Current through Register Vol. XLI, No. 49, December 6, 2024
Section 145-6-6 - Financial Assistance for Infrastructure Projects6.1. Financial Assistance. The Council shall recommend that the Infrastructure Council authorize the Water Development Authority to make loans, loan guarantees or grants or other assistance from the Infrastructure Fund upon such terms and conditions as the Council shall recommend. 6.1.1. Unless circumstances warrant otherwise, all loans from the Infrastructure Fund will be made as permanent or take out loans and not as construction financing.6.2. Grant Assistance. The Council shall not recommend grant assistance from the Infrastructure Fund unless the sponsor of the infrastructure project is a governmental agency or a not-for-profit corporation under the provisions of Section 501(c)(3) of the Internal Revenue Code of 1986, as amended.6.3. Limit on Loan Amount. Council recommendations for loans from the Infrastructure Fund to a for-profit entity shall not exceed seventy percent (70%) of the total cost of the infrastructure project with a maximum loan of three million dollars per infrastructure project. The maximum governmental, quasi-governmental or not-for-profit loan shall not exceed ninety percent (90%) of the total cost of the infrastructure project with a maximum of three million dollars per infrastructure project. 6.3.1. The Council will not recommend funding from the Infrastructure Fund of more than ten percent (10%) of the non-construction related costs of an infrastructure project. Non-construction costs include but are not limited to preliminary design and analysis, surveys, borings; the cost of environmental, financial, market and engineering feasibility studies, assessments, applications, approvals, submissions or clearances; the cost of preparation of plans and specifications and other engineering services; loan or origination fees and all finance charges and interest incurred prior to and during the construction and for no more than six months after completion of construction; the cost of all legal services and expenses; the cost of all plans, specifications, surveys and estimates of cost; all working capital and other expenses necessary or incident to determining the feasibility or practicability of acquiring, repairing, improving or constructing any project.6.4. Limit on Loan Interest Rate. The interest rate on any loan to a governmental, quasi-governmental, or not-for-profit project sponsor for an infrastructure project shall not exceed 3% per annum. The interest rate on any loan to a for-profit project sponsor for an infrastructure project shall be no less than market rate. The interest rate will be negotiated on each project.