Explanation
Background: The Department of Finance and Management is proposing the designation of all of the territory within the jurisdiction of the City of Columbus (the "City") as a "recovery zone" for purposes of Section 1400U-1 of the Internal Revenue Code of 1986, as amended ( the "Code").
Designation of an area as a recovery zone will permit the use of a new bond financing method created by the American Recovery and Reinvestment Act of 2009 ("ARRA"). ARRA permits the City to establish an area as a recovery zone on the basis of the presence of significant poverty, unemployment, rate of home foreclosures or general distress. Once established, the City may issue recovery zone economic development bonds that will permit the financing of needed infrastructure within the City in a fashion that will require the United States Treasury to subsidize 45% of the interest cost on such bonds via a direct cash payment to the City during the life of the financing.
Fiscal Impact: No funding is required for this legislation.
Title
A resolution designating the city of Columbus, Ohio as a Recovery Zone under Section 1400U-1 of the Internal Revenue Code, and declaring an emergency ($0).
Body
WHEREAS, the American Recovery and Reinvestment Act of 2009 (the "Act") revised the Internal Revenue Code of 1986, as amended (the "Code") to permit the designation of a recovery zone (the "Recovery Zone") within the jurisdiction of political subdivisions such as the City of Columbus, Ohio (the "City"); and
WHEREAS, the establishment of a Recovery Zone will, among other things, permit the City to issue Recovery Zone Economic Development Bonds ("Recovery Zone Economic Development Bonds") for the purpose of financing permanent improvements within such Recovery Zone; and
WHEREAS, the issuance of Recovery Zone Economic Development Bonds by the City will allow the City to receive a cash subsidy payment from the United State Treasury equal to forty five percent...
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