1. (a) Section 4A City Projects. The projects of an applicant created pursuant to the Act, §4A must meet the definition of "Project" as that term is defined by the Act, §2(10), subject to the limitations imposed by the Act, §4A(i). The costs of the following types of projects are eligible for program loans for §4A applicants:

   1. (1) Land, building, equipment, facilities, and improvements found by the board of directors to be required or suitable for the promotion of development and expansion of:

      1. (A) manufacturing and industrial facilities;
      2. (B) distributions centers; or
      3. (C) small warehouse facilities capable of serving as decentralized storage and distribution centers.

   2. (2) Land, building, equipment, facilities, and improvements found by the board of directors required or suitable for the promotion of commercial development and expansion of:

      1. (A) blighted or economically depressed areas and development areas;
      2. (B) federally designated empowerment zones and enterprises communities designated under the Internal Revenue Code of 1986, §1391;
      3. (C) federally assisted new communities located within a home-rule city;
      4. (D) enterprise zones designated under the Texas Enterprise Zone Act;

   3. (3) Infrastructure improvements necessary for economic development tied to a specific business or documented as part of an economic development plan, including:

      1. (A) railroad spurs, extensions, switches, and turnouts;
      2. (B) water and sewer lines;
      3. (C) road construction;
      4. (D) natural gas lines;
      5. (E) electric overhead power lines and transformers;
      6. (F) harbor/channel dredging;
      7. (G) drainage channels and ponds;
      8. (H) pre-treatment facilities;
      9. (I) landfills, incinerators, and related equipment;
      10. (J) purchase of land, easements, right of ways and engineering services related to eligible infrastructure items;
      11. (K) general aviation business service airports that are integral parts of an industrial park;
      12. (L) port related facilities to support waterborne commerce; and

      13. (M) transportation facilities, solid waste disposal facilities, or air or water pollution control facilities, provided that:

          1. (i) such facilities are not the primary project; and
          2. (ii) such facilities benefit property acquired for a permissible project which is the primary project.

2. (b) Section 4B City Projects. An applicant created pursuant to the Act, §4B must meet the definition of "Project" as that term is defined by the Act, §4B(a)(2). The cost of the following types of projects are eligible for a program loan for a §4B applicant:

   1. (1) Land, buildings, equipment, facilities, and improvements included in the definition of "Project" as that term is defined by the Act, §2(10), including recycling facilities;

   2. (2) Land, buildings, equipment, facilities, and improvements found by the board of directors of applicant to be required or suitable for use for professional and amateur (including children's) sports, athletic, entertainment, tourist, convention, and public park purposes and events, including:

      1. (A) stadiums;
      2. (B) ball parks;
      3. (C) auditoriums;
      4. (D) amphitheaters;
      5. (E) concert halls;
      6. (F) learning centers;
      7. (G) parks and park facilities;
      8. (H) open space improvements;
      9. (I) municipal buildings;
      10. (J) museums;
      11. (K) exhibition facilities; and
      12. (L) related store, restaurant, concession, automobile parking facilities, related area transportation facilities, related roads, streets, water and sewer facilities, and other related improvements that enhance any of those facilities enumerated in this paragraph.

   3. (3) Land, buildings, equipment, facilities, and improvements found by the board of directors of applicant to promote or develop new or expanded business enterprises, including a project to provide:

      1. (A) public safety facilities;
      2. (B) streets and roads;
      3. (C) drainage and related improvements;
      4. (D) demolition of existing structures;
      5. (E) general municipally owned improvements;
      6. (F) any improvements or facilities that are related to any of those projects; and
      7. (G) any other project that the board of directors in its discretion determines promotes or develops new or expanded business enterprises.
3. (c) Special Rules for Commercial Projects in Blighted or Economically Depressed Areas and Development Areas. Under the Act, the financing of the cost of eligible projects for commercial use is confined to, among others, geographic areas within the corporate limits of a city found and determined by the governing body of such city to be either a blighted area or economically depressed (or areas immediately adjacent thereto) or a development area. Rules for establishing a blighted area are set forth in 180.2(b)(9)(A) of this title (relating to Industrial Revenue Bond Program). Rules for establishing an economically depressed area or a development area are set forth in §180.2(b)(9)(B) of this title. Such rules are applicable to commercial projects located in blighted or economically depressed areas and development areas for which application is made for a program loan.

Source Note:The provisions of this §181.5 adopted to be effective March 27, 1997, 22 TexReg 2871.