Item 1: An Ordinance Establishing a Process

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ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Public Hearing and Possible Action: An Ordinance Establishing a Process and Standards for Issuing Economic Development Project Revenue Bonds as Recovery Zone Facility Bonds Meeting Date: November 22, 2010 Agenda Item Number: 1 Department: Central Services Staff Contact: Sue Cutsogeorge www.eugene-or.gov Contact Telephone Number: 541-682-5589 ISSUE STATEMENT In order to move forward with any financings that the City might undertake with Recovery Zone Facility Bonds, Oregon Revised Statutes require that the City adopt a procedure and standards for approval for issuance of economic development project revenue bonds. These procedures and standards must be in place prior to issuing any of the bonds, and the deadline for issuing the bonds is December 31, 2010; therefore, an emergency ordinance is presented for council consideration to allow for the possibility of issuance of Recovery Zone Facility Bonds. BACKGROUND The City received an allocation from the Federal government of Recovery Zone Facility Bonds of $11,083,000. The bonds may be used by private companies to access tax-exempt financing. Up to $8 million of Recovery Zone Facility Bonds are proposed for the Bennett project (on Willamette Street, adjacent to the Beam project). The remainder of the bonds were waived and reallocated by the state. Although there are no other private projects currently identified to use the remaining City authorization, it is still possible for other City projects to emerge prior to the expiration of the federal authorization. The proposed ordinance sets out a process and standards for projects to make application for the use of Recovery Zone Facility Bonds. This is a requirement of Oregon Revised Statutes. Issuance of this type of debt is new for the City, and bond counsel recently informed staff that this step is required prior to issuance of any Recovery Zone Facility Bonds. Due to the Federal government’s deadlines for issuing the bonds prior to December 31, 2010, insufficient time is available to go through the normal ordinance process and the emergency process must be used. Notice of consideration of the ordinance was posted on the City’s web site on Friday, November 12, and notice was published in the Register-Guard on Tuesday, November 16. In order for the council to act on this ordinance at the November 22 meeting, unanimous consent is required because the ordinance was not advertised for 10 business days prior to the public hearing and not considered by the council at two or more meetings. If there is not unanimous consent of the council at the November 22 meeting, the ordinance will be brought back to the council on December 13 for another public hearing and December 15 for action, where it will require six votes of the council to go into effect immediately. (See section 4 of the proposed ordinance for further information on timing.) Z:\CMO\2010 Council Agendas\M101122\S1011221.doc