Chapter 4.44
SOUTHEAST ECONOMIC DEVELOPMENT FUND

Sections:

4.44.010    Establishment.

4.44.020    Participation loans and loan guarantees to private enterprise.

4.44.030    Loans and transfers to other municipal funds.

4.44.040    Repayments and interest earnings on the fund corpus.

4.44.010 Establishment.

There shall be established a southeast economic development fund (“fund”), for qualifying loans and transfers to other municipal funds, and for financial institution participation loans to private enterprises. Loans or transfers to other municipal funds shall be for purposes of promoting the efficiency and effectiveness of municipal government, or for improvements which shall lessen rate and fee burdens on citizens. Loans to private enterprises shall be for purposes of expanding the municipality’s economic base, generating commerce external to Sitka, and creating family wage jobs in Sitka. Only the assembly can authorize any loan or transfer from this fund. (Ord. 15-27 § 4 (part), 2015: Ord. 11-02 § 4 (part), 2011.)

4.44.020 Participation loans and loan guarantees to private enterprise.

A.    Any loan or loan guarantee to a private enterprise shall be a participation loan in conjunction with a financial institution. No loans shall be made by the fund directly to a private enterprise.

B.    Proposals for participation loans or loan guarantees shall be prepared by the participating financial institution and presented to the assembly for approval by the participating institution.

C.    The municipal administrator shall be responsible for developing and administrating administrative policies governing participation loans and loan guarantees to private enterprise.

(Ord. 15-27 § 4 (part), 2015.)

4.44.030 Loans and transfers to other municipal funds.

A.    Any proposed loan or transfer from the fund to another municipal fund shall be proposed to the assembly by the administrator with justification as to the benefits to be derived from the loan or transfer. The assembly shall decide whether to approve the loan or transfer, including whether to grant the full amount requested or a lesser amount, and whether to set any conditions.

B.    Any loan from the fund to another municipal fund requires interest to be charged at a rate to be determined by the assembly.

(Ord. 15-27 § 4 (part), 2015: Ord. 11-02 § 4 (part), 2011. Formerly 4.44.050.)

4.44.040 Repayments and interest earnings on the fund corpus.

A.    All loan repayments, including both interest principal repayments, shall be redeposited into the fund.

B.    Investment earnings on the undisbursed corpus of the fund shall be transferred to the building maintenance fund.

(Ord. 15-27 § 4 (part), 2015.)