nue bond industrial development scheme Municipal Bonds for Industrial Developto effectively compete in attracting ment Projects manufacturing and industrial development which had theretofore been unfeasible. Municipal annexation must be reasonable, necessary or convenient and where sole purpose is to finance industrial development by revenue bond, industrial development scheme, annexation is not reasonable, although such is not alone objectionable where other valid reasons exist.

CODEOFSTATE REGULATIONS 4 CSR w-2

Wring u. City of Jefferson, 413 SW2d 292 (MO. App. 1967). Municipality may sell facility acquired with proceeds of industrial revenue bonds. Legislative provisions requiring public works to beawarded uponapublicletting to the lowest responsible bidder are intended to secure unrestricted competition among bidders, eliminate fraud and favoritism and avoid undue and excessiue costs which would otherwise be imposed on taxpayers. Ordinarily, statute requiring competitive bidding on public improvements is applicable only to contracts where the city itself assures an obligation or indebtedness. Third-class municipality not required to let contracts by competitive bidding to lowest and best bidder where project financed by industrial revenue bonds.

1. 9. Atty. Gen. No. 134, i)lfaddox, 2-S- 71.A municipality whichissuesand sells industrial development revenue bonds incurs no liability to pay for the revenue bonds other than the responsibility to apply the revenue received from the project for which the bonds were sold to retiring the bonds.

Op. Atty. Gen. No. 380, Jeffrey, PI- 14-68. A city of the fourth class under a lease agreement pursuant to industrial development revenue bond issues need not follow the procedure of competitive bidding for the construction of the proposed facility thereunder, and that under section 100.200, RSMo (1969), any purchase options entered into in compliance with the statutes and approved by the Division of Commerce and Industrial Development need not be further approved at the time of their actual exercise.

PURPOSE: Municipalities proposing to finance industrial development projects through general obligation or revenue bonding programs are required under section 100.050, RSMo to make application for approval with the division. This ruleestablishesprocedures and identifies requirements for filing an application for municipal industrial bondingprojects. (1) The division shall promptly examine the application and make an investigation. The division shall approve the project when it finds that the project-

1. (A) Will further the economic development and increase employment in the municipality and the state;
2. (B) Will further the general welfare of the municipality and the state; and
3. (C) Is economically feasible and will not become a burden to the taxpayers of the municipality.

4. (2) Municipalities issuing bonds for industrial deve!opment projects shall make application to the division for approval prior to the issuance of the bonds.

   1. (A) The application shall consist of a statement outlining a plan for industrial development and the municipality shall submit eleven (11) copies to the division.

      1. 1. The plan shall provide a description of

the project and shall identify the specific use of the bond’s proceeds; the type and size of the development and the product(s) to be manufactured, processed or fabricated.

1. A. When the industrial development

project involves the relocation of an industrial plant from one (1) community in the state to another, the plan for industrial development shall include the reasons for the relocation and shall identify the purpose of relocating, the number of jobs to be lost because of the relocation and ways in which the relocation will further economic development in the proposed area.

1. B. The statement shall also include the

reasons for the facility not being located at the present location and any other facts which adversely affect the economic development of the area from which the facility is to be moved.

1. 2. The plan shall estimate the total cost of

the project including any funds from other sources.

1. 3. The plan shall identify the type(s) of

bonds to be issued and the total amount of each type of bond. When the terms of the lease do not provide an amount sufficient to retire general obligation bonds, the plan shall clearly state the reasons for the insufficiency.

1. 4. The plan shall include the terms of the

lease.

1. 5. Attached to the plan shall be a copy of

the city council’s minutes, or a resolution of the board, showing the approval of the industrial development project.

1. 6. A statement shall be included showing

the valuation of the taxable property in the municipality for the most current year, the percent of taxes collected to total property taxes due for the five (5) most current years and a list of all municipal bonds currently outstanding including the type of bonds, purpose of bond and the value of each. Shown separate. ly shall be a list of all outstanding general obligation bonds issued for industrial development purposes and the total amount outstanding.

1. 7. A statement shall be provided identifying the product the company manufactures, processes or fabricates; the extent of the company’s operations and copies of the company’s financial statements for the most current quarter and three (3) years immediately preceding. When the general obligation bonds are to be issued, the company’s most current financial statement shall be fully certified by a certified public accountant. When the lease is to be guaranteed, these requirements shall be included in the plan and provided by the guarantor.
2. 8. The plan shall include a list of all security exchange commission filings by the company for the three (3) most current years.
3. 9. The plan shall conclude with a request for approval of the project, dated, signed and shall be accompanied by the proposed lease.

Auth: sections 100.040--100.060, RSMo (1986).* Original rule filed Dee. 30, 1975, effective Jan. 9,1976. *Original authority: 100.040, RSMo (1961); 100.050, RSMo (1961), amended 1983; 100.060, RSMo j1961), amended 1976, repealed 1983. St. Louis County u. Village of Champ, 438 SW2d 205 (MO. App. 1969). Publicpolicyofthestatenowfauorsmore ambitious industrial development by municipalities. Many municipalities, particularly smaller and medium size cities and