Resolution No. 5014 - Laserfiche WebLink

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H. The Lane Community College Board of Education passed a resolution on September 8, 2010 requesting that the City suballocate its RZEDB authorization to Lane Community College for use in financing housing at its new downtown campus location. I. A "recovery zone" may consist of any area designated by the City as having significant poverty, unemployment, rate of home foreclosures, or general distress. I.R.S. Notice 2009 -50 allows the City to designate recovery zones in any reasonable manner. J. The annual unemployment rate for the Eugene - Springfield MSA has increased from 4.7% in 2007 to 5.4% in 2008. In 2009 the rate rose to 10.2 %, and as of June 2010 the rate stood at 10.6 %. This has exceeded the unemployment rates of both Oregon and the U.S as a whole for several years. Poverty rates for individuals within the Eugene - Springfield MSA rose from 17% in 2007 to 20.8% in 2008, according to the U.S. Census Bureau, which also reports that in 2008 median household income was only 86.4% of median income for Oregon as a whole, and 83.3% of U.S. median income. In 2009 and 2010 home foreclosures have continued to be high, and in the first quarter of 2010 nearly one -third of all home sales in Eugene - Springfield MSA were either short sales or foreclosures. :NO W, ' T -BE IT .RESOLVED by the City Council of the City of Eugene, a municipal corporation of the State of Oregon, as follows: Section .1. Designation of Recovery zone. Based on the economic statistics reported in Finding J, the Council hereby finds that the geographic area of the City of Eugene is experiencing significant poverty, unemployment, rate of home foreclosures, or general distress for purposes of Section 1400U -1(b) of the Internal Revenue Code of 1986, as amended. The geographic area of the City • of Eugene is hereby designated as a recovery zone for purposes of Section 1400U- I (b) of that code. Section -2. Preliminary Bond Activities Authorized. The City is hereby authorized to work - with Bennett Management Company, its financing team and the City's bond counsel to develop documents and otherwise prepare for the sale of conduit RZFBs for the Bennett Project. However, the City ' shall not enter in to any legally binding commitment to sell RZFBs for the Bennett Project until that sale has been approved by the Council.. Section 3. Conformance with Debt Policies. The conduit RZFBs issued for the. Bennett Project will comply with the conduit financing portion of the City's debt policies (included at Exhibit 1), with one exception. The financing will be a bank private placement and will not comply With the requirement for an investment grade rating or alternative credit enhancement. That portion of the debt policies is waived for the Bennett Project RZFBs. Section 4. Recovery zone Economic Development Bond . Authority for Lane Community College. The City Manager or the person designated by the City Manager to act on behalf of the City under this resolution may suballocate or transfer to, or otherwise arrange for the use by,' Lane Community College of all or any portion of the City's RZEDB authority. Section 5. Delegation The City Council hereby authorizes the City Manager and the person designated by the City Manager to act on behalf of the City under this resolution to . make reimbursement declarations for the ' Bennett Project and to take any other actions that are desirable -to carry out this resolution and prepare for the sale of conduit RZFBs for the Bennett Project.