HomeMy WebLinkAboutCity Council - 2010-04 RESOLUTION NO. 2010-04
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF HUNTINGTON BEACH AUTHORIZING THE CREATION OF A
RECOVERY ZONE UNDER THE PROVISIONS OF THE AMERICAN RECOVERY AND
REINVESTMENT ACT OF 2009 FOR THE PURPOSE OF ISSUING RECOVERY ZONE
BONDS UNDER SECTION 1400U-1, 1400U-2, AND 140OU-3 OF THE
INTERNAL REVENUE CODE OF 1986,AS AMENDED
WHEREAS, Section 1401 of Title I of Division B of the American Recovery and
Reinvestment Act of 2009,Pub. L.No. 111-5, 123 Stat. 115 (2009) ("ARRA"), added Sections
140OU-1 through 140OU-3 of the Internal Revenue Code of 1986 (the "Code"), authorizing state
and local governments to issue Recovery Zone Economic Development Bonds and Recovery
Zone Facility Bonds; and
The City of Huntington Beach was directly allocated a total of$11,880,000 to be
dispersed in the following manner: $4,752,000 in Recovery Zone; and
Recovery Zone Economic Development Bonds and Recovery Zone Facility Bonds may
be issued before January 1, 2011, as provided in Section 140OU-1 of the Code to finance certain
economic development projects located within designated "recovery zones;" and
Section 140OU-1 (b) of the Code requires,in part, that issuers designate an eligible
"recovery zone;" and
For the purposes of Sections 140OU-1 and 140OU-3 of the Code,the term "recovery
zone" means: (1) any area designated by the issuer as having significant poverty, unemployment,
rate of home foreclosures, or general distress; (2) any are designated by the issuer as
economically distressed by reason of the closure or realignment of a military installation
pursuant to the Defense Base Closure and Realignment Act of 1990; and (3) any area for which a
designation as an empowerment zone or renewal community is in effect as of the effective date
of ARRA, which the effective date is February 17, 2009; and
I.R.S.Notice 2009-50 ("Notice 2009-50") provides that for the purposes of any state,
county or large municipality that receives an allocation of Recovery Zone Economic
Development Bonds and Recovery Zone Facility Bonds may make these designations of
"recovery zones" in any reasonable manner as it shall determine in good faith at its discretion;
and
The City's unemployment rate increased from 2.8 percent to 7.9 percent between May
2006 and November 2009; and
The Huntington Beach City Council previously approved areas of the City that were
designated as a Community Development Block Grant Areas and Redevelopment areas, whereby
the goals of reducing poverty and increasing employment are similar; and
10-2385/42517 2 1
Resolution No. 2010-04
NOW, THEREFORE, the City Council of the City of Huntington Beach does hereby
resolve as follows:
1. The City's "Recovery Zone," for the purposes of Sections 1400U-1, 1400U-2, and
140OU-3 of the Code, is hereby designated to be the geographical boundaries of the City of
Huntington Beach.
2. The City finds that the "Recovery Zone" described above meets the requirements
of Section 140OU-1 of the Code.
3. The City Administrator, or his designee, is hereby authorized to execute and
deliver any and all documents which may be deemed necessary or advisable in order to designate
the Huntington Beach Recovery Zone.
PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a
regular meeting thereof held on January 19 , 2010.
M o
INIT0411t
IEWED AND APPROVED:
CitypdAYnistrator
APPROVED AS TO FORM:
City Attor4iey '
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10-2385/42517 2 2
Res. No. 2010-04
STATE OF CALIFORNIA
COUNTY OF ORANGE ss:
CITY OF HUNTINGTON BEACH
I, JOAN L. FLYNN the duly elected, qualified City Clerk of the City of
Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby
certify that the whole number of members of the City Council of the City of
Huntington Beach is seven; that the foregoing resolution was passed and adopted
by the affirmative vote of at least a majority of all the members of said City Council
at a regular meeting thereof held on January 19, 2010 by the following vote:
AYES: Carchio, Hardy, Green, Bohr, Dwyer, Hansen
NOES: None
ABSENT: Coerper
ABSTAIN: None
y Clerk and ex-offic Clerk of the
City Council of the City of
Huntington Beach, California