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90_HB3347ham003
LRB9009806BBpkam
1 AMENDMENT TO HOUSE BILL 3347
2 AMENDMENT NO. . Amend House Bill 3347 by replacing
3 the title with the following:
4 "AN ACT concerning transportation."; and
5 by replacing everything after the enacting clause with the
6 following:
7 "Section 5. The Build Illinois Act is amended by adding
8 Section 9-11 as follows:
9 (30 ILCS 750/9-11 new)
10 Sec. 9-11. Port Development Revolving Loan Program.
11 (1) There is created in the State Treasury the Port
12 Development Revolving Loan Fund, referred to in this Section
13 as the Fund. Moneys in the Fund shall be appropriated for
14 the purposes of the Port Development Revolving Loan Program
15 created by this Section to be administered by the Department
16 of Commerce and Community Affairs in order to facilitate and
17 enhance the utilization of Illinois' navigable waterways or
18 the development of inland intermodal freight facilities or
19 both. The Department may adopt rules for the administration
20 of the Program.
21 The General Assembly shall make appropriations for the
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1 purposes of the Program. Repayment of loans made to
2 individual port districts shall be paid back into the Fund to
3 establish an ongoing revolving loan fund to facilitate
4 continuing port development activities in the State.
5 (2) Loan funds from the Program shall be made available
6 to Illinois port districts on a competitive basis. In order
7 to obtain assistance under the Program, a port district must
8 submit a comprehensive application to the Department for
9 consideration.
10 Projects eligible for funding under the Program must be
11 intermodal facilities and within the scope of powers and
12 responsibilities as granted in each port district's enabling
13 legislation. Loan funds shall not be used for working
14 capital or administrative purposes by the port district.
15 (3) The maximum amount which may be loaned from the
16 Program to fund any one project is $3,000,000. Program funds
17 may be used for up to 50% of an individual project financing.
18 The balance of financing for an individual project must be
19 secured by the respective district.
20 The maximum loan term shall be for 20 years with an
21 interest rate of 5% per annum. Principal and interest
22 payments shall be made on a semi-annual basis.
23 (4) In order to receive a loan from the Program, a port
24 district must:
25 (a) demonstrate that the proposed project shall
26 generate sufficient revenue to support amortization of
27 the loan and be willing to pledge revenues from the
28 project to loan repayment or
29 (b) demonstrate that the port district can
30 financially support debt service payments through general
31 revenue sources of the port district and pledge the full
32 faith and credit of the port district to loan repayment.
33 In order to achieve the requirement of paragraph (a) of
34 this subsection (4), the port district may use guarantees
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1 provided under facility operating agreements or guaranteed
2 facility use agreements from private concerns to demonstrate
3 loan repayment ability.
4 Certain infrastructure facilities developed under the
5 Program may be general use public facilities where there is
6 not a definitive and guaranteed revenue stream to support the
7 project, nevertheless the facilities are important to
8 facilitate overall long term port development objectives. In
9 such cases, the full faith and credit of the port district
10 may be used as loan collateral.
11 (5) A loan agreement shall be executed between the port
12 district and the State stipulating all of the terms and
13 conditions of the loan. The Department shall release funds
14 on a reimbursement basis for eligible costs of the project as
15 incurred. The port district shall certify to the Department
16 that expenses incurred during construction are in accordance
17 with plans and specifications as approved by the Department.
18 Funds may be drawn once per month during construction of the
19 project.
20 (6) The loan agreement shall contain customary and usual
21 loan default provisions in the event the port district fails
22 to make the required payments. The loan agreement shall
23 stipulate the State's recourse in curing any default.
24 In the event a port district becomes delinquent in
25 payments to the State, that port district shall not be
26 eligible for any future loans until the delinquency is
27 remedied.
28 (7) Individual port district project applications shall
29 include the following:
30 (a) Statement of purpose. A description of the
31 project shall be submitted along with the project's
32 anticipated overall effect on meeting port district
33 objectives.
34 (b) Project impact. The anticipated net effects of
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1 the project shall be enumerated. These impacts may
2 include the economic impact to the State, employment
3 impact, intermodal freight impacts, and environmental
4 impacts.
5 (c) Cost estimates and preliminary project layout.
6 The overall project development cost estimate and general
7 site and or facility drawings.
8 (d) Proposed loan amount. A statement as to the
9 amount proposed from the Program and the port district's
10 intentions as to the source of other financing for the
11 project.
12 (e) Business Proforma. A detailed business
13 proforma must be supplied which estimates
14 facility/project revenues as well as operating costs and
15 debt service.
16 (f) Loan collateral and guarantees. The port
17 district's intentions as to how it intends to
18 collateralize the loan amount, including third party
19 guarantees, pledging of project and facility revenue, or
20 pledging general revenues of the district.
21 (8) The Department shall annually invite Illinois port
22 districts to submit projects for consideration under the
23 Program. The Department shall perform a cost/benefit
24 analysis of each project to determine if a project meets
25 minimum requirements for eligibility. Those applications
26 which meet minimum criteria shall then be ranked by the
27 overall net positive impact on the State.
28 (a) Minimum criteria shall include:
29 (i) positive cost/benefit ratio;
30 (ii) demonstrated economic feasibility of the
31 project; and
32 (iii) the ability of the port district to
33 repay the loan.
34 (b) Ranking criteria may include:
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1 (i) a cost/benefit ratio of project in
2 relation to other projects;
3 (ii) product tonnage to be handled;
4 (iii) product value to be handled;
5 (iv) soundness of business proposition;
6 (v) positive intermodal impacts of Illinois
7 transportation system;
8 (vi) meets overall State transportation
9 objectives;
10 (vii) economic impact to the State; or
11 (viii) environmental benefits of the project.
12 Projects shall be selected according to their ranking up
13 to the limit of available funds. Selected projects shall be
14 invited to submit detailed plans, specifications, operating
15 agreements, environmental clearances, evidence of property
16 title, and other documentation as necessitated by the
17 project. When the Department determines all necessary
18 requirements are met and the remainder of the project
19 financing is available, a loan agreement shall be executed
20 and project development may commence.
21 Section 10. The State Finance Act is amended by adding
22 Section 5.480 as follows:
23 (30 ILCS 105/5.480 new)
24 Sec. 5.480. The Port Development Revolving Loan Fund.".