Merced Municipal Code Ch. 13.66 Financing Facilities

The city is recognized to have all powers pursuant to and as may be limited by the city Charter which are necessary or appropriate for carrying out the purposes of this division, including, without limitation, the following powers, together with all powers incidental thereto:

A. To acquire property by purchase, exchange, gift, lease, contract, or otherwise, including eminent domain;

B. To maintain property;

C. To dispose of property by lease, sale, exchange, donation, release, relinquishment, or otherwise;

D. With respect to property, to:

1. Charge and collect rent under any lease;

2. Sell at public or private sale, with or without public notice:

3. Sell at a premium or discount above or below appraised value or for a nominal consideration;

4. Sell on an installment payment or a conditional sales basis;

5. Convey, or provide for the transfer of property without further act of the city, upon exercise of an option; and

6. 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; provided, however, this subsection shall be operable only to the extent permitted by the city Charter;

E. To encumber property, including funds, whether then owned or thereafter acquired;

F. To advance funds secured by loan agreements and charge and collect interest on such funds;

G. To exercise all rights and to perform all obligations of the city under the project agreements and resolution of issuance, 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 resolution of issuance;

H. To borrow money and issue its bonds for the purpose of paying all or any part of the costs of a project, as provided in this division;

I. To pledge the revenues or any portion thereof, and all other rights, as security for the payment of any bonds so issued and for performance of obligations under a resolution of issuance;

J. To contract and pay compensation for professional, legal, financial and other services;

K. To refund outstanding, bonds when there is a finding that such refunding will be of benefit to a company or holders of such bonds, subject to the provisions of the proceedings for the issuance thereof to the extent permitted by law;

L. To invest and reinvest funds, including bond proceeds, pending application thereof to the purposes for which such bonds shall have been issued, subject to the provisions of the proceedings for the issuance thereof.

M. To acquire and hold obligations of any kind and pledge or assign the same as further security;

N. To fund administrative expenses:

1. By the establishment and collection of application processing and other fees in such amounts as may be established by the city council from time to time,

2. By the acceptance of funds and other aid from governmental sources authorized to provide such funds or aid,

3. By the acceptance of contributions from business, trade, labor, community and other associations, and

4. By other legal means;

O. 1.

To make a loan and/or loans to a company pursuant to a resolution of issuance and a project agreement, and such loan or loans may be secured by a mortgage or such other security interests as deemed advisable by the city, may contain the unconditional promise of the company to so make payments or may be Guaranteed by such other means as approved by the city,

2. To lease facilities and/or property to a company with an option for the company to purchase such facilities and/or property at the end of the lease term at such price as may be determined by the city,

3. To enter into lease-leaseback financings with companies on such terms as may be provided in the resolution of issuance and the project agreements, and

4. To enter into installment sale agreements with a company for facilities constructed by the city, with title to pass from the city to such company upon entering into such agreement or upon payment in full of the principal and interest on bonds;

P. To exercise the city's right of eminent domain in implementing the intent of the city by adopting this division, to the extent possible and in the manner required in the city Charter and applicable state laws.

(Ord. 1417 § 1 (part), 1981: prior code § 14A.303).

The city shall not have the power to operate any facilities as a business.

(Ord. 1417 § 1 (part), 1981: prior code § 14A.304).

Upon this division becoming effective, the city clerk shall publish in a newspaper of general circulation within the city, a notice setting forth substantially the following:

A. That the city has duly adopted and approved this division seeking to promote industrial growth within the city so as to encourage increasing long-term employment for the residents thereof;

B. That on and after the effective date of this division, the city will accept applications on forms approved by the city from companies interested in entering into project agreements for the financing of facilities hereunder; and

C. That the city will review such applications and determine the feasibility of each project so submitted and will undertake to commence the financing thereof as soon as practicable.

(Ord. 1417 § 1 (part), 1981: prior code § 14A.305).

The city council shall provide, by resolution, rules and regulations setting forth the details of the procedures for the implementation of this division, including therein, without limitation, a form of application, the criteria for evaluation and approval of the applications, the procedures for processing applications and the deposits, fees and charges to be made hereunder and the uses of same, or any fund or funds derived therefrom.

(Ord. 1417 § 1 (part), 1981: prior code § 14A.306).

Private industrial, manufacturing or commercial concerns may apply for financing pursuant to this division by filing an application with the city on such forms and with the city as specified pursuant to Section 13.66.040 and shall include, without limitation, all information necessary to evaluate the financial reliability and stability of the enterprise, to verify that long-term employment of local residents, will, in fact, be increased, and to determine that the city will receive a substantial benefit that exceeds any detriment incurred. The application shall also include the following:

A. 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 costs and any other expenses;

B. The application shall be supplemented with a commitment by the company to comply, and/or to assist the city in complying, with all state and federal laws in the issuance of the bonds, including, without limitation, the making of any required application to a governmental department, for authorization, qualification, or registration of the offer, issuance, or sale of the bonds, and any amendments thereto, and any permit or other authorization of such governmental department, prior to the delivery by the city of such bonds:

C. The application shall be supplemented with a commitment by the company to cause and/or to assist the city in causing to be printed any prospectus or other written or printed communication proposed to be published in connection with the issuance, offer, or sale of bonds, prior to the delivery by the city of such bonds, and, if deemed necessary by the city, following the delivery of such bonds;

D. All commitments by the company shall specifically provide for the company to pay all expenses in connection with the issuance, offer or sale of the bonds, whether or not they are finally issued, to hold the city harmless from any and all expenses and liabilities related thereto and to pay items on an ongoing basis so that neither the city, nor its advisors, attorneys, employees and the like will accumulate any claims against the city; and

E. All additional information, agreements and undertakings as the city may require which are submitted to the city by a company shall be reproduced in written, printed, or other tangible form, shall be supplied in as many copies as the city prescribes and shall be deemed supplements or amendments to the application.

(Ord. 1417 § 1 (part), 1981: prior code § 14A.307).

A. Applications for projects by companies not reasonably in accordance with the requirements of this division need not be accepted and further processed.

B. Receipt of any application in no way obligates the city to preliminarily undertake the project proposed.

C. Upon receipt of any application, the city shall review each application and shall determine compliance with the purposes of this division and with the criteria established pursuant hereto, and such review shall include the making of the appropriate determinations, including, without limitation, the determination that it is likely that the undertaking of the project by the city will be a substantial factor in the accrual of each of the public benefits from the use of the facilities as proposed in the application.

D. Upon an affirmative determination under subsection C of this section, a copy of the application, as then amended or