R-83-442• CITY OF CLERMONT .
RESOLUTIONS
No. 442
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CLERMONT,
LAKE COUNTY, FLORIDA, ESTABLISHING A POLICY FOR THE IS-
SUANCE OF INDUSTRIAL DEVELOPMENT BONDS.
WHEREAS, the City Council of the City of Clermont, deems it advisable
and in the best interest of the City to estabish a policy on the
issuance of Industrial Development Bonds,
WHEREAS, the policy will give the City Council and Applicant guidelines
for the consideration of any Industrial Development Bond proposal,
WHEREAS, the issuance of Industrial Development Bonds must also be in
compliance with Florida Statutes, Chapter 159, Part II, Florida Indus-
trial Development Financing Act,
NOW THEREFORE BE IT RESOLVED by the City Council of the City of Clermont,
Lake County, Florida, that the following policy on the issuance of
Industrial Development Bonds be established:
Before undertaking any Industrial Development or Industrial
Revenue Bond Project, the City Council shall consider the
following criteria:
1. The City of Clermont will not finance Industrial De-
velopment Bonds (IDBs) except to induce the location
or expansion of a business based on a demonstrated
need for the project. Priority shall be given to
projects that are financed to create- an industrial
park or are located in an official industrial park.
2. The project must make a significant contribution to
the economic growth of the City, provide or preserve
gainful employment, protect the environment, and/or
serve a public purpose by advancing the economic
prosperity of the City or preserving public health.
3. Any demonstrated need for services provided by the pro-
ject must not disrupt any existing facilities, or en-
danger the employment of citizens in existing jobs
similar in nature in the Clermont area. The City should
not assist with the financing of any project that would
only compete with existing businesses and may harm exist-
ing businesses or jobs. It would do the City no good to
finance a new facility that gives an advantage to a com-
peting business causing existing firms economic injury
or loss of employment.
4. The project will provide substantial employment (about
twenty new jobs created), and substantial capital in-
vestment (one million dollars) for the City.
5. The applicant must show evidence that the project would
not be economically feasible without the availability of
IDBs. If a business can obtain funds elsewhere, the City
should not act as a financing agent. The intent of IDBs
is to induce the location of businesses and employment
that would not otherwise be possible without the issuance
of these bonds.
6. A financial capability report must be obtained which
clearly demonstrates that revenues from the company are
sufficient to pay off the bonds, and fulfill all obliga-
tions under the financing agreement. Such a report must
include the facts that the applicant has the ability to
make payments in the amounts and at the times required,
and to operate, repair, and maintain at its own expense
the project facilities.
• CITY OF CLERMONT •
RESOLUTIONS
No. 442
Page 2
In determining the financial responsibility of the
applicant, consideration shall be given to the appli-
cant's ratio of current assets to current liabilities,
net worth, earning trends, coverage of all fixed charges,
the nature of the industry or activity involved, its
inherent stability, and any other factors necssary to
determine the financial capability of the applicant.
The City may hire an independent consultant to conduct
the financial capability analysis, the cost of which
must be borne by the applicant.
7. The City must be able to cope satisfactorily with the
impact of the project and be able to provide the public
facilities (i.e. sewer and water) necessary for the
construction, operation, repair, and maintenance of the
project; or any increase in population resulting there-
from.
8. The project and all project costs must be in compliance
with all applicable Florida Statutes.
9. Any project that is exempt from ad valorem taxes shall
sign an agreement to make an annual payment to the City
and County in lieu of taxes, to be the equivalent to
100$ of the assessed valuation tax levy.
10. The cost of any consultant and
expenses necessary to determine
ticality of the bond issue must
11. Definition: for the purpose of
Industrial Development Bond and
may be used interchangeably.
legal services, or other
the feasibility or prac-
be paid by the applicant.
this Resolution, the terms
Industrial Revenue Bond
12. Projects that the City of Clermont may finance with IDBs
include, but are not limited to, capital projects such as
industrial or manufacturing facilities, research and de-
velopment parks, business headquarters' facilities, tour-
ism or convention facilities, and health care facilities.
The City of Clermont will not finance projects that are
comprised largely of retail establishments or shopping
centers, hotels, motels, or other facilities that would
compete with existing facilities; or are not within the
intent of this policy.
DONE AND RESOLVED BY THE CITY COUNCIL
COUNTY, FLORIDA, THIS ,9~- DAY OF
ATTEST:
(/~
WAY SAUNDERS, CITY CLERK
OF HE CITY OF CLERMONT, LAKE
~~ , 1983.
CITY OF CLERMONT
CHARLES B. BEALS, MAYOR