8.2 Policy IRB CITY OF SALINA
REQUEST FOR COMMISSION ACT ION
DATE
6/1/81
AGENDA SECTION:
NO. 8
ADMINISTRATION
ITEM
NO. 2
ORI GI NATI NG DEPARTMENT:
CITY MANAGER
IBY: Rufus L. Nye
TIME
4:00 P.M.
APP~ED. ~,~,~ ~ ~
The proposed Resolution #81- 3547 would revise the City's policy
relative to application for and issuance of Industrial Revenue
Bonds. A copy of Resolution 93419, which established the exist-
ing policy and procedures, is attached.
Attachments:
Resolution #81- 3547
Resolution 93419
COMMISSION ACTION
MOTION BY
SECOND BY
TO:
RESOLUTION 81-3547
WHEREAS, it is essential to the future economic develo~nt of
the City that the City have a clear and con, se policy on
Industrial
Development Revenue Bonds; and
WHEREAS, an Industrial Development Revenue Bond policy should
balance the needs of existing and current industries and businesses,
while providing its intended stimulus to economic growth and develop-
ment; and
WHEREAS, a clear and concise Industrial Develo~mentBondpolicy
will be an aid to encouraging existing add future businesses and in-
dustries to expandandgrc~inSalina.
NC~ ~/tEREFORE, BE IT RESOLVED by the Governing Body of the City
of Salio~, Kansas, that the City C~u,lssion policy on Industrial
Revenue Bonds shall be as detailed below:
1. Issuance of Bond - It shall be the policy of the City Ccm-
mission to authorize the issuance of Industrial Revenue Bonds for
purposes permitted by law, provided that the issuer obt~Ln all neces-
sary financing ao~pay all necessary costs.
2. The issuer will receive property tax benefits as permitted
by Kansas law only for new facilities, equipment or construction paid
directly by the bond proceeds. Payments in lieu of taxes equivalent
to the current tax rates throughout the bond's life sha~l be paid on
property not affected by saidbond proceeds.
3. The City C~,~,ission will review each issue individually and
will be guided by this policy, except in significant and exceptional
cases where the Commission may deviate from it.
4. The City Conmmission will hold a public hearing on each appli-
cation for Industrial Revenue Bonds after giving a public notice at
least three (3) days ahead of said hearing.
5. The City Manager is authorized to administer this policy with-
in the guidelines established herein.
6. Any existing resolutions or any other policy statements in
conflict with this Resolution are hereby rescinded.
CITY OF SALINA, KANSAS
APPLICATION FOR ISSUANCE OF INDUSTRIAL REVENUE BONDS
I. General Information
1. Applicant Name and Address:
2. Name, address and telephone number of person to contact in regards
to proposed bonds:
3. Name and address of attorney for applicant:
4. Nature of applicant's business:
5. Name and address of underwriter for issue:
II.
6. Estimated amount of issue $
7. Number of years for maturity of bonds
Use of Bond Proceeds
1. Amount requested for purchase
of land $
2. Amount requested for land im-
provements (buildings) $
3. Amount requested for machinery
and equipment $
4. Will the issue refinance an
existing project?
5. Is the proposed project an
expansion or replacement of
another existing facility?
III.
Proposed Facilities:
1. Location of proposed
facility
2. What business is proposed by
the applicant?
3. List the products or services
to be rendered:
Will the applicant be in
competition with any local
firms?
If so, name the firms:
5. What percentage of the facility
will be occupied by the applicant?
IV. Ownershi~ and Management
Describe the organizational
structure of the firm (proprie-
tership, partnership, subsidiary,
corporation, etc.):
List the names of principal
partners, owners and/or officers
of the applicant firm:
V. Financial Responsibility
1. How many years has the applicant
been in business?
2. Amount of equity capital to
be furnished by applicant
3. What is the applicant firm.'s
Dun & Bradstreet rating?
List assets applicant will
pledge to secure the revenue
bonds
5. List any person or firm who
will act as guarantors for bonds
VI. Marketing of Bonds
1. Will bonds be sold as a
public offering?
2e
Have arrangements for the
marketing of the bonds been
made?
3. Has the tenant investigated
conventional financing?
VII. Measure of Economic Growth and Benefit
1. What percentage of sales will
be sold locally?
What is the-estimated amount
of merchandise and services
purchased locally per year?
o
How many people will the
project employ?
How many new jobs will be'
created?
VIII. in order to facilitate the timely processing of the application,
please attach as part of the proposal the following items:
1. Copy of firm's audited financial statements for the past two
years.
2. Interim financial statements, to date, for the current fiscal
year.
IX. Applicant Agrees To
1. Pay any payment in lieu of taxes required by the City.
2. Provide all financial data required by the City.
Signature Date