6465. RESOLUTION NO. 94-16: The Director presented the following Resolution regarding Internal Procedure for Reviewing Terminal or Transportation Facilities and Commerce Facilities and Economic Development. also available for download in a printable pdf version RESOLUTION 94-16: INTERNAL PROCEDURE FOR REVIEWING TERMINAL OR TRANSPORTATION FACILITIES AND COMMERCE FACILITIES AND DEVELOPMENT WHEREAS, the Compact establishing the Delaware River and Bay Authority, enacted by the States of Delaware and New Jersey and ratified by the United States Congress in 1962, provides that the Authority shall be engaged in the "overall planning for future economic development of the area"; and WHEREAS, to that end, said compact grants certain enumerated powers of the Authority to plan, finance, develop, construct, purchase, lease, maintain, improve and operate crossings and transportation or terminal facilities within the geographic area designated in the Compact; and WHEREAS, subsequently, the Compact was amended by legislation enacted by the States of Delaware and New Jersey and ratified by the United States Congress in 1990 further clarifying the manner in which the Authority shall exercise those enumerated powers; and WHEREAS, in those 1990 amendments to this Compact, additional powers were granted to the Authority to plan, finance, develop, construct, purchase, lease, maintain, improve and operation commerce facilities and development; and WHEREAS, companion implementing legislation in New Jersey and Delaware differ as to the procedure by which the Authority shall carry out those responsibilities; and WHEREAS, this Commission deems it appropriate to establish a policy for reviewing proposals which would request the Authority to exercise its enumerated powers in the areas of terminal or transportation facilities and in the area of commerce facilities and development; NOW, THEREFORE BE IT RESOLVED that the Commission of the Delaware River and Bay Authority, hereby establishes the following internal procedures to be used in reviewing any project brought to the Authority which would require the use of the Authority's enumerated powers under the Compact. SECTION I: In order for a terminal or transportation facility to be considered by the Authority, the Commission deems it appropriate to establish the following basic criteria upon which a project is to be reviewed: 1. A facility to be considered for funding by the Authority, shall at the time of said funding, demonstrate that the financial condition of said facility is such that its operating and maintenance costs are at least break-even or said facility has a business plan, which in the judgement of the Authority staff, presents a break-even situation for operation and maintenance. 2. That the capital requirements, which would be necessary to improve said facility were such that the Authority's commitment of its resources to accomplish those capital improvements, would directly result in increased revenues sufficient to provide debt service related to said capital investment. 3. That in the judgement of the Commission, the Authority's involvement in said facility will substantially improve the chances of said facility to increase jobs and economic growth in the area served by that facility. 4. That the involvement of the Authority in such a facility will not substantially impact the central staffing requirements of the Authority. SECTION II: As a matter of policy, the Authority resolves that the exercise of its enumerated powers in the area of commerce, facility and development requires additional restrictions beyond those enumerated in SECTION I as follows: 1. Authority participation in such facilities in partnership with other public entities should be limited to a maximum of 60% if there is no demonstrated revenue stream which guarantees full recovery of capital and operating expenses by the Authority within a ten-year period. 2. The amount that the Authority may invest in any single project will be limited to a relationship of a $500,000 investment for each 50 new jobs created by said investment as certified by a business plan, except as specifically waived by the Commission on a case by case basis. 3. That the Authority will prioritized its involvement in commerce facilities based upon their end use connection to our primary missions; namely, crossings, terminals or transportation facilities. If the Authority, for example, had to choose between financing a commerce facility which directly impacts a crossing, transportation or terminal function, it would give such a project higher weight than a commerce facility which had no relationship to that mission. 4. We would require for a commerce facility the same financial data, business plan, and other documentation as required for a terminal or transportation facility. 5. At no time can more than 20% of the Authority's General Fund balance be involved directly or indirectly in "commerce" facilities. Before final approval of any "commerce" facility project, the Executive Director shall submit to the Commissioners a certification by the Authority's auditors that the financing of such project will not exceed this restriction. SECTION III: When a terminal, transportation or commerce facility is brought to the Authority's attention, either formally or informally, by another government entity (local jurisdiction within the geographic boundaries of the Compact or by the Governor's office or their designee in either state or through actions of the legislature in either state) it shall be the responsibility of the staff of the Authority to gather all relevant financial information, including, but not limited to, budget, capital plans, lease or fee income, payroll, debt service, indirect costs, etc. associated with that facility. This information should be gathered in cooperation with the local jurisdiction or other government entity bringing this project to the Authority's attention. The staff, after analyzing this material, shall present to the Economic Development Committee of the Authority, which shall consist of the Chairman and Vice Chairman of the Authority and the Chairman of the Finance and Project Committees and other Commissioners as assigned by the Chairman, a recommendation as to whether or not said project meets the Authority's basic financial criteria for its involvement in such facility as outline in SECTIONS I and II. Upon review of this material, the Economic Development Committee shall authorize the Executive Director to proceed with a more detailed analysis of said project including, but not limited to a five-year business plan and financial analysis, a financial analysis of the impact of said facility on the overall finances of the Authority, legal or environmental considerations that affect the facility and any other relevant area deemed appropriate by this Committee or this Committee may conclude that such project does not meet the minimum qualifications for consideration by the Authority and shall instruct the Executive Director to so inform the entity which brought the project to the Authority's attention. If the Economic Development Committee deems it necessary to require outside consultants, the procurement of these services shall be specifically exempt from the requirements of Resolution 94-12 due to the confidential nature of such assignments. SECTION IV: Upon receiving this preliminary approval by the Economic Development Committee, the Executive Director shall prepare for submission to the full Commission a full analysis of said project including additional data and a recommendation as to whether this further review supports the finding that said facility meets the financial guidelines established by the Commission for exercising its enumerated powers. The Executive Director shall submit the following: • All relevant financial information, previously prepared by internal staff and review by an outside financial expert. • A due diligence review of all legal and related issues submitted by the Authority's Counsel. • A business plan reflecting a five-year's operation of that facility as developed internally by Authority staff or by outside consultants. • A preliminary indications by state and local officials who have the authority to veto any final agreement as to whether or not they support the Authority's involvement in said facility. SECTION V: This report with all its supporting documentation shall be reviewed by the full Commission at which time said Commission shall preliminarily approve or reject said proposal and instruct the Executive Director to inform the appropriate authorities as to the Commission's position. SECTION VI: After all legal requirements are met of the Compact's companion implementing legislation, with the exception of the three-fourths vote by the General Assembly for projects in Delaware, the full Commission shall review said projects and formally vote to approve or reject said project. This action by the Commission shall be deemed to be the only legally binding action by the Commission in this process and is, of course, subject to review by the Governor's of the respective states. SECTION VII: Nothing set forth in the procedures is intended to conflict with any procedures or course of conduct required by applicable law, including legislation passed by Delaware and/or New Jersey, which implemented the process for approving projects in those states or the Delaware/New Jersey Compact. NOW, THEREFORE BE IT FURTHER RESOLVED that the Executive Director has hereby instructed to inform the appropriate local agencies and state governments in New Jersey and Delaware concerning this procedure for consideration of projects outlined in this resolution. The Director recommended approval of this Resolution. Mr. Thomas H. Draper commented on Net General Fund. Mr. Joseph J. Pace commented on full recovery of Capital Investment. Mr. Angelo J. Falciani commented the projects should not have a negative impact on tolls. On motion by Mr. B. Harold Smick, seconded by Mr. Charles E. Pessagno the recommendation of the Director was unanimously approved. * AMENDED BY RESOLUTION NO. 95-29 to require written correspondence to the Chairman and Vice Chairman for all terminal, transportation or commerce facilities. * AMENDED BY RESOLUTION NO. 97-13 to define who sits on the Economic Development Committee. * AMENDED BY RESOLUTION NO. 99-25 to change the percentage of the Authority’s General Fund balance be involved directly or indirectly in “commerce” facilities from 20% to 50%.