§ 111-1. Findings of fact.

(a)

Section 1401 of Title I of Division B of the American Recovery and Reinvestment Act of 2009 (ARRA) added Sections 1400U-1 through 1400U-3 to the Internal Revenue Code (the "IR Code"), authorizing state and local governments to issue Recovery Zone Bonds through December 31, 2010 which provide tax incentives to state and local governments by lowering borrowing costs as a means to promote job creation and economic recovery to targeted areas particularly affected by employment declines.

(b)

The treasury department established a national bond volume limitation ("volume cap") of $10,000,000,000.00 for recovery zone economic development bonds and $15,000,000,000.00 for recovery zone facility bonds, which is allocated among the states in the proportion to each state's 2008 state employment decline as compared to the employment decline for all of the states ("recovery zone bond allocation").

(c)

Recovery zone economic development bonds are taxable tax-credit governmental bonds that may be used to finance certain "qualified economic development purposes", defined as promoting development or other economic activity in a designated recovery zone, including (1) capital expenditures paid or incurred with respect to property located in the recovery zone, (2) expenditures for public infrastructures and construction of public facilities, and (3) training and educational programs. Recovery zone facility bonds are private activity bonds that may be used to finance certain property located within a designated recovery zone.

(d)

Each state that has received a recovery zone bond allocation is required, without discretion, to reallocate such allocation among the counties and large municipalities (minimum 100,000 population) in such state in the proportion that each county's or municipality's 2008 employment decline bears to the aggregate of the 2008 employment declines for all the counties and municipalities in such state.

(e)

Brevard County has been allocated $19,106,000.00 in recovery zone economic development bonds and $28,659,000.00 in recovery zone facility Bonds, which must be issued on or before December 31, 2010.

(f)

Section 1400U-1(b) of the IR Code requires each governmental issuer of recovery zone bonds to designate eligible recovery zones within its geographical jurisdiction using the following criteria:

(1)

Significant poverty, unemployment, rate of home foreclosures, or general distress;

(2)

Economic distress by reason of the closure or realignment of a military installation pursuant to the Defense Base Closure and Realignment Act of 1990; and

(3)

Designated empowerment zones or renewal communities in effect as of February 17, 2009.

(g)

The unemployment rate in Brevard County for the past 12 consecutive months from July of 2008 through June of 2009 has consistently been higher than both the State of Florida and national averages. For June 2009, the unemployment rate in Brevard County was 10.7 percent.

(h)

The volume of foreclosures in Brevard County over the past four years from 2005 through 2008 has increased eight-fold, from approximately 1,144 foreclosures in 2005 to over 9,228 foreclosures in 2008.

(i)

The retirement of the space shuttle program is anticipated to additionally increase Brevard County's unemployment rate to levels that will further cripple the local economy.

(j)

Citizens, businesses, and all segments and geographic areas of Brevard County have suffered from and been adversely impacted by the high unemployment rate, high foreclosure rates and pending retirement of the space shuttle program in Brevard County. For the first time in 37 years, Brevard County witnessed a decline in population. Accordingly, it is in the best interests of Brevard County that the entire geographic area of the county be designated a "recovery zone" for the purposes of issuing recovery zone bonds to promote job creation and economic recovery.

(Ord. No. 2009-025, §§ 1, 2, 9-15-09)