Current through Register Vol. 28, No. 3, September 1, 2024
5.1 Findings. In connection with the approval
of the issuance of a Bond for a Project, the Act requires the Authority to make
certain findings and determinations with respect to the Project. The Authority
shall apply the following standards where applicable in making such findings
and determinations:
5.1.1 Employment
Standard. For a proposed Project, the Authority will review the information
submitted by an Assisted Person to determine whether the Project will tend to
maintain or provide gainful employment within the State. The standards to be
considered will include, but not be limited to, the wage scale applicable to
persons to be employed as a result of the Project, the economic situation in
the State, the effect of the Project on the tax base of the State and of the
county or municipality in which the Project is to be located, and the expected
effect that the Project will have on the development of new economic activity
within the State.
5.1.2 Abandonment
Standard. When applying the "employment standard," the Authority will take into
consideration whether the proposed Project will cause or result in abandonment
of an existing facility elsewhere in the State by an Assisted Person or by the
proposed operator or principal user of the Project. If a facility in the state
is to be abandoned, a statement by the Assisted Person, operator or principal
user that the existing facility in the State is to be abandoned because of
obsolescence, lack of available labor or site limitations shall be prima facie
proof that the Assisted Person has not violated the abandonment
standard.
5.1.3 Capability
Standard. In determining whether a proposed Project "will serve a public
purpose by contributing to the prosperity, health or general welfare of the
citizens of the State," the Assisted Person shall demonstrate to the Authority
that the Assisted Person, operator ,or principal user has the capability to,
operate and maintain the Project efficiently and effectively. Financial
strength and prior related experience by the Assisted Person, operator or
principal user may be considered as well as the qualifications of
management.
5.1.4 Operator and User
Standard. An Assisted Person shall, if requested by the Authority or required
in the application for financing, submit such information as is requested or
required for each proposed operator or principal user of the Project. The
Authority shall apply the same standards with respect to the operators and
principal users of the Project as if they were the Assisted Person, unless
there is good reason, established by the Assisted Person, to make the findings
and determinations with respect to the Assisted Person alone. The financial
strength of the Assisted Person and his capacity to manage or operate the
Project, among other considerations, may be the basis for omitting such
findings and determinations with respect to the operators or principal
users.
5.1.5 Commercial and
Agricultural Business Standards. In making findings and determinations with
respect to the capital investment in a Project for an Agricultural Business or
for a Commercial Business, the Authority will consider capital investment made
and to be made in the proposed Project during a period of time commencing one
(1) year prior to the date on which an application for financing is submitted
to the Authority and terminating one year following the issuance of a Bond with
respect thereto. The term "capital investment" shall be applied in accordance
with generally accepted accounting principles.
5.2 Adherence to Law. In making a finding and
determination that the Assisted Person has not been cited for a major labor law
violation or illegal conduct involving moral turpitude, the Authority may, in
its discretion, rely on a sworn affidavit of the Assisted Person or an officer
of the Assisted Person in lieu of an opinion of counsel to the Assisted Person.
If requested by the Authority, similar proof shall be obtained from any
operator or principal user of a Project.
5.3 Speculative Buildings. The Authority may,
after applying the foregoing standards, approve Projects to be financed with
Bonds prior to a determination of the feasibility of the Project, provided that
at the time the Bonds are issued, satisfactory evidence demonstrates to the
Authority, in its sole discretion, the feasibility of the Project.
