03-22-10 Council Agenda & Packet

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m1witizow,.. i WHEREAS, the American Recovery and Reinvestment Act of 2009 (Pub. L. No. 111 -5) (the "ARRA ") modifies the Internal Revenue Code of 1986, as amended (the "Code ") to authorize. among others, two new types of bonds entitled "recovery zone economic development bonds" and "recovery zone facility bonds;" and WHEREAS, "recovery zone economic development bonds" are a subcategory of taxable build America bonds (as defined in section 54AA(d) of the Code), issued under provisions of ARRA that have been codified as Section 140OU -2 of the Code, the proceeds of which are to be used for qualified economic development purposes in a recovery zone; and WHEREAS, qualified economic development purposes include expenditures for the purpose of promoting development or other economic activity in a recovery zone, including capital expenditures for property located in the zone or expenditures for public infrastructure and construction of public facilities in the zone; and WHEREAS, the ARRA also authorizes a new type of federally tax exempt private activity bonds entitled "recovery zone facility bonds" in Sections 140OU -1 and 140OU -3 of the Code to finance construction, renovation, or acquisition of depreciable property by a private taxpayer of a qualified business in a recovery zone, with "qualified business ", defined to include any trade or business other than residential rental property and certain prohibited uses outlined in the Code; and WHEREAS, Sections 1440U -1 through 140OU -3 of the Code and related Notice 2009 -50 issued by the U.S. Treasury Department (collectively, the "Recovery Zone Act ") define a recovery zone as any area designated by the City of South fiend, Indiana (the "City. ") as an area having significant poverty, unemployment, rate of home foreclosure, or general distress; and WHEREAS, the City has determined that it is in the best interest of the City and its citizens to designate the entire area within the boundaries of the City as a "recovery zone" for purposes of the Recovery Zone Act; NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of South Rend, Indiana as follows: 1. The City hereby finds, determines and designates that the entire area within the boundaries of the City is an area having significant unemployment, rate of home foreclosures or general distress, and therefore hereby designates the City as a recovery zone for purposes of the Recovery Zone Act.