HomeMy WebLinkAboutMINUTES - 09101985 - 1.63 x,063
TO BOARD OF SUPERVISORS
FROM: Anthony A. Dehaesus Contra
Director of Community Development 1%br„}„
DATE: August 19, 1985 C inty
SUBJECT: Criteria for the Provision of Industrial Development Bond Financing
SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION
RECOMMENDATION
Adopt, as general guidelines to be used in evaluating applications for Industrial Development
Bond (IDB) Financing, the criteria attached hlereto as Exhibit A.
BACKGROUND
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In considering the provision of IDB financing in 1984 the Board requested that the Director
of Community Development propose criteria which could be used for judging the relative
merits of various applications for said financing. The criteria attached are intended to
provide a flexible set of guidelines which the Board of Supervisors can weigh in determining
j the appropriateness of providing IDB financing for a particular business venture. The
proposed guidelines include economic, employment and indirect considerations. Because of
the wide variety of prospective IDB applicants, the guidelines have been structured flexibly.
It is not intended that every application meet standards that might underlie the various
guidelines. j
Upon their adoption the criteria will be used to evaluate any IDB proposals submitted. It is
the intent of the Community Development Department to initiate the preparation of a
composite IDB issue this Fall. The initiative would involve marketing the financing to the
provide sector to determine if sufficient demand exists to develop a bond issue involving
more than one firm. The criteria will also be used, in part, to evaluate requests from cities
and redevelopment agencies for a portion of the special IDB reserve allocation which the
Board of Supervisors controls pursuant to State Law.
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FINANCIAL IMPACT
None. The adoption of these guidelines involves no commitment of County funds. Any
issuances of IDB's completed in conformance with these guidelines would be in the form of
revenue bonds where the security for repayment is a pledge of revenue from the firm or a
third party credit enhancement, not a pledge' of County funds.
CONTINUED ON ATTACHMENT: _ YES SIGNATU
RECOMMENDATION OF COUNTY ADMINISTRATOR R OIiMENDATION F OARD COMMITTEE
APPROVE OTHER
SIGNATURE(S):
ACTION OF BOARD ON /0 775 APPROVED AS RECOMMENDED OTHER
VOTE OF SUPERVISORS
1 HEREBY CERTIFY THAT THIS IS A TRUE
UNANIMOUS (ABSENT AND CORRECT COPY OF AN ACTION TAKEN
AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD
ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN.
cc: County Administrator ATTESTED
COUnte✓ PHIL BATCHELOR, CLERK OF THE BOARD OF
SUPERVISORS AND COUNTY ADMINISTRATOR
M382/7-83 If BY 'DEPUTY
EXHIBIT A
CRITERIA FOR THE PROVISION OF INDUSTRIAL DEVELOPMENT BOND (IDB) FINANCING
Inter-County Competition Considerations
- Is the firm in an "under-served" sector of the economy?
- Is the relocation of the firm from one community to another within the County
involved?
- Are there positive business relationships with other County firms, i.e., will
additional indirect employment and/or economic benefits occur?
Economic Considerations
- Is the firm in an industry characterized as one with growth potential?
- Will the financing act as "seed money" for a growth industry?
- Is below market interest rate financing necessary to make the enterprise/venture
viable?
Will below market interest rate financing induce the location of the enterprise/
venture in a depressed area?
- Will the financing result in a capital for labor substitution effect?
- Will the firm commit to maintaining its operations in the County? What efforts will
the firm commit to if the enterprise/venture is cut back or closed due to changes in
the business climate?
- Is the firm a small business enterprise as defined by the Small Business
Administration?
Employment Considerations
- Will the firm commit to a Employment Plan which links the enterprise being
financed with County employment training programs?
- Is the firm acting in compliance with federal and State labor laws, and any
collective bargaining agreement to which it is a party?
- Is the firm open to union organizing?
- Are jobs being created in purposeful and meaningful employment?
Other Considerations
- Will the enterprise/venture further other adopted goals, e.g., maintenance of a base
industry in the County such as agriculture, enhance energy conservation, reduce
resource depletion, expanding housing opportunities, etc.?
jk:IDB.t8
8/14/85
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1. INDUSTRIAL BOND FINANCINGADOPT GUIDELINES FOR DINANCING
2 . BOND FINANCING APPLICATIONS EVALUATED
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