Item 6: Resolution 5017 Authorizing Economic Development Project Revenue Bonds as Recovery Zone Facility Bonds

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ATTACHMENT B RESOLUTION NO. _________ A RESOLUTION AUTHORIZING ECONOMIC DEVELOPMENT PROJECT REVENUE BONDS AS RECOVERY ZONE FACILITY BONDS TO FINANCE IMPROVEMENTS ON THE VACANT PARCEL LOCATED AT BROADWAY AND WILLAMETTE STREET AND ADJACENT TO THE CENTRE COURT BUILDING. The City Council of the City of Eugene, Oregon finds as follows: A. The City has received a request from Bennett Management Company to issue economic development project revenue bonds to finance improvements (the “Project”) on the vacant parcel located at Broadway and Willamette Street and adjacent to the Centre Court building, and to loan the bond proceeds to Bennett Management Company or an entity formed by Bennett Management Company (the “Borrower”). B. On August 11, 2010, the City Council supported the Project proposal in concept and directed the City Manager to bring back additional details for consideration. C. On September 15, 2010, the City Council approved Resolution 5014, which authorized the City Manager 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 recovery zone facility bonds for the Project. The resolution required additional City Council approval prior to issuance of the bonds. D. ORS 280.410 to 280.485 (the “Act”) authorizes the City to issue economic development project revenue bonds. Bonds issued under the Act are payable solely from the revenues and assets that the Borrower or another private party pledges to pay the Bonds, and are not liabilities of the City. E. The American Recovery and Reinvestment Act of 2009 (“ARRA”) allows the City’s economic development project revenue bonds to qualify as “recovery zone facility bonds,” but only if the bonds are issued by December 31, 2010. Recovery zone facility bonds allow the Borrower to obtain low-cost, tax-exempt financing that is ordinarily not available under federal law. F. ARRA and Section 147 of the Internal Revenue Code of 1986, as amended, (the “Code”) require that recovery zone facility bonds be approved by the City Council after a public hearing. A public hearing was held before a hearings official on November 15, 2010, and approval of this resolution will constitute approval of the recovery zone facility bonds that the City issues for the Project for purposes of Section 147 of the Code. G. The Borrower is working with commercial banks and expects that a commercial bank or similar institution will purchase the bonds by December 31, 2010.