Recovery zone bonds designed to boost local economy
Kane Countyâ€”Kane County announced that as part of the American Recovery and Reinvestment Act (ARRA), it has been authorized to issue up to $25.2 million in recovery zone facility bonds.
The act created a new category of bonds intended to stimulate the economy by providing the private sector with access to lower-cost financing compared to traditional methods. Recovery zone facility bonds are â€œprivate activityâ€ bonds, the proceeds of which are exempt from the gross income of obligation holders for federal tax purposes.
â€œWe are truly excited to be a part of this program that will give a needed boost to Kane Countyâ€™s economy and ultimately help our hard-working families,â€ County Board Chairman Karen McConnaughay said. â€œThe investments will give our businesses an opportunity to grow, allowing them to retain workers, while creating new jobs in both the short- and long-term.â€
The bonds are intended to be applied to promjects located within the corporate limits of the county, but outside the cities of Aurora and Elgin, which received separate allocations.
When issued, the bonds will not be general obligations of the county or payable from any taxes or other revenues of the county. Rather, they will be paid from project revenues or other revenues received pursuant to a loan agreement or other similar agreement. All recovery zone facility bonds must be issued prior to Jan. 1, 2011.
Projects eligible for recovery zone facility bond financing include professional, business and medical office buildings; warehouses and storage facilities; commercial developments (including retail businesses, shopping centers, auto dealerships and restaurants); agricultural facilities; and manufacturing facilities. Residential rental projects are not eligible.
For more information, visit www.countyofkane.org/Pages/ARRA/rzfbp.aspx or call (630) 208-5351.