55A - RESO RECOVERY ZONE BOND - Laserfiche WebLink

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REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: AUGUST 17, 2009 TITLE: RESOLUTION TO DESIGNATE THE CITY OF SANTA ANA AS A RECOVERY ZONE FOR THE PURPOSES OF UTILIZING RECOVERY ZONE BOND FINANCING IN 2009 AND 2010 '` ~ CITY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY; APPROVED ^ As Recommended ^ As Amended ^ Ordinance on 15t Reading ^ Ordinance on 2"d Reading ^ Implementing Resolution ^ Set Public Hearing For_ CONTINUED TO FILE NUMBER Adopt a resolution designating the City of Santa Ana as a Recovery Zone for the purposes of utilizing recovery zone bond financing in 2009 and 2010. DISCUSSION As part of the American Recovery and Reinvestment Act (ARRA) stimulus package, the federal government has authorized the City of Santa Ana to issue up to $5,872,000 in Recovery Zone Facility Bonds and $8,807,000 in Recovery Zone Economic Development Bonds. In order to take advantage of the recovery zone bond financing, the City must adopt a resolution designating a Recovery Zone area. A Recovery Zone is defined as an area having significant poverty, unemployment, home foreclosures, or general distress; or an area that has already been federally designated as an Empowerment Zone or Renewal Community. Discretion to designate the boundaries of the Recovery Zone has been left up to each individual jurisdiction. Recovery Zone Facility Bonds Recovery Zone Facility Bonds are a new type of financing mechanism that enable the City to issue bonds to creditworthy applicants to assist with the purchase, renovation and/or construction of a commercial or industrial development project. These bonds are similar in nature to the City's existing Industrial Development Bonds with the exception that these bonds are not just limited to industrial development. 55A-1