10 Tex. Admin. Code § 181.7

Current through Reg. 49, No. 50; December 13, 2024

Section 181.7 - Contents of Application

Required information. Applications must set forth the information necessary for the Office to determinate program eligibility. Applications shall include the following information:

(1) EDC information, including:

(A) applicant's legal name;

(B) corporate charter number;

(C) date of incorporation;

(D) federal employer identification number;

(E) physical and mailing addresses;

(F) telephone and fax numbers;

(G) contact name and title; and

(H) whether the EDC was created under Chapter 504 or Chapter 505 of the Act;

(2) information on the election for economic development sales and use tax, including:

(A) election date;

(B) date tax effective;

(C) expiration date (if any);

(D) rate of tax adopted;

(E) date tax proceeds first received from comptroller; and

(F) limitations/restrictions on use of tax receipt proceeds;

(3) information on any election for an additional sales and use tax under Chapter 321, Texas Tax Code, including:

(A) election date;

(B) date tax effective;

(C) rate of tax adopted;

(D) date tax proceeds first received from the comptroller;

(E) date tax was repealed or modified after passage; and

(F) if applicable, describe any changes to the tax;

(4) names and titles of EDC officers and board of directors;

(5) names, addresses, and telephone and fax numbers of mayor, city manager and city attorney;

(6) executed acknowledgment that all underwriting responsibilities for loans to a user are those of the EDC and city, and that the Office has no responsibility for loan repayment by the user;

(7) completion of the debt service coverage ratio worksheet in accordance with the instructions provided by the Office, including:

(A) the city's general obligation bond rating;

(B) the rating agency;

(C) the target funding date for the program loan;

(D) the program loan amount;

(E) the terms of program loan;

(F) the EDC's annual debt service amount; and

(G) the EDC's parity debt service amount;

(8) a listing of all parity and non-parity debt obligations, including:

(A) creditor's name, address, and telephone and fax numbers;

(B) loan origination date;

(C) original loan amount;

(D) current loan balance;

(E) monthly loan payment;

(F) maturity date; and

(G) collateral description and value;

(9) user information, including:

(A) business name, address, and telephone and fax numbers;

(B) contact name and title;

(C) type of legal entity;

(D) minority or woman-owned ownership percentage;

(E) business description including:

(i) the standard industrial classification code number;

(ii) industry category;

(iii) current number of employees;

(iv) total annual sales;

(v) number of years in business;

(vi) date started doing business; and

(vii) brief description of business;

(10) a summary of the project, including:

(A) project address and the county in which located;

(B) the number of full time equivalent jobs created and/or retained as a result of project;

(C) a concise description of the type of project, including:

(i) primary purpose of project;

(ii) ownership of project such as EDC, city, or user;

(iii) components of project such as land, buildings, infrastructure, equipment, facilities, and improvements;

(iv) whether project is located in one of the following designated areas:

(I) federally designated empowerment zone and enterprise community designated under the Internal Revenue Code of 1986, §1391;

(II) federally assisted new community;

(v) applications for Chapter 505 projects must include documentation that the project has been published for at least 60 days as required by the Act, §505.160 and that no petition from 10% or more of the registered voters of the city requesting an election has been received by the city; and

(vi) applications for Chapter 505 projects must also include documentation that at least one public hearing was held on the proposed project as required by the Act, §505.159;

(11) a cost breakdown of the project specifying sources of funds (such as program loan, equity and other) and uses of funds (such as land, infrastructure, building, machinery, equipment, professional fees, debt, working capital and other);

(12) a certification that the representations made by the EDC are true and that no relevant facts have been intentionally omitted;

(13) EDC's articles of incorporation and bylaws;

(14) Chapter 504 or Chapter 505 sales and use tax ballot proposition (actual wording);

(15) city's economic development plan (infrastructure projects only);

(16) documents in support of federal designation of empowerment zones or enterprise communities;

(17) documents in support of grants received under the Housing and Community Development Act of 1974, §107(a)(1), as amended, for federally assisted new communities;

(18) documents in support of enterprise zone designation under the Texas Enterprise Zone Act; and

(19) such other information as may be required by the Office in order to make a prudent loan decision on the project application and to insure that the project and cost are eligible under the Act.

10 Tex. Admin. Code § 181.7

The provisions of this §181.7 adopted to be effective March 27, 1997, 22 TexReg 2871; amended to be effective December 10, 2001, 26 TexReg 10054; amended to be effective August 5, 2012, 37 TexReg 5730