OAR 731-030-0100
Application Evaluation Procedures
(1)
Upon receipt of a complete Application, the Department will evaluate the Application to determine whether an Applicant is creditworthy. An Applicant is creditworthy if the Applicant has a satisfactory credit history and sufficient capacity to repay the Infrastructure Loan.(2)
While an Application is pending, the Department may require the Applicant to provide additional information with respect to, or clarification of, any matter pertaining to the Application, the Applicant, the proposed Transportation Project or the financing thereof as the Department determines in its sole discretion to be reasonably necessary, convenient or appropriate. Evaluation of an Application will include an examination of Application information to determine the extent to which an Applicant and the proposed Transportation Project meet the following criteria:(a)
The Transportation Project complies with the local transportation plan and with state land use laws and satisfies all appropriate federal, state and local planning and programming requirements.(b)
The Transportation Project meets any appropriate design standards.(c)
The requested Infrastructure Loan or Infrastructure Assistance will result in the Transportation Project being constructed on a faster time schedule than conventional funding would allow, or the Infrastructure Loan or Infrastructure Assistance will complete the required project financing and allow the Transportation Project to proceed to construction.(d)
The Transportation Project will further the goal of safety in transportation.(e)
The Transportation Project will help manage traffic growth and improve livability.(f)
The Application identifies a revenue stream adequate to repay an Infrastructure Loan or meets the terms of any Infrastructure Assistance that is provided.(g)
The Application identifies Collateral adequate to secure repayment of the Infrastructure Loan.(h)
The Transportation Project will attract new or less conventional capital to Infrastructure funding.(i)
The Infrastructure Loan, if any, has a term acceptable to the Department. A Transportation Project financed with a shorter term Infrastructure Loan will score higher than one financed with a longer term Infrastructure Loan.(j)
The Transportation Project will support the community’s economic development.(k)
The Transportation Project will enhance the quality of life in the community.(L)
Unless the Chief Financial Officer finds that financial factors warrant otherwise, if the Applicant is a Private Entity:(A)
The Applicant for an Infrastructure Loan or Infrastructure Assistance must provide adequate security;(B)
An Infrastructure Loan or Infrastructure Assistance will be for no more than fifty percent (50%) of the fair market value of the real property Collateral on which the Department has a first lien or twenty-five percent (25%) of the fair market value of the real property Collateral if the Department has a junior lien;(C)
The Applicant must have made a profit after taxes for at least the two years immediately preceding the Application;(D)
The Applicant must have had a positive cash flow from operating activities (earnings before interest and taxes plus depreciation less taxes) for at least two of the last three years immediately preceding the Application;(E)
The Applicant must have a ratio of current assets to current liabilities of at least 1.75 to 1, a ratio of current assets less inventories to current liabilities of at least 1 to 1, and a ratio of total debt to owner’s equity of no more than 2 to 1 for at least two of the last three years immediately preceding the Application.(2)
The Department will assign the Application to a Region, the Department’s Public Transit Division or their designee as appropriate for evaluation of technical, engineering and planning criteria. The designated assignee will:(a)
Evaluate a Transportation Project or Application according to the Application evaluation criteria established by the Department in OAR 731-030-0100 (Application Evaluation Procedures)(1); and(b)
Recommend approval or disapproval of the Transportation Project or Application.(3)
The Region Manager, the Public Transit Division Administrator or their designee will notify staff of the results of the evaluation of the Transportation Project and the Application.(4)
Staff will evaluate the economic , financial and creditworthiness criteria and seek assistance from other experts where appropriate.
Source:
Rule 731-030-0100 — Application Evaluation Procedures, https://secure.sos.state.or.us/oard/view.action?ruleNumber=731-030-0100.