Source: http://www.mainelegislature.org/ros/LOM/LOM120th/6Pub701-713/Pub701-713-02.htm
Timestamp: 2013-06-20 13:33:41
Document Index: 778459026

Matched Legal Cases: ['§12004', '§18', '§13120', '§13058', '§6', '§17', '§13058', '§6', '§17', '§13072', '§6', '§17', 'art. 2', '§13120', '§13120', '§201', '§3', '§30']

H.P. 1724 - L.D. 2212
An Act to Create the Maine Rural Development Authority
Sec. 1. 5 MRSA §12004-F, sub-§18 is enacted to read:
18. Maine Rural Development Authority
5 MRSA §13120-A
Sec. 2. 5 MRSA §13058, sub-§6, ¶¶E and F, as enacted by PL 1987, c. 534, Pt. A, §§17 and 19, are amended to read:
E. A foreign trade zone program; and
F. The Business Assistance Referral and Facilitation Program, pursuant to section 13063; and.
Sec. 3. 5 MRSA §13058, sub-§6, ¶G, as enacted by PL 1987, c. 534, Pt. A, §§17 and 19, is repealed.
Sec. 4. 5 MRSA §13072, sub-§6, as enacted by PL 1987, c. 534, Pt. A, §§17 and 19, is repealed.
Sec. 5. 5 MRSA c. 383, sub-c. III, art. 2, as amended, is repealed.
Sec. 6. 5 MRSA c. 383, sub-c. IX is enacted to read:
The Maine Rural Development Authority, as established by section 12004-F, subsection 18 and referred to in this subchapter as the "authority," is a body both corporate and politic and a public instrumentality of the State established for the purpose of providing loans to communities for the development of commercial facilities on a speculative basis and for serving as lead investor in the acquisition, development, redevelopment and sale of commercial facilities in areas where economic needs are not supported by private investment.
1. Carrying costs. "Carrying costs" means reasonable costs incurred for the maintenance, protection and security of a community industrial building prior to occupancy, including, but not limited to, insurance, taxes and interest.
5. Community industrial building. "Community industrial building" means a building of flexible design and suitable for commercial use, for which the construction or carrying costs or both are financed through this subchapter for the purpose of creating new jobs in a municipality resulting from the sale or lease of the building.
9. Local development corporation. "Local development corporation" means any nonprofit organization created by a municipality that is incorporated under Title 13, chapter 81 or that is incorporated under Title 13-B or otherwise chartered by the State, which is designed to foster, encourage and assist the settlement or resettlement of industrial, manufacturing, fishing, agricultural, recreational and other business enterprises within the State. A majority vote of the municipal officers is sufficient to form a local development corporation, notwithstanding Title 13, chapter 81. "Local development corporation" also means any nonprofit organization that is incorporated under Title 13, chapter 81 or that is incorporated under Title 13-B or otherwise chartered by the State, and is designed to foster, encourage and assist the settlement or resettlement of industrial, manufacturing, fishing, agricultural, recreational and other business enterprises within the State that applies for financial assistance for a project under this article, as long as that application is formally endorsed by a vote of the governing body of the municipality in which the project is to be located.
A. Community industrial building program, pursuant to section 13120-N;
B. Commercial Facilities Development Program, established under section 13120-P; and
(1) The Commissioner of Economic and Community Development; and
(2) The Chief Executive Officer of the Finance Authority of Maine.
A member continues to hold office until a successor is appointed and qualified, but the term of the successor is not altered from the original expiration date of the holdover member's term.
4. Administration. The board of trustees shall elect one of its members as chair, one member as vice-chair, who shall serve as secretary, one member as treasurer and such other officers as the board of trustees may from time to time consider necessary.
6. Limitation of liability. A member of the board of trustees of the authority or an employee of the authority may not be subject to any personal liability for having acted within the course and scope of that person's membership or employment to carry out any power or duty under this subchapter. The authority shall indemnify any member of the authority, any member of any board of the authority and any employee of the authority against expenses actually and necessarily incurred by that person in connection with the defense of any action or proceeding in which that person is made a party by reason of past or present association with the authority.
7. Employees. The authority may employ an executive director and such other technical experts, agents and employees, permanent and temporary, that it requires and may determine their qualifications, duties and compensation. Permanent employees of the authority are eligible to elect to participate in the Maine State Retirement System, any state-deferred compensation plan or any other plan or program adopted by the members to the extent the members may determine. For required legal services, the authority may employ or retain its own counsel and legal staff.
The authority may contract with the Federal Government or its instrumentalities or agencies, this State or its agencies, instrumentalities or municipalities, public bodies, private corporations, community development corporations, partnerships, associations and individuals to carry out the purposes of this subchapter.
All real and personal property owned by and in the name of the authority is property of the State and entitled to the privileges and exemptions of property of the State, except insofar as waived by the duly authorized contract or other written instrument of the authority or by this subchapter. The authority and the department shall agree upon and from time to time review the preferred status of property held or controlled by the authority and the department and necessary to either body's performing its statutory duty and shall arrange to sell, exchange, give or otherwise transfer title or possession of various properties between the authority and the department consistent with sound business management and as may serve the best interest of the State in the opinion of the authority and the department. The authority and the department may execute and record a deed or lease to effectuate the transfer.
2. Authority for transfers of interest in land to authority. Notwithstanding any other provision of law, upon the authority's request, on reasonable and fair terms and conditions and without the necessity for advertisement, order of court or action or formality other than the regular and formal action of the authorities concerned, counties, municipalities, public agencies or instrumentalities of the State, public service corporations and special districts may lease, lend, grant or convey to the authority real or personal property or rights in that property that may be necessary or convenient for the effectuation of the authorized purposes of the authority, including real and personal property or rights in that property already devoted to public use. As used in this subsection, the term "public service corporation" includes a public utility as defined in Title 35-A, section 102, subsection 13 and a corporation as defined in Title 13-A.
1. Authorization. The authority may provide by resolution for the issuance of bonds for the purpose of funding the Community Industrial Buildings Fund, as established in section 13120-O, for the construction of proposed commercial facilities and improvement of existing or acquired commercial facilities and for the fulfillment of other undertakings that it may assume. The bonds of the authority do not constitute a debt of the State or of any agency or political subdivision of the State but are payable solely from the revenue of the authority, and neither the faith nor credit nor taxing power of the State or any political subdivision of the State is pledged to payment of the bonds. Notwithstanding any other provision of law, any bonds issued pursuant to this subchapter are fully negotiable. If any member of the board of trustees whose signature appears on the bond or coupons ceases to be a member of the board of trustees before the delivery of those bonds, that signature is valid and sufficient for all purposes as if that member of the board of trustees had remained a member of the board of trustees until delivery.
G. For registration if the authority determines it to be desirable;
N. For covenants against pledging of any of the revenue of the authority;
O. For covenants fixing and establishing rates and charges for use of the authority's facilities and services made available so as to provide funds that will be sufficient to pay all costs of operation and maintenance, to meet and pay the principal and interest of all bonds as they severally become due and payable, for the creating of such revenues for the principal and interest of all bonds and for the meeting of contingencies and the operation and maintenance of its facilities as the board of trustees determines;
P. For such other covenants as to rates and charges as the board of trustees determines;
Q. For covenants as to the rights, liability, powers and duties arising upon the breach by the authority of any covenant, condition or obligation;
S. For covenants as to the use of its facilities and their maintenance and replacement, and the in-surance to be carried on them, and the use and disposition of insurance money;
U. For the performance of any and all acts as may be in the discretion of the board of trustees necessary, convenient or desirable to secure bonds or that tend to make bonds more marketable; and
3. Money received. All money received from any bonds issued must be applied solely for loans to municipalities or local development corporations for community industrial buildings, for the construction of proposed commercial facilities and improvement of existing or acquired commercial facilities and for the fulfillment of other undertakings that are within the power of the authority. There is created a lien upon the money until so applied in favor of the bondholders or any member of the board of trustees as may be provided in respect of the bonds.
1. Acquisition of interest. A member of the board of trustees or employee of the authority may not acquire or hold a direct or an indirect financial or personal interest in:
A. An authority activity;
C. A contract or proposed contract in connection with an authority activity.
When an acquisition is involuntary, the interest acquired must be disclosed immediately in writing to the board of trustees and the disclosure must be entered in the board of trustees' minutes.
2. Present or past interest in property. If a member of the board of trustees or employee of the authority presently owns or controls, or owned or controlled within the preceding 2 years, a direct or an indirect interest in property known to be included or planned to be included in an authority activity, that member or employee shall disclose this fact immediately in writing to the board of trustees and the disclosure must be entered in the board of trustees' minutes.
A. A description of the authority's operations, including a description of projects assisted under this subchapter and the criteria used in selecting those projects;
B. An accounting of the authority's receipts and expenditures, assets and liabilities at the end of its fiscal year;
C. A schedule of the bonds and notes outstanding at the end of the authority's fiscal year and a statement of the amounts redeemed and issued during its fiscal year, including a report on its reserve funds;
D. A statement of the authority's proposed and projected activities for the ensuing year, the relationship of these activities to the State's economic development policies and the selection criteria expected to be used;
F. A statement of the defaults, if any, of persons, firms, corporations and other organizations receiving assistance under this subchapter; and
G. A summary of the actual and potential employment opportunities resulting from the authority's activities.
B. Any information pursuant to waiver considered satisfactory by the authority;
D. Information necessary to comply with Title 1, section 407, subsection 1.
D. A record that includes a financial statement or tax return obtained or developed by the authority in connection with any monitoring or servicing activity by the authority, pertaining to any financial assistance or investment provided or to be provided by or with the assistance of the authority;
E. A record obtained or developed by the authority that contains an assessment by a person who is not employed by the authority of the credit worthiness or financial condition of any person or project;
F. A financial statement or business and marketing plan in connection with any project receiving or to receive financial assistance or investment from the authority, if a person to whom the statement or plan belongs or pertains has requested that the record be designated confidential; and
A. Impersonal, statistical or general information;
G. Information obtained from records declared confidential by this section for introduction for the record in litigation or a proceeding in which the board has appeared; or
§13120-N. Community industrial building program
The authority may assist a municipality or local development corporation to construct a community industrial building by loaning the municipality or local development corporation money for construction or carrying costs or both for the project, subject to the following.
B. Not more than one unoccupied community industrial building project may be financed in a municipality.
C. The authority shall charge interest on loans or funds provided under this section and section 13120-O to the municipality or local development corporation for a community industrial building that remains unoccupied for 3 or more years following completion of the building.
(1) The methodology and criteria for allocating funds to community industrial building projects;
(2) The process through which municipalities and local development corporations must apply for community industrial building funds;
(4) Other matters necessary to the proper administration of this section and section 13120-O.
Rules adopted under this paragraph are major substantive rules pursuant to chapter 375, subchapter II-A and are subject to review by the joint standing committee of the Legislature having jurisdiction over economic development matters.
C. Site and maintain the community industrial building on property that is appropriate to the size and location of the community industrial building;
E. Comply with applicable zoning, planning and sanitary regulations in the municipality where the community industrial building is to be located. A loan may not be approved and a certificate of approval for the project or for any subsequent enlargement or addition to the project may not be issued until the Department of Environmental Protection has certified to the authority that all licenses required by the authority have been issued or that none are required; and
F. Make adequate provisions for insurance and fire protection and for maintenance of the community industrial building while it is unoccupied.
B. Loans must be repaid in full, including interest and other charges, within 90 days after the community industrial building is occupied.
C. A community industrial building financed by an authority loan may not be sold or leased without the express approval of the purchaser or les-see by the authority. If the municipality or local development corporation and the authority agree that a community industrial building is unlikely to be sold in the near future despite a marketing effort, the authority may permit an interim lease upon terms it considers appropriate for the protection of the Community Industrial Buildings Fund established in section 13120-O. Occupation of the premises under an interim lease does not require payment in full of the entire loan within 90 days, as provided in paragraph B.
4. Marketing and promotion. The municipality or local development corporation receiving money under this section shall make a reasonable and continual effort to market the community industrial building for sale into private commercial use. Upon the request of the authority, the municipality or local development corporation shall present evidence of its marketing efforts and expenditures related to the community industrial building.
5. Taxes. While a community industrial building under this section remains unoccupied and a first mortgage is held by the authority, it is property held for a legitimate public use and benefit and is exempt from all taxes and special assessments of the State or any of its political subdivisions.
6. Municipality. A municipality may raise or appropriate money supporting and guaranteeing the obligation of a chamber of commerce, board of trade or local development corporation for the purpose of constructing a community industrial building subject to the provisions of this subchapter.
§13120-O. Community Industrial Buildings Fund
1. Fund established. The Community Industrial Buildings Fund, referred to in this section as the "fund," is established as a revolving fund to be used by the authority only for the purposes of this section and section 13120-N.
2. Items charged or credited. Operating expenses of the authority incurred under this section and section 13120-N must be charged to the fund and all payments required by this section and section 13120-N must be credited to the fund. Expenses of the authority that arise out of assistance to municipalities and local development corporations under this section and section 13120-N may be charged against the proceeds of the sale or lease of community industrial buildings constructed under this section and section 13120-N.
3. Deposited funds. Money in the fund not currently needed to meet the obligations of the department under this section and section 13120-N must be deposited with the Treasurer of State to the credit of the fund with all interest earned by the deposit credited to the fund.
4. Successor to fund. The authority is the successor to the department for the purposes of this section and section 13120-N. All properties, rights in land, buildings and equipment and any funds, money, revenues and receipts or assets of the department as they apply to the Community Industrial Buildings Fund, including funds previously appropriated by the State for the Community Industrial Buildings Fund under former section 13082, belong to the authority as successor to the department. All liabilities of the department with respect to the Community Industrial Buildings Fund under former section 13082 become liabilities of the authority. Any action taken by the department with respect to assisting a municipality or local development corporation to create community industrial buildings is an action taken by the authority.
A. Restore employment opportunities by serving as principal, partner or investor in the acquisition and redevelopment of nonproductive commercial facilities for subsequent return to productive use through sale or lease; and
B. Create employment opportunities in areas of economic need that are underserved by private investors by serving as principal, partner or investor in the acquisition of property and development of commercial facilities for subsequent sale or lease into private productive use.
2. Redevelopment of property. Except as provided in section 13120-Q, the authority may acquire interests in and undertake the redevelopment of property for subsequent use and sale under the following conditions:
A. The property has been previously and materially used as a commercial facility;
(2) The economic benefits, including the restoration of employment opportunities, expected to result from the redevelopment justify the risks associated with the authority's equity interest in the property; and
E. At least 25% of the total cost to acquire, redevelop and return the property to productive commercial use will be borne by the municipality or local development corporation.
3. Development of property. Except as provided in section 13120-Q, the authority may acquire interests in and undertake the development of property for subsequent use and sale under the following conditions:
(3) The economic benefits expected to result from the development justify the risks associated with the authority's equity interest in the property; and
E. At least 25% of the total cost to acquire, develop and bring the property to productive commercial use will be borne by the municipality or local development corporation.
B. The loss of a significant percentage of the municipality's tax base due to the closure or downsizing of a business or other commercial taxpayer; or
C. The unanticipated loss of a significant percentage or component of a municipality's economic development infrastructure as a result of an accident, natural disaster or other catastrophe; or
Sec. 7. 13-B MRSA §201, sub-§3, ¶F, as amended by PL 1993, c. 316, §30, is further amended to read:
F. Local development corporations, as that term is used in Title 5, section 13081, subsection 6; and