HomeMy WebLinkAboutRES NO 42-96 SOLU ION NO. 4 2 ' 9 6
A POLICY RESOLUTION SETTING FORTH
THE CITY'S POLICY ON SPONSORSHIP OF
INDUSTRIAL DEV~LOPI~NT BONDS (IDBs)
WHEREAS, from
approached by developers
to sponsor IDBs; and
time to time the City of Bakersfield is
or non-profit organizations and is asked
WHEREAS, the City Council wishes to establish a policy
that sets forth the terms and conditions under which the City will
sponsor IDBs;
NOW, THEREFORE, BE IT RESOLVED by the Council of the City
of Bakersfield as follows:
Subject to the review and approval of each IDB proposal,
it is the policy of the City of Bakersfield to sponsor IDBs for
those projects and in those financing situations that meet the
following terms and conditions:
1. IDBs shall not be secured by the general taxing
power of the City of Bakersfield, the County of Kern, the State of
California or any political subdivision of the State; and neither
the City, the County, the State, or any political subdivision of
the State shall pledge its full faith and credit for the payment of
the IDBs.
2. All projects funded by IDBs shall be self-supporting
and must cover the debt service on the bonds or similar securities
and be rated at least BBB or equivalent by a national rating
agency.
3. IDBs will be issued to construct facilities which
serve a legitimate public purpose (e.g., health care facilities,
sports/recreation facilities, and related facilities, all of which
are open to use by or benefit the general public).
4. IDBs may also be issued to construct facilities
which benefit the general public and create jobs or for pollution
control where the proposed enterprise or service to be provided is
inadequate or non-existent in the community.
5. IDBs will be available to all like projects meeting
the goals, terms and conditions of this policy.
6. IDBs will only be issued where the project under
consideration and participants in that project comply with all
applicable laws and regulations adopted in and pursuant to the
Internal Revenue Code.
7. For each project, the City will impose a fee of Ten
Thousand Dollars ($10,000.00) plus 2/10 of 1% of the principal
amount of the bonds issued, but not greater than the maximum amount
permitted under applicable federal tax law.
8. The $10,000 portion of the fee shall be paid in
advance upon application by the Proponent for the project. Said
portion of the fee shall cover City administrative costs prior to
bond issuance and is non-refundable.
9. The fee described in paragraph 7 herein shall be
added to the City's cost recovery ordinance (Bakersfield Municipal
Code Chapter 3.70) and may be adjusted annually by resolution to
reflect City cost recovery of 100%.
.......... o0o ..........
I HEREBY CERTIFY that the foregoing Resolution was passed
and adopted by the Council of the Ci~y~of Bakersfield at a regular
meeting thereof held on ~AR 2 § ~ , by the following vote:
AYF~: COUNCILMEtJBER DeMOND, ~ ,,~11TH, MeOERMOTT, ~, SULLIVAN, SALVAGGIO
A~6TAIN: COUNCILUEUI~R
Acting CITY CLERK and EX OFFICIO of the
Council of the City oY Bakersfield
APPROVED
BOB PRICE
MAYOR
APPROVED AS TO FORM:
JUDY K. SKOUSEN
City Attorney
BY:RoBERT M. SHERFY . ~
Chief Assistant City Nftorney
RMS: rb
S: \RMS\~ESO\IDBS. 396
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