Laserfiche WebLink
<br /> <br /> <br />ECC <br />UGENE ITY OUNCIL <br />AIS <br />GENDA TEM UMMARY <br /> <br /> <br /> <br />Public Hearing and Possible Action: An Ordinance Establishing a Process and Standards <br />for Issuing Economic Development Project Revenue Bonds as Recovery Zone Facility <br />Bonds <br /> <br /> <br />Meeting Date: December 13, 2010 Agenda Item Number: 5 <br />Department: Central Services Staff Contact: Sue Cutsogeorge <br />www.eugene-or.gov Contact Telephone Number: 541-682-5589 <br /> <br /> <br /> <br /> <br />ISSUE STATEMENT <br /> <br />In order to move forward with any financings that the City might undertake with Recovery Zone Facility <br />Bonds, Oregon Revised Statutes require that the City adopt a procedure and standards for approval for <br />issuance of economic development project revenue bonds. These procedures and standards must be in <br />place prior to issuing any of the bonds, and the deadline for issuing the bonds is December 31, 2010; <br />therefore, an ordinance is presented for council consideration to allow for the possibility of issuance of <br />Recovery Zone Facility Bonds. <br /> <br /> <br />BACKGROUND <br /> <br />The City received an allocation from the Federal government of Recovery Zone Facility Bonds of <br />$11,083,000. The bonds may be used by private companies to access tax-exempt financing. Up to $8 <br />million of Recovery Zone Facility Bonds are proposed for the Bennett project (on Willamette Street, <br />adjacent to the Beam project). The remainder of the bonds were waived and reallocated by the state. <br /> <br />The proposed ordinance sets out a process and standards for projects to make application for the use of <br />Recovery Zone Facility Bonds. This is a requirement of Oregon Revised Statutes. Due to the Federal <br />government’s deadlines for issuing the bonds prior to December 31, 2010, the ordinance includes an <br />immediate effective date. Approval of an ordinance with an immediate effective date will require six <br />votes in favor. The council can take action on December 13 if no councilor objects to taking action that <br />night; if any councilor objects to taking action on December 13, the council will need to take action on <br />December 15. <br /> <br /> <br />RELATED CITY POLICIES <br />None. This action simply sets up a process. Policy issues around Recovery Zone Facility Bonds are <br />related to authorization of any specific application that would be requested under this ordinance. <br /> <br /> Z:\CMO\2010 Council Agendas\M101213\S1012135.doc <br /> <br />