HomeMy WebLinkAboutResolutions - 2009.08.12 - 9691MISCELLANEOUS RESOLUTION #09155 July 30, 2009
BY: PLANNING AND BUILDING COMMITTEE, JOHN SCOTT, CHAIRPERSON
IN RE:PLANNING AND ECONOMIC DEVELOPMENT SERVICES DIVISION
RESOLUTION REGARDING RECOVERY ZONE ECONOMIC DEVELOPMENT
BONDS
To the Oakland County Board of Commissioners
Chairperson, Ladies and Gentlemen:
WHEREAS, the American Recovery and Reinvestment Act of 2009 ("ARRA") was passed
by Congress on February 13, 2009, and was signed by the President on February 17, 2009: and
WHEREAS, the ARRA provides Counties and large municipalities (an "Issuer" or the
"Issuers") with a new economic development tool which will permit the Issuers, including the
County of Oakland (the "County") and its economic development corporation, to issue taxable bonds
to promote economic development within the County and receive reimbursement from the U.S.
Treasury Department of 45% of each interest payment on the bonds called "Recovery Zone
Economic Development Bonds" ('RZEDBs"); and
WHEREAS. RZEDBs may be issued to finance both depreciable property and working
capital, but only if the property is located in a "Recovery Zone" designated by the Issuer and is
purchased or constructed after such designation; and
WHEREAS, under the ARRA, a "Recovery Zone" is an area designated by the Issuer as
having significant poverty, unemployment, home foreclosures or general distress; and
WHEREAS, the dramatic economic meltdown of the economy across the United States, and
in the State of Michigan in particular, and the ensuing adverse effects on manufacturing and other
businesses in the State and the County, including the bankruptcies of Chrysler Corporation and
General Motors Corporation, both of which have substantial presence in the County, have directly
caused employment in the County to decline, layoffs to increase dramatically and home foreclosures
to rise to all-time highs, all directly resulting in unemployment and economic and general distress
throughout the County; and
W11EREAS, the breadth of the distress suffered by the County, as represented by the loss of
jobs, home foreclosures and rapidly declining property values, supports a finding by the Board of
Commissioners that the entire County qualifies as a "Recovery Zone' as contemplated by ARRA;
and
WHEREAS, to remain in the Ibrefront of economic development in the State, and on the
basis of the Board's finding that the conditions precedent for qualifying as a "Recovery Zone" exist
throughout the County, the Board of Commissioners deems it in the best interests of the County to
designate the entire County a "Recovery Zone" within the meaning of ARRA: and
WHEREAS, the Board's formal designation of the County as a "Recovery Zone", as required
under the ARRA, will hereafter permit the issuance by the County or its economic development
corporation of RZEDBs in the aggregate amount of $103.887 million through 2010.
NOW, THEREFORE. BE /T HEREBY RESOLVED, that:
I. The Board of Commissioners finds that the conditions set forth in the ARRA for
qualification of a geographic area as a "Recovery Zone", viz., poverty, unemployment, home
foreclosures and general distress, exist throughout the County of Oakland.
2, The Board of Commissioners hereby designates the County of Oakland. State of
Michigan, as a "Recovery Zone" within the meaning of the ARRA, effective immediately.
PLANNING & BUILDING COMMITTEE VOTE:
Motion carried unanimously on a roll call vote with Capeilo absent.
3, The County Executive and/or his designees are hereby authorized on behalf of the
Board of Commissioners to take such action as may be necessary or appropriate to fulfill the
purposes of this resolution, including but not limited to notification of the State of Michigan and
the United States Government that the Courty Board of Commissioners has designated the
County as a "Recovery Zone'. under ARRA,. and to estaNish procedures and conditions for the
issuance by the County or the County Economic Development Corporation of RZEDBs, and to
take such other action as may be necessary or desirable to satisfy any additional conditions or
qualifications now existing or hereafter established under ARRA relating to Recovery Zone
Economic Development Bonds and We allocation of bond limitation therefor,
4. The provisions of this resolution shall take precedence over all or any portion of any
resolution heretofore adopted by this Board of Commissioners in conflict herewith.
Chairperson, on behalf of the Planning & Building Committee, I move the adoption of the
foregoing resolution.
PLANNING cry.--BtILDING COMMITTEE
Resolution #09155 July 30, 2009
The Chairperson referred the resolution to the Finance Committee. There were no objections.
FISCAL NOTE (MR #09155) August 12, 2009
BY: FINANCE COMMITTEE, TOM MIDDLETON, CHAIRPERSON
IN RE: PLANNING AND ECONOMIC DEVELOPMENT SERVICES DIVISION RESOLUTION
REGARDING RECOVERY ZONE ECONOMIC DEVELOPMENT BONDS
TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS
Chairperson, Ladies and Gentlemen:
Pursuant to Rule XII-C of this Board. the Finance Committee has reviewed the above
referenced resolution and finds:
1. The American Recovery and Reinvestment Act of 2009 (ARRA) provides the
County with a new economic development tool to issue taxable bonds to promote
economic development within the County and receive reimbursement from the
U.S. Treasury Department of 45% of each interest payment on the bonds called
"Recovery Zone Economic Development Bonds.'
2. Conditions set forth in the ARRA for qualification of a geographic area as a
"Recovery Zone" exist throughout Oakland County.
3. The resolution designates Oakland County as a 'Recovery Zone" within the
meaning of the American Recovery and Reinvestment Act of 2009.
4. Recovery Zone Economic Development Bonds can be issued only during 2009
and 2010.
5. Individual projects will be brought to the Board of Commissioners for approval
prior to bond sales.
6. No budget amendment is recommended. rEtizzcomm ITTEE t
FINANCE COMMITTEE
Motion carried unanimously on a roll call vote with Gingell absent.
Resolution #09155 August 12, 2009
Moved by Scott supported by Middleton the resolution (with fiscal note attached) be adopted.
Moved by Greimel supported by Coulter the resolution be amended to add:
BE IT FURTHER RESOLVED that Oakland County and its Economic Development
Corporation will only issue RZEDBs to fund projects in municipalities with at least one of
the three following characteristics:
1. The municipality's poverty rate is higher than the overall poverty rate throughout
Oakland County.
2. The municipality's unemployment rate is higher than the overall unemployment rate
throughout Oakland County.
3. The municipality's foreclosure rate is higher than the overall foreclosure rate
throughout Oakland County.
Discussion followed.
Maureen Krauss. Director of Economic Development and Community Affairs, addressed the Board and
answered questions.
Discussion followed.
As a point of order, Commissioner Burns asked for clarification on whether the resolution being discussed
was for private economic development or for municipal bonds.
Discussion followed.
As a point of order, Commissioner Greimel withdrew his amendment and stated that he would like to
recess to draft a new amendment. Commissioner Coulter supported.
Chairperson Bill Bullard, Jr. called for a recess at 9:20 p.m.
Chairperson Bill Bullard, Jr. called the meeting to order at 9:39 p.m.
Moved by Greimel supported by Coulter the resolution be amended to add:
BE IT FURTHER RESOLVED that Oakland County and its Economic Development
Corporation will reserve 50% of their total RZEDB bonding capacity authorized by this
resolution to fund projects in municipalities with at least one of the three following
characteristics:
1. The municipality's poverty rate is higher than the overall poverty rate throughout
Oakland County.
2. The municipality's unemployment rate is higher than the overall unemployment rate
throughout Oakland County.
3. The municipality's foreclosure rate is higher than the overall foreclosure rate
throughout Oakland County.
BE IT FURTHER RESOLVED that, if any portion of the 50% of bonding capacity reserved
for the communities meeting the above criteria remains undesignated for projects six
months after the date of this resolution's passage, that bonding capacity may be used
anywhere in Oakland County.
BE IT FURTHER RESOLVED that, if the 50% reservation jeopardizes any specific
project(s), the County Executive's administration shall inform the Board of
Commissioners so that the Board may consider adjustments and revisions to this
resolution.
I 1131EBY APPROVE, FORGOING RESOLUTION
dd
Maureen Krauss, Director of Economic Development and Community Affairs, addressed the Board and
answered questions.
Vote on amendment:
AYES: Greirrel, Hatchett, Jackson, McGillivray, Nash, Woodward, Zack, Coleman. Coulter,
Gershenson. (10)
NAYS: Gingell, Gosselin, Jacobsen, Middleton, Potter, Potts, Runestad, Schwartz. Scott, Taub,
Bullard, Burns, Douglas. (13)
A sufficient majority not having voted in favor, the amendment failed.
Vote on resolution:
AYES: Gosselin, Greimel, Hatchett, Jackson, Jacobsen, McGillivray, Middleton, Nash, Potter,
Potts, Runestad, Schwartz, Scott, Taub, Woodward, Zack, Bullard, Burns, Coleman, Coulter,
Douglas, Gershenson, Gingell. (23)
NAYS: None. (0)
A sufficient majority having voted in favor, the resolution was adopted.
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
I, Ruth Johnson, Clerk of the County of Oakland, do hereby certify that the foregoing resolution is a true
and accurate copy of a resolution adopted by the Oakland County Board of Commissioners on August
12. 2009, with the original record thereof now remaining in my office.
In Testimony Whereof, I have hereunto set rrly hand and affixed the seal of the County of Oakland at
Pontiac, Michigan this 12th day of August, 2009.
Ruth Johnson, County Clerk