Res 2012-156 - Laserfiche WebLink

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Businesses claiming consideration for retained jobs as part of a project proposal must provide income certifications in the application and also must provide documentation verifying that they will meet at least one of the following requirements: • That some or all of the employees will be permanently laid off; or • That the business will close down its existing operation /facility; or • That the business will relocate out of the City and its ETJ requires 3rd party documentation. The income certification must document that LMI individuals hold a minimum of 51% of the retained jobs. For further guidance contact the City. No businesses claiming retained jobs will be considered for additional funding for a minimum of one year after a contract has been closed out. See "Liability ". Cost Per Job - The number of jobs to be created / retained by the business is one of the factors that will determine how much financial assistance is available from the program. Cost per job is determined by dividing the total number of full -time permanent jobs to be created / retained into the total amount of RLF funds. At least one job must be created or retained for each $25,000 or fraction thereof received in the RLF. For example, an RLF loan in the amount of $35, 000 would require the creation /retention of two full -time equivalent jobs. Interest Rate - The interest rate charged on the Revolving Loan Fund will be fixed (as of the contract date) at the Wall Street Journal prime rate. Labor Standards- The Davis Bacon and Related Acts may be applicable for the installation of equipment if the installation cost exceeds $2,000. Applicability will be determined on a case -by -case basis. Leverage Match Requirement- For each dollar of RLF funds received, the business must contribute at least fifty cents as matching funds. Future payment streams from any source will not be considered eligible match. This requirement is applicable to start -up businesses and businesses re- locating within the corporate limits of the City of San Marcos. A firm financial commitment and a verification of deposit, if applicable, for all matching funds will be required upon submission of the application. Funds and costs, outlined on the Sources and Uses of Funds Form, may not be spent or incurred prior to a contract award date from the City. An exemption to this requirement is granted to existing San Marcos businesses that do not meet the definition of a "start up" business. Liability - Title I of the Housing and Community Development Act of 1974 (42 USC 5.301 et seq.) requires all Community Development Block Grant (CDBG) funds to be expended in such a way to satisfy one of three national objectives specified in the statute. Revolving Loan Funds provided under the CDBG are required to comply with the national objective of principally befitting persons of low and moderate income. This requirement is fulfilled by funding projects which create or retain jobs, principally for persons of low and moderate income. The City of San Marcos has certified to the U.S. Department of Housing and Urban Development (HUD) that our expenditure of economic development funds will satisfy this national objective and we have also executed a grant agreement with HUD containing this requirement. The City of San Marcos, therefore, has no choice but to hold the local business recipient of economic development funds accountable to the same extend that HUD holds the City accountable. In the event of a failure to create or retain all the jobs specified in a City of San Marcos Revolving Loan Program contract, it is the City's standard policy to require a recipient business to reimburse the City for the number of jobs not created or retained. For example, if the City provided $20,000 in Revolving Loan Program funds to a business for an economic development project in which 10 permanent jobs for low to moderate income persons were to be created and only 5 jobs were actually created, the City would require repayment of $10,000.00. HUD, however, can authorize the City to deviate from this policy in certain situations. For cases in which the required number of jobs was beyond the control of the business, the business was otherwise in compliance with its contract, and the business has made every effort to create the jobs specified in the contract