HomeMy WebLinkAboutDesignating the City as a Recovery ZoneRESOLUTION
4019-10
Passed by the Common Council of the City of South Bend, Indiana
March 22,
Attest:
City Clerk
President of Common Council
Presented by me to the Mayor of the City of South Bend, Indiana
March 23, 20 10
March 23, 10
Approved and signed by me 20
<. ~~y
10
20
City Clerk
RESOLUTION NO. ~,0~,~~ ~~
A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND,
INDIANA, DESIGNATING THE CITY AS A RECOVERY ZONE
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 1400U-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 1400U-1 and 1400U-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 1400U-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 Bend, 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 Bend, 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.
2. The Mayor and City Controller of the City are hereby authorized and directed to
take all actions as may be required in furtherance of this Resolution and the designation of the
recovery zone.
3. This Resolution shall be in full force and effect from and after its adoption by the
Common Council of the City and approval by the Mayor of the City.
COMMON CO CIL OF TH ITY OF SOUTH
BEN DIA
Member of the Common Council
PRESENTED 3~~'~~~
NOT APPROVED
ADOPTED ~ - LL' L ~
Filed 1n Ci~r~a':~ ~~tSCtr
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TO THE COMMON COUNCIL OF THE CITY OF SOUTH BEND:
Your Committee of the Whole, to whom was referred:
BILL NO.
10-12 A RESOLUTION OF THE COMMON COUNCIL OF THE
CITY OF SOUTH BEND, INDIANA, DESIGNATING THE
CITY AS A RECOVERY ZONE
Respectfully report that they have examined the matter and that in their opinion,
this bill is being recommended to the full Council with a favorable
recommendation.
Ann Puzzello
Chairperson, Committee of the Whole
1200 CouN'n~-C,TY BUILDING
227VF: J£FF£xsoN BOULEVi1RD
SUUI'H BEND, INDIANA 46601-LS30
PHON£574/235-9371
Fnx 574/235-9021
TDD 574! 235-5567
CITY OF SOUTH BEND STEPHEN J. LUECI:E, MAYOR
COMMUNITY ~L ECONOMIC DEVELOPMENT
-JEFFREY V GIBNEY
EXECUTIVE DIREGTOR
March 3, 2010
South Bend Common Council
Fourth Floor Council Chambers
400 County-City Building
South Bend, IN 46601
Dear Council Member:
The attached Resolution for your consideration would designate the City of South Bend as a Recovery
Zone. The Recovery Zone Act was part of the stimulus program approved by Congress in 2009. Certain
types of bonds are available only in Recovery Zones, and only available until the end of 2010. As we
review development opportunities this year, having the Recovery Zone designation in place gives us
another tool to meet those challenges. This Resolution only designates an area where these bonds can
be considered. Any specific bond project would need additional approval by the Common Council.
Please call me at 235-9339 if you have any questions. I will attend your March 8th meeting to make
presentation of this bill.
Sincerely,
Donald E. Inks
Director
Economic Development
cc: Jeff Gibney
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COMMUNITY DEV£LOPMF.NT ECONOMIC DEVELOPMENT FINANCIAL & PROGRAIvI
P,IMELA C, MEl'f.R DONALD E. INIS MANAGE*APNI'
5741'Z3>-9660 574/235-9371 C'LIZABETH LEONARD ~~/'
FAx: 574/235.9697 574!235.9371 ~
~~
I ZOO WLIN7Y-~TY BUILDING
227 W. JEFFERSON BOULEVARD
Sovrr-t BFxD, INDrANA 46G01-1830
Pwove574/235-9371
FAx 574/235-9021
TDD 574/ 235-55G7
CITY OF SOUTH BEND STEPHEN J. LUECIQ;, MAYOR
COMMUNITY SL ECONOMIC DEVELOPMENT
JEFFREY V. GIBNEY
EXECUTIVE DIRECTOR
March 3, 2010
South Bend Common Council
Fourth Floor Council Chambers
400 County-City Building
South Bend, IN 46601
Dear Council Member:
The attached Resolution for your consideration would designate the City of South Bend as a Recovery
Zone. The Recovery Zone Act was part of the stimulus program approved by Congress in 2009. Certain
types of bonds are available only in Recovery Zones, and only available until the end of 2010. As we
review development opportunities this year, having the Recovery Zone designation in place gives us
another tool to meet those challenges. This Resolution only designates an area where these bonds can
be considered. Any specific bond project would need additional approval by the Common Council.
Please call me at 235-9339 if you have any questions. I will attend your March 8th meeting to make
presentation of this bill.
Sinc ly,
Wald E. I s
D rector
Economic Development
cc: Jeff Gibney
Co~nllmmr DcvaoraleNr EcoNOenc D~IAratECVr FlNrwcuL & PROGRAM
Px+~eL.i C. Mei~x Dowtn F; Ivtcs MANAGE~SINT
574!235-9GG0 574!235-4371 Etruasrtt LEOruan
Fax: 5741235-9G97 5741235-9371