Laserfiche WebLink
NCRECOVERY.GOV <br />- ,P0Tiice of Er nnamlc Recovery 2: Investn <br />Memo To: County Managers <br />City Managers <br />From: Dempsey Benton, Director <br />N.C. Office of Economic Recovery and Investment <br />Date: September 30, 2009 <br />Subject: American Recovery and Reinvestment Act (ARRA) <br />Recovery Zone Bonds Authorization and Reallocation Process <br />On June 12, 2009, the U.S. Treasury Department released allocations to states for Recovery Zone <br />Bonds which are two new types of debt created by the ARRA to encourage economic development in <br />distressed areas. At this announcement, Treasury also made the allocations to local governments. For <br />North Carolina, the allocations are to 94 counties and 7 cities. <br />Two types of Recovery Zone Bonds (RZB) are included in the allocation; Recovery Zone Economic <br />Development Bonds (RZEDB), and Recovery Zone Facility Bonds (RZFB). For North Carolina, the <br />RZEDB total $418,154,000 and the RZFB total $627,231,000. Please see Local Government <br />Commission (LGC) memos 811 16, 113 Land 2010-6 for more RZ Bond information. <br />The ARRA requires that the bonds be issued before January 1, 2011, or within the next 15 months. <br />As one of the first steps in bond issuance, the governing body of the issuing agency must take formal <br />action by resolution designating a specific area (or the entire county) as a recovery zone. LGC memo 4 <br />2010-9 provides a sample resolution for this purpose. <br />The distribution process used by Treasury allocates authority to local governments regardless of <br />whether there is a plan to issue bonds within the statutory parameters of these new debt instruments. <br />Based on our experience to date, some local governments may decide to not utilize this new bond <br />authorization. As a State, it is important that we work together to manage this new financing opportunity <br />to enhance the construction of infrastructure and the creation of jobs. <br />Following consultation with The North Carolina Association of County Commissioners and The <br />North Carolina League of Municipalities, the state is undertaking a process to retrieve and reallocate the <br />