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William P. Kenoi <br />Manor <br />May 6, 2010 <br />J Yoshimoto, Council Chair and <br />Members of the Hawai'i County Council <br />Hawaii County Council <br />25 Aupuni Street <br />Hilo, Hawaii 96720 <br />f <br />Nancy E. Crawfor <br />Director of Finance <br />Enc. <br />cc: Treasury <br />Res. 3cii -t <br />County <br />Finance <br />25 Aupum Street, Suite <br />(808) 961-8234 <br />of Hawaii <br />Department <br />2103 • Hilo, Hawaii 96720 <br />• Fax (808) 961 -8569 <br />Hawaii County is an Equal Opportunity Provider and Employer <br />Nancy E. Crawford <br />Director <br />Deanna S. Sako <br />Deputy Director <br />G <br />0 <br />—C <br />Re: Recovery Zone Economic Development Bonds <br />The American Recovery and Reinvestment Act (ARRA) allows the issuance of taxable <br />bonds with an interest payment tax subsidy of 35% to 45% by the Federal Government. <br />With the present interest rate environment, it is economically beneficial for the County to <br />issue these types of bonds. The bonds with the 45% subsidy are called Recovery Zone <br />Economic Development Bonds. It is a requirement that the issuer's legislative body <br />declare the "economic recovery zone" where these monies can be utitlized. <br />The City and County of Honolulu and the County of Kauai have already issued Recovery <br />Zone Economic Development Bonds by declaring their whole island as a recovery zone. <br />We intend to use these precedents to designate the entire geographic area of the County <br />of Hawai'i as its recovery zone, This will allow the expenditure of these monies without <br />regard to location within our County. <br />Enclosed is a resolution that authorizes the creation of a Recovery Zone under the <br />provisions of the ARRA for the purpose of issuing Recovery Zone Economic Development <br />Bonds. <br />Our bond sales period has been set in July, and it is important to have required approvals <br />in place beforehand, so pre -sale activities can commence without hesitation. We are <br />requesting a waiver from the Finance Committee and to have this resolution heard at the <br />next Council meeting scheduled for May 19, 2010. <br />Should you have any questions, please feel free to contact County Treasurer Mike Okumoto. <br />Comm. Pdo. S <br />Ref. To: tr4)( CC11 t, to <br />got p ate MAY 07 2010 <br />