1. The application must include, but is not limited to:
(a) A description of the purpose, objective and function of the proposed project;
(b) A description of all the costs of the project in sufficient detail to allow for an analysis of all legal and tax issues, including, without limitation:
(1) Expected transaction costs;
(2) Costs expected to be reimbursed to the project's developer; and
(3) A timing schedule for when costs will be incurred;
(c) A description of the management of the project, including, without limitation:
(1) A copy of the partnership agreement or articles of incorporation of the sponsor;
(2) If the amount of the requested bonds is $5,000,000 or more:
(I) For the 5 years before the filing of the application, audited financial statements of the corporation or partnership; and
(II) For the 5 years before the filing of the application, the federal income tax returns of the corporation or principals of the partnership;
(3) If the amount of the requested bonds is less than $5,000,000:
(I) For the 3 years before the filing of the application, a financial operating history of the corporation or partnership; and
(II) For the 3 years before the filing of the application, the federal income tax returns of the corporation or principals of the partnership;
(4) If applicable, the certificate of registration issued by the Secretary of State pursuant to NRS 86.545 or 88.580 for the sponsor; and
(5) Any resolutions or operating agreements of the sponsor that establish the authority of a person to sign documents associated with the financing of the project;
(d) Information on the site of the project, the proposed facilities, and the status of any required environmental permits, including, without limitation:
(1) A copy of the most recent Phase I Environmental Report which was done for the site of the project and must have been completed within 1 year before the application is filed;
(2) A copy of the most recent geotechnical report which was done for the site of the project and must have been completed within 1 year before the application is filed;
(3) A copy of a certified "as-built" survey which was done for the site of the project, must have been completed within 1 year before the application is filed, is American Land Title Association qualified and shows the project in its proper place on the site and all exceptions to title;
(4) A copy of the most recent parcel map of the site of the project that is recorded with the county recorder;
(5) A copy of the zoning restrictions on the site of the project showing that the applicable zoning laws and regulations allow for the development of the project on the site; and
(6) If the site of the project is located on a flood zone as designated by the Federal Emergency Management Agency, a map that shows the bounds of the flood zone, the property on which the project is to be located and the project;
(e) Information on the location of the project, including, without limitation:
(1) A description of the relationship of the project to any existing facilities adjacent to the site;
(2) A copy of a written contract to purchase or option to purchase or lease agreement regarding the property on which the project is to be built;
(3) A description of any relationship between any parties referred to or involved with the written contract, lease agreement or title report described in subparagraphs (2) and (5);
(4) A description of the proposed final sources for funds for the lease or purchase of land for the project; and
(5) A copy of a title report for the site of the project that includes a list of all exceptions and a pro forma American Land Title Association policy to be issued to the lending organization;
(f) A description of all proposed sources and uses of funds for the project, including, without limitation:
(1) A list of any anticipated net bond proceeds, tax-credit equity, grants, subordinated debt or other forms of debt or equity;
(2) A detailed timing or draw schedule for the payment of costs out of available funds; and
(3) A detailed description of the machinery and equipment to be acquired by the financing;
(g) A description of the economic feasibility of the project, including, without limitation, at least one of the following:
(1) A copy of a certified appraisal of the site of the project that was completed:
(I) Within 1 year before the filing of the application; and
(II) By an appraiser certified pursuant to chapter 645C of NRS;
(2) A copy of a market study performed by a market analysis firm approved by the Director; or
(3) A copy of:
(I) A loan underwriting package from a credit enhancement institution that is approved by the Director; and
(II) An appraisal that is approved by a credit enhancement institution that is approved by the Director;
(h) A business history of the applicant, including, without limitation, a copy of any development, general contractor or management agreement between the sponsor and another party regarding the project;
(i) Information required by the Director for an energy and weatherization audit of the project; and
(j) Any other information required by the Director.
2. The applicant must submit an original and four copies of his or her application for financing on a form provided by the Director. The application must be accompanied by a nonrefundable application fee of:
(a) Five hundred dollars if the amount of the requested bonds is less than $5,000,000; or
(b) One thousand two hundred and fifty dollars if the amount of the requested bonds is $5,000,000 or more.
3. The Director will, within 30 days after receipt of a completed application, notify the applicant whether or not the application is accepted.
4. If the completed application is not accepted, the Director will provide the applicant an opportunity to discuss the reasons for denial and may allow up to an additional 30 days for the applicant to submit an updated version of the application.
5. If the application is accepted, the Director will:
(a) Direct the applicant to submit a deposit of $75,000 towards the total costs of the Department to process the application and finance the project, and such costs will not exceed the lower of any limit prescribed by the Internal Revenue Code of 1986, as amended, including, without limitation, any regulations, circulars, letter rulings and policies adopted by the Internal Revenue Service pursuant to the Code, or 2 percent of the principal amount of the financing, payable before or at the time the bonds are issued.
(b) Send the applicant an inducement letter:
(1) Stating the intention of the Director to issue bonds to finance the project subject to the continuing ability of the project to meet local, state and federal requirements;
(2) Stating the principal amount of the financing that the Director will include in any findings submitted to a local or state governmental agency;
(3) Directing the applicant to submit any additional documentation as may be required by the Director; and
(4) Stating that the term of the Director's commitment is 1 year. At the expiration of the term, the Director may extend the commitment once for a similar term if there has been a demonstration of good faith by the applicant in preparing and submitting additional supporting documents. An extension fee in the amount of $1,250 will be charged for the costs of the extension, including, without limitation, the cost of redrafting an inducement certificate or other similar document.
6. Whether or not the bonds are issued, the deposit received on behalf of the Director will be used to reimburse the Department for the cost of a project incurred in processing the application and financing the project, including, without limitation, any costs for financial, legal and banking services engaged for the project. The portion of the deposit that is not required to reimburse the Department for its costs relating to the project will be refunded to the applicant by the time the bonds are issued. The cost of a project incurred by the Director in excess of the deposit will be charged to the applicant and must be paid by the time the bonds are issued.
7. If bonds are issued and by agreement or as the result of a default in payment of the bonds, the bankruptcy of the obligor or any other reason, the Director is required to provide ongoing services, expend additional resources or incur additional costs in relation to the bonds, including, without limitation, supervising, monitoring or reviewing on a regular basis the activity of the obligor or any other party to the transaction or the documentation relating to the transaction, the Director may charge and recover from the obligor a reasonable fee for such services, resources or costs.
8. The Director may modify the principal amount of the financing downward and may modify the other terms and conditions of the financing before the closing if the modifications are consistent with the approval of the project given by the State Board of Finance.
9. The Director will establish an annual inspection and compliance fee to be charged to the obligor for the financing. The fee will be based upon the percentage of bonds outstanding at the end of each year. If appropriate, or otherwise in accordance with the terms of the financing agreement, the Director may adjust the fee.
10. For each financing issued pursuant to NAC 349.010 to 349.080, inclusive, the Director will:
(a) Analyze similar types of financing issued for at least the 30 days before the anticipated date the bonds will be issued, including, without limitation, analyzing the differences in credit risk between other similar types of financings and the bonds at issue; and
(b) Maintain, in the file for each financing, records of the relevant financial markets containing similar types of financing for at least the 30 days before the anticipated date the bonds will be issued.
11. The Director will use the fees collected pursuant to this section exclusively to support the operations of his or her office that are in connection with the programs administered pursuant to the provisions of chapters 348A and 349 of NRS and any regulations adopted pursuant thereto.
12. The Director will establish with an appropriate fiduciary bank the appropriate accounts and procedures for the deposit and expenditure of money received from financing pursuant to NAC 349.010 to 349.080, inclusive.
13. As used in this section, "cost of a project" has the meaning ascribed to it in NRS 349.430.
Dep't of Commerce, Industrial Development Revenue Bond Reg. § 5, eff. 12-30-81-NAC A 7-6-92; A by Dep't of Business & Industry by R039-02, 6-26-2002; R104-08, 12-17-2008
