The purpose of this Chapter is to provide necessary procedures and standards to carry out the powers granted to the City by Chapter 772, Oregon Laws of 1977 (ORS 280.410 to 280.485) as amended. This Chapter will be liberally construed in order to carry out this purpose.

1. As used in this Chapter unless the context requires otherwise:
2. A. Economic development project includes any properties, real or personal, used or useful in connection with a revenue producing enterprise. Economic development project does not include any facility or facilities designed primarily for the operation, transmission, sale, or distribution of electrical energy. Economic development project also includes multiple unit residential housing development on land having an assessed valuation of $8 per square foot or more on September 13, 1975, land within a designated urban renewal or redevelopment area formed pursuant to ORS Chapter 457, land within an area designated as a Housing and Community Development target neighborhood pursuant to the Housing and Community Development Act of 1974, or projects that benefit low or moderate income tenants, or address slum and blight as defined by the 1974 Housing and Community Development Act.
3. B. Eligible project means an economic development project found by the City to meet standards adopted pursuant to this Chapter. Eligible project includes multiple unit residential housing development that increases available housing units through new construction, rehabilitation of nonresidential buildings, or provides for rehabilitation of residential buildings.
4. C.Costs as applied to any project must conform to all applicable Internal Revenue Service regulations and may include:
   1. 1. The cost of construction and reconstruction.
   2. 2. The cost of acquisition of property, including rights in land and other property, both real and personal and improved and unimproved and the cost of site improvements.
   3. 3. The cost of demolishing, removing or relocating any buildings or structures on lands so acquired, including the cost of acquiring any lands to which the buildings or structures may be moved or relocated.
   4. 4. The cost of eligible machinery and equipment and related financing charges.
   5. 5. The cost of engineering and architectural surveys, plans and specifications.
   6. 6. The cost of financing charges and interest prior to and during construction, and if deemed advisable by the City for a period not exceeding one year after completion of construction.
   7. 7. The cost of consultant and legal services, other expenses necessary or incident to determining the feasibility or practicability of constructing a project, administrative and other expenses necessary to or incident to the construction of the project, including, but not limited to, costs of relocation and moving expenses according to a project plan developed by the City, and the financing of the construction of the project thereof, including reimbursement to any state or other governmental agency or any lessee of the project for the expenditures made with the approval of the City that would be costs of the project under this Chapter had they been made directly by the City, and any costs incurred after bond issuance by the City for audits or monitoring.
5. D. Qualified historic project means a project that includes the restoration or rehabilitation of a structure designated as a City of Portland Historic Landmark.  The rehabilitation or restoration requires the approval of the City of Portland Landmarks Commission to ensure conformance with the Secretary of the Interior’s standards for historic preservation projects.

1. A. Prosper Portland is responsible for receipt of applications and review and processing thereof. Applications must be in a form established by Prosper Portland and must include, in addition to other information deemed necessary by Prosper Portland:
   1. 1. Company/applicant information.
   2. 2. Project information.
   3. 3. Description of labor force at existing and proposed locations.
   4. 4. Financial information.
   5. 5. Environmental control information.
   6. 6. Any information required by law or otherwise that is reasonable and necessary to effectuate the purposes of this Chapter.
   7. 7. An agreement to indemnify and hold Prosper Portland, the City, and their officers and employees harmless from any and all liability for loss or damage to the company or any third person or entity arising from or alleged to have arisen from the processing of this application or any error or omission in any official statement or representation related to the contemplated financing.
2. B. The applicant must certify by letter that the issuance of revenue bonds is an inducement to locate, retain, or expand the project in Portland.
3. C. The requirements of this Section are considered to be minimums, and Prosper Portland and the City reserve the right to add additional requirements on a case‑by‑case basis. Likewise, the requirements of this Section pertain only to the Prosper Portland Commission and the City and are not exclusive. Qualified bond counsel or the original purchaser may make additional requirements.

1. A. Upon receipt of an application, Prosper Portland will review the application to determine whether the application should be further processed. In reaching a determination, Prosper Portland staff may request additional information from the applicant as well as assemble any and all data deemed relevant to the decision.
2. B. Prosper Portland will consider the following:
   1. 1. Economic feasibility and general benefits to the City of the proposed project.
   2. 2. Density of use and potential impact in the area affected by the proposed project.
   3. 3. Land use, transit, and transportation facilities in the vicinity of the proposed project.
   4. 4. City’s ability to supply or support other needed services resulting from the Economic Development Project.
   5. 5. Effect of proposed project on balanced economic development of the City.
   6. 6. Employment and property tax income from the project.
   7. 7. Employment opportunities.  The City and Prosper Portland will use employment agreements when and where appropriate.
   8. 8. Suitability of proposed area of Portland for the particular type of proposed development project.
   9. 9. Conformance with Internal Revenue Service regulations and the Oregon Revised Statutes.
3. C. No application will be recommended for Council approval unless Prosper Portland determines that the proposed project will not conflict with adopted City plans and policies and conforms to the following uses:
   1. 1. Manufacturing or other industrial production.
   2. 2. Agricultural development or food processing.
   3. 3. Transportation or freight facilities.
   4. 4. Warehousing or distribution.
   5. 5. A project for the primary purpose of reducing air, water, or solid waste pollution.
   6. 6. Other activities that represent new technology or types of economic enterprise that the City determines are needed to diversify the economic base of the community.
   7. 7. Parking in close proximity to the Portland Performing Arts Center.  A parking facility may include space for retail and commercial uses in addition to parking.
   8. 8. Commercial uses when a part of a qualified historic project or publicly initiated urban development project.

1. A. Prosper Portland is responsible for receipt of applications and review and processing thereof, including, but not limited to, advice of bond counsel and legal advice. Applications must be in a form established by Prosper Portland and must include, in addition to other information deemed necessary by Prosper Portland:
   1. 1. The applicant’s name, address and telephone number.
   2. 2. A brief description of the applicant’s company history and past relevant performance.
   3. 3. A legal description of the property upon which the project will be located.
   4. 4. A detailed description of the project including the number, size and type of dwelling units; dimensions of structures; parcel size, proposed lot coverage with buildings, and amount of open space; type of construction; public and private access; parking and circulation plans; water, sewer, and other utility plans; landscaping; expected uses; and economic feasibility studies and market information including rent levels proposed.
   5. 5. A description of the existing use of the property including a proposed relocation plan for any persons who would be displaced from existing housing by the project; and for any businesses that would be displaced.
   6. 6. A site plan and supporting maps that show in detail the development plan of the entire project, showing streets, driveways, sidewalks, pedestrian ways, off‑street parking and loading areas; location and dimension of structures; use of the land and structure; major landscaping features; design of structures; and existing and proposed utility systems including sanitary sewers, storm sewers, water, electric, gas and telephone lines.
   7. 7. Any other information required by law or otherwise that is reasonable and necessary to effectuate the purposes of this Chapter.
   8. 8. The approximate amount of bond proceeds and allocation to eligible costs.
   9. 9. An agreement to indemnify and hold Prosper Portland, the City, and their officers and employees harmless from any and all liability for loss or damage to the company or any third person or entity arising from or alleged to have arisen from the processing of this application or any error or omission in any official statement or representation related to the contemplated financing.

1. A. Upon receipt of an application, Prosper Portland will review the application to determine whether the application should be further processed. In reaching a determination, Prosper Portland may request additional information from the applicant as well as assemble any and all data deemed relevant to the decision.
2. B. Prosper Portland will, after review and comment by all relevant City bureaus, recommend approval, approval with conditions, or denial of the application, after consideration of the following:
   1. 1. The economic feasibility of the project, with and without the use of revenue bonds.
   2. 2. The need for housing resulting from the project.
   3. 3. The general benefits to the City of the proposed project.
   4. 4. The City’s ability to supply or support other needed services required by the project.
   5. 5. Employment and property tax income from the project.
   6. 6. Suitability of the project as proposed in the specific proposed location.
   7. 7. Projects applying for permanent financing must be determined to provide housing at rent or price levels 85 percent of which must be affordable by households with incomes up to 150 percent of the area median income.
   8. 8. Projects in the downtown, particularly the RX Zone, designated urban renewal or redevelopment areas will receive highest priority.
   9. 9. Conformance with Internal Revenue Service Regulations and the Oregon Revised Statutes.
   10. 10. No application will be recommended for approval unless Prosper Portland, after review and comment by all relevant City bureaus, determines that the project does not conflict with adopted City plans and policies.
   11. 11. Projects applying for construction financing may be at rent or price levels up to 150 percent of median income, but must have available a firm commitment for long‑term project financing.
3. C. No project may be approved that would result in the conversion of existing occupied residential rental units to condominium or cooperative projects.
4. D. The applicant, to be eligible for financing assistance under this program, must agree not to discriminate against any purchaser or tenant who is a parent or legal guardian with whom a child resides or is expected to reside, except in projects designed exclusively for households, the heads of whom are 62 years of age or older; or in projects designed for households, the heads of whom are 55 years of age or older, if the project meets the requirements of the applicable federal law.
5. E. Revenue bonds may be issued secured by revenues from mortgage payments from individual owners of condominium and cooperative units within multiple unit housing projects that are newly constructed, rehabilitated from other uses or rehabilitated in abandoned residential buildings. Applications for these projects will be considered by Prosper Portland if:
   1. 1. No individual or company may have more than one loan outstanding at any one time under this program for individual condominium or cooperative units.
   2. 2. No mortgage loan funds under this program may be used for refinancing by existing owners, and no loans may be assumed by persons not eligible for condominium or cooperative units.
6. F. The applicant must submit a relocation plan for any households, individuals, or businesses that may be displaced by the proposed project. Prosper Portland will be responsible for analysis of that proposal and recommendation of that plan, that plan with amendments, or an alternative plan. The relocation plan must ensure that households, individuals, or businesses are relocated to affordable housing of comparable or better quality.

1. A. Prosper Portland staff, within 60 days after a complete application is filed with Prosper Portland, will prepare a written recommendation of approval, approval with conditions or denial of the application.
2. B. If Prosper Portland staff recommends approval or approval with conditions of the application, Prosper Portland will, within 60 days of receipt of the application and recommendation, recommend by resolution that Council approve, approve with conditions, or deny the application. The resolution will include consideration of any required relocation plan. The Council may, by resolution, approve, approve with conditions, or deny the application. Council approval or conditional approval of an application will authorize Prosper Portland to process the application and to execute a letter of intent with the applicant.
3. C. Final approval will take place after receipt and review by Prosper Portland of all requested and required final documents. All documents to be approved by Prosper Portland must be received in final form and received by Prosper Portland 14 days prior to a scheduled meeting of Prosper Portland’s board of commissioners. If Prosper Portland determines that the documents comply with the rules and policies established within this Chapter, Prosper Portland may, by resolution, recommend issuance of the bonds in accordance with those final documents and further recommend that Council adopt an ordinance authorizing issuance of the bonds in accordance with those documents.
4. D. If Prosper Portland staff recommends denial of the application, they will notify the applicant in writing. The applicant may appeal by filing written notice thereof with Prosper Portland staff within 14 days of receipt of the notice of rejection. Upon receipt of the appeal, Prosper Portland will, within 45 days, recommend by resolution, approval, approval with conditions or denial of the appeal.

1. A. The following general conditions apply to the issuance of all industrial development revenue bonds:
   1. 1. City economic development revenue bonds may be sold at public or private sale, and the bonds may mature at any time or times within the useful life of the project. For public sales, special approval may be required.
   2. 2. Any bond authorized under this Chapter that is to be sold by public sale must be rated by a nationally-recognized rating agency as Investment Grade.
   3. 3. Bonds sold through a private sale do not require a rating. For purposes of this Chapter, private sale means a sale of all of the bonds to persons or entities that qualify as “accredited investors” under 15 USC Section 77b (15) (I) or 17 CFR Section 230.215. The purchasers must also certify, in a manner satisfactory to the City, that they have the financial sophistication, knowledge and experience in financial matters to evaluate the investment in the bonds and the appropriateness of that investment for them, and that they have received all the information required to make an informed judgement about the purchase of the bonds. Bonds that are sold through a private sale may be resold or transferred only to persons or entities that qualify as accredited investors and that provide the certification described in the preceding sentence.
   4. 4. The City does not guarantee the bonds and is not subject to any liability for their repayment.
   5. 5. The terms and conditions of the issuance and purchase of an industrial revenue bond issue are to be agreed upon by the applicant and bond purchaser with the concurrence of Prosper Portland (acting on behalf of the City.)
   6. 6. Where residential rental property is assisted under this Chapter, construction of the project must begin within nine months from the date of bond issuance.
   7. 7. The applicant must keep Prosper Portland advised of the schedule for document preparation and approval and provide drafts of documents to Prosper Portland upon its request.
2. B. The following general conditions prevail regarding the preparation of all bond documents:
   1. 1. Bond counsel will be designated by Prosper Portland. Procedures for selecting bond counsel established in this Code or procurement administrative rules do not apply to projects initiated pursuant to this Chapter. The applicant must submit their recommendation of bond counsel.
   2. 2. Bond counsel will advise Prosper Portland of all federal and state procedural requirements as they apply to issuance of the bonds.
   3. 3. Bond counsel must be an Oregon law firm or other mutually acceptable bond counsel recognized in the Bond Buyers Directory of Municipal Bond Dealers of the United States.
   4. 4. The trustee chosen by the applicant, and approved by the Commission, must be a bank or trust company doing business in the State of Oregon with trust powers.
   5. 5. All documents to be approved by Prosper Portland must be in final form and received by Prosper Portland 14 days before the meeting of Prosper Portland’s board at which the documents will be considered.

1. A. Upon receipt of a resolution approving the application, Prosper Portland will consider:
   1. 1. The bond market for the types of bonds proposed for issuance.
   2. 2. The terms and conditions of the proposed issue.
   3. 3. Whether the applicant is financially responsible and fully capable and willing to fulfill its obligations under the agreement of lease, or contract, including the obligation to pay rent in the amounts and at the times required, the obligation to operate, repair and maintain at its own expense the project leased, or sold, and to serve the purposes of this Chapter and other responsibilities as may be imposed under the lease or contract. In determining financial responsibility of the applicant consideration will be given to the lessee’s or purchaser’s ratio of current assets to current liabilities, net worth, earning trends, coverage of all fixed charges, the nature of the industry or business involved, its inherent stability, any guarantee of the obligations by some other financially responsible corporation, firm or person, and other factors determinative of the capability of the lessee or purchaser, financially and otherwise, to fulfill its obligations consistently with the purposes of this Chapter and ORS 280.410 to 280.485.
   4. 4. Other relevant factors as Prosper Portland considers necessary to protect the financial integrity of the City.
   5. If Prosper Portland determines that a bond issue is financially feasible it will designate the underwriter, trustee and bond counsel and will enter into appropriate agreements with each to carry out the provisions of this Chapter and ORS 280.410 to 280.485 subject to the approval of the Council pursuant to Section 5.30.110 of this Chapter. In reaching its determination, Prosper Portland may appoint a Bond Review Committee to assist it in its deliberations, and may set administrative procedures from time to time as necessary.

1. A. The applicant agrees to pay all applicable City and Prosper Portland fees and expenses associated with the application whether or not the bonds are issued. A minimum application fee of $500 will be assessed to all projects at the time of filing the formal application with Prosper Portland. In addition, Prosper Portland must be reimbursed in full for all direct and indirect costs incurred in the project. The fees will be paid as follows:
   1. 1. $500 at the time of filing a formal application with Prosper Portland.
   2. 2. The balance at the time of closing of the bond issue. If the financing is not completed, costs incurred by Prosper Portland will be subject to immediate reimbursement.
2. B. Upon issuance of the bond, the applicant must pay Prosper Portland a one‑time issuance fee equal to $7 per $1,000 of the face amount of the bonds for ongoing administration of the bonds. 
   1. 1. For refunding bonds issued under ORS Chapter 280 for economic development projects, if the one-time issuance fee has been paid in accordance with Subsection B. for the bonds being refunded, and Prosper Portland determines the refunding will not generate additional ongoing administration costs, the fee or an equitable portion thereof may be waived. Nothing in this Subsection 1., however, should be construed to eliminate or limit the applicant’s responsibility to pay all fees and expenses of the City and Prosper Portland described in Subsection A. of this Section in connection with issuing the refunding bonds.

Upon receipt of the recommendation of Prosper Portland, the Council may by ordinance authorize the issuance of bonds in an amount equal to the costs of the proposed project, pursuant to ORS Chapter 280, if it determines that the proposed issue meets the requirements ORS Chapter 280 and this Chapter.

1. A. Beginning no later than 12 months following the issuance of bonds by the City, and continuing annually for a period as long as the bonds are outstanding, Prosper Portland will require each project owner of the assisted project to submit a written report that describes:
   1. 1. Number of current employees by job category.
   2. 2. Total assessed value and property taxes paid during the most recent period for the assisted facility or facilities.
2. B. In addition to the foregoing, owners of multi‑family projects assisted under this Chapter are required to report annually the number of residential units occupied by individuals or families who, at the date of reporting, have low or moderate incomes.