PURPOSE: This rule establishes the procedures and standards for the determination and approval of eligible industries and their economic development projects as required by section 10.1. of Conference Committee Substitute for Senate Substitute for Senate Committee Substitute for House Substitute for House Committee Substitute for House Bill No. 1237, as enacted by the 88th General Assembly, 2d Regular Session.

1. (1) The industry shall submit an application simultaneously to the Missouri Development Finance Board (the board) and to the Department of Economic Development (department) on forms prescribed by both. The department shall review the application to determine if it is in full compliance with the Act and rules promulgated pursuant thereto.
2. (2) The “credit worthiness” of an industry shall be determined by the board. In making such determination, the board may consider i) the industry’s ability to obtain a letter of credit from a financial institution; ii) the 4 CSR 80-5

credit rating of the industry as determined by a recognized rating agency; or iii) the industry’s ability to provide a buyer for the certificates.

1. (3) The number of new jobs to be created shall be in relation to the amount of the certificates to be issued and the “net state economic impact” of the project. The amount of the certificates shall not exceed the projected “net state economic impact.”
2. (4) The “likelihood of success of the economic development project” shall be measured by the probability that the industry will create the number of new jobs projected and the probability that the “net state economic impact” will be achieved.
3. (5) The department shall determine that there is at least one (1) other state that the applicant is considering for location of a project before the project is approved. This provision may be satisfied if a written offer from another state is obtained, or if the industry provides a written description of the consideration given by the industry to the other state, and attests to the validity of such information.
4. (6) An industry making application to the department and the board shall provide a complete listing of the differential of one (1)- time capital costs and ongoing operating costs (which shall include the impact of all state, federal and local tax, training, financing and other incentives) between the proposed project site and the projected capital and ongoing operating costs if the industry were to locate in another state, and the industry shall attest to the accuracy of such information.

AUTHORITY: section 620.1066, RSMo (Supp. 1995).* Original rule filed Aug. 29, 1996, effective March 30, 1997.

*Original authority 1994, amended 1995.