Item A: Recovery Zone Bonds and Downtown Site Development

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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. NOW, THEREFORE, 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 H, 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-1(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. 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. Section 5. Effective Date. This resolution shall take effect immediately upon adoption. th The foregoing Resolution adopted by the City Council on the 15 day of September, 2010. ______________________________________ City Recorder