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HomeMy WebLinkAboutResolutions - 2009.07.15 - 9785MISCELLANEOUS RESOLUTION 109141 July 15, 2009 BY: PLANNING AND BUILDING COMMITTEE, JOHN SCOTT, CHAIRPERSON IN RE: PLANNING AND ECONOMIC DEVELOPMENT SERVICES' DIVISION RESOLUTION REGARDING RECOVERY ZONE FACILITY 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 tax-exempt "private activity bonds" called "Recovery Zone Facility Bonds" (''RZFBs") for the benefit of a variety of private businesses for which tax- exempt bonds have not been available in the past to finance plant and equipment; and WHEREAS, RZFBs may be issuec to finance certain depreciable property for any trade or business, commercial or industriai. 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, ano 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 whicn 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 WHEREAS, the oreadth 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 cualifies as a "Recovery Zone" as contemplated by ARRA; and WHEREAS to remain in the forefront of economic development in the State and to continue to provide businesses within the County and those wishing to locate in the County the most favorable financing vehicles available in the United States today, 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 acquisition or construction oy businesses located and doing business within the County of property qualifying as "recovery zone property" in the County to take advantage of RZFDs, subject to the $155.8 million aggregate amount of "recovery zone facility bond limitation" allocated under ARRA to the County: and WHEREAS, the action of the Board of Commissioners in designating the County a "Recovery Zone" reflects the County's aesire to assist qualifying businesses through the issuance of RZFBs, but such action does not and will not ever constitute a desire or ability on the part of the Board of Commissioners to directly or indirectly lend the credit or any property of the County to any RZFBs issued by the County. ana any and all RZFBs issued by the County will clearly and unequivocally state that the RZFBs are payable solely and only out of the security provided by the businesses benefited thereby and that the County shall not be liable for any reason or under any circumstances on, or as a result of the issuance of or failure to issue, RZFBs, the acquisition or construction of recovery zone property within the County or the operation of such property within the County. NOW, THEREFORE, BE IT HEREBY RESOLVED, that: t 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. PLANNING & BUILDING COMMITTEE VOTE: Motion carried unanimously on a roll call vote. 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. 3. Recovery Zone Facility Bonds issued by the County shall in each and every case clearly and unequIvocally state on their face that they are payable solely and only out of the security provided by the business benefited by them and that the County shall not be liable for any reason or under any circumstances on, or as a result of toe issuance of or failure to issue, the Recovery Zone Facility Bonds, or for any action taken by any person relating to the acquisition or construction of "recovery zone property' or for the operation of any such property. 4. The County Executive andior 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 County Board of Commissioners has designated the County as a "Recovery Zone under ARRA, and to establish procedures and conditions for the issuance by the County or the County Economic Development Corporation of RZFBs, 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 Facility Bonds and the allocation of bond limitation therefor. 5 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 & BL.11 COMMI1TEE Resolution #09141 July 15, 2009 Moved by Scott supported by Middleton the resolution be adopted. AYES: Douglas. Gershenson, Gingelt, Gosselin, Greimel, Hatchett, Jackson, Jacobsen, Long, McGillivray, Middleton, Nash, Potter, Potts, Runestad, Schwartz, Scott, Taub, Woodward, Zack. Bullard, Burns. Capella, Coleman, (24) NAYS: None, (0) A sufficient majority having voted in favor, the resolution was adopted. 17") - I HEREBY APPROVE THE FOREGjNG RESOLLMON: ACTING PURSUANT TO 1973 PA 139 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 July 15, 2009, with the original record thereof now remaining in my office. In Testimony Whereof, I have hereunto set my hand and affixed the seal of the County of Oakland at Pontiac, Michigan this 15th day of July, 2009. 6?at Ruth Johnson, County Clerk