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HomeMy WebLinkAboutOrdinances - ORD-10-1495 - 02/01/2010 - DESIGNATE CITY AS CITE-WIDE RECOVERY ZONEORDINANCE No. ORD-10-1495 AN ORDINANCE designating the City of McHenry a City -Wide Recovery Zone. WHEREAS A. In order to assist state and local governments in financing capital projects at lower borrowing costs and to stimulate the economy and create jobs, on the 17th day of February 2009, the Congress of the United States enacted the American Recovery and Reinvestment Act of 2009 (the "Stimulus Act "), which act authorizes, inter alia, the issuance of "recovery zone economic development bonds," which bonds, if they meet certain requirements of the Stimulus Act, may be eligible for a direct payment by the United States to the issuer of forty-five percent (45%) of the interest coming due thereon, thereby affording certain potential economic benefits to the issuer. B. The Stimulus Act also authorizes the issuance of "recovery zone facility bonds," which are a new category of exempt facility bonds eligible to be issued as tax exempt under the Internal Revenue Code of 1986, as amended, thereby also affording certain potential economic benefits to the issuer. C. Pursuant to the Stimulus Act, recovery zone economic development bonds and recovery zone facility bonds must be issued by a State or local government pursuant to an allocation by the Secretary of the Treasury (the "Secretary") of a portion of a nationwide volume limitation. D. On the 12th day of June 2009, the Secretary released Notice 2009-50, which sets forth the maximum amounts of recovery zone economic development bonds and recovery zone facility bonds that may be issued by each State, county and large municipality under the Stimulus Act. E. In order to use such allocation and issue recovery zone economic development bonds or recovery zone facility bonds, an issuer must first designate one or more "recovery zones," being areas (i) having significant poverty, unemployment, rate of home foreclosures or general distress, (ii) which have been designated by the issuer as economically distressed by reason of military base closure or realignment pursuant to the Defense Base Closure and Realignment Act of 1990, or (iii) which had been designated as an empowerment zone or a renewal community on the date the Stimulus Act was enacted. F. Pursuant to the Stimulus Act, the proceeds of recovery zone economic development bonds must be used for one or more "qualified economic development purposes," which purposes, as defined in the Stimulus Act, include expenditures for public infrastructure and construction of public facilities. G. The Secretary has awarded The County of McHenry, Illinois (the "County") an allocation of $18,2138,000 for recovery zone economic development bonds and an allocation of $27,507,000 for recovery zone facility bonds (collectively, the "Allocations "). H. The City Council (the "Council") of the City of McHenry, McHenry County, Illinois (the "City"), has investigated the facts to determine whether the stable economic and physical development of the City is endangered by the presence in the City of significant poverty, unemployment, rate of home foreclosures or general distress (being, generally, the "Recovery Zone Conditions"'), with a resulting decline of the City which impairs the value of private investments and threatens the sound growth and the tax base of the City and the other taxing districts having the power to tax real property in the City (the "Taxing Districts ") and threatens the health, safety, morals and welfare of the public. I. The Council has determined, in order to promote and protect the health, safety, morals and welfare of the public, that such Recovery Zone Conditions need to be addressed and that development and redevelopment within the City be undertaken and that to remove and alleviate such Recovery Zone Conditions in the City it is necessary to encourage private -2- investment and restore and enhance the tax base of the City and the Taxing Districts by such development and redevelopment. J. The City has evaluated various lawfully available programs to provide such assistance and has determined that the use of the several incentives available to the City under the Stimulus Act are advisable and necessary to achieve the development and redevelopment goals of the City for the proposed recovery zone. K. The officers and employees of the City who are responsible for planning and economic development studies and for making recommendations to the Council as to such matters have reviewed the area of the City as a whole to determine whether such city-wide area qualifies as a "recovery zone" for purposes of the Stimulus Act, and such staff has provided its analysis and recommendation, available to the Council and in the offices of the Director of Finance of the City, and by such analysis have advised the Council that the City as a whole qualifies as a "recovery zone" under the Stimulus Act. L. The Council is generally informed and familiar with the conditions now extant in the City. M. The County has indicated a willingness to allocate some or all of the Allocations to units of governments in the County. Now, THEREFORE, Be It Ordained by the City Council of the City of McHenry, McHenry County, Illinois, as follows: Section 1. Findings. The Council hereby finds that there exist conditions, including significant poverty, unemployment, rate of home foreclosures or general distress, which cause the City as a whole to be eligible to be designated as a recovery zone under the Stimulus Act. Section 2. Recovery Zone Designated. The City as a whole is hereby designated as a recovery zone for all purposes of and as provided in the Stimulus Act. -3- Section 3. Application to County. The Director of Finance of the City has heretofore applied to the County for transfer of a portion of the Allocations to the City so as to enable the City to issue recovery zone economic development bonds or recovery zone facility bonds. Section 4. Invalidity of Any Section. If any section, paragraph or provision of this Ordinance shall be held to be invalid or unenforceable for any reason, the invalidity or unenforceability of such section, paragraph or provision shall not affect any of the remaining provisions of this Ordinance. -4- Section 5. Superseder and Effective Date. All ordinances, resolutions, motions or orders in conflict herewith be, and the same hereby are, repealed to the extent of such conflict, and this Ordinance shall be in full force and effect immediately upon its passage by the Council and approval. VOTING AYE: Glab, Schaefer, Blake, Wimmer, Peterson, Condon. Voting NAY: None. ABSENT: Santi. Passed this 1 st day of February, 2010. Approved: this 1 st day of February, 2010. Mayor Recorded in City Records: this 1 st day of February, 2010. ATTEST: _ C C [S ity -5-