Special Public Works Fund Program


Published: 2015

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The Oregon Administrative Rules contain OARs filed through November 15, 2015

 

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OREGON BUSINESS DEVELOPMENT DEPARTMENT

 



















DIVISION 42
SPECIAL PUBLIC WORKS FUND PROGRAM


















123-042-0010
Purpose and Objectives
Pursuant to ORS 285B.419, the Oregon Business Development Department is required to adopt rules that implement the Special Public Works Fund Program. These rules are promulgated under authority granted by ORS 285B.419(1) and 285A.075.
Stat. Auth.: ORS 285B.419 & 285A.075

Stats. Implemented: ORS 285B.410 - 285B.482

Hist.: IRD 1-1986(Temp), f. & ef. 1-14-86; IRD 9-1986, f. 6-30-86, ef. 7-1-86; EDD 3-1987(Temp), f. 8-17-87, ef. 8-20-87; EDD 5-1988, f. & cert. ef. 2-17-88, Renumbered from 120-050-0010; EDD 26-1990, f. & cert. ef. 10-11-90; EDD 14-1991(Temp), f. & cert. ef. 10-17-91; EDD 9-1992, f. & cert. ef. 4-29-92; ED 12-2000, f. 8-9-00, cert. ef. 8-14-00; EDD 4-2002, f. & cert. ef. 2-26-02; EDD 5-2004(Temp), f. & cert. ef. 2-3-04 thru 8-1-04; Administrative correction 8-19-04; OBDD 41-2010, f. 11-30-10, cert. ef. 12-1-10
123-042-0020
Definitions
For the purposes of these rules additional
definitions may be found in Procedural Rules, OAR 123-001. As used in this OAR 123
division 42 the following terms have the meanings set forth below, unless the context
clearly indicates otherwise.
(1) “Authority”
means the Infrastructure Finance Authority within the Oregon Business Development
Department.
(2) “Award” means
the Authority’s determination that the project is eligible for funding and
that the Authority has identified the specified funding type and amount for the
activities described in the staff recommendation.
(3) “Award date”
means the date of the final Authority management signature approving the award.
(4) “Board” means
the Oregon Infrastructure Finance Authority Board.
(5) “Commission”
means the Oregon Business Development Commission
(6) “Development project”
means a project for the acquisition, improvement, construction, demolition, or redevelopment
of municipally owned utilities, buildings, land, transportation facilities or other
facilities that assist the economic and community development of the municipality,
including but not limited to the following type of projects:
(a) Transportation projects
(b) Utility system projects
(c) Buildings, lands or other
facility projects including planning project activities that are necessary or useful
as determined by the Authority.
(7) “Direct project
management costs” means expenses directly related to a project that are incurred
by a municipality solely to support or manage a project eligible for assistance
under ORS 285B.410 to 285B.482. Direct project management costs does not include
routine or ongoing expenses of the municipality.
(8) “Eligible commercial
jobs” means jobs that are created or retained by businesses selling goods
or services into markets for which national or international competition exists.
(9) “Emergency project”
means a development project resulting from an emergency as defined in ORS 401.025
(10) “Essential Community
Facilities” means municipally owned or operated facilities that provide or
support services vital to public health and safety, including, but not limited to
police and fire protection, medical treatment, public utilities, transportation,
and auxiliary shelter facilities.
(11) “Executive Director”
means the administrator of the Infrastructure Finance Authority.
(12) “Firm business
commitment project” means a project in response to a specific business development,
expansion or retention proposal where assistance is necessary to enable the proposal
to proceed and where permanent, full-time equivalent jobs will be created or retained.
The project must support industrial development or eligible commercial jobs and
be consistent with local comprehensive plans and implementing ordinances.
(13) “Fund” means
the Special Public Works Fund created by ORS 285B.455.
(14) “Levee project”
means a planning project, development project, or other project that is directly
related to and necessary for required inspections, levee certification, accreditation
or repairs.
(15) “Marine facility”
has the meaning given that term in ORS 285B.410(7).
(16) “Municipality”
means an Oregon city, or county, the Port of Portland created by ORS 778.010, a
county service district organized under ORS Chapter 451, a district as defined in
198.010, a tribal council of a federally recognized Indian tribe in this state,
or an airport district organized under ORS 838, but does not include an ORS 190
entity.
(17) “Planning project”
means:
(a) A project related to
a potential development project for preliminary, final or construction engineering;
(b) A survey, site investigation
or environmental action related to a potential development project;
(c) A financial, technical
or other feasibility report, study or plan related to a potential development project;
or
(d) An activity that the
Authority determines to be necessary or useful in planning for a potential development
project.
(18) “Project”
means a development, planning or emergency project.
(19) “State revenue
bond loan” means a loan funded in whole or part through the sale of state
revenue bonds issued by the State of Oregon at the request of the department that
are payable from specific revenue sources pledged by a municipality and are not
a pledge of the full faith and credit of the State of Oregon.
Stat. Auth.: ORS 285B.419 & 285A.075
Stats. Implemented: ORS 285B.410
- 285B.482
Hist.: ED 12-2000, f. 8-9-00,
cert. ef. 8-14-00; EDD 7-2001(Temp), f. & cert. ef. 11-6-01 thru 3-29-02; EDD
4-2002, f. & cert. ef. 2-26-02; EDD 5-2004(Temp), f. & cert. ef. 2-3-04
thru 8-1-04; EDD 18-2004, f. & cert. ef. 8-2-04; EDD 10-2006, f. & cert.
ef. 11-1-06; EDD 13-2008(Temp), f. & cert. ef. 4-9-08 thru 10-5-08; EDD 31-2008,
f. 10-2-08, cert. ef. 10-3-08; OBDD 41-2010, f. 11-30-10, cert. ef. 12-1-10; OBDD
9-2015(Temp), f. & cert. ef. 10-1-15 thru 3-27-16
123-042-0026
Loan and Grant Information
(1) The moneys in the fund will be used
primarily to provide loans to municipalities for projects. Grants may be given only
when loans are not feasible due to the financial need of the municipality or special
circumstances of a project. The level of loan or grant funding, if any, may be determined
by the Authority on a case-by case-basis. The Authority shall determine awards in
a manner that maximizes the use of available resources and maintains the desired
credit standards of the fund according to the following criteria:
(a) Amount requested;
(b) Type;
(c) Interest rate;
(d) Terms and conditions
of an award. The Authority may offer an alternate mix or lower amount of assistance
than requested, and it may investigate and recommend other sources of funds for
all or part of a proposed project.
(2) Grants:
(a) If the Authority determines
that a firm business commitment project meets the minimum criteria for a grant,
the Authority may make a further determination on the amount of the grant. The maximum
grant amount is $500,000 per project or 85% of allowable project costs, whichever
is less. In-kind materials and services cannot be included in allowable project
costs.
(b) The amount of grant will
be based primarily on the number of eligible commercial and industrial jobs proposed
to be created or retained with a maximum of $5,000 for each job created or retained.
(c) If a grant is for the
acquisition and improvement of real property, the maximum grant amount cannot exceed
the fair market value of the real property after the improvements have been made
or the value placed on the real property and improvements on the assessment rolls,
whichever is less.
(d) The Authority must receive,
in accordance with OAR 123 division 70, a copy of the appropriate First Source Hiring
Agreement or assurance from the municipality that one has been entered into before
the grant is dispersed.
(e) Not less than 60 percent
of the grants awarded from the Special Public Works Fund in any biennium can be
used to provide assistance to distressed or rural areas.
(f) The Authority cannot
expend more than $900,000 for grants or direct assistance, if any, for planning
projects to municipalities in a biennium.
(g) The Authority cannot
commit more than $2,000,000 for grants for Firm Business Commitment development
projects in a biennium.
(h) A development project
that qualifies as a firm business commitment project is eligible to apply for a
grant. When making a determination to award a grant, the Authority will apply prudent
fiscal management of the fund in order to manage constrained funding resources.
In addition to the criteria and process contained in its policies on grant and loan
funding, the Authority will apply the following minimum criteria for grants:
(A) The Authority’s
financial analysis determines that the municipality’s borrowing capacity is
insufficient to support the amount of the loan requested for the project;
(B) Eligible commercial jobs
will be created or retained as a result of the grant being awarded; and
(C) The Authority has received
confirmation that the firm business commitment project will not occur, or that the
eligible commercial jobs will be lost, if the municipality does not receive a grant.
(3) Loans:
(a) Maximum loan amount for
a project will be based on the Authority’s financial and credit analysis of
the municipality’s capacity to repay, the availability of moneys in the fund,
and prudent fund management. Projects that the Authority determines are not financially
feasible, or loans that cannot be adequately secured, will not be funded. The maximum
loan amount per project cannot exceed $10,000,000.
(b) A development project
may receive loan funding as follows:
(A) The initial or renegotiated
term is limited to the usable life of the contracted project, or a maximum of 30
years from the year of project completion, whichever is less.
(B) The interest rate on
a loan will be based on market conditions for similar debt, and will be set at the
time of the award.
(C) The repayment terms of
a loan can include deferred repayment of principal and/or interest for a specified
term of the loan to address special circumstances and financial feasibility of a
project.
(D) The interest rate on
a state revenue bond loan will be equal to the coupon rates on the bonds. Until
the state revenue bonds are sold, the municipality will pay interest on the outstanding
principal balance of the loan at the rate established by the Authority.
(c) A loan amount requiring
Board approval will be established by the Board.
(d) The loan will be a full
faith and credit obligation, which is payable from any taxes that the municipality
may levy within the limitations of Article XI, Sections 11 and 11b, of the Oregon
Constitution and all legally available funds of the municipality. Additional pledges
of revenue or other collateral may also be required and may include, but are not
limited to:
(A) Specific revenues of
the municipality may also be required to be pledged as security, including revenues
of the project, special assessment revenues and other collateral.
(B) If repayment of a loan
substantially depends on revenues the municipality will receive from a lessee or
payments from a benefiting business, the Authority will assess the financial capacity
of the payor, the adequacy of the security, the financial instrument(s) requiring
such payments to the municipality, and any liens, pledge(s), or assignments of collateral
from the payor to the municipality. The Authority may require an assignment of such
revenue and collateral from the municipality.
(C) If repayment of the loan
substantially depends on a pledge of tax increment revenues from an urban renewal
agency to the borrowing municipality, the Authority’s financial analysis will
extend to the financial feasibility of the projected revenues and the financial
and legal adequacy of the proposed pledge of tax increment revenue.
Stat. Auth.: ORS 285B.419
& 285A.075
Stats. Implemented: ORS 285B.410 - 285B.482
Hist.: EDD 10-2006, f. &
cert. ef. 11-1-06; EDD 13-2008(Temp), f. & cert. ef. 4-9-08 thru 10-5-08; EDD
31-2008, f. 10-2-08, cert. ef. 10-3-08; OBDD 41-2010, f. 11-30-10, cert. ef. 12-1-10;
OBDD 10-2011, f. 12-30-11, cert. ef. 1-1-12; OBDD 9-2015(Temp), f. & cert. ef.
10-1-15 thru 3-27-16
123-042-0036
Project Priorities and Funding
(1) The Authority may consider the following
priorities when determining a development project’s eligibility, including
but not limited to:
(a) Projects that help create
or retain permanent jobs.
(b) Projects for which a
municipality has documented a strong likelihood of creating construction jobs or
otherwise promoting or contributing to economic and community development.
(c) Projects for which a
municipality has documented substantial local commitment to the project’s
success.
(d) Projects for which a
municipality has documented how the benefits of the project will be preserved over
the project life.
(2) The Authority may apply
the following procedure when determining whether to make an award for an eligible
development project:
(a) The Authority will review
project concepts and/or project information contained in the project intake form.
(b) Proposed projects that
the Authority determines to be eligible, meet the Board approved prioritization
criteria, are a high priority and address the goals of the program, will be advanced
to the next step. A proposed project that is not advanced will be referred to other
possible funding source(s) or referred back to the proposing municipality for further
project development.
(c) High priority projects
will be funded on a funds available basis.
Stat. Auth.: ORS 285B.419 & 285A.075
Stats. Implemented: ORS 285B.410
- 285B.482
Hist.: EDD 10-2006, f. &
cert. ef. 11-1-06; EDD 13-2008(Temp), f. & cert. ef. 4-9-08 thru 10-5-08; EDD
31-2008, f. 10-2-08, cert. ef. 10-3-08; OBDD 41-2010, f. 11-30-10, cert. ef. 12-1-10;
OBDD 9-2015(Temp), f. & cert. ef. 10-1-15 thru 3-27-16
123-042-0038
Criteria for Special Project Funding
Special types of development projects
must meet the following criteria. If the project consists:
(1) Solely of the acquisition
of land by the municipality, the land must be identified in the applicable land
use or capital plan as necessary for a potential development project or be zoned
solely for commercial or industrial use. A loan for such a project must be repaid
if the land that is acquired through the proceeds of the loan is rezoned so as to
be no longer zoned for industrial or commercial use.
(2) Of a privately owned
railroad, the railroad must be designated by the owner and operator as subject to
abandonment within three years, pursuant to federal law governing abandonment of
common carrier railroad lines.
(3) Of a telecommunications
system, the governing body of the municipality shall adopt a resolution, after a
public hearing, finding that the proposed telecommunications system project is necessary
and would not otherwise be provided by a for-profit entity within a reasonable time
and for a reasonable cost.
(4) Of an energy system,
the municipality and the serving utility must execute an ownership and operating
agreement for the proposed energy system project. This sub-section does not apply
when the energy system project will be located within the recognized service territory
of the municipality.
(5) Of a marine facility
project authorized under ORS 777.267, assistance from the fund can only be a loan
that may not exceed the amount of the required local match.
(6) Of a project for a utility
system that is functionally connected to, or anticipates connecting to, another
municipality’s utility system, an intergovernmental cooperation agreement
that describes the duties and obligations of each entity in regard to the project
and utility system is required. A certified copy of the fully executed intergovernmental
agreement must be provided before the Authority will disburse funds.
Stat. Auth.: ORS 285A.075
Stats. Implemented: ORS 285A.075
& 285B.410 - 285B.460
Hist.: EDD 31-2008, f. 10-2-08,
cert. ef. 10-3-08; OBDD 41-2010, f. 11-30-10, cert. ef. 12-1-10; OBDD 9-2015(Temp),
f. & cert. ef. 10-1-15 thru 3-27-16
123-042-0045
Planning Project Eligibility, Criteria and Funding
(1) A planning project, as defined in
ORS 285B.410(9), may be eligible for a loan. The Authority will make awards for
loans based on availability of moneys in the fund and prudent fund management as
well as its financial analysis of the municipality’s ability to repay the
loan;
(2) A planning project conducted
for the purpose of developing industrial lands, including planning for industrial
site certification, is eligible for a grant of up to $60,000 per site, per biennium
or 85% of the allowable planning project cost, whichever is less. This type of planning
project must meet the following criteria:
(a) The land must be zoned
“industrial”; and
(b) The land meets marketability
standards as determined by the department using its adopted policy.
(3) A planning project conducted
for the purpose of preliminary evaluation, planning, or engineering for levee certification
is eligible for one grant of up to $50,000 per levee certification project area
or 85% of the allowable planning project cost, whichever is less.
Stat. Auth.: ORS 285B.419 & 285A.075
Stats. Implemented: ORS 285B.410
- 285B.482
Hist.: EDD 10-2006, f. &
cert. ef. 11-1-06; OBDD 41-2010, f. 11-30-10, cert. ef. 12-1-10; OBDD 10-2011, f.
12-30-11, cert. ef. 1-1-12; OBDD 9-2015(Temp), f. & cert. ef. 10-1-15 thru 3-27-16
123-042-0055
Emergency Project Eligibility, Criteria
and Funding
(1) An emergency project, as defined
in ORS 285B.410(5), which meets the following criteria is eligible for assistance
from the fund:
(a) The project must result
from an emergency as defined in ORS 401.025; and
(b) The project must have
federal disaster relief assistance funds committed;
(2) The following apply to
both grants and loans for emergency projects:
(a) The maximum award amount
for an emergency project cannot exceed the required local match for the federal
disaster relief assistance committed to the project;
(b) A grant for an emergency
project cannot exceed $500,000 per project, or the amount of the federally required
local match, whichever is less; and
(c) A loan for an emergency
project must meet the criteria set forth in OAR 123-042-0036.
(3) The Authority shall not
commit more than $2.5 million for emergency project grants, including grants for
essential community facilities, in a biennium.
(4) For the purposes of awards
made under this OAR 123-042-0055, allowable project costs are those eligible for
federal assistance, unless those costs are precluded by a restriction in state law
or the Code of Federal Regulations.
(5) In the event of an emergency,
the Authority may adopt a policy, after consultation with stakeholders and others,
to guide implementation decisions regarding such matters as grant amounts and priorities.
Stat. Auth.: ORS 285B.419 & 285A.075
Stats. Implemented: ORS 285B.410
- 285B.482
Hist.: EDD 10-2006, f. &
cert. ef. 11-1-06; OBDD 41-2010, f. 11-30-10, cert. ef. 12-1-10; OBDD 9-2015(Temp),
f. & cert. ef. 10-1-15 thru 3-27-16
123-042-0061
Levee Project Eligibility, Criteria
and Funding
(1) The Authority may provide financial
assistance in the form of loans and grants for a levee project to:
(a) A municipality, including
drainage districts organized under ORS Chapter 547;
(b) Corporations or companies
for drainage or flood control organized under ORS Chapter 554.
(2) A levee project as defined
in 123-042-0020(14) that meets one or more of the following criteria is eligible
for assistance from the fund:
(a) The project is for the
purpose of completing certification documents and accreditation by the Federal Emergency
Management Agency (FEMA) as defined in Chapter 44 of the Code of Federal Regulations
(44 CFR), Section 65.2;
(b) The project is for the
purpose of meeting the requirements of 44 CFR, Section 65.10 and obtaining accreditation
by FEMA.
(3) The following applies
to loans for levee projects:
(a) The maximum loan amount
cannot exceed $2,500,000;
(b) A principal only, zero
percent (0%) interest rate loan of up to $1,000,000 may be awarded for each levee
certification project area. The zero percent loan cannot exceed 50 percent (50%)
of the financial award from the Special Public Works Fund;
(c) The Authority cannot
commit more than $4,000,000 for zero percent (0%) interest rate loans for levee
projects in a biennium.
(4) A levee project is eligible
for one grant of up to a maximum of $50,000. Maximum grant amount will include any
amount previously awarded as a planning project grant pursuant to OAR 123-042-0045(3).
(5) For awards made under
this OAR 123-042-0061, allowable project costs are those set forth in OAR 123-042-0065.
Stat. Auth.: ORS 285B.410, 285B.419
& 285A.075
Stats. Implemented: ORS 285B.410
- 285B.482
Hist.: OBDD 9-2015(Temp),
f. & cert. ef. 10-1-15 thru 3-27-16
123-042-0065
Allowable Project Costs
For purposes of projects funded under
this division of rules, the allowable costs of a project include:
(1) Financing costs, including
capitalized interest;
(2) Direct project management
costs;
(3) Costs of consultant services
and expenses;
(4) Construction costs and
expenses;
(5) Costs of property acquisition,
including any easement, or right of way directly related to and necessary for the
project;
(6) Costs incurred by the
municipality prior to the award if such costs are allowable under the Authority’s
adopted policy for reimbursement of pre-award costs;
(7) Costs of acquiring off-site
property for purposes directly related to the project, such as wetland mitigation;
and
(8) Other costs that the
Authority determines to be necessary or useful.
Stat. Auth.: ORS 285B.419 & 285A.075
Stats. Implemented: ORS 285B.410
- 285B.482
Hist.: EDD 10-2006, f. &
cert. ef. 11-1-06; OBDD 41-2010, f. 11-30-10, cert. ef. 12-1-10; OBDD 9-2015(Temp),
f. & cert. ef. 10-1-15 thru 3-27-16
123-042-0076
Ineligible Projects and Project
Costs
Expenses and costs expressly allowed
under this division of rules are eligible for reimbursement from the fund. All other
costs are ineligible for reimbursement including but not limited to:
(1) Assistance to facilities
that are or will be privately owned;
(2) Purchase of general purpose
motor vehicles and equipment not essential to the project;
(3) Assistance to projects
that primarily focus on relocating business or economic activity from one part of
the state to another, except in cases where the business or economic activity would
otherwise locate outside of Oregon; and
(4) Project operating or
maintenance costs, except as allowed by statute.
Stat. Auth.: ORS 285B.419 & 285A.075
Stats. Implemented: ORS 285B.410
- 285B.482
Hist.: EDD 10-2006, f. &
cert. ef. 11-1-06; OBDD 41-2010, f. 11-30-10, cert. ef. 12-1-10; OBDD 9-2015(Temp),
f. & cert. ef. 10-1-15 thru 3-27-16
123-042-0122
Application Requirements
(1) A municipality may submit an application
to the Authority after consulting with the Authority on a preliminary determination
of eligibility and following the Authority’s procedures.
(2) The application must
be in the form provided by the Authority and must contain or be accompanied by such
information and documentation as the Authority may require. The Authority may assist
municipalities in understanding program requirements and in completing applications.
The Authority will process only completed applications.
Stat. Auth.: ORS 285B.419 & 285A.075
Stats. Implemented: ORS 285B.410
- 285B.482
Hist.: EDD 10-2006, f. &
cert. ef. 11-1-06; OBDD 41-2010, f. 11-30-10, cert. ef. 12-1-10; OBDD 9-2015(Temp),
f. & cert. ef. 10-1-15 thru 3-27-16
123-042-0132
Application Review and Approval
(1) For a construction project the Authority
must make the following determinations:
(a) The municipality has
certified that the proposed project is feasible, is the most cost effective solution,
and adequately serves the applicable land uses in both the short and long term;
(b) The loan is secured by
the pledge of utility revenues or other revenues, collateral, or payments from any
owners of specially benefited properties, and such pledge is sufficient, when considered
with other collateral or assets, to assure repayment, and the municipality has certified
to the Authority that there will be adequate funds available to repay the loans
made to the municipality from the fund;
(c) The municipality is willing
and able to enter into a contract with the Authority;
(d) The project is consistent
with the requirements governing assistance from the fund. If the Authority determines
that the municipality or the proposed project does not meet the requirements of
OAR chapter 123, division 42, the Authority may reject an application or require
further documentation from the municipality;
(e) Other funds that may
be needed to complete the project are available or the municipality has a binding
commitment for such funds. If a portion of the other funds needed to complete the
project is not available or committed at the time an award is made, the award will
be conditional on securing the other needed funds or a binding commitment for such
funds; and
(f) The project is ready
to begin and the municipality has committed in writing that, if awarded the assistance,
it shall proceed immediately.
(2) For a planning project,
the Authority must make the following determinations:
(a) The requirements set
out in OAR 123-042-0132(1) are met, except for subsection (b) if no loan is being
awarded;
(b) The planning activities
must be for a project that is eligible under OAR chapter 123, division 42 and meets
the criteria listed in OAR 123-042-0045; and
(c) The municipality has
demonstrated the ability to secure, the administrative capacity to undertake and
complete the planning project.
Stat. Auth.: ORS 285B.419 & 285A.075
Stats. Implemented: ORS 285B.410
- 285B.482
Hist.: EDD 10-2006, f. &
cert. ef. 11-1-06; OBDD 41-2010, f. 11-30-10, cert. ef. 12-1-10; OBDD 9-2015(Temp),
f. & cert. ef. 10-1-15 thru 3-27-16
123-042-0155
Contracts and Disbursements of Funds
(1) The Authority shall disburse monies
from the fund only after entering into a binding contract with the municipality.
(2) The contract will be
in form and substance as provided by the Authority, and must include:
(a) A provision that disbursements
from the fund will be according to the terms of the contract;
(b) A provision that the
liability of the Authority under the contract is contingent upon the availability
of moneys in the fund for use in the project;
(c) For a development project,
a provision requiring the contracted project remain in municipal ownership for either
the life of the loan, or for not less than 10 years following the Project Closeout
Deadline if funding award is solely a grant. If this condition is not met, the grant
and any interest earned is immediately payable to the Authority, unless the Authority
in its sole discretion elects to convert the grant to a loan on terms and conditions
satisfactory to the Authority;
(d) For a planning project,
other than planning projects conducted for levee certification, a provision requiring
that the land involved in the project must remain zoned as industrial and not be
converted to another use for at least 5 years after completion of the project. If
this condition is not met, the grant and any interest earned is immediately payable
to the Authority, unless the Authority in its sole discretion elects to convert
the grant to a loan on terms and conditions satisfactory to the Authority;
(e) If any portion of the
assistance is in the form of a loan or the purchase of a bond of a municipality,
a provision granting the Authority a lien on, or a security interest in, the collateral
as determined by the Authority to be necessary to secure repayment of the loan or
bond;
(f) A provision that for
a period of up to six (6) years after project completion, the Authority may request
that the municipality, at its own expense, submit data on the economic development
benefits of the project, including but not limited to, information on new or retained
jobs resulting from the project, and other information necessary to evaluate the
success and economic impact of the project; and
(g) Other provisions that
the Authority considers necessary or appropriate to implement the assistance.
(4) The contract for a loan
or grant must be authorized by an ordinance, order or resolution adopted by the
governing body of the municipality in accordance with the municipality’s requirements
for public notice and authorizing debt.
Stat. Auth.: ORS 285B.419 & 285A.075
Stats. Implemented: ORS 285B.410
- 285B.482
Hist.: EDD 10-2006, f. &
cert. ef. 11-1-06; OBDD 41-2010, f. 11-30-10, cert. ef. 12-1-10
123-042-0165
Municipality Responsibilities
(1) The municipality must comply with
all applicable state laws, regulations and requirements, such as Oregon prevailing
wage rates, municipal audit law, and procurement regulations.
(2) The municipality shall
maintain accounts and records for all activities associated with the contracted
project and shall provide the Authority, and its representatives, reasonable access
to such records. The municipality shall submit periodic reports on the project as
requested by the Authority.
(3) The municipality shall
certify that any service provider retained for their professional expertise is certified,
licensed, or registered, as appropriate, in the State of Oregon for their specialty.
(4) The municipality shall
certify that it will follow standard construction practices, such as bonding of
engineers and contractors, requiring errors and omissions insurance, performing
testing and inspections during construction, and obtaining as-built drawings.
(5) For a project funded
with state lottery proceeds, the municipality shall comply with ORS 280.518 requiring
public display of information on lottery funding of the project. At a minimum the
municipality shall:
(a) Include the following
statement, prominently placed on all plans, reports, bid documents and advertisements
relating to the project: “This project was funded in part with a financial
award from the Special Public Works Fund, funded by the Oregon State Lottery and
administered by the Oregon Infrastructure Finance Authority”; and
(b) For a construction project,
post a sign, provided by the Authority, at the project site or, if more than one
site is included in the project, at a site visible to the general public stating
that the project is being funded by lottery proceeds.
(6) For a construction project,
the municipality shall have a financing plan for the ongoing operation, maintenance
and repairs that will preserve the project benefits over its useful life.
Stat. Auth.: ORS 285B.419 & 285A.075
Stats. Implemented: ORS 285B.410
- 285B.482 & 280.518
Hist.: EDD 10-2006, f. &
cert. ef. 11-1-06; OBDD 41-2010, f. 11-30-10, cert. ef. 12-1-10; OBDD 9-2015(Temp),
f. & cert. ef. 10-1-15 thru 3-27-16
123-042-0175
Eligibility Criteria for State Revenue
Bond Loans
The Authority shall apply the following
standards for determining the eligibility of development projects for revenue bond
financing:
(1) Loan repayment must be
secured by a full faith and credit pledge of the municipality;
(2) The loan must be of sufficient
size as determined by the Authority;
(3) The loan must be fully
amortized over its term with fixed annual principal and interest payments and the
term of the loan will not exceed the usable life of the contracted project;
(4) The loan must conform
to the requirements of the bond indenture for the state revenue bonds; and
(5) The loan and the municipality
must meet the minimum underwriting criteria for revenue bond financing as established
by Authority policies.
Stat. Auth.: ORS 285B.419 & 285A.075
Stats. Implemented: ORS 285B.410
- 285B.482
Hist.: EDD 10-2006, f. &
cert. ef. 11-1-06; OBDD 41-2010, f. 11-30-10, cert. ef. 12-1-10; OBDD 9-2015(Temp),
f. & cert. ef. 10-1-15 thru 3-27-16
123-042-0180
Remedies
The Authority may invoke remedies for
an “event of default” as described in the contract with the municipality,
including but not limited to the following:
(1) Withholding of amounts
otherwise due to the municipality pursuant to ORS 285B.449;
(2) Barring Recipient from
applying for future awards.
Stat. Auth.: ORS 285B.419 & 285A.075
Stats. Implemented: ORS 285B.410
- 285B.482
Hist.: ED 12-2000, f. 8-9-00,
cert. ef. 8-14-00; EDD 5-2004(Temp), f. & cert. ef. 2-3-04 thru 8-1-04; EDD
18-2004, f. & cert. ef. 8-2-04; EDD 10-2006, f. & cert. ef. 11-1-06; OBDD
41-2010, f. 11-30-10, cert. ef. 12-1-10; OBDD 9-2015(Temp), f. & cert. ef. 10-1-15
thru 3-27-16
123-042-0190
Appeals and Exceptions
(1) Appeals of decisions made by a municipality
regarding a project must be made in accordance with the requirements and procedures
of the municipality.
(2) The executive director
of the Authority will consider appeals of the Authority’s funding decisions.
Only the municipality may appeal. An appeal must be submitted in writing to the
executive director within 30 days of the event or action that is being appealed.
A project that would have been funded but for a technical error in the Authority’s
review of the application will be funded as soon as sufficient moneys become available
in the fund, provided the project is still viable. The executive director’s
decision is final.
(3) The executive director
may waive non-statutory requirements of this program if it is demonstrated such
a waiver would serve to further the goals and objectives of the program.
Stat. Auth.: ORS 285B.419 & 285A.075
Stats. Implemented: ORS 285B.410
- 285B.482 & 285A.101
Hist.: ED 12-2000, f. 8-9-00,
cert. ef. 8-14-00; EDD 5-2004(Temp), f. & cert. ef. 2-3-04 thru 8-1-04; EDD
18-2004, f. & cert. ef. 8-2-04; EDD 10-2006, f. & cert. ef. 11-1-06; OBDD
41-2010, f. 11-30-10, cert. ef. 12-1-10; OBDD 9-2015(Temp), f. & cert. ef. 10-1-15
thru 3-27-16

The official copy of an Oregon Administrative Rule is
contained in the Administrative Order filed at the Archives Division,
800 Summer St. NE, Salem, Oregon 97310. Any discrepancies with the
published version are satisfied in favor of the Administrative Order.
The Oregon Administrative Rules and the Oregon Bulletin are
copyrighted by the Oregon Secretary of State. Terms
and Conditions of Use

Related Laws

2015 Rulemaking