HomeMy WebLinkAbout10-014 - Resolutions RESOLUTION NO. 10-014
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
RANCHO CUCAMONGA, CALIFORNIA, DESIGNATING THE
CITY AS A RECOVERY ZONE UNDER THE AMERICAN
RECOVERY AND REINVESTMENT ACT OF 2009.
WHEREAS, on February 17, 2009, the President signed into law the
American Recovery and Reinvestment Act of 2009, Pub. L. No. 111-5 Stat. 115 ("ARRA");
and
WHEREAS, Section 1401 of Title I of Division B of ARRA authorizes state and
local governments to issue Recovery Zone Economic Development Bonds and Recovery
Zone Facility Bonds; and
WHEREAS, Recovery Zone Economic Development Bonds may be used to
finance certain "qualified economic development purposes" and Recovery Zone Facility
Bonds may be used to finance certain 'recovery zone property," as such terms are defined in
ARRA; and
WHEREAS, Section 14000-1 of the Internal Revenue Code of 1986, as
amended (the "Code") authorizes the City of Rancho Cucamonga, California (the "City') to
designate a 'recovery zone' for the purpose of issuing Recovery Zone Economic
Development Bonds under Section 14000-2 of the Code, and for the purpose of issuing
recovery Zone Facility Bonds under Section 14000-3 of the Code; and
WHEREAS, pursuant to Section 14006-1(b) of the Code, the term 'recovery
zone" means any area designated by the City as having significant poverty, unemployment,
rate of home foreclosures, or general distress; and
WHEREAS, Recovery Zone Economic Development Bonds are considered
"qualified" bonds for purposes of Section 6431 of the Internal Revenue Code of 1986, as
amended, and provide for a federal subsidy through a refundable tax credit paid to State or
local governmental issuers in an amount equal to 45 percent of the total coupon interest
payable to investors in these taxable bonds; and
WHEREAS, the interest on State or local Recovery Zone Facility Bonds is
excludable from gross income for Federal income tax purposes; and
WHEREAS, Recovery Zone Economic Development Bonds and Recovery
Zone Facility Bonds must be issued by December 31, 2010; and
WHEREAS, Under ARRA, the City of Rancho Cucamonga has been allocated
the authority to issue up to $7,048,000 in principal amount of Recovery Zone Economic
Development Bonds and up to $10,572,000 in principal amount of Recovery Zone Facility
Bonds in any reasonable manner as the City Council of the City of Rancho Cucamonga shall
determine in good faith at its discretion for use for eligible costs for qualified economic
development purposes or recovery zone property; and
WHEREAS, the City Council of the City of Rancho Cucamonga seeks to
designated the entire City of Rancho Cucamonga as a recovery zone because the City has
an unemployment rated exceeding 9.1%, and is generally economically distressed by these
factors as well as related conditions consequent to the recent housing market collapse, the
impact of the national recession, and the fiscal crises experienced by the State of California
and local communities.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RANCHO
CUCAMONGA, HEREBY RESOLVES, as follows:
1. That for purposes of Sections 14000-1, 14000-2 and 14000-3 of the
Code, the City Council hereby designates the entire geographic region of the City of Rancho
Cucamonga more fully described above as a Recovery Zone; and
2. That the recovery zone shall be identified as the "City of Rancho
Cucamonga Recovery Zone."
3. That this Resolution shall take effect from and after its adoption.
4. That the City Clerk of the City of Rancho Cucamonga shall certify as
the adoption of this Resolution.
Please see the following page
for formal adoption,certification and signatures
Resolution No. 10-014 - Page 2 of 3
PASSED, APPROVED, AND ADOPTED this 20th day of January 2010.
AYES: Gutierrez, Kurth, Michael, Spagnolo, Williams
NOES: None
ABSENT: None
ABSTAINED: None
Mayor
ATTEST:
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G .
J ice C. Reynolds, City Verk
I, JANICE C. REYNOLDS, CITY CLERK of the City of Rancho Cucamonga,
California, do hereby certify that the foregoing Resolution was duly passed, approved and
adopted by the City Council of the City of Rancho Cucamonga, California, at a Regular Meeting
of said City Council held on the 201h day of January 2010.
Executed this 215' day of January 2010, at Rancho Cucamonga, California.
ice C. Reynolds, City Jerk
Resolution No. 10-014 - Page 3 of 3