be provided by others, all amounts required for the project and all property of the project which are not to be provided as or by expenditure of bond proceeds, and in the case of any such amounts and property which the company proposes to cause to be provided by others, as by contract, grant, subsidy, loan, or other form of assistance, shall provide satisfactory evidence that such amounts and property will be provided when required.
(4) 
Expenditure of bond proceeds shall be supervised to assure proper application to the project.
(5) 
The company shall at its own expense insure, repair, and maintain the facility, pay such taxes with respect to its interests in the property of the project as the provisions of Division 1 (commencing with Section 101) of the Revenue and Taxation Code of the state require, and pay assessments and other public charges secured by liens, upon such interests as constitute the tax base for property taxation on the same basis as other property, or shall cause the same to be provided by others to the satisfaction of the city.
(6) 
The amounts payable under the project agreements to, or for, the benefit of the city shall in the aggregate not be less than amounts sufficient:
(A) 
To pay any bonds that shall be issued by the city to pay the cost of the project;
(B) 
To maintain any required reserves;
(C) 
To make payments as may be required into any sinking fund or other similar fund; and
(D) 
To pay those administration expenses which relate to the administration of the project agreements, the indenture, and the bonds.
(7) 
The term shall extend at least until the date on which all such bonds and all other obligations incurred by the city in connection with a project shall have been paid in full or adequate funds for such payment shall have been otherwise provided.
(8) 
Such additional provisions as in the determination of the governing body are necessary or appropriate to effectuate the purposes of this chapter including provisions:
(A) 
For payments under the project agreements which include amounts for administration expenses in addition to the amounts which the agreement is required to obligate the company or others to pay, which are incurred by the city subsequent to the preliminary undertaking of the project by the city;
(B) 
For payment before a facility exists or becomes functional, or after a facility has ceased to exist or be functional to any extent and from any cause;
(C) 
For payment regardless of whether or not the company is in possession or is entitled to be in possession of the facility;
(D) 
For payment by the company of all necessary and related fees;
(E) 
Relating to the carrying out and completion of the project, including the allocation of responsibility between the city and the company regarding the acquisition of property, the making of the other purchases, and the contracting for construction of the project, with or without competitive bidding, and the payment therefor;
(F) 
That some or all of the obligations of a company shall be unconditional and shall be binding and enforceable in all circumstances whatsoever notwithstanding any other provision of law; and
(G) 
Relating to the use, maintenance, repair, insurance, and replacement of property of the project, such as the city and the company deem necessary for the protection of themselves or others, including, but not limited to, liability insurance, and indemnification in the event of default.
(9) 
The company shall provide for the payment of relocation assistance as provided by Chapter 16 (commencing with Section 7260) of Division 7 of Title 1 of the Government Code of the state, and shall reimburse the city for relocation assistance services, and notwithstanding any other provision of this chapter, the city shall determine that such services are provided and that relocation assistance payments are made.
(10) 
Notwithstanding any other provision of this chapter, projects developed pursuant to this chapter shall be consistent with the requirements of the general plan at the time of entry into the project agreement, or in the event inconsistent at that time, then at the time of sale of any bonds.
(Ord. 82-O-115, 1982)
No company shall, by reason of any project agreement, be deemed the agent of the city in the carrying out of such agreement unless (and in such case only to the extent) such agreement specifically provides otherwise.
(Ord. 82-O-115, 1982)
(a) 
All bonds issued by the city for a project shall be special obligations only of the city, payable solely out of the revenues or out of the other sources specified in the proceedings.
(b) 
The bonds prescribed by subdivision (a) of this section may:
(1) 
Be executed and delivered by the city at any time and from time to time;
(2) 
Be in such type and denominations and of such terms and maturities;
(3) 
Be in registered or bearer form either as to principal or interest or both and carry such conversion and reconversion privileges;
(4) 
Be payable as term bonds or in such installments and at such time or times not exceeding forty years from the date thereof;
(5) 
Be payable in such mediums and at such place or places within or without the state;
(6) 
Bear interest on such amount or amounts, payable at such time or times and at such place or places within or without the state, evidenced in such manner and at such rate or rates not exceeding the maximum rate permitted by the Constitution and statutes of the state for loans of any kind;
(7) 
Be sold below the par or face value thereof;
(8) 
Be exchangeable for, or issuable in lieu of, such bonds;
(9) 
Be issuable in temporary form pending preparation of and exchange for definitive bonds;
(10) 
Be executed by such officers, be authenticated, and contain such provisions not inconsistent with this chapter; all as shall be provided in the proceedings.
(c) 
If deemed advisable by the governing body, there may be retained in the proceedings an option to redeem prior to maturity all or any part of any bonds as may be specified in such proceedings, at such price or prices and after such notice or notices and on such terms and conditions as may be set forth in such proceedings and as may be briefly recited in the bond. Nothing in this chapter shall be construed to confer on the city any right or option to redeem any bonds, except as may be provided in the proceedings under which they shall have been issued.
(d) 
Issuance by the city of one or more issues of bonds for one or more purposes shall not preclude it from issuing other bonds in connection with the same project or any other project, subject to such agreements with bondholders as may then exist.
(e) 
Any bonds of the city at any time outstanding may at any time, and from time to time, be refunded, including the payment of any redemption premium and accrued interest to the date of redemption, by the city by the issuance of its refunding bonds in such amount as the governing body may deem necessary or appropriate. Bonds may be issued as one issue for refunding and other authorized purposes. Any refunding may be effected whether the bonds to be refunded shall have then matured or shall thereafter mature, either by sale of the refunding bonds and the application of the proceeds to the payment, purchase or redemption of the bonds to be refunded thereby, or to the investment in securities or obligations yielding amounts sufficient to pay or redeem the bonds to be refunded thereby, or by the exchange of the refunding bonds for the bonds to be refunded thereby with the consent of the holders of the bonds so to be refunded and with such cash adjustments as may be agreed, and regardless of whether or not the bonds proposed to be refunded shall be payable at the same date or different dates or shall be due serially or otherwise.
(f) 
Each bond shall be deemed to be an investment security under the Uniform Commercial Code and a negotiable instrument, subject only to any provisions thereof for registration or other provisions restricting transfer, and shall be deemed to have been issued for an authorized purpose of the city in exercise of the powers granted by this chapter.
(Ord. 82-O-115, 1982)
In the discretion of the city, any bonds issued under the provisions of this chapter may be secured by an indenture by and between the city and a corporate trustee which may be any trust company or bank having the powers of a trust company within or without the state. Such indenture may vest in bondholders the right to remove and appoint a new trustee. The trustee may at any time own all or any part of the bonds, unless otherwise provided in the indenture. Such indenture may vest in such trustee, in trust or as agent, as provided therein and as consistent with other provisions of this section, property, rights, powers and duties, and may pledge or assign the revenues, the project agreements and any other rights as security for repayment of the bonds, subject to such agreements with bondholders as may then exist. Such indenture may contain covenants of the city as to the acquisition of property, the disposition of any property, or part thereof, the subjecting of additional property to the lien thereof, the issuance of additional bonds, the custody, investment and application of all moneys, the creation and maintenance of reserves, the disposition of insurance or condemnation proceeds, and the use of surplus bond proceeds. Any such indenture may define events of default thereunder, which may include events of default by a company under the project agreements, may specify the action to be taken by the trustee upon an event of default, may set forth the rights and remedies of the bondholders and of the trustee, and may restrict the individual right of action by bondholders. In addition, any such indenture may contain such other provisions as the governing body may deem reasonable and proper and which relate in any way to the security or protection of bondholders. All expenses incurred in carrying out the provisions of such indenture shall be treated as an administration expense. Any lien or other interest established by any indenture shall be valid and binding from the date thereof, and any revenues or amounts to cover administration expenses thereafter received by, or on behalf of, the city or trustee thereunder shall immediately be subject to the lien thereof without any further act, which lien shall be valid and binding as against all persons, irrespective of notice, without any filing or recording except a filing in the records of the city. All revenues, excepting (unless otherwise provided) bond proceeds, shall further be deemed to be trust funds and all revenues shall be held and applied solely as provided in such indenture, but no bondholder shall, as such, be in any manner obligated to see to the proper application thereof.
(Ord. 82-O-115, 1982)
The issuance of bonds shall be authorized by resolution of the governing body adopted at any time following the deliberations and approval provided for in Section 3.06.070. The resolution may, as the governing board deems advisable and in accordance with the provisions of this chapter, provide, or authorize the execution of an indenture providing for:
(1) 
The fixing and collection of revenues;
(2) 
The creation and maintenance of special funds including reserve and sinking funds;
(3) 
Limitations on expenditures of bond proceeds;
(4) 
The procedure, if any, by which any contract represented by bonds may be amended or aggregated;
(5) 
The acts and omissions which shall constitute, and the rights and remedies available, in an event of default; in such an event of default, the obligations of the city may be enforced by mandamus, by the appointment of a receiver, by foreclosure of, or sale under, any indenture, by injunction, by specific performance, by equitable relief, or by any one or more of such remedies, or any other appropriate remedy; and
(6) 
Any additional matters authorized to be included in an indenture or which relate to the security, protection, or return of bondholders.
(Ord. 82-O-115, 1982)
Bonds may be sold at such prices above or below the par value thereof as the governing body directs, at public or private sale.
(Ord. 82-O-115, 1982)
(a) 
None of the bonds shall be deemed to constitute a debt or liability of the city, the state or any public agency, or a pledge of the faith and credit of the city, the state or any public agency, but shall be payable solely from the funds provided therefor in the proceedings.
(b) 
The issuance of bonds shall not directly or indirectly or contingently obligate the city, the state or any public agency to levy or to pledge any form of taxation whatsoever therefor or to make any appropriation for their payment.
(c) 
All bonds shall contain on the face thereof a statement to the following effect:
Neither the faith and credit nor the taxing power of the State of California or the City of Placentia is pledged to the payment of the principal of, premium, if any, or interest on any bond, nor is the state or such City in any manner obligated to make any appropriation for payment.
(d) 
Neither the members of the governing body nor any persons executing the bonds shall in any event be subject to any personal liability or accountability by reason of the issuance of such bonds.
(e) 
The bonds shall only be a special obligation of the city as provided by subdivision (a) of Section 3.06.110, and the city shall under no circumstances be obligated to pay bonds or project costs (other than administration expenses), except from revenues and other funds received under the project agreements for such purposes, nor to pay administration expenses except from funds received under project agreements for such purposes or from funds which are made available as otherwise authorized by the proceeding or by law.
(Ord. 82-O-115, 1982)
At such time as all obligations under project agreements respecting any particular project have been satisfied or otherwise discharged or adequately provided for and all the bonds issued to finance such project have been repaid, and all other obligations of the city of any nature whatsoever with respect to such project have been satisfied or otherwise discharged or adequately provided for the city is authorized to execute such deeds and conveyances as may be necessary to convey the project to the company and shall retain any remaining funds and properties which were derived from or are attributable to such project.
(Ord. 82-O-115, 1982)
This chapter, being necessary for the welfare of the city and its inhabitants, shall be liberally construed to effect its purposes.
(Ord. 82-O-115, 1982)
An action may be brought pursuant to Chapter 9 (commencing with Section 860) of Part 2 of Title 10 of the Code of Civil Procedure of the state, to determine the validity of this chapter, and of bonds, proceedings, project agreements, or indentures, including, without limiting the generality of the foregoing, the legality of all proceedings theretofore taken for or in any way connected with the establishment of the city and its authorization to transact business and exercise its powers, and also including the legality of all proceedings, as proposed to be taken in the proceedings, project agreements, and indentures theretofore undertaken, for the authorization, issuance, sale, and delivery of bonds and the payment thereof and interest thereon, and all such matters respecting which an action may be brought pursuant to such chapter shall be subject to the provisions thereof regarding validity and incontestability.
(Ord. 82-O-115, 1982)
(a) 
The council finds and declares that small businesses may have difficulty establishing adequate security for bonds issued by the city in their behalf; that establishing common reserve funds will help to provide reasonable security for such bonds and will help to make the city's services available to various small businesses which may be otherwise unable to use them.
(b) 
For the purpose of establishing and maintaining such common reserve funds as it deems necessary or desirable to secure its bonds or any issuance thereof, the city, pursuant to its project agreements with companies, may levy fees or other charges on, or require deposits from, companies receiving financing for projects under this chapter. Prior to levying any such fees or charges or requiring such deposits, the city shall adopt regulations for the operation of the common reserve funds and governing the amounts and any payment schedule for such fees, charges, or deposits.
(c) 
Subject to any prior contractual obligations to any of its bondholders, the city may establish one or more common reserve funds for any or all of its bonds.
(d) 
Each common reserve fund established pursuant to this section shall be deposited in a special account.
(Ord. 82-O-115, 1982)
The adoption of this chapter, without further action, shall confer no rights on any person whatsoever, and the city shall have the right to accept or reject, in its absolute discretion, any application for assistance pursuant to this chapter.
(Ord. 82-O-115, 1982)