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used fora "qualified economic development purpose," including to <br />fund capital expenditures paid or incurred with respect to property <br />located in a "recovery zone;" <br />on August 17, 2009, the City Council of the City of Santa Ana (the <br />"City") adopted Resolution No. 2009-046, designating the City as a <br />"recovery zone" (the "Santa Ana Recovery Zone") for purposes of <br />section 14000-1 (b) of the Code; <br />J. under the Federal Stimulus Act, the City has been allocated the <br />authority to issue up to $5,872,000 principal amount of Recovery <br />Zone Economic Development Bonds; <br />K. to finance the 2010 Project, which will promote development or <br />other economic activity in the Santa Ana Recovery Zone, as <br />contemplated by section 14000-2(c) of the Code, the Agency has <br />determined to issue its Community Redevelopment Agency of the <br />City of Santa Ana Tax Allocation Bonds (Merged Project Area- <br />Taxable Recovery Zone Economic Development Bonds), 2010 <br />Series B, in the aggregate principal amount of not to exceed <br />$5,870,000 (the "20108 Bonds" and, with the 2010A Bonds, the <br />"2010 Bonds"), under the provisions of the Redevelopment Bond <br />Law; <br />L. the 20106 Bonds will be issued as bonds the interest on which is <br />not excluded from gross income for purposes of federal income <br />taxation; <br />M. the Agency expects to receive a cash subsidy payment from the <br />United States Treasury equal to 45% of the interest payable on the <br />20106 Bonds; <br />N. the 2010 Bonds will be secured by a pledge of and lien on certain <br />tax increment revenues allocated to the Agency for the <br />Redevelopment Projects; and <br />O. the Agency has duly considered such transactions and wishes at <br />this time to authorize proceedings for the issuance and sale of the <br />2010 Bonds; <br />SECTION 2. Authorization. The Agency hereby authorizes the issuance of the <br />2010A Bonds to refund the 1998 Bonds and, if for any reason the Agency is unable to <br />issue or determines not to issue the 20106 Bonds (hereinafter defined), to finance the <br />2010 Project, and authorizes the issuance of the 20108 Bonds. The 2010A Bonds will <br />not include provision for the 2010 Project if the 20106 Bonds are issued. The 20106 <br />Bonds will not be issued unless the 2010A Bonds are also issued although the 2010A <br />Bonds may be issued alone. <br />5-7 <br />-3- <br />