(A) Short title. This section shall be known and cited as the "Recovery Zone Designation Ordinance."
(B) Designation of Recovery Zone. Pursuant to Section 1400U-1 of the Internal Revenue Service Code, and Section 5.06 of Treasury Notice 2009-50 (June 12, 2009), the entire geographic area of the City of Hollywood is hereby designated as a "Recovery Zone" for the purpose of issuing Recovery Zone bonds.
(C) Funding appropriation. Appropriation of Recovery Zone bond proceeds will be based on project qualifications at the discretion of the City Commission.
(D) Recovery Zone economic development bonds - eligible activities/projects. Eligible activities/projects that qualify for issuance of Recovery Zone economic development bonds include activities/projects within the Recovery Zone that promote economic development, as measured by the criteria set forth in division (F) below, and may include:
(1) Capital expenditures paid or incurred with respect to property located in the Recovery Zone;
(2) Expenditures for public infrastructure and construction of public facilities; and
(3) Expenditures for job training and educational programs.
(E) Recovery Zone facility bonds - eligible activities/ projects. Eligible activities/projects that qualify for issuance of Recovery Zone facility bonds include bonds issued to finance "Recovery Zone property" on behalf of qualified borrowers which Recovery Zone property is located within the designated Recovery Zone, the original use of which commences with the borrower and substantially all of the use of which is in the active "qualified business" of the borrower. Recovery Zone property includes any property of a general character that is subject to allowance for depreciation to which IRS Code Section 168 applies. Qualified business includes any trade or business, excluding any business involving private or commercial golf course, country club, massage parlor, hot tub facility, suntan facility, racetrack, or other facility used for gambling, or any store the principal business of which is the sale of alcoholic beverages for consumption off premises.
(F) Criteria for activity/project investment. Eligible projects/activities for funding from Recovery Zone bond proceeds shall be selected by the City Commission based upon, but not limited to, the following criteria:
(1) Financing in place for RZFB;
(2) Financing in place for the entire project;
(3) Type of industry;
(4) Number of current and/or projected employees;
(5) Average wage of employees;
(6) Capital investment;
(7) Average job growth;
(8) Financial stability;
(9) New product development;
(10) Growth of sales;
(11) Percentage of product or service exported out of city;
(12) Results of an economic impact study;
(13) Location of project;
(14) Commitment to local procurement and local hiring;
(15) Regional impact;
(16) Project status;
(17) Project "shovel ready" site plans; and
(18) Any such other activity or factor proposed by the applicant that can be demonstrated in a satisfactory fashion to the City Commission to promote economic development within the city.
(G) Project application and selection process.
(1) The Office of Business and International Trade shall establish a project application and an application review process determining eligibility of projects.
(2) With respect to Recovery Zone facility bonds, the City Commission shall consider all applications pursuant to established procedures for conduit financing.
(H) Investment amount. The investment amount for each activity/project shall be based on the amount of available funds, estimated project value, the criteria set forth in division (F) above, and any other factors determined by the City Commission to be in the public interest.
(I) Compliance. All activities/projects financed through the issuance of Recovery Zone bonds shall comply with all applicable existing federal, state, and local laws, rules, and regulations.
(J) Application form and review process. The form of the project application and the process for reviewing applications for determining eligibility of projects shall be promulgated by the Office of Business and International Trade.
(Ord. O-2010-08, passed 3-17-10)