A CHARTER ORDINANCE EXEMPTING THE CITY OF GIRARD, KANSAS, FROM THE PROVISIONS OF K.S.A. 12-1617h AND K.S.A. 12-1617i RELATING TO THE ESTABLISHMENT AND PROVIDING FOR THE EXPENDITURE OF A TAX LEVY FUND TO SECURE INDUSTRIES AND PROVIDING SUBSTITUTE AND ADDITIONAL PROVISIONS ON THE SAME SUBJECT.

Section 1. The City of Girard, Kansas, under authority of Article 12 of Section 5 of the constitution of the State of Kansas hereby elects to exempt itself from and make inapplicable to it the provisions of K.S.A. 12-1617h and K.S.A. 12-1617i which apply to said city, but the provisions of which do not apply uniformly to all cities, and to provide substitute and additional provisions on the same subject.

Section 2. The city clerk is hereby authorized and directed to transfer all funds currently being held or posted to the industrial fund of the City of Girard, the same being No. 15 to the economic and industrial development revolving loan fund established pursuant to this ordinance to be expended for the use and purposes stated herein.    

Section 3. There is hereby established for the City of Girard, Kansas, a revolving loan fund to be used for the economic and industrial development of the City of Girard as hereinafter provided. Said fund shall be titled and denominated the economic and industrial development revolving loan fund.

Section 4. Loans from said fund shall only be made for the establishment of new business or for the expansion of existing business within the corporate limits of the City of Girard, Kansas, or within a three-mile radius thereof. Application for loans from the revolving loan fund shall be made upon forms provided to applicants in the form to be established by the city administrator.

Section 5. Loans from the revolving loan fund of the City of Girard, Kansas, shall at all times be secured by real or personal property of a value not less than 75% of the total outstanding loan. Furthermore, not more than 25% of any individual loan or combination of loans may be used for working capital.

Section 6. Loans from the revolving loan fund shall be for a minimum term of one year and a maximum term of 20 years. Said loans shall provide for interest to be paid to the City of Girard at an interest rate to be established by majority vote of the city council of Girard, Kansas, but in any event at a rate not lower than three percentage points below the treasury bill, treasury bond or treasury note rate corresponding to the term of the proposed loan.

Section 7. Loans from the revolving loan fund shall only be made upon majority vote of the city council of Girard, Kansas, and upon such terms and conditions as shall be established by majority vote of the city council of the City of Girard, Kansas, but with such terms not less restrictive than those contained in this ordinance.

Section 8. The revolving loan fund of the City of Girard is hereby authorized to accept and receive funds from mill levy funds, revenue funds, state or federal grants and any other source authorized by the laws of the State of Kansas, the laws of the United States, or by ordinance of the city.

(7-6-1987)