Title
Resolution Calling a Public Hearing on July 6, 2010 for the Glacier Hills, Inc. Project Plan
Memorandum
In 1978 the City of Ann Arbor established The Economic Development Corporation of the City of Ann Arbor (hereafter "EDC/AA") under authorization of the Economic Development Corporation Act (Public Act 338 of 1974, as amended) (hereafter "EDC Act"). The nonprofit corporation provided assistance through tax-exempt bonds to applicants with qualified projects. Attached is background material on EDC/AA that provides a brief overview of the EDC/AA, its purpose, guidelines and bonds.
Glacier Hills, Inc. has applied for EDC/AA bond financing up to the principal sum of $23,000,000. In accordance with the requirements of the EDC Act and the guidelines:
On March 29th, the EDC/AA Board made its initial determination that the requested bond constitutes a public purpose and resolved to issue the requested bond subject to its compliance with the requirements of the EDC Act (the so-called "inducement" resolution).
On April 19th, City Council approved the appointment of two special directors to the Board to serve in connection with this proposed bond. T
On April 29th, Glacier Hills presented its proposed Project Plan (Le., a description of the basic elements of the project) to the EDC/AA Board. Following deliberations, the Board unanimously approved the Project Plan as presented.
The next step is for Council to schedule a public hearing on the proposed Project Plan in the manner set forth in the proposed resolution. Immediately following that hearing, City Council will be requested to vote on whether or not to approve the Project Plan. In the event of approval, the final step would be for the EDC/AA Board to adopt its bond-authorizing resolution following which closing on the bond would take place. These steps are in compliance with the EDC Act.
Bonds issued by the EDC/AA are repayable from only from the revenues of the indivual project financed. Neither the C...
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