Explanation
Pursuant to multiple ordinances duly adopted on June 28, 2010 (collectively, the "Bond Ordinances"), this Council has authorized the issuance of "new money" unlimited tax general obligation bonds in an aggregate amount not to exceed $350,530,000 (the "2010 New Money Unlimited Tax Bonds") and "new money" limited tax general obligation bonds in an aggregate amount not to exceed $28,820,000 (the "2010 New Money Limited Tax Bonds").
This ordinance authorizes the City Auditor to designate a portion of certain unlimited tax and limited tax general obligation bonds previously authorized by this Council as "Recovery Zone Economic Development Bonds".
Title
To authorize the City Auditor to designate a portion of certain unlimited tax and limited tax general obligation bonds previously authorized by this Council as "Recovery Zone Economic Development Bonds" Section 55(B) of the City Charter.
Body
WHEREAS, pursuant to Resolution No. 0159X-2009, duly adopted by this Council on October 19, 2009, the City of Columbus (the "Municipality") has been designated as a "Recovery Zone" under Section 1400U-1 of the Internal Revenue Code of 1986, as amended (the "Code"); and
WHEREAS, pursuant to multiple ordinances duly adopted on June 28, 2010 (collectively, the "Bond Ordinances"), this Council has authorized the issuance of "new money" unlimited tax general obligation bonds in an aggregate amount not to exceed $350,530,000 (the "2010 New Money Unlimited Tax Bonds") and "new money" limited tax general obligation bonds in an aggregate amount not to exceed $28,820,000 (the "2010 New Money Limited Tax Bonds" and, together with the 2010 New Money Unlimited Tax Bonds, the "Bonds"); and
WHEREAS, the Municipality has applied to the State of Ohio to request an allocation of additional volume cap to permit the issuance of a portion of the Bonds as "Recovery Zone Economic Development Bonds" within the meaning of Section 1400U-2 of the Code, and this Council has determined to authorize the issuance of a portion of the Bonds in such manner.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. In the event that the Municipality is able to receive additional volume cap and the City Auditor determines that it is in the best interests of the Municipality that a portion of the Bonds are to be issued as "Recovery Zone Economic Development Bonds" within the meaning of Section 1400U-2 of the Code, such designation shall be made in the Certificate of Fiscal Officer Relating to Terms of Bonds authorized by each Bond Ordinance, to be executed by the Director of Finance and Management or the City Auditor. The Municipality hereby covenants that it will observe the requirements of the Code and the regulations prescribed thereunder (the "Regulations") necessary to preserve the status of such Bonds as Recovery Zone Economic Development Bonds, including, but not limited to, executing, delivering and performing any agreement, certificate, document or instrument as shall be advisable to attain or preserve such status.
The City Auditor, the Deputy Auditor and the Director of Finance and Management, or any other officer, including the City Clerk, and each of them acting alone, is hereby authorized and directed to (a) to make or effect any election, selection, designation, choice, consent, approval or waiver on behalf of the Municipality with respect to the Bonds as permitted or required to be made or given under the federal income tax laws, for the purpose of assuring, enhancing or protecting favorable tax treatment or the status of the Bonds or interest thereon or assisting compliance with requirements for that purpose, reducing the burden or expense of such compliance, reducing any rebate amount or any payment of penalties, or making any payments of special amounts in lieu of making computations to determine, or paying, any excess earnings as rebate, or obviating those amounts or payments, as determined by the City Auditor, the Deputy Auditor or the Director of Finance and Management, which action shall be in writing and signed by the City Auditor, the Deputy Auditor or the Director of Finance and Management, or any other officer, including the City Clerk, on behalf of the Municipality; (b) to take any and all actions, make or obtain calculations, and make or give reports, covenants and certifications of and on behalf of the Municipality, as may be appropriate to assure the status of some or all of the Bonds as Recovery Zone Economic Development Bonds; and (c) to give an appropriate certificate on behalf of the Municipality, for inclusion in the transcript of proceedings, setting forth the representations, warranties and covenants of the Municipality regarding compliance by the Municipality with Section 1400U-2 of the Code and the Regulations.
Section 2. It is hereby found and determined that all formal actions of this Council concerning and relating to the adoption of this Ordinance were adopted in an open meeting of this Council, and that all deliberations of this Council and of any of its committees that resulted in such formal action, were in meetings open to the public, in compliance with all legal requirements including Section 121.22 of the Ohio Revised Code.
Section 3. In accordance with Section 55(b) of the Charter of the City of Columbus, Ohio, this Ordinance shall take effect and be in force from and immediately after its passage and approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.