CHAPTER 281
S.P. 464 - L.D. 1408
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 5 MRSA §13120-A, first ¶, as enacted by PL 2001, c. 703, §6, is amended 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 lender or investor in the acquisition, development, redevelopment and sale of commercial facilities in areas where economic needs are not supported by private investment.
Sec. 2. 5 MRSA §13120-D, sub-§4, as enacted by PL 2001, c. 703, §6, is amended to read:
4. Administration. The board of trustees shall elect one of its members Commissioner of Economic and Community Development shall serve as chair, of the board of trustees. The board of trustees shall elect 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.
Sec. 3. 5 MRSA §13120-D, sub-§7, as enacted by PL 2001, c. 703, §6, is amended to read:
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, the state employee health plan under section 285, 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.
Sec. 4. 5 MRSA §13120-I, sub-§1, as enacted by PL 2001, c. 703, §6, is amended to read:
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 or any successor to the fund, 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.
Sec. 5. 5 MRSA §13120-N, sub-§1, ¶¶C and D, as enacted by PL 2001, c. 703, §6, are amended to read:
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.
D. The authority shall adopt rules under chapter 375 with respect to:
(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;
(3) Rates of interest, the duration of interest payments and any other terms to which municipalities and local development corporations must be subject under this paragraph; and
(4) Other matters necessary to the proper administration of this section and section 13120-O.
Rules adopted under this paragraph are major substantive routine technical 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 2-A.
Sec. 6. 5 MRSA §13120-N, sub-§3, ¶C, as enacted by PL 2001, c. 703, §6, is amended to read:
C. A community industrial building financed by an authority loan may not be sold or leased without the express approval of the purchaser or lessee 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 or any successor to the fund. 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.
Sec. 7. 5 MRSA §13120-O, as enacted by PL 2001, c. 703, §6, is repealed.
Sec. 8. 5 MRSA §13120-P, as enacted by PL 2001, c. 703, §6, is amended to read:
§13120-P. Commercial Facilities Development Program
1. Establishment; purpose. The Commercial Facilities Development Program is established within the authority to serve the following purposes:
A. Restore employment opportunities by serving as principal, partner, lender 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, lender or investor in the acquisition of property and development of commercial facilities for subsequent sale or lease into private productive use.
In carrying out its duties under this section, the authority shall make all reasonable and appropriate efforts to maximize the leverage of its funds through partnership and risk-sharing arrangements with public and private organizations.
2. Redevelopment of property. Except as provided in section 13120-Q, the authority may acquire interests in and undertake the redevelopment of property as an owner or lender for subsequent use and sale under the following conditions:
A. The property has been previously and materially used as a commercial facility or the property is suitable for adaptive use as a commercial or industrial facility;
B. The property is currently not in productive commercial use or is expected to be taken out of productive commercial use within the immediate future;
C. The property has not been placed under a purchase option or contract;
D. The authority, using due diligence, has determined that:
(1) There is a reasonable expectation that the property will become financially viable following its redevelopment; and
(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 as an owner or lender for subsequent use and sale under the following conditions:
A. The property consists of real estate that is zoned, sited or otherwise suitable for development as a commercial facility;
B. The property is currently not in productive commercial use;
C. The property has not been placed under a purchase option or contract;
D. The authority, using due diligence, has determined that:
(1) There is a reasonable expectation that the property will become financially viable following its development;
(2) The development of the property will create employment opportunities and other economic benefits within the region; and
(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.
Sec. 9. Successor to fund. The Maine Rural Development Authority, referred to in this section as "the authority," is the successor to the Department of Economic and Community Development, referred to in this section as "the department," for the purposes of the Maine Revised Statutes, Title 5, section 13120-N and former section 13120-O. 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 former Community Industrial Buildings Fund, established under Title 5, former section 13120-O, including funds previously appropriated by the State for the Community Industrial Buildings Fund under Title 5, 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 Title 5, 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.
Effective September 13, 2003, unless otherwise indicated.
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