Title
Resolution to Approve Second Amendment to Articles of Incorporation of the Economic Development Corporation of the City of Ann Arbor
Memorandum
The Economic Development Corporation of the City of Ann Arbor ("EDC/A2") was formed under Michigan's Economic Development Corporation Act in 1978. Its purpose is to assist in the attraction, relocation, retention and expansion of profit and non-profit organizations which provide employment and which are considered desirable and beneficial to the City. It has carried this out primarily by its issuance of tax-exempt revenue bonds. This has permitted borrowers to realize substantial savings in financing costs due to the difference between taxable and tax-exempt interest rates. Since its creation it has issued may such bonds but its enabling legislation makes clear that this need not be it only function. The Board of the EDC/A2 studied ways other than bond financing that the EDC/A2 might be helpful in encouraging economic development in the City. The proposed attached Amendments lists seven (7) examples of those programs and activities.
The procedure for amending EDC/A2 Articles of Incorporation is set forth in Section 30 in the EDC Act (MCL 125.1630) which provides as follows:
"The articles of incorporation of the corporation may be amended by resolution of the municipality which resolution shall be filed with the secretary of state. The effect of an amendment may include the alteration or changing of the structure, organization, programs or activities of the corporation included the power to terminate the existence of the corporation. However, an amendment shall not impair the obligation of a bond or contract."
Staff
Reviewed by: Betsy Blake, Senior Assistant City Attorney
Tom Crawford, CFO
Approved by: Howard S. Lazarus, City Administrator
Body
Whereas, The Economic Development Corporation of the City of Ann Arbor (EDC/A2) met on March 13, 2018, and proposed certain amendments to its Articles of Inc...
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