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HomeMy WebLinkAboutResolution 3929-10-2010 A Resolution NO. 3929-10-2010 WAIVING THE CITY OF FORT WORTH RECOVERY ZONE BOND ALLOCATION UNDER THE AMERICAN RECOVERY AND REINVESTMENT ACT OF 2009 WHEREAS, pursuant to the American Recovery Reinvestment Act of 2009, the federal government allocated a certain amount of Recovery Zone Bonds to each state to distribute to certain cities and counties to be used for qualified economic development purposes and qualified business purposes in areas designated as Recovery Zones; and WHEREAS, the total Recovery Zone Bond allocation for the State of Texas is $225 million, which is to be allocated to certain counties and large cities with population greater than 100,000; and WHEREAS, IRS Notice 2009-50 provides that counties or municipalities may use the allocation, designate another unit of government as the issuer, or waive any part of the allocation; and WHEREAS, the City of Fort Worth has received a total allocation of $1,999,000 for Recovery Zone Economic Development Bonds and $2,999,000 for Recovery Zone Facility Bonds; and WHEREAS, in consultation with the City's financial advisors and bond counsel, the Economic Development and Financial Management Services Departments are recommending waiver of the City of the Fort Worth Recovery Zone Bond allocations because use of the bonds would be economically inefficient for the City at this time; and WHEREAS, the Texas Bond Review Board is administering this program and requesting any entity that will not be utilizing the bonds to waive its allocation no later than October 29, 2010 so that the bond amounts can be reallocated by the state. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS: ORT WO RESOLUTION NO. 3929-10-2010 THAT, the City of Fort Worth hereby waives its total bond allocations of $1,999,000 for Recovery Zone Economic Development Bonds and $2,999,000 for Recovery Zone Facility Bonds pursuant to the American Recovery and Reinvestment Act. The City of Fort Worth hereby authorizes the State of Texas, and/or its designated agency, to reallocate such bond amounts in any reasonable manner as it shall determine in good faith in its discretion. Adopted this 26th day of October 2010. ATTEST: APPROVED CITY COUNCIL By: y_ _ _ OCT S 6 2010 Marty Hendrix, City Secretary Cotthe Cky CRY of Fort Worth,Text FoRTWORTH