Tenn. Comp. R. & Regs. 0500-02-01-.06

Current through January 8, 2025

Section 0500-02-01-.06 - APPLICATION FOR CERTIFICATE - FORM AND CONTENT

Applications for Certificate of Public Purpose and Necessity shall be submitted in twelve (12) copies and shall contain the below described statements and information. Each copy of the application shall be bound in a separate volume with an appropriate cover and the information and/or statements contained therein shall appear in the order as described below:

(a) There shall be a letter addressed to the Building Finance Committee from the chief officer of the municipality, bearing the signature of such official and including the following:

1. a statement requesting that the Building Finance Committee issue to the municipality a Certificate,

2. a statement outlining the scope of the project for which the Certificate is sought and the reasons for its undertaking,

3. a statement as to the aggregate cost of the project, sources and amounts of funding available for implementation of the project and sources and amounts of anticipated revenues to be derived from the project, and

4. a statement as to the aggregate amount of General Obligation bonds the municipality is seeking authority to issue to finance the project.

(b) Certified copies of all necessary and required resolutions and/or ordinances enacted or passed by the governing body of the municipality empowering it to undertake the project and make application to the Committee for a Certificate.

(c) An Expenditure vs. Funding Statement, such statement to contain, on a single page where possible, an itemized statement of all project expenditures tabulated in a single column on the left hand side of such page and an itemized statement of all funding for the project tabulated in a single column on the right hand side of such page. Each such column shall be totaled and the total amounts of each column shall equal one another.

1. Cost shall include all expenses to be incurred in undertaking the project including, but not limited to, land cost, construction cost, cost of the services of architects and engineers, legal and fiscal expenses and shall include interest accruing during the construction period and for six (6) months thereafter on money borrowed in conjunction with the project for which the petition is filed.

2. Funds shall include all grants and/or loans from governmental agencies as well as monies to be derived from the sale of bonds, or to be borrowed from commercial institutions, or to be contributed from the general fund or any special fund of such municipality.

3. There shall be included in the appendix to the application with reference to cost, the following:

(i) where fees or costs have been established by option, actual payment, invoice or contract, a copy of the document establishing the basis for the cost or fee,

(ii) where fees or costs have been established by estimate, the source of the estimate and sufficient additional information concerning the estimate to establish that the party making the estimate is well qualified and has sufficient experience and knowledge with respect to the subject of the estimate as to make the estimate reliable, and

(iii) in the case of land cost, there shall be provided, in addition to any option or contract establishing the purchase price, an independent appraisal of the property by a qualified real property appraiser.

4. There shall be included in the appendix to the application, with reference to sources of funding the following:

(i) where the source of funding is to be provided by a governmental agency either by loan or grant, a copy of the application for such funding, copies of all necessary approvals required in obtaining such funds, including approvals by the development districts, state clearinghouse for Federal funding, etc., and a copy of or a letter from the Federal or State agency from which funds are elicited, indicating the status of the request and the probability of funding.

(ii) where the source of funds is to be a loan from a commercial lending institution, a copy of the loan agreement including a copy of any mortgages or security agreements to be effected by and between the municipality and the lending institution, in consideration for loan, and

(iii) where the source of funds is to be by the issuance of bonds, General Obligation and otherwise, a copy of all proposed recitals to become a part of the bonds, including bondholders remedies, lien rights, prepayment rights, penalties for delayed payments, and the estimated interest rates, and/or amortization schedule for the bonds.

(d) A Payment vs. Revenue Statement, such statement to contain a tabulation of the estimated annual payments which will be required to meet any indebtedness incurred by the municipality in undertaking the project as well as a summary of anticipated revenues from the project including estimated amounts and dates of receipt of such revenues. There shall be included in the appendix to the application, with reference to Revenues, the following:

1. where anticipated revenues are based on the sale of land, a detailed and thorough discussion of the projected sale price of the land used in establishing projected revenues and a discussion of the feasibility of the projected dates used in establishing the time at which such revenues shall become available, and

2. there shall be included in the appendix to the application, with reference to payments, a complete amortization schedule for retiring the indebtedness incurred as a result of the project.

(e) An Emergency Financing Statement, such statement to contain a thoroughly discussed plan showing where the municipality shall obtain any emergency funding needed to meet expenses in the event project revenues do not materialize on schedule.

(f)Sworn Statements from the appropriate official to the municipality, such statements to contain:

1. the total assessed value of property within the municipality by assessor of property (assessed value is the value of all property within the municipality to which the tax rate is applied),

2. a general tabulation of all outstanding General Obligation bonds issued, by the chief fiscal officer of municipality, and

3. a specific tabulation of all outstanding bonds issued under the authority of TCA 7-55-101 et. seq., and/ or TCA 13-16-201 et. seq., by the chief fiscal officer of municipality.

(g) An Engineering Report, the engineering report shall contain the following information and/or address itself to the following items with respect to the site:

1. topographic and/or terrain conditions at the site,

2. location of the site with respect to access to highways, rail and/or water transportation facilities, including a discussion of any problems or inherent drawbacks to the use of the site occasioned by the location of the site, with respect to these various modes of transportation.,

3. soil conditions at the site, including estimated quality of the soil with respect to industrial usage of the site, estimated depth to rock., probability of ground water and/or internal drainage problems with respect to site soil and any corrective measures to be taken with respect to site soil conditions.,

4. site configuration and any problems associated with the configuration of the site, including the probability of wasted property,

5. site drainage, including a discussion of the nature of site drainage, provisions to handle site drainage and any problems associated with site drainage. A discussion of flood conditions relative to the site shall be included in this section of the report,

6. provisions for serving the site with water, gas, electricity, and sewage collection:

(i) with respect to water, the report shall include sufficient information to establish that proposed water service to the site shall be adequate, including water for fire protection. The discussion shall include an analysis of water pressures and quantities, the basis for establishing storage capacities, basis for establishing consumptive demands as well as the basis for establishing fire demands,

(ii) with respect to sources of energy or power, a discussion of the manner and method of supplying needed energy or power to the park, including the type of energy sources available and to be supplied,

(iii) with respect to sewage collection, a discussion of the manner and method of collecting park waste and disposing of it. A discussion of estimated park waste and the basis for such estimate, a discussion of sewer hydraulics and a discussion of the capacity at the local treatment facility to handle the anticipated park waste,

(iv) in the event that any of the above services are not to be provided, the report should discuss in detail the impact on the park or site of not providing this service.

7. The engineering report shall contain sufficient maps to:

(i) delineate the location of the site., with respect to local modes of transportation, with respect to the municipality's business district and with respect to sources of labor,

(ii) to show all improvements proposed on the property,

(iii) to indicate anticipated subdivision of the property,

(iv) to show the present terrain features and topographic relief of the site (suggest a minimum 10' contour interval), and

(v) to show the nature and extent of any proposed alternations to the site topography.

(h) A Statement by an Attorney of Law, to the effect that there are or are no problems associated with implementation of the project. In the event that legal complications do exist, the statement shall discuss such problems and their probable impact upon the project.

(i) A Statement as to Available Sources of Labor within a twenty-five (25) mile radius of the site including a discussion of the basis of establishing available labor supplies.

(j) A Discussion of any Environmental Problems anticipated and their effect upon the project.

(k) A Plat and Legal Description of the Property.

(l) An Appendix to the Application containing that information as requested by Section 0500-2-1-.06(c); (d) and any other information with regard to the feasibility of the project that the municipality feels should be included or desires to place in the application.

Tenn. Comp. R. & Regs. 0500-02-01-.06

Original Rule filed November 8, 1977, effective December 8, 1977.

Authority: TCA Section §§ 13-16-207.