Agenda Item # _1__
Columbus Consolidated Government
Council Meeting
December 15, 2009
Agenda Report # 452
TO: Mayor and Councilors
SUBJECT: Recovery Zone Designation
INITIATED BY: Finance Department
Recommendation: Approval is requested of a resolution designating the Recovery
Zone.
Background: On August 20, 2009, the Georgia State Financing and Investment
Commission (GSFIC) took action to officially recognize the Recovery Zone Bond
(RZB) allocations made by the United States Department of Treasury. The
American Recovery and Reinvestment Act of 2009 created two new bond programs
for local governments: Recovery Zone Economic Development Bonds and Recovery
Zone Facility Bonds. The ability of local governments to use both types of
Recovery Zone bonds expires on December 31, 2010. The allocation for the City
of Columbus is $2,090,000 of Recovery Zone Economic Development Bonds and
$3,135,000 for Recovery Zone Facility Bonds. The Recovery Zone Economic
Development Bonds are for public infrastructure and facilities. The Recovery
Zone Facility Bonds are tax-exempt private activity bonds for financing
economic development. In order to utilize these funding sources, a ?Recovery
Zone? must be created which meets the criteria. The criteria include
significant poverty, unemployment, or home foreclosure rates, federally
designated empowerment zones and renewal communities, and areas negatively
impacted by military base closures.
Analysis: The designation of the ?Recovery Zone? is required in order to
qualify for the Recovery Zone Bond allocation. The ?Recovery Zone? highlighted
on the attached map meets the criteria of significant poverty, unemployment or
home foreclosures rates. The other criteria do not apply to the City of
Columbus. The ?Recovery Zone? designation will be utilized for the approved
?Recovery Zone? projects only and will expire at the completion of the approved
?Recovery Zone? project(s).
Alternatives: If the City of Columbus does not submit designation the ?Recovery
Zone?, the Recovery Zone bonds cannot be issued.
Financial Considerations: The designation of the ?Recovery Zone? will allow for
a 45% direct subsidy from the US Treasury on interest payments on the Recovery
Zone Economic Development Bonds and a tax-exempt rate on the Recovery Zone
Facility Bonds for private projects.
Legal Considerations: Council action is required to authorize the designation
of the Recovery Zone.
Recommendations/Actions: Approve a resolution designating the Recovery Zone.
A RESOLUTION
No. _____________
WHEREAS, the American Recovery and Reinvestment Act of 2009 created two new
bond programs for local governments: Recovery Zone Economic Development Bonds
and Recovery Zone Facility Bonds; and
WHEREAS, the Georgia State Financing and Investment Commission (GSFIC) took
action on August 20, 2009 to officially recognize the Recovery Zone Bond
allocations made by the United States Department of the Treasury; and
WHEREAS, the City of Columbus allocation for Recovery Zone Economic Development
Bonds is $2,090,000 and Recovery Zone Facility Bonds is $3,135,000; and
WHEREAS, the City of Columbus is required to designate a ?Recovery Zone? which
meets the criteria established for the Recovery Zone bond program and
WHEREAS, the City of Columbus has identified areas with significant poverty,
unemployment, or home foreclosures rates to be included in the ?Recovery Zone?.
NOW, THEREFORE, THE COUNCIL OF COLUMBUS, GEORGIA HEREBY RESOLVES:
The City of Columbus has designated the ?Recovery Zone? per the attached map
which will be utilized for the approved ?Recovery Zone? project(s) and expire
at the completion of the approved ?Recovery Zone? project(s).
Introduced at a regular meeting of the Council of Columbus, Georgia, held the
____day of ___________, 2009 and adopted at said meeting by the affirmative
vote of _____ members of said Council.
Councilor Allen voting __________.
Councilor Anthony voting __________.
Councilor Baker voting __________.
Councilor Barnes voting __________.
Councilor Davis voting __________.
Councilor Henderson voting __________.
Councilor Hunter voting __________.
Councilor McDaniel voting __________.
Councilor Turner Pugh voting __________.
Councilor Woodson voting __________.
_______________________________ ____________________________
Tiny B. Washington, Clerk of Council Jim Wetherington, Mayor
Attachments