October 29, 2009 Contact: Barbara Hayden, Director
St. Louis County Planning & Development
Duluth, MN 55803, 218-725-5000
FOR IMMEDIATE RELEASE
St. Louis County Receives $10 Million Recovery Zone Bond Allocation
St. Louis County has received two separate federal allocations of Recovery Zone Bonds under the American Recovery and Reinvestment Act. The Recovery Zone Bonds provide special bonding authority at lower borrowing costs to promote job creation and economic recovery. The bond allocations are follows:
Recovery Zone Economic Development Bonds ($4.059 million) - These bonds are a public finance tool with the federal government reimbursing the issuer 45% of the interest expense. They are a taxable obligation and the issuer is subject to statutory limitations on issuing debt. The project must be located in a qualified recovery zone.
Recovery Zone Facility Bond ($6.088 million) - These bonds are private activity bonds issued by an entity with the statutory authority to issue bonds. They provide tax exempt financing for a qualified business development in a qualified recovery zone. The bonds are based on the full faith and credit of the business utilizing this bond financing.
Both bonds must be issued prior to January 1, 2011. St. Louis County is in the process of developing policy and a solicitation process for the use of the Recovery Zone Bond allocation. This will include guidance for the establishment of recovery zones that meet the federal criteria of significant poverty, unemployment, rate of home foreclosures and general distress. Information on the St. Louis County Recovery Zone Bond allocation will be posted on the St. Louis County website www.stlouiscounty.org