Tenn. Comp. R. & Regs. 0500-02-02-.07

Current through January 8, 2025

Section 0500-02-02-.07 - APPLICATION FOR CERTIFICATE - FORM AND CONTENT

Applications for Certificates of Public Purpose and Necessity shall be signed and sworn to by the chief officer of the county or municipality and shall include twelve (12) copies of each of the following in the body of the application or as exhibits thereto:

(1) The purpose for which the Certificate of Public Purpose and Necessity is sought.

(2) The identity of the lessee and any guarantors of the lease.

(3) The term of the lease (years).

(4) A general description of the proposed operations by the lessee,

(5) A plat and legal description of the property to be acquired, and the appraised value thereof as determined by competent and independent real estate appraisers.

(6) Itemized estimates of expenditures required for:

(a) Purchase of land,

(b) Purchase of existing building,

(c) Improvements to existing building,

(d) Construction of industrial building including site improvement, landscaping, etc.,

(e) Architectural and engineering costs,

(f) Fiscal and legal expenses,

(g) Interest accruing during the construction period and for six (6) months thereafter on money to be borrowed in connection with the project for which the petition is filed, and

(h) Holding referendum.

(7) A statement that sealed bids will be invited for all construction work on the proposed project not performed by regular employees of the municipality or county, and that all bids may be rejected or the contract awarded to the lowest and best bidder.

(8) A statement that all bonds issued for the proposed project under the provisions of Section 7-53-306 or Section 7-55-101 et. seq., Tennessee Code Annotated,, will be advertised in THE BOND BUYER and in local newspapers, and sold publicly to the highest and best bidder.

(9) A statement that no other bonds or obligations of any kind, constituting an encumbrance against the proposed industrial facilities or a lien on the revenues therefrom, will be issued or authorized by the municipality or county without the approval of the Building Finance Committee.

(10) Resolution by governing body authorizing municipality or county to execute lease agreement with industrial lessee and to apply to Building Finance Committee for Certificate of Public Purpose and Necessity.

(11) Executed lease agreement by municipality or county and industrial lessee. No real estate firm, factory locating service, consulting engineering concern, private industrial development corporation, or other advisory or professional individual or group will be recognized as parties to this agreement.

Any contract for services of such organization must be separate, and copies furnished to the Committee as a part of the application. The lease agreement shall set out the following:

(a) That rental payments are sufficient to pay said bonds and interest thereon as they become due, and to create and maintain such reserves therefore, as may be deemed necessary by the Building Finance Committee,

(b) The term (not to exceed forty (40) years) of the lease contract.

(c) That on or before delivery date of bonds a firm lease contract, including monthly rentals, maturity schedule and options for renewal, if any, will be executed by municipality or county and industrial lessee,

(d) Adequate insurance coverage to be provided by lessee,

(e) Adequate provisions for maintenance of the property by the lessee, and

(f) That the lessee will furnish to the Building Finance Committee the financial statements described in Regulation 0500-2-2-.07.

(12) Comparative balance sheets and operating statements of leasing company for past five (5) years certified by CPA (including parent or subsidiary companies). Interim statements within six (6) months of filing must be furnished when necessary.

(13) History and background of proposed lessee, including brief biographies of key officials, signed by top company officials.

(14) Statement giving unquestionable evidence of sufficient natural resources readily available for the use and operation of the proposed enterprise for at least ten (10) years or the period of time for which any bonds are issued for acquiring or constructing said industrial building. If no local natural resources are required, that fact shall be stated.

(15) Statements giving unquestionable evidence of the availability of 1 1/2 workers for each operative job in the proposed enterprise in a twenty-five (25) mile radius of the proposed location.

(16) Certified statement of latest assessed valuation of municipality or county - usually obtainable from County Trustee or City Recorder (total bonded indebtedness solely for purposes of these Acts cannot exceed 10% of total assessed value of all property in municipality or county).

(17) Proposed schedule of bond maturity dates.

(18) Tentative (or final) plans and specifications for construction of proposed industrial building.

Tenn. Comp. R. & Regs. 0500-02-02-.07

Authority: TCA Section 7-35-106; TCA Section7-53-307.