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90_SB1500ham002
LRB9011204MWpcam02
1 AMENDMENT TO SENATE BILL 1500
2 AMENDMENT NO. . Amend Senate Bill 1500 by replacing
3 the title with the following:
4 "AN ACT concerning port districts."; and
5 by inserting below the enacting clause the following:
6 "Section 3. The Build Illinois Act is amended by adding
7 Section 9-11 as follows:
8 (30 ILCS 750/9-11 new)
9 Sec. 9-11. Port Development Revolving Loan Program.
10 (1) There is created in the State Treasury the Port
11 Development Revolving Loan Fund, referred to in this Section
12 as the Fund. Moneys in the Fund may be appropriated for the
13 purposes of the Port Development Revolving Loan Program
14 created by this Section to be administered by the Department
15 of Commerce and Community Affairs in order to facilitate and
16 enhance the utilization of Illinois' navigable waterways or
17 the development of inland intermodal freight facilities or
18 both. The Department may adopt rules for the administration
19 of the Program.
20 The General Assembly may make appropriations for the
21 purposes of the Program. Repayment of loans made to
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1 individual port districts shall be paid back into the Fund to
2 establish an ongoing revolving loan fund to facilitate
3 continuing port development activities in the State.
4 (2) Loan funds from the Program shall be made available
5 to Illinois port districts on a competitive basis. In order
6 to obtain assistance under the Program, a port district must
7 submit a comprehensive application to the Department for
8 consideration.
9 Projects eligible for funding under the Program must be
10 intermodal facilities and within the scope of powers and
11 responsibilities as granted in each port district's enabling
12 legislation. Loan funds shall not be used for working
13 capital or administrative purposes by the port district.
14 (3) The maximum amount which may be loaned from the
15 Program to fund any one project is $3,000,000. Program funds
16 may be used for up to 50% of an individual project financing.
17 The balance of financing for an individual project must be
18 secured by the respective district.
19 The maximum loan term shall be for 20 years with an
20 interest rate of 5% per annum. Principal and interest
21 payments shall be made on a semi-annual basis.
22 (4) In order to receive a loan from the Program, a port
23 district must:
24 (a) demonstrate that the proposed project shall
25 generate sufficient revenue to support amortization of
26 the loan and be willing to pledge revenues from the
27 project to loan repayment or
28 (b) demonstrate that the port district can
29 financially support debt service payments through general
30 revenue sources of the port district and pledge the full
31 faith and credit of the port district to loan repayment.
32 In order to achieve the requirement of paragraph (a) of
33 this subsection (4), the port district may use guarantees
34 provided under facility operating agreements or guaranteed
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1 facility use agreements from private concerns to demonstrate
2 loan repayment ability.
3 Certain infrastructure facilities developed under the
4 Program may be general use public facilities where there is
5 not a definitive and guaranteed revenue stream to support the
6 project, nevertheless the facilities are important to
7 facilitate overall long term port development objectives. In
8 such cases, the full faith and credit of the port district
9 may be used as loan collateral.
10 (5) A loan agreement shall be executed between the port
11 district and the State stipulating all of the terms and
12 conditions of the loan. The Department shall release funds
13 on a reimbursement basis for eligible costs of the project as
14 incurred. The port district shall certify to the Department
15 that expenses incurred during construction are in accordance
16 with plans and specifications as approved by the Department.
17 Funds may be drawn once per month during construction of the
18 project.
19 (6) The loan agreement shall contain customary and usual
20 loan default provisions in the event the port district fails
21 to make the required payments. The loan agreement shall
22 stipulate the State's recourse in curing any default.
23 In the event a port district becomes delinquent in
24 payments to the State, that port district shall not be
25 eligible for any future loans until the delinquency is
26 remedied.
27 (7) Individual port district project applications shall
28 include the following:
29 (a) Statement of purpose. A description of the
30 project shall be submitted along with the project's
31 anticipated overall effect on meeting port district
32 objectives.
33 (b) Project impact. The anticipated net effects of
34 the project shall be enumerated. These impacts may
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1 include the economic impact to the State, employment
2 impact, intermodal freight impacts, and environmental
3 impacts.
4 (c) Cost estimates and preliminary project layout.
5 The overall project development cost estimate and general
6 site and or facility drawings.
7 (d) Proposed loan amount. A statement as to the
8 amount proposed from the Program and the port district's
9 intentions as to the source of other financing for the
10 project.
11 (e) Business Proforma. A detailed business
12 proforma must be supplied which estimates
13 facility/project revenues as well as operating costs and
14 debt service.
15 (f) Loan collateral and guarantees. The port
16 district's intentions as to how it intends to
17 collateralize the loan amount, including third party
18 guarantees, pledging of project and facility revenue, or
19 pledging general revenues of the district.
20 (8) The Department shall annually invite Illinois port
21 districts to submit projects for consideration under the
22 Program. The Department shall perform a cost/benefit
23 analysis of each project to determine if a project meets
24 minimum requirements for eligibility. Those applications
25 which meet minimum criteria shall then be ranked by the
26 overall net positive impact on the State.
27 (a) Minimum criteria shall include:
28 (i) positive cost/benefit ratio;
29 (ii) demonstrated economic feasibility of the
30 project; and
31 (iii) the ability of the port district to
32 repay the loan.
33 (b) Ranking criteria may include:
34 (i) a cost/benefit ratio of project in
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1 relation to other projects;
2 (ii) product tonnage to be handled;
3 (iii) product value to be handled;
4 (iv) soundness of business proposition;
5 (v) positive intermodal impacts of Illinois
6 transportation system;
7 (vi) meets overall State transportation
8 objectives;
9 (vii) economic impact to the State; or
10 (viii) environmental benefits of the project.
11 Projects shall be selected according to their ranking up
12 to the limit of available funds. Selected projects shall be
13 invited to submit detailed plans, specifications, operating
14 agreements, environmental clearances, evidence of property
15 title, and other documentation as necessitated by the
16 project. When the Department determines all necessary
17 requirements are met and the remainder of the project
18 financing is available, a loan agreement shall be executed
19 and project development may commence.
20 Section 4. The State Finance Act is amended by adding
21 Section 5.480 as follows:
22 (30 ILCS 105/5.480 new)
23 Sec. 5.480. The Port Development Revolving Loan Fund.".