N E W S R E L E A S E
July 13, 2010
CONTACT: Barb Hayden, Director, Planning & Development Department, Duluth, MN
FOR IMMEDIATE RELEASE:
St. Louis County Approves over $800,000 in Recovery Zone Bonds
for Grand Lake Township Building Project
The St. Louis County Board today unanimously approved the creation of the St. Louis County Recovery Zone and designated $805,000 of its local allocation of Recovery Zone Economic Development Bonds to the Town of Grand Lake.
According to Township Supervisor Duayne Anderson, Grand Lake Township citizens voted to approve the sale of up to $805,000 of bonds for additions to the existing Town Hall and Fire Hall. The proposed additions will bring these facilities into compliance with the Americans with Disability Act. In addition, this project includes accommodations for the Township Clerk in the Town Hall, rather than a rented office space. Improvements to the Fire Hall include required safety needs, expanded cleaning and storage space for equipment, and consolidating equipment storage into a single building, which will improve accessibility and emergency response time.
Sixth District County Commissioner Keith Nelson, who represents the township, said, “I’m pleased that, through St. Louis County Board action, the citizens of Grand Lake Township will realize significant savings as they bond to improve their community center and fire hall facility, to better serve the people of Grand Lake.”
Under the provisions of the American Recovery and Reinvestment Act of 2009 (ARRA),
St. Louis County received two separate allocations of special bonding authority from the federal government that provides tax incentives for state and local government borrowing, at a lower interest rate, to promote job creation and economic recovery targeted to areas affected by high unemployment. St. Louis County was allocated $4.059 million in bonding allocation that must be issued before January 1, 2011. The County Board established a process for the use of the county's allocation in December, 2009.
The Recovery Zone established by the County Board at today's meeting includes federal Housing and Urban Development (HUD) designated eligible areas of Duluth and the remainder of St. Louis County. St. Louis County unemployment, excluding the city of Duluth, is at 7.0%; still above the State average of 6.4% (May 2010 Unemployment Statistics). Within the city of Duluth, the county is relying on HUD eligibility to determine areas adversely impacted by the economic crisis.
The Recovery Zone Economic Development Bond authority is not a grant. It is a discounted rate on a taxable debt issuance. Grand Lake Township will be issuing these General Obligation Bonds later this month.