Resolution 5428 - Designates City as Recovery ZoneA RESOLUTION DESIGNATING THE CITY OF KALISPELL, FLATHEAD COUNTY,
MONTANA AS A RECOVERY ZONE FOR PURPOSES OF THE AMERICAN
RECOVERY AND REINVESTMENT ACT OF 2009
WHEREAS, the American Recovery and Reinvestment Act of 2009 ("ARRA") was signed into
law on February 17, 2009, which includes the following Statement of Purposes: (1) to
preserve and create jobs and promote economic recovery; (2) to assist those most
impacted by the recession; (3) to provide investments needed to increase economic
efficiency by spurring technological advances in science and health; (4) to invest in
transportation, environmental protection and other infrastructure that will provide
long-term economic benefits; and (5) to stabilize State and local government
budgets, in order to minimize and avoid reductions in essential services and
counterproductive State and local tax increases; and
WHEREAS, the ARRA provides that gross income does not include interest on any bond designated
by the issuer thereof as a recovery zone economic development bond or a recovery
zone facility bond ('Recovery Zone Bonds"); and
WHEREAS, the ARRA provides that the proceeds of recovery zone economic development
bonds must be used for qualified economic development purposes, i.e. -
expenditures for purposes of promoting development or other economic activity in a
recovery zone; and
WHEREAS, the ARRA provides that ninety-five (95%) or more of the net proceeds of a recovery
zone facility bond must be used for recovery zone property which is in a recovery zone
and is in the active conduct of a qualified business by the taxpayer in such zone; and
WHEREAS, the ARRA provides with respect to recovery zone economic development bonds and
recovery zone facility bonds that a recovery zone is (1) any area designated by the
issuer of such bonds as having significant poverty, unemployment, rate of home
foreclosures, or general distress, (2) any area designated by the issuer of such bonds as
distressed by reason of the closure or realignment of a military installation pursuant to
the Defense Base Closure and Realignment Act of 1990, and (3) any area for which a
designation as an empowerment zone or renewal community is in effect; and
WHEREAS, Recovery Zone Bonds are designed to provide tax incentives for State and local
governmental borrowing at lower borrowing costs to promote job creation and economic
recovery targeted to areas particularly affected by employment decline; and
WHEREAS, the ARRA provides that Recovery Zone Bonds shall be subject to volume cap
allocations, any portion of which received by a county or large municipality may be
waived by such county or large municipality and re -allocated pursuant to the ARRA and
Montana House Bill 645, adopted by the 2009 State Legislature, by the Montana
Department of Administration (the "Department") in any reasonable manner as the
Department deems in good faith, in its discretion, to be reasonable; and
WHEREAS, Internal Revenue Service Notice 2009-50, provides, in part, that issuers designate
eligible recovery zones based on certain specified criteria and that issuers that receive
volume cap allocations for Recovery Zone Bonds may make designations of recovery
zones in any reasonable manner as such issuer shall determine in good faith, in its
discretion; and
WHEREAS, on the 271h day of October 2009, the Flathead County Commissioners, by Resolution No.
2228, designated Flathead County as a recovery zone for purposes of the American
Recovery and Reinvestment Act of 2009.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL, OF THE CITY OF KALISPELL
AS FOLLOWS:
SECTION I. That the City of Kalispell (the "Issuer") shall avail itself of the
economic development stimulus provisions contained in the ARRA, after
careful consideration of all economic indicators in Flathead County and the
City of Kalispell, including but not limited to, loss of employment, rate of
home foreclosures, loss of retail sales and declining tax revenues, in its
discretion and in good faith, and in compliance with Section 1400U-1(b) of
the Internal Revenue Code of 1986, hereby designates the City of Kalispell as a
recovery zone (the "Recovery Zone").
SECTION II. The City Council hereby finds that the Recovery Zone has suffered significant
unemployment, a large increase in home foreclosures, and general economic
distress.
SECTION III. All actions of the officers, agents and employees of any issuer of Recovery Zone
Bonds that are in conformity with the purposes and intent of this
Resolution, whether taken before or after the adoption hereof, are hereby
ratified, confirmed and adopted.
SECTION IV. Issuer shall administer and serve as issuer of any Recovery Zone Bonds for
which an allocation is granted to Issuer, unless otherwise allocated by Issuer
or the Department in accordance with ARRA.
SECTION V. This Resolution shall be in full force and effect from and after its final passage
and approval according to law.
PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE
CITY OF KALISPELL, THIS 3rd DAY OF MAY, 2010.
Tammi Fisher
Mayor
ATTEST:
Judi Funk
Deputy City Clerk