Sec. 23.3. Criteria for local buy-out financial assistance

(a) The UDC is required to make industrial effectiveness project findings under the UDC Act. Assistance will be predicated upon the ability of the UDC to make the following findings:

(1) that a feasibility study or productivity assessment exists demonstrating the potential for future profitability of the firm requesting financial assistance, and such study or assessment has been reviewed and approved by the Commissioner of Economic Development;

(2) that for loans to implement a corporate restructuring or turnaround plan, the management of the industrial firm requesting assistance is capable and the firm has a sound business development plan that includes measures to ensure labor and management cooperation and to effect changes required to continue as a successful business;

(3) that the requested financial assistance is not available from other public or private financing sources;

(4) that the area in which the project is to be located is a substandard or insanitary area, or is in danger of becoming a substandard or insanitary area, wherein there exists a condition of substantial and persistent unemployment or underemployment; and

(5) that there is a feasible method for the relocation of families and individuals displaced from the project area into decent, safe and sanitary dwellings, which are or will be provided in the project area or in other areas not generally less desirable in regard to public utilities and public and commercial facilities, at rents or prices within the financial needs of such families or individuals and reasonably accessible to their places of employment.

(b) In addition to the foregoing, the UDC shall evaluate applications submitted in accordance with the following criteria:

(1) the firm has been qualified for assistance pursuant to Part 20 of this Title;

(2) the firm has a comprehensive and sound business development and financial plan that includes detailed strategies and remedial measures to ensure labor and management cooperation, to effect changes required to continue as a successful business, to ensure capable management after the buy out, and which demonstrates that the financial circumstances of the firm and the purchasing group make the buy out feasible;

(3) the firm has taken or is committed to take such steps as the UDC deems necessary to ensure that it has a reasonable chance to continue as a successful business, including but not limited to changes in its operations, management or financing, and is prepared to include such as a condition of financing in the loan agreement;

(4) the other financing required for the local buy out is committed;

(5) the local buy out is unlikely to occur without the UDC loan assistance, and the firm is likely to close, partially close or relocate out-of-state, resulting in the loss of substantial numbers of jobs;

(6) the firm is an important employer in the community, and the local buy out is in the interest of both employees and the community and will not expose employees to excessive risks and potential liabilities;

(7) the ratio of the number of jobs to be created or retained to the amount of assistance requested from the UDC is warranted. In general, the UDC will not finance projects that anticipate a return of less than one job for every $15,000 of State assistance;

(8) the firm has the ability to repay the loan; and

(9) the firm has agreed to first consider, for any new positions opened as a result of the project loan, persons eligible to participate in Federal Job Training Partnership Act (P.L. 97-300, as amended) programs who shall be referred to the firm by administrative entities of service delivery areas created pursuant to such act or by the Job Service Division of the Department of Labor.