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HomeMy WebLinkAboutResolutions 2010 (05) Resolution Establishing Agreement with the St. Croix Economic Development Corporation Relating to the American Recovery and Reinvestment Act — Recovery Zone Facility Bonds Resolution No. 6 G) St. Croix County, Wisconsin WHEREAS, the American Recovery and Reinvestment Act of 2009 (ARRA) includes provisions designed to stimulate the U.S. economy, private investment, and financial markets; and WHEREAS, one such provision creates Recovery Zone Bonds, including Recovery Zone Economic Development Bonds (RZEDBs) and Recovery Zone Facility Bonds (RZFBs); and WHEREAS, RZFBs are a type of traditional tax - exempt private activity bond that may be used by private businesses in designated recovery zones to finance a broad range of depreciable capital projects, provided the issuer has been assigned an allocation; and WHEREAS, RZFBs have a limited allocation ($15 billion nationally), of which St. Croix County received an allocation of $5,040,000; and WHEREAS, Wisconsin counties lack the authority to issue conduit debt,* and therefore, cannot issue RZFBs; and *Conduit debt is an offering by a governmental entity that is not for its own use but for the use of a private party that becomes a conduit bond obligor. In these types of transactions, the governmental entity is the issuer of the security but normally has no subsequent liability or continuing involvement. The private party that receives the proceeds in the transaction is the obligor and is required to make or fund all interest and principal payments as they come due and also is required to satisfy future financial reporting requirements. WHEREAS, Wisconsin cities, villages and towns may issue RZFBs if a county formally sub - allocates the RZFB allocation to them in a reasonable manner; and WHEREAS, the St. Croix County Board of Supervisors finds RZFBs to be beneficial in stimulating private investment in the County and therefore desires to sub - allocate the RZFBs to County cities, villages and/or towns in a reasonable manner; and WHEREAS, the County helped establish the St. Croix Economic Development Corporation (EDC), which is a private, non - profit, 501(c)(6) organization that operates to promote economic development in St. Croix County. THEREFORE, be it resolved by the St. Croix County Board of Supervisors that it approves the following agreement with the EDC: (1) The EDC will review on behalf of St. Croix County RZFB requests for sub - allocation in accordance with generally accepted loan underwriting standards. (2) The EDC will employ the resources of its loan review committee and the staff of the West Central Wisconsin Regional Planning Commission to review of RZFB requests. (3) The EDC is authorized to assess a reasonable application fee not to exceed one -tenth of one percent. (4) The EDC will establish award criteria for sub - allocation of RZFBs, including, but not limited to, the proposed increase in equalized value as a result of the private activity project, number of jobs created or retained, wages and benefits, and realistic timelines. (5) The EDC's recommendation for sub - allocation will be reviewed and presented to the County Board for final action by the County Finance Committee. FURTHER, be it resolved that the agreement will become effective when acknowledgment of this resolution by execution of the acknowledgment section below is completed by Patti Robertson, President of the EDC, and William Rubin, Executive Director of the EDC. Offered by the Finance Committee YES NO ABSTAIN ABSENT SUPERVISOR SIGNATU 2 - 6 ❑ ❑ Daryl Standafer '`— i ❑ ❑ ❑ Esther Wentz Sharon Norton - J F-1 El E] Bauman /i C ❑ ❑ ❑ Clarence Malick ❑ ❑ ❑ ❑ David Peterson C _ _ This Resolution was adopted by the St. Croix County Board Reviewed as to form on © of Supervisors on ( J - 6A t cr. 0 Greg Tian erman, Corporation Counsel Cindy Campbel , County Clerk The undersigned officers of the St. Croix Economic Development Corporation hereby acknowledge the terms of the agreement contained herein. Date: 0 Date: l ` ` ' C) - J Patti Robertson, President rilliambin, Executive Director