Contracts and Disbursements of Funds
The Authority shall disburse monies from the fund only after entering into a binding contract with the municipality.
The contract will be in form and substance as provided by the Authority, and must include:
A provision that disbursements from the fund will be according to the terms of the contract;
A provision that the liability of the Authority under the contract is contingent upon the availability of moneys in the fund for use in the project;
For a development project, a provision requiring the contracted project remain in municipal ownership for either the life of the loan, or for not less than 10 years following the Project Closeout Deadline if funding award is solely a grant. If this condition is not met, the grant and any interest earned is immediately payable to the Authority, unless the Authority in its sole discretion elects to convert the grant to a loan on terms and conditions satisfactory to the Authority;
For a planning project, other than planning projects conducted for levee certification, a provision requiring that the land involved in the project must remain zoned as industrial and not be converted to another use for at least 5 years after completion of the project. If this condition is not met, the grant and any interest earned is immediately payable to the Authority, unless the Authority in its sole discretion elects to convert the grant to a loan on terms and conditions satisfactory to the Authority;
If any portion of the assistance is in the form of a loan or the purchase of a bond of a municipality, a provision granting the Authority a lien on, or a security interest in, the collateral as determined by the Authority to be necessary to secure repayment of the loan or bond;
A provision that for a period of up to six (6) years after project completion, the Authority may request that the municipality, at its own expense, submit data on the economic development benefits of the project, including but not limited to, information on new or retained jobs resulting from the project, and other information necessary to evaluate the success and economic impact of the project; and
Other provisions that the Authority considers necessary or appropriate to implement the assistance.
The contract for a loan or grant must be authorized by an ordinance, order or resolution adopted by the governing body of the municipality in accordance with the municipality’s requirements for public notice and authorizing debt.