(30 ILCS 750/9-11)
Sec. 9-11. Port Development Revolving Loan Program.
(1) There is created in the State Treasury the Port Development Revolving
Loan Fund, referred to in this Section as the Fund. Moneys in the Fund may
be appropriated for the purposes of the
Port Development Revolving Loan Program created by this Section to be
administered by the Department of Commerce and Economic Opportunity in order to
facilitate and enhance the
utilization of Illinois' navigable waterways or the development of inland
intermodal freight facilities or both. The Department may adopt rules
for the administration of the Program.
The General Assembly may make appropriations for the purposes
of the Program.
Repayment of loans made to individual
port districts shall be paid back into the Fund to establish an ongoing
revolving loan fund to facilitate continuing port development activities in the
State.
(2) Loan funds from the Program shall be made available to Illinois port
districts on a competitive basis. In order to obtain assistance under the
Program, a port district must submit a comprehensive application to the
Department for consideration.
Projects eligible for funding under the Program must be intermodal
facilities and within the scope of powers and responsibilities as granted in
each
port district's enabling legislation. Loan funds shall not be used for working
capital or administrative purposes by the port district.
(3) The maximum amount which may be loaned from the Program to fund
any one project is $3,000,000. Program funds may be used for up to 50% of an
individual project financing. The balance of financing for an individual
project must be secured by the respective district.
The maximum loan term shall be for 20 years with an interest rate of 5%
per annum. Principal and interest payments shall be made on a semi-annual
basis.
(4) In order to receive a loan from the Program, a port district must:
(a) demonstrate that the proposed project shall |
| generate sufficient revenue to support amortization of the loan and be willing to pledge revenues from the project to loan repayment or
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(b) demonstrate that the port district can
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| financially support debt service payments through general revenue sources of the port district and pledge the full faith and credit of the port district to loan repayment.
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In order to achieve the requirement of paragraph (a) of this subsection (4),
the port
district may use guarantees provided under facility operating agreements or
guaranteed facility use agreements from private concerns to demonstrate loan
repayment ability.
Certain infrastructure facilities developed under the Program may be
general use public facilities where there is not a definitive and guaranteed
revenue stream to support the project, nevertheless the facilities are
important to facilitate overall long term port development objectives. In such
cases, the full
faith and credit of the port district may be used as loan collateral.
(5) A loan agreement shall be executed between the port district and the
State stipulating all of the terms and conditions of the loan. The Department
shall release funds on a reimbursement basis for eligible costs of the project
as incurred. The port district shall certify to the Department that expenses
incurred during construction are in accordance with plans and specifications as
approved by the Department. Funds may be drawn once per month during
construction of the project.
(6) The loan agreement shall contain customary and usual loan default
provisions in the event the port district fails to make the required payments.
The loan agreement shall stipulate the State's recourse in curing any default.
In the event a port district becomes delinquent in payments to the State,
that port district shall not be eligible for any future loans until the
delinquency is remedied.
(7) Individual port district project applications shall include the
following:
(a) Statement of purpose. A description of the
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| project shall be submitted along with the project's anticipated overall effect on meeting port district objectives.
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(b) Project impact. The anticipated net effects of
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| the project shall be enumerated. These impacts may include the economic impact to the State, employment impact, intermodal freight impacts, and environmental impacts.
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(c) Cost estimates and preliminary project layout.
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| The overall project development cost estimate and general site and or facility drawings.
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(d) Proposed loan amount. A statement as to the
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| amount proposed from the Program and the port district's intentions as to the source of other financing for the project.
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(e) Business Proforma. A detailed business proforma
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| must be supplied which estimates facility/project revenues as well as operating costs and debt service.
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(f) Loan collateral and guarantees. The port
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| district's intentions as to how it intends to collateralize the loan amount, including third party guarantees, pledging of project and facility revenue, or pledging general revenues of the district.
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(8) The Department shall annually invite Illinois port districts to submit
projects for consideration under the Program. The Department shall perform a
cost/benefit
analysis of each project to determine if a project meets minimum requirements
for eligibility. Those applications which meet minimum criteria shall then be
ranked by the overall net positive impact on the State.
(a) Minimum criteria shall include:
(i) positive cost/benefit ratio;
(ii) demonstrated economic feasibility of the
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(iii) the ability of the port district to repay
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(b) Ranking criteria may include:
(i) a cost/benefit ratio of project in relation
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(ii) product tonnage to be handled;
(iii) product value to be handled;
(iv) soundness of business proposition;
(v) positive intermodal impacts of Illinois
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(vi) meets overall State transportation
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(vii) economic impact to the State; or
(viii) environmental benefits of the project.
Projects shall be selected according to their ranking up to the limit of
available funds. Selected projects shall be invited to submit detailed plans,
specifications, operating agreements, environmental clearances, evidence of
property title, and other documentation as necessitated by the project. When
the
Department determines all necessary requirements are met and the remainder of
the project financing is available, a loan agreement shall be executed and
project development may commence.
(Source: P.A. 94-793, eff. 5-19-06.)
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