Economic Development Program Manual
ORDINANCE No. 12-11-01
AN ORDINANCE OF THE CITY OF GRANT, PERKINS COUNTY, NEBRASKA, CONTINUING THE ECONOMIC DEVELOPMENT PROGRAM FOR THE CITY OF GRANT; ESTABLISHING THE TERMS AND CONDITIONS THEREOF; REPEALING ALL ORDINANCES OR PARTS OF ORDINANCES IN CONFLICT HEREWITH; AND PROVIDING WHEN THIS ORDINANCE IS IN FULL FORCE AND EFFECT
BE IT ORDAINED, BY THE MAYOR AND CITY COUNCIL FOR THE CITY OF GRANT, THAT:
SECTION 1.
The City hereby continues the Economic Development Program for the City of Grant (previously established by Ordinance No. 02-04) pursuant to the electorate of the City approval to continue the program by appropriating from the annual property tax at an election held on November 6, 2012.
SECTION 2.
The Program is continued for the purposes and under the terms and conditions as stated in Exhibit 1 "First Continued Grant City Economic Development Program" as attached.
SECTION 3. REPEAL OF ALL CONFLICTING ORDINANCES.
All ordinances or parts of ordinances in conflict herewith are hereby repealed.
SECTION 3. WHEN THIS ORDINANCE SHALL BE EFFECTIVE.
This ordinance shall be in full force and effect from and following the passage and publication hereof in pamphlet form as required by law and as stated in the attached exhibit.
PASSED, APPROVED, and ADOPTED on this 8th day of January 2013.
FIRST CONTINUED GRANT CITY ECONOMIC DEVELOPMENT PROGRAM
SECTION 1. CONTINUING GRANT ECONOMIC DEVELOPMENT PROGRAM:
The general strategy for the Economic Development Program and the effort to be undertaken under the Local Option Municipal Economic Development Act (Neb. Rev. Stat. §§18-2701 to 18-2739 and hereinafter referred to as the "ACT") is to build on the community's strength, to promote businesses, and industry, and the retention and creation of employment for the community. The strategy is to maintain a good quality of life for our citizens, develop a strong workplace, develop our community's resources, attract new capital investment, broaden the community tax base, and insure economic stability for the City of Grant.
Grant is faced with the continued loss of businesses, jobs, and opportunities. Grant meets the challenge this economic loss presents in order to replace and secure job opportunities within the community. Additional local dollars are needed to compete with other sites available to industry and business, along with financial participation by the State of Nebraska and the Federal Economic Development Administration.
The Local Option Municipal Economic Development Program provides additional financial support to make it economically feasible to recruit, grow, and expand industry, and business for our community. This effort is particularly important to the City of Grant and this program is necessary to help replace and secure businesses and opportunities lost to the City, employment for our citizens and to insure stability and growth. It is the goal of this effort to secure the essential local participation in the financial partnership required to carry out this plan.
An economic development program for the City of Grant is established (hereinafter the "Grant Local Option Economic Development Program" (or "PROGRAM"). This PROGRAM is in conformity with the proposed Economic Development Program Plan identified in adopted Grant Resolution Number 12-08-06 and the Nebraska Local Option Municipal Economic Development Act (Neb. Rev. Stat. 18-2701 et. seq].
SECTION 2. PROGRAM TERMS:
A. DURATION. The First Continued Grant Economic Development Program will begin at the termination of the original Program on October 1, 2013 and end on September 30, 2023. However, uncommitted funds and revenues including but not limited to repayment of loans, return on investments, fees for activities such as loan guarantees, and sales proceeds from properties, may continue to be used for PROGRAM approved activities for an additional ten (10) year period. Thus, the PROGRAM shall remain in effect until September 30, 3033 for PROGRAM approved activities.
B. FUNDING.
1. SOURCES OF REVENUE. The local sources of revenue for the Grant Economic Development Program are the annual property taxes.
C. BUDGETING.
1. ANNUAL BUDGET. The Budget for the PROGRAM shall be established annually by the governing body of the City of Grant from the annual property taxes but shall not exceed twenty five thousand dollars ($25,000.00) annually.
2. PROGRAM FUNDS. There is hereby continued the established and separate PROGRAM FUND. All funds derived from local sources of revenue for the PROGRAM, any earnings from the investment of such funds including, but not limited to, interest earnings, loan payments, and any proceeds from the sale or rental by the city of assets purchased by the PROGRAM shall be deposited into the PROGRAM fund. No money in the PROGRAM fund shall be deposited in the general fund of the City. The City shall not transfer or remove funds from the PROGRAM fund other than for the purposes prescribed in the Local Option Municipal Economic Development Act, and the money in the PROGRAM fund shall not be commingled with any other city funds. Any money in the PROGRAM fund not currently required or committed for purposes of the PROGRAM shall be invested as provided in the PROGRAM and according to Nebraska law.
3. APPROPRIATED FUNDS & RESTRICTIONS TO APPROPRIATION.
a) The City may appropriate funds for the PROGRAM from the estimated annual property taxes and carry over funds and PROGRAM revenues from repayment of loans, sale and return of investments, fees, leases, etc. All PROGRAM funds shall be held in a fund separate from other funds of the City and which shall be known as the "PROGRAM FUND".
b) The City shall not appropriate from funds derived directly from local sources of revenue for the PROGRAM in any year, an amount in excess of twenty five thousand dollars ($25,000.00) or four-tenths of one percent (.004) of the taxable valuation of the City in the year in which the funds are collected, whichever is less. Furthermore, the City shall not appropriate from funds derived directly from local sources of revenue an amount for the PROGRAM in excess of the total amount approved by the voters. These restrictions on the appropriation of funds from local sources of revenue as set out in subsections apply only to the appropriation of funds derived directly from local sources of revenue and not received from PROGRAM investments, grants, or other forms of funding, or funds which were appropriated but not expended during previous fiscal years.
c) Any funds in the PROGRAM fund not otherwise restricted from appropriation by reason of the City's ordinance governing the PROGRAM or State statute may be appropriated and spent for the purposes of the PROGRAM in any amount and at any time at the discretion of the City Council subject to the annual budget.
4. EXPENSES. PROGRAM expenses may include (but are not limited to), loans, property acquisitions, grants, recruitment, technical assistance, infrastructure, administration, qualifying programs as defined in the PROGRAM, and other expenses allowed by the Nebraska Local Option Municipal Economic Development Act. Expenses shall not exceed the funds annually appropriated in the annual budget for the PROGRAM.
5. OTHER ECONOMIC FUNDS. Appropriations and expenditures made by a city which are authorized by Neb. Rev. Stat. §13-315 and made according to its provisions are not subject to the Local Option Municipal Economic Development Act and shall be kept separate and distinct from PROGRAM funds.
D. INVESTMENTS. PROGRAM funds not currently required or committed for purposes of the PROGRAM shall be invested in secure investments (insured deposits, collateralized deposits, securities issued by the United States Government or guaranteed by the United States Government securities of political subdivisions of the State of Nebraska, securities issued by United States Government agencies) to assure availability of funds to meet program requirements. To the extent possible local financial institutions shall be utilized for deposit and investment of funds.
E. AUDIT. The City Council shall provide for an annual, outside, and independent audit of this PROGRAM by a qualified private auditing firm or individual pursuant to the requirements of the Nebraska Local Option Municipal Economic Development Act. The auditing business shall not, at the time of the audit or for any period during the term subject to the audit, have any contractual or business relationship with any qualifying business receiving funds or assistance under the PROGRAM or any financial institution directly involved with a qualifying business receiving funds or assistance under the PROGRAM. The results of said audit shall be filed with the City Clerk and made available for public review during normal business hours.
F. ADMINISTRATION. The PROGRAM shall be administered as follows:
1. THE PROGRAM ADMINISTRATOR. The Mayor of the City of Grant with approval of the City Council shall appoint the Program Administrator for the Grant Economic Development Plan. The Program Administrator's duties shall include:
a) Responsibility for the day-to-day activities of administering the PROGRAM.
b) The Program Administrator recommends the annual budget of the PROGRAM to the Council, and is responsible for PROGRAM compliance to the approved budget;
c) Assist applicants and conduct active recruiting for potential applicants;
d) Serve as a non-voting member of the Citizen Advisory Review Committee. The Program Administrator shall provide this committee with necessary advice and information, and will prepare and submit reports, requests, and concerns of this Committee to the Council;
e) Maintain all files required by the PROGRAM at the City offices, and keep separate a file of all real estate, infrastructure and construction projects funded by the PROGRAM;
f) Take appropriate action to maintain the integrity of the PROGRAM and its funds, including retaining experts to invest, audit and collect PROGRAM funds.
g) The Program Administrator shall review the recommendations of the Citizens Advisory Review Committee and either accept and follow its recommendations or submit the recommendations to the City council for further action.
h) The decision of the City Council is a final action. If disapproval or renegotiation is recommended by the Program Administrator or the City Council, specific reasons shall be cited.
2. CITIZENS ADVISORY REVIEW COMMITTEE:
a) The Citizen Advisory Review Committee shall consist of no less than five (5) nor more than (10) citizens who are registered voters of the City of Grant, and the PROGRAM Administrator who shall be a non-voting ex officio member. The term of the Committee members shall be for (4) years. The committee members shall be appointed by the Mayor with approval for the City Council. At least one member of the Committee must have expertise or experience in the field of business, finance, or accounting. No appointed member of the citizen's advisory review committee shall be an elected or appointed city official, an employee of the city, a participant in a decision making position regarding expenditures of program funds, or an official or employee of any qualifying business receiving financial assistance under the economic development program or of any financial institution participating directly in the economic development program.
b) The Citizens Advisory Review Committee will meet as required to review applications, recommendations or concerns by the Program Administrator, to review loan applications, monitor existing loans, and to review the PROGRAM (but no less than quarterly).
c) This Committee shall report to the City Council on its findings, suggestion, and recommendations at such times it determines necessary or at any time the City Council or Mayor requests.
d) The Citizens Advisory Review Committee shall submit semi¬annual accountings, findings and summaries at a public hearing called for that purpose at the first regular scheduled meeting in January and July. The Committee shall assure that the annual PROGRAM audit includes information necessary for a complete audit of the Loan Program.
e) The Citizens Advisory Review Committees is in charge of the primary administration of the Loan Program. It will monitor the individual loan accounts of the Loan Program, and make a recommendation to the Program Administrator what is necessary for the applicant to accomplish a successful loan (in making the recommendation, the Committee shall consider collateral and other security, business plans, outside income, and other criteria it believes is necessary for a successful loan repayment, and may also recommend alternatives to a standard loan, additional information, and documents necessary for a valid loan, including security documents).
f) The Citizens Advisory Committee shall submit to the Mayor and City Council concerns as to impropriety, fraud, or deceit in the PROGRAM.
3. GRANT CITY COUNCIL. The Grant City Council (governing body):
a) Approves the annual budget for the PROGRAM;
b) Approves expenditures of the PROGRAM funds. This approval shall be made in the form of a motion or resolution at a special or regular meeting of the City Council;
c) Has ultimate responsibility for the Grant Economic Development Program.
G. ELIGIBILITY. The Grant Economic Development Program may provide direct or indirect financial assistance to "qualifying businesses” for "eligible activities" as allowed by the Local Municipal Option Economic Development Act and the PROGRAM.
1. QUALIFYING BUSINESS. "Qualifying business" shall mean:
a) Any corporation, partnership, limited liability company, or sole proprietorship which derives its principal source of income from any of the following: the manufacture of articles of commerce; the conduct of research and development; the processing, storage, transport, or sale of goods or commodities which are sold or traded in interstate commerce; the sale of services in interstate commerce; headquarters facilities relating to eligible activities as listed in this section; telecommunications activities, including services providing advanced telecommunications capability; or tourism-related activities.
b) A business shall also be a qualifying business if it derives its principal source of income from the construction or rehabilitation of housing.
c) So long as the City has a population of two thousand five hundred inhabitants (2,500) or less, a business shall be a qualifying business even though it derives its principal source of income from activities other than those set out in this section including retail.
d) If a business which would otherwise be a qualifying business, employs people and carries on activities in more than one city in Nebraska or will do so at any time during the first year following its application for participation in an economic development program, it shall be a qualifying business only if, in each such city, it maintains employment for the first two years following the date on which such business begins operations in the city as a participant in its economic development program at a level not less than its average employment in such city over the twelve-month period preceding participation.
e) A qualifying business need not be located within the territorial boundaries of the City if the Grant City Council determines that there is a clear economic benefit to the City. Eligible qualifying businesses may apply more than once and receive program benefits more than once.
2. ELIGIBLE ACTIVITIES. "Eligible Activities" means those activities allowed by the Local Option Municipal Economic Development Act for the purpose of providing assistance to a qualified business or for related expenses of the PROGRAM. Eligible activities include, but are not limited to:
• Direct loans or grants to qualifying businesses for fixed assets or working capital or both;
• loan guarantees for qualifying business;
• grants for public works and infrastructure improvements which are essential to the location or expansion of, or the provision of new services by, a qualifying business, including, but not be limited to street, storm drainage, water, sewer, gas, electric or railroad extensions; grants or loans for job training;
• purchase of real estate, options for such purchases, and the renewal or extension of such options;
• issuance of PROGRAM qualified bonds payments for salaries and support of city staff to implement the PROGRAM or the contracting of such to an outside person or entity;
• business and industry recruitment;
• incentives for business and industry investment and job creation;
• purchase of commercial or industrial site(s) and obtaining options for the purchase of such real estate;
• grants or loans for construction of facilities, structures, and/or
• appurtenances for new or proposed qualifying business or for a speculative basis to attract new business or industry.
H. APPLICATION TO THE PROGRAM.
1. In order to be considered for PROGRAM benefits, a qualifying business shall first become an "Applicant" by applying to the City for assistance. The application shall contain information as required by the PROGRAM and any additional information as may be requested by the Program Administrator, the Citizen Advisory Review Committee, or the City Council.
2. Upon receipt of an application, the Program Administrator shall make a preliminary determination as to whether (1) the Applicant is eligible; (2) the proposed activities are eligible; (3) the Applicant has no legal actions underway that may significantly impact its capacity; and (4) the business complies with the provisions of the application guidelines.
3. Once the Program Administrator makes a determination that the application appears to be complete and viable, the application is referred to the Citizens Advisory Review Committee. Completed applications shall be submitted to the Committee in the same order they are received. The Citizen's Advisory Review Committee shall review the application to include any financial information furnished and provide recommendations to the Program Administrator concerning negotiations with the Applicant. Once the Citizens Advisory Review Committee has completed its review, and following any additional negotiations conducted by the Program Administrator, the Citizens Advisory Review Committee shall make a recommendation that (1) the application be approved, (2) the application be disapproved, or (3) the Committee is not able to make a recommendation due to lack of information or other factors to be cited by the Committee. Approval or Disapproval will be based on whether the Applicant is able to show (i) eligibility for funding, and (ii) that the type and level of assistance will not unduly enrich the business or be unreasonable in relation to the public benefit to be achieved from the funding. If the recommendation is "disapproval" or the Citizen Advisory Review Committee is "not able to make a recommendation", the reasons will be cited. Recommendations for disapproval by the Citizen Advisory Review Committee will be final, subject to review and possible approval by the City Council.
4. All recommendations of the Citizen Advisory Review Committee for approval of a project, the City Council shall generally not be presented with any information, which has been determined, by the Program Administrator or the Citizens Advisory Review Committee as "confidential". An Applicant, which has been awarded funding under the Program, shall be referred to as a "Funded Business". All decisions by the City Council will be deemed final, subject to review and modification by the City Council consistent with the contractual rights of any parties involved.
5. There shall be no limit on the number of times that a Qualifying Business may apply for assistance. Applications shall be received until all funds anticipated for the Program have been committed. The decision as to whether or not Program benefits shall be granted is at the sole discretion of the City Council.
6. The Citizen Advisory Review Committee and the Program Administrator shall develop guidelines and application forms for the procedures of applying and approval of projects that comply with this ordinance. These guidelines shall be approved by the Council and should require from the applicant at the minimum:
• A detailed description of the proposed project.
• A business plan, including employment and financial projects.
• Current financial statements, financing requirements for the project, and total project cost.
• A completed Program application for financial assistance.
• Additional information, necessary to determine the economic viability of the proposed project(s).
I. LOAN PROGRAM.
1. The Citizen's Advisory Review Committee in its recommendation to a particular loan shall include its recommendation for:
a) The time within which the loan applicant must meet goals set for it;
b) A determination when the loan shall be declared in default; and
c) The action to be taken to deal with a default in the loan.
2. For each loan there shall be kept in file at the City office records of said loan which include: the name of the borrower; purpose of the loan; the date of the loan; amount of the loan; date of disbursement of PROGRAM funds; interest rate; maturity date; frequency of payments; copy of loan documents, including notes, security documents, and guarantees; current accounting of payments, disbursements and balances; documentation of comments of Program Administrator, Citizens Advisory Review Committee, or City Council; and collection proceedings (if any). Any records or information of a loan or loan application that is identified as "confidential" shall be kept in a file cabinet at the City Office, which is secured for that purpose. Confidential information and records are those that have been identified as such by the applicant and not been released from such characterization by said applicant.
3. The Loan Program shall be audited annually by the PROGRAM auditor.
J. PROGRAM PROCEDURES FOR REAL ESTATE PURCHASE, INFRASTRUCTURE DEVELOPMENT, AND FACILITY CONSTRUCTION. Use of PROGRAM funds for the purchase of real estate, sites for development and construction of facilities, in addition to the procedures outlines elsewhere in the PROGRAM, shall follow these procedures:
1. PURCHASING REAL ESTATE AND COMMERCIAL OR INDUSTRIAL SITES. Eligible PROGRAM activities include the purchase or option to purchase of commercial or industrial site(s) and obtaining options for the purchase of such real estate. This real estate and sites may include land within or outside the corporate limits of the City of Grant. Said land to be purchased will be identified through local analysis by the City of Grant, and/or Industrial Site Evaluation teams organized by the Mayor and Council of the City of Grant, and/or by the Program Administrator for improvement to the attractiveness to the City of Grant for economic development to businesses and industry. The proposed real estate or site shall be properly zoned with no excessive easements, covenants, or other encumbrances, and conform to the City's comprehensive plan. These identified sites and real estate may then be considered for option or purchase and further development by the Citizens Advisory Review Committee with final authority to the City Council. Real estate purchased with PROGRAM funds shall be separately identified from other City real estate.
2. INFRASTRUCTURE. Eligible PROGRAM activities include the infrastructure to commercial or industrial sites, or proposed sites and real estate to be purchased by PROGRAM funds, or other sites to make them attractive to new or expanding businesses, or existing businesses that need alternative sites. Infrastructure improvements and costs may extend beyond the corporate limits of the City of Grant. Infrastructure includes, but is not limited to, street, storm drainage, water, sewer, gas, electric or railroad extensions. Application for PROGRAM funding for infrastructure may be made by the Program Administrator, the Citizens Review Committee, the Mayor, and/or the City Council. If bids are required for infrastructure projects they shall confirm the City bidding requirements for other City infrastructure projects.
3. CONSTRUCTION OF FACILITIES, STRUCTURES, AND OR APPURTENANCES. Eligible PROGRAM activities include the construction of facilities, structures, and/or appurtenances. The purpose of said construction is to provide new or proposed development or to attract new business or industry and may be used as an incentive to aid in the location, relocation, or expansion of a new or current business. These facilities, structures and appurtenances are not required to be within the corporate limits of Grant, Nebraska. Application for PROGRAM funding for construction may be made by the Program Administrator, the Citizens Review Committee, the Mayor, and/or the City Council. Final approval or rejection shall be made by the City Council by resolution. If bids are required for construction projects they shall confirm the City bidding requirements for other construction projects.
4. LEASE OR SALE OF PROGRAM REAL ESTATE, SITES, INFRASTRUCTURE, OR STRUCTURES. Any investment in land, infrastructure, and facility construction can provide an incentive for a business or industry to remain, relocate, or start in Grant while at the same time provide a benefit that will remain in the community. Developed industrial sites, buildings, and infrastructure will be of long-term benefit to the community regardless of future ownership. Thus, the real estate, sites, infrastructure, and facilities purchased with PROGRAM funds may be sold or leased at a price at or below current market value. The proceeds from the sale or lease of land purchased and developed may be used for the purchase and development of additional land or may be used for any and all other eligible activities. Upon approval of the City Council, the sale of land or businesses at market rate may be handled without application by the buyer to the PROGRAM. If the attraction of a new business or industry requires an incentive to ensure its location in Grant, the potential buyer may apply to the PROGRAM for other assistance. All sales of PROGRAM real estate, infrastructure, and facilities shall be approved by resolution of the City Council and said sales shall not be subject to the right of remonstrance or other requirements of the sale of real estate belonging to the City.
K. CONFIDENTIAL INFORMATION.
1. CONFIDENTIAL INFORMATION. Confidential information shall mean that information that is provided by an applicant, declared in writing to be confidential by said applicant, and which may be withheld from the public pursuant to Neb. Rev. Stat. §84-712.05.
2. PROCEDURES. The Program Administrator and Citizens Advisory Review Committee will be responsible for development of procedures to ensure the confidentiality of business information received from applicants for financial assistance. These will include a restriction on the number of people with access to the files with the responsibility for their safe keeping and requiring personnel involved in the program review to sign statements of confidentiality regarding all personal and private submission of applicants.
3. ACCESS TO CONFIDENTIAL INFORMATION. The Program Administrator, Citizens Advisory Review Committee, and the City Attorney shall have access to confidential information for their review for PROGRAM benefits. Said information shall be clearly identified as "confidential" by the Program Administrator and shall be kept in a separate secure file in the City office.
4. REMOVAL OF CONFIDENTIAL CHARACTERIZATION. The applicant may remove the 'confidential" characterization at any time in writing to the Program Administrator at which time said information shall be declassified.
5. FAILURE TO REMOVE CONFIDENTIAL CHARACTERIZATION. If it is determined by the Program Administrator that it is necessary for said "confidential" information be declassified to obtain PROGRAM benefits, the applicant shall be so notified. If applicant refused to declassify the information, no PROGRAM benefits shall occur, and the information shall be returned to the applicant.
6. PENALTY FOR FAILURE TO MAINTAIN CONFIDENTIAL INFORMATION. It shall be a Class III Misdemeanor and punishable as any other Class III Misdemeanor in the State of Nebraska for a person to disclose PROGRAM confidential information.
L. AMENDING THE PROGRAM.
1. AMENDING TO COMPLY WITH LAW OR THE PLAN. The ordinance adopting the PROGRAM may be amended to conform to the provisions of any existing or future state or federal law or after notice, at least one public hearing, and a two-thirds vote of the members of the governing body of the city, when necessary to accomplish the purposes of the adopted Grant Economic Development Plan.
2. FUNDAMENTAL ALTERATIONS. The PROGRAM shall not be amended so as to fundamentally alter its basic structure or goals, either with regard to the qualifying businesses that are eligible to participate, the uses of the funds collected, or the basic terms set out in the original enabling resolution, without submitting the proposed changes to a new vote of the registered voters of the City in the manner in which the PROGRAM plan was originally submitted to the voters.
M. CONTINUING AND TERMINATION THE PROGRAM
1. BY ELECTION. The registered voters of the City may, at any time after November 6, 2017 request a vote on the continuation of the PROGRAM. The procedure for this is:
a) The question shall be submitted to the voters whenever petitions calling for its submission, signed by registered voters of the city in number equal to at least twenty percent (20%) of the number of persons voting in the city at the last preceding general election, are presented to the City Council.
b) Upon the receipt of the petitions, the City Council shall submit the question at a special election to be held not less than thirty (30) days nor more than forty-five (45) days after receipt of the petitions, except that if any other election is to be held in such city within ninety (90) days of the receipt of the petitions, the governing body may provide for holding the election on the same date. Notwithstanding, if two thirds of the members of the City Council vote to repeal the ordinance establishing the economic development program within fifteen (15) days of the receipt of the petitions for an election, the economic development program shall end and the election shall not be held.
c) The City Council shall give notice of the submission of the question of whether to continue the economic development program not more than twenty (20) days nor less than ten (10) days prior to the election by publication one (1) time in one (1) or more newspapers published in or having a general circulation in the city in which the question is to be submitted. Such notice shall be in addition to any other notice required by the election laws of the State of Nebraska.
d) The question on the ballot shall generally set out the basic terms and provisions of the economic development program as required for the initial submission, except that the question shall be: "Shall the city of (name of the city) continue its economic development program?"
e) A majority of the registered voters voting on the question at the election shall determine the question. The final vote shall be binding on the city, and the governing body of the city shall act within sixty (60) days of the certification of the vote by the county clerk or the election commissioner to repeal the ordinance establishing the economic development program if a majority of the voters voting on the question vote to discontinue the program.
2. FAILURE TO USE FUNDS. If, after five full budget years following initiation of the PROGRAM (after budgeting in year 2012), less than fifty percent of the money collected from property taxes is spent or committed by contract for the PROGRAM, the governing body of the city shall place the question of the continuation of the PROGRAM on the ballot at the next regular election.
3. BY OTHER METHOD. The PROGRAM may also be discontinued by any other method that is described in the Local Option Municipal Economic Development Act.
4. CONTRACTUAL CONSEQUENCES OF TERMINATION. The repeal of the ordinance and the discontinuation of the PROGRAM shall be subject only to the provisions of any contracts related to the PROGRAM and the rights of any third parties arising from those contracts existing on the date of the election. Any funds collected by the city under the PROGRAM and unexpended for that PROGRAM on the date of its repeal and any funds received by the City on account of the operation of the PROGRAM thereafter shall be deposited in the general fund of the city.
5. PROGRAM FUNDS AFTER TERMINATION. The program fund shall not be terminated until such time as all projects and contracts related to the PROGRAM have been finally completed and all funds related to them fully accounted for, with no further City action required, and after the completion of a final audit. When the PROGRAM is terminated, the City Council shall by resolution certify the amount of money to be transferred from the PROGRAM fund to the general fund of the City and the amount that is anticipated will be received by the City between such time and the final audit of the economic development fund. The sum of those two amounts shall be divided by the number of years in which funds for the PROGRAM were collected from property taxes. The resulting figure shall constitute the amount to be applied against the budgeted expenditures of the city during each succeeding year until all funds from the PROGRAM are expended. The installments shall be used to reduce the property tax levy of the city by that amount in each year in which they are expended.
N. COMPLIANCE. To assure all applicable laws, regulations and requirements are met by the City and qualified business or industry; the following process shall be followed:
1. The Plan Administrator will be responsible for monitoring changes in the law and for the procedures to ensure that all applicable laws, regulations, and requirements are met by the City and the qualifying businesses that receive assistance. These procedures will be subject to review and approved by the Citizens Advisory Review Committee.
2. The City Council, City Advisory Review Committee, or Program Administrator may direct the City Attorney to review contracts, official documents, land transactions and other official actions related to the PROGRAM to ensure compliance with existing law and to monitor changes in the law to ensure future compliance.
3. Any provision, paragraph, section, sentence, or word of the PROGRAM that is found not to be in compliance with the Local Option Municipal Economic Development Act, another state or federal law, or the enabling resolution, may be stricken from the PROGRAM, and the remainder of the PROGRAM shall remain in full force and effect.