Skip to main content
Loading…
This section is included in your selections.

(1) Purpose. West Valley City, pursuant to state law, may consider issuing industrial revenue bonds/private activity bonds for the purpose of obtaining a direct economic benefit to the City thorough the advancement of the City’s economic development goals, creation of employment opportunities, increases in the tax base or stimulation of private investment or business development.

(2) Equal Consideration. With the exception of limitations placed by State Law, no particular type of business or enterprise will be excluded from consideration of the issuance of industrial revenue bonds/private activity bonds. Each applicant will be reviewed pursuant to this Policy and shall be given an equal opportunity to demonstrate its ability to provide the City with direct economic benefit.

(3) Compliance with State Law. The City and the applicant shall at all times comply with the requirements of Utah State Code Chapter 11-17, 1953 as amended.

(4) Application. An applicant shall comply with the following application requirements.

a. Application Procedure:

i. The applicant shall submit the following information to the City Attorney’s Office. The City Attorney’s Office shall facilitate the coordination and processing of the applicant’s application with the appropriate City departments and submit the recommendations, legal documents and information to the City Manager.

ii. Name of business enterprise.

iii. Address

iv. If incorporated (state and date of incorporation)

v. Business Officers

vi. Name and Address of the following:

1. Bond Counsel

2. Legal Counsel

3. Auditors

4. Proposed underwriter or purchaser of bonds

5. Developer

6. Architect

7. Engineer

8. Contractor

vii. A copy of the applicant’s feasibility study, if any, for the proposed project, including a narrative describing the proposal in detail.

viii. A detailed description of plans for financing the proposed project, including a written statement from the proposed lender indicating a tentative commitment of financial support.

ix. A statement demonstrating the applicant’s prior experience, if any, related to the type of project, activity, or business being proposed.

x. A showing of financial stability including:

1. A review of the past 3 years of audits and financial statements for the applicant.

2. Current audited financial statements

3. Corporate structure and subsidiaries

4. Banking institution of record

5. A statement regarding outstanding litigation resulting in possible liability, including the court of record.

6. Pro Forma financial disclosure of net income projections of the project, if the bond issue is approved.

xi. A copy of all plans and specifications for the proposed project for review by the Community and Economic Development Department including:

1. A legal description of all property included in the project.

2. A plat showing adjoining properties

3. A preliminary title report or comparable evidence demonstrating ownership of the project property including owner’s names, addresses and percentage of ownership.

xii. A statement of economic impact on the City, including current and pro forma projections of employees, sales tax revenues, etc for the next three (3) years.

1. The applicant shall address each of the following issues to the satisfaction of the City:

a. Will the project have a positive economic impact on the City?

b. What social and physical benefits will be realized by the City?

c. How many new jobs will be created, at what levels and what percentage of the applicant’s total payroll will they comprise?

d. Does the project contribute to the development of underutilized property in the City?

e. Does the project serve unmet needs of the City residents and generate synergies for the development of surrounding properties?

xiii. A statement regarding requirements for new or additional municipal services including police, fire, water and sewer.

(5) Evaluation of the Proposal.

a. Upon receipt of all required information, the City Attorney’s Office shall review the application, drawing on the support of all appropriate departments of the City. This review shall include a written recommendation by the Finance Department with regards to the financial stability of the applicant, and a written review by the Community and Economic Development Department with regards to the applicants meeting of the land use requirements of the City. The results of this analysis, as well as an analysis by appropriate staff, bond counsel, financial advisors and others will be forwarded to the City Manager.

b. The City Manager will review the proposal. If the City Manager believes that the proposal has merit, and is in the best interest of the City, the City Manager may submit a recommendation to the City Council for its consideration.

(6) Inducement Resolution and Agreement. Any applicant whose application is approved shall be required to enter into an agreement with the City regarding the issuance of the bonds. The agreement shall contain all requirements to the satisfaction of the City Attorney, Bond Counsel, and City Manager. The Agreement will specifically include a provision whereby all publicly offered revenue bonds issued by the City on behalf of a private entity shall be credit enhanced by either a bond insurance policy issued by a ‘AAA’ rated municipal bond insurer, satisfactory to the city, or by a direct pay letter of credit from a financial institution with at least an ‘AA’ rating. Evidence of such shall be provided to the City prior to the adoption of the final bond resolution. In the case where the proposed bonds are to be sold on a private placement basis to a sophisticated investor, the City’s credit enhancement may be waived if the City receives written confirmation from the sophisticated investor that it understands the risks and that under no circumstances will non-payment of a default on the bonds constitute or impose upon the City any financial obligation or liability.

(Ord. No. 06-26 Amended 04/11/2006)