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outcome or recommendation of that pre-application review. <br />A request for pre-application review must be in writing, addressed to the City Administrator, and <br />set forth the name of the project, the type of project intended and the name, address and <br />telephone number of the person who will be representing the applicant at the pre-application <br />review, together with such additional information as the applicant desires to submit. <br />The City will appoint bond counsel for the bond issue, which will normally be the City's regularly <br />retained bond counsel. <br />2.4 Pursuant to the Industrial Development Act and the Housing Act, consideration of an application <br />for tax exempt financing must be done at a public hearing held by the Council. <br />2.5 The City is to be reimbursed and held harmless for and from any out-of-pocket expenses related <br />to the tax-exempt financing including, but not limited to, legal fees, financial advisor fees, bond <br />counsel fees, the City's expenses in connection with the application, and any deposits or <br />application fees required under state law in order to secure allocation of bonding authority. A <br />non-refundable application fee in the amount of $3,000 must be included with the submission of <br />the application. <br />Prior to closing and delivery of the bonds for the project, the applicant must pay to the City, or <br />commit to pay, as the case may be, a one-time administrative fee equal to the greater of <br />$10,000 or 0.50% of bond issue amount. Notwithstanding anything to the contrary herein, the <br />administrative fees required by this paragraph will be reduced to the extent needed to ensure <br />that the fee does not affect the tax-exempt status of the bonds under Internal Revenue Code of <br />1986, amended and related regulations. <br />2.6 Should the tax exempt financing request cause the City's total bonding for the year to exceed <br />$10,000,000 in a year that the City would otherwise be eligible to issue bank qualified bonds, <br />(bonds with tax incentives to banks), any interest rate differential between bank qualified and <br />non-bank qualified bonds shall be estimated and the difference paid by the borrower. If the City <br />would have exceeded this amount without the tax-exempt issue, no differential would be <br />calculated or paid by the borrower. <br />2. 7 Applications for financing must be made on the forms attached to these Guidelines. In addition, <br />the applicant must furnish a description of the project, together with a brief description of <br />applicant and the proposed financing in such form as required at the time of application. The City <br />will not review financial statements, nor form any opinions as to the financial success of the <br />proposed business plan. <br />2.8 The City may, in its sole discretion, withdraw its preliminary approval of a project any time if in its <br />judgment the purposes of the Act will not be served by going forward with the project and it's <br />financing <br />3.0 Other Matters <br />3.1 The City will give its most favorable consideration to proposed tax-exempt bond issues that have <br />the rating of "A" or better by Moody's Investment Service Standard & Poor's Corporation, Fitch <br />Ratings or Kroll Ratings. Issues carrying lower ratings or non-rated issues may be sold only to <br />institutional or other investors on a private placement basis and must be in denominations of at <br />least $100,000. The City Council may depart from this guideline when, in its judgment, the <br />project is of a level of merit and public purpose to justify the departure; and in the case of such a <br />departure, the City Council must state its reasons therefore in the resolution awarding the sale of <br />bonds. <br />2