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NORTH CAROLINA <br />DEPARTMENT OF STATE TREASDRER <br />STATE AND LOCAL GOVERNMENT FINANCE DIVISION <br />AND THE LOCAL GOVERNMENT COMMISSION <br />JANET COWELL T. VANCE HOLLOMAN <br />TREASURER DEPUTY TREASURER <br />Memorandum #2010-9 <br />August 12, 2009 <br />TO: Officials of Local Governments and Public <br />Authorities and Their Independent Auditors <br />FROM: Tim Romocki, Director <br />Debt Management Section <br />SUBJECT: Sample Resolution for Declaring a Recovery Zone Necessary for Issuance of <br />Recovery Zone Economic Development Bonds or Recovery Zone Facility Bonds <br />Previous memoranda #1161, 41131 and #2101-6 from our office provided information on the <br />allocations and issuance of Recovery Zone Economic Development Bonds and Recovery Zone <br />Facility Bonds. Recovery Zone Economic Development Bonds must be spent for capital <br />expenditures and public infrastructure for the purpose of promoting development or other <br />economic activity in a recovery zone. Recovery Zone Facility Bonds can be used to finance almost <br />any private capital investment in areas designated as "Recovery Zones." Recovery zones are areas <br />designated by an issuer as: <br />a) having significant poverty, unemployment, home foreclosure rate or general <br />distress, or <br />b) being economically distressed due to Base Realignment and Closure, or <br />c) being designated an empowerment zone or renewal community. <br />In order for local government units and authorities to be eligible to issue either Recovery Zone <br />Economic Development Bonds or Recovery Zone Facility Bonds, a unit or authority's governing <br />body must take formal action by resolution designating a specific area (or the entire County) as a <br />"recovery zone" Attached is a sample resolution that has been provided by a bond counsel that <br />units may use to designate a recovery zone if a unit plans to issue either type of these bonds. As <br />noted in a previous memorandum, it is important that a recovery zone be designated at the <br />earliest possible date when considering an issuance of either of these types of bonds. It is also <br />always advisable for units to consult their own bond counsel when considering project financings of <br />this type. <br />Our staff is available to provide additional information to units or authorities who may have an <br />interest in or the need for these types of financings or who may have questions regarding these <br />bonds. For more information related to debt issues, please contact Jim Baker at (919) 807-2370 or <br />iim.baherG4nctreasurencom or Tim Romoclci at (919) 807-2360 or tiril.romockitr netre isiu-er.com. <br />THE BOARD OF COMMISSIONERS OF THE COUNTY OF <br />325 NORTH SALISBURY STREET, RALEIGH, NORTH CAROLINA 27603-1385 <br />Courier 466.20-45 Telephone (919) 807-2360 Fax (919) 807-2352 <br />Physical Address: 4605 Fair Meadow Lane, Blue Ridge Plaza, Suite 102, Raleigh, NC 27607 <br />Wehsite: www.nctreasurer.com <br />