City of Baltimore - File #: 09-0367

• File #: 09-0367
• Version: 0
• Name: American Recovery and Reinvestment Act of 2009 - Designation of Baltimore City Recovery Zone
• Type: Mayor and City Council Res.
• Status: Enacted
• File created: 7/13/2009
• In control: City Council
• Final action: 7/16/2009
• Enactment #: 09-13
• Title: American Recovery and Reinvestment Act of 2009 - Designation of Baltimore City Recovery Zone FOR the purpose of designating a "recovery zone" in which the proceeds of Recovery Zone Economic Development Bonds and Recovery Zone Facility Bonds may be invested; making certain findings; and providing for a special effective date.
• Sponsors: City Council President (Administration)
• Indexes: Mayor and City Council Resolution, Recovery Zone, Resolution-Mayor and City Council

Date	Ver.	Action By	Action	Result
7/16/2009	0	Mayor	Signed by Mayor
7/13/2009	0	City Council	Introduced
7/13/2009	0	City Council	Advanced to 2nd Reader on same day
7/13/2009	0	City Council	Advanced to 3rd Reader on same day
7/13/2009	0	City Council	Approved and Sent to the Mayor

INTRODUCTORY*

CITY OF BALTIMORE
COUNCIL BILL

Introduced by: The Council President
At the request of: The Administration (Baltimore Development Corporation)

A RESOLUTION ENTITLED

A RESOLUTION OF THE MAYOR AND CITY COUNCIL concerning
title
American Recovery and Reinvestment Act of 2009 - Designation of Baltimore City Recovery Zone

FOR the purpose of designating a "recovery zone" in which the proceeds of Recovery Zone Economic Development Bonds and Recovery Zone Facility Bonds may be invested; making certain findings; and providing for a special effective date.
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Recitals

The American Recovery and Reinvestment Act of 2009 ("ARRA") made a number of changes to the tax code that relate to tax-exempt revenue bonds. Taken as a whole, these changes mark the most significant revisions to the municipal bond market since the 1986 Tax Reform Act.

Two of these changes, the creation of two new categories of bonds, provide an immediate opportunity for the City and its businesses. The two new bond categories are (1) taxable tax-credit governmental bonds issued under § 1400U-2 of the Internal Revenue Code as Recovery Zone Economic Development Bonds ("RZEDBs"), and (2) private-activity bonds issued under § 1400U-3 of the Internal Revenue Code as Recovery Zone Facility Bonds ("RZFBs"). The RZEDBs are similar to Build America Bonds in that the issuer can receive a direct pay credit from the Treasury Department equal to 45% of the interest payable (as compared to 35% for the Build America Bonds).

The proceeds of these two new categories of bonds are to be invested in designated "recovery zones". For this purpose, the ARRA defines a "recovery zone" as any area:

1. designated by the issuer as having significant poverty, unemployment, rate of ho...