RESOLUTION NO. 6856

A RESOLUTION DESIGNATING A RECOVERY ZONE PURSUANT TO THE AMERICAN RECOVERY AND REINVESTMENT TAX ACT OF 2009 FOR THE PURPOSE OF ISSUING RECOVERY ZONE ECONOMIC DEVELOPMENT BONDS AND RECOVERY ZONE FACILITY BONDS.

            WHEREAS, the City of Lawrence, Kansas (the “City”) has requested that Douglas County, Kansas provide to the City an allocation of the national Recovery Zone Economic Development Bonds limitation and an allocation of the national Recovery Zone Facility Bonds limitation pursuant to the American Recovery and Reinvestment Tax Act of 2009, codified in Title 26 of the United States Code and Internal Revenue Service, Notice 2009-50, issued on June 12, 2009 (collectively, the “Allocations”); and

            WHEREAS, the City understands that the Allocations are to be used for the issuance of Recovery Zone Economic Development Bonds and Recovery Zone Facility Bonds pursuant to Section 1400U-2 or 1400U-3, respectively, of the Internal Revenue Code of 1986, as amended (the “Code”), such bonds referred to collectively as “Recovery Zone Bonds”; and

            WHEREAS, the City understands that Recovery Zone Bonds are to be issued with respect to or to finance certain expenditures located in or attributable to an area within the jurisdiction of the City that the City determines has a significant level of one or more of the following factors: poverty, unemployment, home foreclosures, or general distress (such factors referred to herein as the “Distress Factors”); and

            WHEREAS, the City has determined that the Distress Factors have been caused by the “Underlying Conditions of Distress” described in Section 1 hereof; and

            WHEREAS, the City desires to designate the area described in Section 3 as a “Recovery Zone” to provide for the possible issuance of Recovery Zone Bonds (such area being referred to herein as the “Recovery Zone”).

            NOW, THEREFORE, BE IT RESOLVED BY THE GOVERNING BODY OF THE CITY OF LAWRENCE, KANSAS, AS FOLLOWS:

Section 1.        Underlying Conditions of Distress.  The governing body hereby finds and determines that the Recovery Zone identified in Section 3 suffers from one or more of the following conditions (each an “Underlying Condition of Distress”):

1. The Recovery Zone has experienced significant increases in unemployment during the calendar years 2008 and 2009.

2. The Recovery Zone has experienced decreases in assessed valuation of property.

Section 2.        Distress Factors.  The Governing Body hereby finds and determines that, as a result of the Underlying Condition(s) of Distress, the Recovery Zone has experienced a significant level of one or more of the Distress Factors (i.e. poverty, unemployment, home foreclosures, or general distress):

Section 3.        Designation of Recovery Zone.  Based upon the findings and determinations of the Underlying Condition(s) of Distress and the resulting Distress Factors, the Governing Body hereby designates the entire area within the jurisdictional boundaries of the City as the “Recovery Zone.”

Section 4.        Further Action.  The appropriate staff and officers of the City are authorized and directed: to work with Douglas County to obtain the necessary appropriate Recovery Zone Bond allocations; to take all necessary steps to indentify appropriate projects for which the issuance of bonds will further the goals established for Recovery Zone Bonds in order to cure the Distress Factors within the Recovery Zone; to identify other economic development incentives and programs which may be available under Federal or Kansas laws for such projects which will further the goals established for Recovery Zone Bonds; and to work with the Kansas Department of Commerce to plan for the issuance of Recovery Zone Bonds for identified projects.

Section 4.        Effective Date.  This Resolution shall take effect and be in full force from and after its adoption by the governing body of the City.

ADOPTED by the governing body of the City of Lawrence, Kansas, on August 4, 2009.

(Seal)                                                                           _____________________________

                                                                                    Mayor

ATTEST:

Clerk