Modesto Municipal Code Art. 1 General Provisions and Definitions

This chapter may be cited as the City of Modesto Economic Development Revenue Bond Law.

(Added by Ord. 2551-C.S., § 1, effective 11-19-87)

The Council hereby finds and declares that it is necessary and essential to the well-being of the City that it provide financial assistance to promote the economic development of the City. Such economic development will serve the following public purposes and municipal affairs of the City:

(a) The full and gainful employment of residents of the City;

(b) The full and efficient utilization and modernization of existing industrial, commercial, and business facilities;

(c) The development of new industrial, commercial and business facilities;

(d) The growth of the City's tax base through increased property values and consumer purchasing;

(e) The reduction of the need for and costs of welfare and other remedial programs;

(f) The reduction of urban ills, such as crime, attributable in part to inadequate economic opportunities;

(g) The stability and diversification of the City's economy;

(h) The lowering of the cost to City consumers of necessary goods and services;

(i) The environmentally optimum disposition of waste materials of the City; and

(j) The enhancement of the general economic prosperity, health, safety and welfare of the residents of the City.

The availability of the financial assistance authorized by this chapter will serve those purposes and the general plan of the City by providing private enterprises with new methods of financing capital outlays in the City and by ensuring that economic development within the City will reflect the local community's need and objectives and will be environmentally optimum with respect to both the physical and social environment of the City. The City shall promote such public interests pursuant to this chapter without adversely affecting areas outside the City and without conflicting with efforts by the State of California to solve problems of statewide concern.

(Added by Ord. 2551-C.S., § 1, effective 11-19-87)

Unless the context otherwise requires, the terms defined in this chapter shall have the following meanings:

(a) "Bonds" means the bonds, notes, certificates, debentures, and other obligations authorized to be issued by the City pursuant to this chapter and payable as provided in this chapter.

(b) "City" means the City of Modesto.

(c) "Cost" means the total of all costs incurred by or on behalf of a participating party to carry out all works and undertakings and to obtain all rights and powers necessary or incident to the acquisition, construction, installation, reconstruction, rehabilitation or improvement of a facility. "Cost" may include all costs of issuance of bonds for such purposes, costs for construction undertaken by a participating party as its own contractor, capitalized bond interest, reserves for debt service and for repairs, replacements, additions and improvements to a facility, and other working capital incident to the operation of a facility.

(d) "Council" means the City Council of the City of Modesto.

(e) "Facility" means any of the facilities, places or buildings within the City which are, or will be, maintained and operated for industrial, commercial or business purposes, conform to the general plan of the City and are approved by the City for the financing authorized by this chapter, such approval being given only when the City finds and determines that such financing will substantially promote one (1) or more of the public purposes listed in Section 8-5.102.

A "facility" may be an activity which may otherwise be financed pursuant to the California Industrial Development Financing Act (Government Code § 91500 et seq.) to the extent said Act permits the financing of such activity under alternative authority. "Facility" includes, without limitation, real and personal property, land, buildings, structures, fixtures, machinery and/or equipment and all such property related to or required or useful for the operation of a facility. "Facility" does not include any facility, place or building used or to be used primarily for sectarian instruction or study or as a place for devotional activities or religious worship.

(f) "Participating party" means any individual, association, corporation, partnership or other entity which is approved by the City to undertake the financing of the costs of a facility for which this chapter authorizes the issuance of the bonds.

(g) "Revenues" means amounts received by the City as payments of principal, interest, and all other charges with respect to a loan authorized by this chapter; as payments under a lease, sublease or sale agreement with respect to a facility; as proceeds received by the City from mortgage, hazard or other insurance on or with respect to such a loan (or any property securing such loan), lease, sublease or sale agreement; all other rents, charges, fees, income and receipts derived by the City from the financing of a facility authorized by this chapter; any amounts received by the City as investment earnings on moneys deposited in any fund securing the bonds; and such other legally available moneys as the Council may, in its discretion, lawfully designate as revenues.

(Added by Ord. 2551-C.S., § 1, effective 11-19-87)

Revenues, as defined by this chapter, and the expenditure of such revenues shall not be taken into account in any manner in determining the City's compliance with Article XIIIB of the California Constitution.

(Added by Ord. 2551-C.S., § 1, effective 11-19-87)