A RESOLUTION OF THE CITY COUNCIL OF HOMER, ALASKA SUPPORTING AN APPLICATION BY THE KENAI PENINSULA BOROUGH FOR A U. S. CUSTOMS PORT OF ENTRY AND STATUS AS A FOREIGN TRADE ZONE.

WHEREAS, trade with foreign countries is becoming increasingly important in order to compete in the emerging global economy; and

WHEREAS, the establishment of a U.S. Customs port of entry and a duty free foreign trade zone can be valuable economic development tools for communities wanting to compete in the global marketplace; and

WHEREAS, many benefits to communities and businesses can be derived from the existence of a foreign trade zone, such as creation of new industries, new jobs and new tax revenues by reducing, delaying or eliminating customs duties, and providing a marketing tool for airports, seaports, and harbors; and

WHEREAS, the Kenai Peninsula Borough has expressed an interest in obtaining additional information and possibly establishing a Customs port of entry and foreign trade zone within the Kenai Peninsula; and

WHEREAS, the application process for a port of entry and foreign trade zone is in itself a feasibility study as the proposed zone must be justified to the U.S. Customs office; and

WHEREAS, the proposed foreign trade zone would include areas within the Cities of Homer, Kenai, Seward, Soldotna and the Kenai Peninsula Borough since these communities have been initially identified as communities receiving the greatest benefit from the establishment of a foreign trade zone; and

WHEREAS, the Kenai Peninsula Borough has proposed to pay the initial costs of preparing and submitting an application, estimated to be $45,000; and

WHEREAS, the costs for establishing and maintaining a customs office and foreign trade zone within the Kenai Peninsula Borough would be shared among municipalities and companies utilizing the foreign trade zone; and

WHEREAS, such cost allocation shall be agreed upon by the participating municipalities prior to receipt of the official foreign trade zone grant of authority and official Customs port of entry status, approximately 20-24 months after the process begins.

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City of Homer

Resolution 99-96

NOW, THEREFORE, BE IT RESOLVED by the Homer City Council that the City of Homer supports the efforts of the Kenai Peninsula Borough in its application for establishment of a U.S. Customs port of entry and status as a foreign trade zone on the Kenai Peninsula.:

Section 1. This resolution becomes effective upon its adoption.

PASSED AND ADOPTED by the Homer City Council this 11th day of October, 1999.

CITY OF HOMER

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ATTEST: JACK CUSHING, MAYOR

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MARY L. CALHOUN, CMC/AAE, CITY CLERK