Chapter 11: Planning and Development
Section: 3 Revolving Loan Fund
Ordinance 7/17/12
AN ORDINANCE OF WILKINSON COUNTY, GEORGIA CREATING A REVOLVING LOAN FUND
FOR ECONOMIC DEVELOPMENT PURPOSES
1. BACKGROUND
In 2007, a Special Purpose Local Options Sales Tax (SPLOST) made funds available in the amount of $250,000 to promote economic development. Particularly, the 2007 SPLOST funds will be utilized to create a Revolving Loan Fund (“RLF”), to be used initially for the construction of a building (“spec building”) for prospective developers located at 101 Milledgeville Highway, Gordon, Georgia. Recognizing that the SPLOST monies allocated to the RLF would likely be used to acquire land and construct a facility that would yield future revenue either through sale or lease, the Wilkinson County Board of Commissioners (WCBOC) desires to establish by this ordinance, a Revolving Loan Fund to build future buildings for the purpose of promoting economic development.
2. INTENT AND PURPOSE
The intent of this ordinance is that the 2011 SPLOST allocation of $250,000 will be used to create a revolving loan fund where future revenues from the initial speculative building located at 101 Milledgeville Highway, Gordon, Georgia will be used to construct future speculative buildings. The funds are not intended for use in economic development activities such as road improvements, water lines, rail spurs, or any related infrastructure independent of speculative building development. However, funds may be used for these purposes to support the development of future spec buildings so long as sufficient revenue exists to first construct the building. Further, the WCBOC reserves the right for final approval on any aspect of the project they deem necessary to comply with the intent of this ordinance.
3. CONSTRUCTION/PROJECT MANAGEMENT
The Development Authority of Wilkinson County (DAWC) will be responsible for procuring a contractor to construct the speculative building as well as any professional services needed as a part of the construction process so long as the initial facility does not exceed $250,000. The DAWC will notify the WCBOC as soon as there is intent to enter into a contract for services related to construction of the speculative building. All contracts, including contracts for future projects, shall be between the DAWC and those contractors and/or professionals that the DAWC selects.
4. FINANCIAL MANAGEMENT
To maintain financial oversight, all future revenues realized from the sale or leaseof this or future speculative building(s) or industrial land shall be paid into the RLF where a separate bank account will be established as a “revolvingloan fund” to be managed by the WCBOCthrough the Middle Georgia Regional Commission as loan administrator. No other funds (including other SPLOST funds) shall be co-mingled with the RLF account, nor shall RLF funds be used for any purpose other than stated in the "Intent" paragraph of this Ordinance. All invoices generated during construction of the speculative building(s) will be satisfied through a payment request method as follows:
However, “revenues” shall not include any funds invested in the project by the DAWC or FLRDA from their separate funds other sources and the DAWC or FLRDA shall be entitled to recapture expenses or investments from its own account, including, but not limited to, professional fees for architects, consultants, engineers and similar professionals required in the initial construction of the building(s). Such expenses shall not be recaptured until the principal fund balance of $250,000 has been returned to the Revolving Fund.
At least 5% of the funds on hand or $5,000 (whatever amount is greater) must remain on hand to be used as contingency for construction overruns or unforeseen expenses. The WCBOC will be responsible for the yearly audit of the revolving fund.
5. RECAPTURE OF FUNDS
Any and all revenues realized through successful sale or lease of the building and/or land will be returned to the Revolving Fund, with the exception of the recapture of funds as provided for in paragraph 4 above. These funds will be set aside in the Revolving Loan Fund separate from all other County funds for the purposes outlined herein unless otherwise repealed or amended.
6. OWNERSHIP
The DAWC or FLRDA will acquire all real estate in the name of the respective authority and shall also retain ownership of the building(s) and improvements constructed thereon. As the owner of the project(s) the DAWC or the FLRDA shall have the discretion to develop the project(s) using any recognized method of financing, including other loans, grants, revenue bond financing, or similar types of financing.
7. MARKETING
The DAWC will be responsible for and have full discretion with respect to leasing, selling, marketing, or other use or disposal of the facility.
8. MANAGER/ADMINISTRATOR
Since this revolving loan fund may spanmany years and different Board(s) of Commissioners, the WCBOC has appointed the Middle Georgia Regional Commission (MGRC) as loan administrator and manager to oversee the revolving loan fund to ensure the funds are expended and retained consistent with the purposes of this Ordinance. Specific terms for the Manager/Administrator are to be established through a separate Memorandum of Agreement between the WCBOC, the DAWC, and the Middle Georgia Regional Commission.
9. REPEAL OR AMENDMENTOF THE ORDINANCE
The WCBOC reserves the right to repeal or amend this ordinance with a simple majority vote of the Wilkinson County Board of Commissioners. Upon passing this ordinance, those funds currently in the account designated for the revolving fund will be issued to the DAWC for the initial project located at 101 Milledgeville Highway, Gordon, Georgia.
In the event of the repeal or amendment of this Ordinance such that funds in the RLF are no longer available for the economic development purposes as stated herein, all funds on deposit in the RLF, up to $250,000, will immediately revert back to the WCBOC to be used at their discretion. Any monies above the $250,000 will be returned to the DAWC for economic development.
10. Effective Date.
This Ordinance shall become effective on the 17 day of July, 2012.
SO ORDAINED, by Wilkinson County, Georgia, acting by and through its Board of Commissioners at a regularly scheduled meeting of the Board on the 17 day of July, 2012:
WILKINSON COUNTYBOARD OF COMMISSIONERSBy:______/ By:______
Dennis Holder, Chairman / J.M Howell, Commissioner District 3
By:______/ By:______
C.L.Brooks, Commissioner District 1 / John Williams, Commissioner District 4
By:______/ Attest: ______
James Hagan, Commissioner District 2 / David Franks, CountyManager
(COUNTYSEAL)