2023 Tennessee Code › Title 7 - CONSOLIDATED GOVERNMENTS AND LOCAL GOVERNMENTAL FUNCTIONS AND ENTITIES (§§ 7-1-101 — 7-91-104) › LOCAL GOVERNMENT FUNCTIONS (§§ 7-51-201 — 7-69-116) › Chapter 55 - INDUSTRIAL BUILDING BOND ACT OF 1955 (§§ 7-55-101 — 7-55-116) › Section 7-55-106 - Elements necessary before issuance of certificate - Regulation by committee - Consequences of governing body's failure to follow requirements

(a)
The committee shall investigate, find and determine upon application of any municipality for a certificate of public purpose and necessity, as to whether a certificate shall be issued to such municipality to engage in any of the enterprises deemed essential under declared public policy for the economic development and advancement of the municipality, and in considering and determining whether or not such certificate shall issue, the committee shall find and determine affirmatively that:
(1)
There are sufficient natural resources readily and economically available for the use and operation of the particular industrial building and enterprise for at least ten (10) years, but in no event less than the period of time for which any bonds may be issued for acquiring or constructing the industrial building;
(2)
There is available a labor supply to furnish at least one and one-half (11/2) workers for each operative job in the enterprise within an area of twenty-five (25) miles from the proposed location; and
(3)
There are adequate property values and suitable financial conditions, so that the total bonded indebtedness of the municipality, solely for the purposes authorized by this chapter, shall not exceed ten percent (10%) of the total assessed valuation of all the property in the municipality ascertained by the last completed assessment at the time of the issuance of such bonds.
(b)
When the committee shall have determined the facts favorably, it is authorized and empowered, having due regard to the promotion of the public policy and the general welfare, to issue or refuse to issue a certificate of public purpose and necessity to the municipality to engage in providing the industrial building. If and when such certificate is issued, it shall authorize the particular municipality to do all of the things authorized under §
7-54-103
, but the certificate shall expire in twelve (12) months from its date, unless within that time such industrial building and enterprise shall have been established, subject, however, to any delays necessitated by any litigation or acts of God, delaying the establishment of the enterprise. In no event shall the committee authorize any municipality actually to provide any such industrial building, unless the committee shall further find and determine that the industrial building and enterprise is well conceived, has a reasonable prospect of success, will provide proper economic development and employment, and will not become a burden upon the taxpayers of the municipality.
(c)
(1)
If and when the certificate is issued, the committee shall fix and determine in the certificate:
(A)
The extent and the amount to which the municipality may issue bonds or make expenditures for such industrial building;
(B)
What property may be acquired for the industrial building;
(C)
The terms upon which such acquisition may be had;
(D)
What expenditures may be made, in the construction of buildings, and of equipment with its installation; and
(E)
The method of lease, rental and operation of the industrial building by the municipality.
(2)
The committee shall further require as a condition of the certificate that any lessee of such industrial building agree to make payments in lieu of taxes to the municipality in amounts equivalent to the ad valorem property taxes that would have been levied on the industrial building were it owned by the lessee and subject to property taxation. The committee shall also require as a condition of the certificate the use of energy conserving design and construction that includes solar heating systems and solar hot water heaters to the maximum extent feasible economically.
(d)
If the governing body of the municipality fails or refuses to follow the requirements made by the committee in the certificate, then the members of the governing body of the municipality voting for such failure or refusal shall be individually and personally liable, and liable on their official bonds for any loss that the municipality may sustain by reason of such failure or refusal to follow the requirements, and in addition may be compelled by injunction to comply with such requirements.
(e)
The committee is hereby authorized and empowered to adopt and put into effect all reasonable rules and regulations that it may deem necessary to carry out this chapter, not inconsistent with this chapter.
Acts 1955, ch. 209, § 8; 1975, ch. 311, § 2; T.C.A., § 6-2906; Acts 1980, ch. 532, § 1.