U.S. Rep. Charlie Wilson, D-Bridgeport, announced that the U.S. Treasury Department released $45,477,000 in bond authority for local governments in Ohio’s Sixth Congressional District under the Recovery Zone Bonds program. The release includes $728,000 in Recovery Zone Economic Development Bonds and $1,092,000 in Facility Bonds available to Meigs County.
Recovery Zone Bonds, created under the American Recovery and Reinvestment Act, are targeted to areas particularly affected by significant job loss and will help state and local governments obtain capital for much needed economic development projects, U.S. Rep. Charlie Wilson said.
Economic Development Director Perry Varnadoe said Tuesday since the program is brand new, local officials have had little discussion about how the bond program could be used, but said it appears it will be a valuable resource in considering funding sources for infrastructure.
“These bonds will help in so many ways,” Wilson said. “This bond program will make it easier for counties and private businesses to borrow money at a better rate. The counties and businesses that make up my district can then use that money to improve infrastructure, increase job training and help families struggling with this tough economy.”
According to details released by the Treasury Department today, the program includes two new types of Recovery Zone Bonds: Recovery Zone Economic Development Bonds and Recovery Zone Facility Bonds.
Recovery Zone Economic Development Bonds are another type of taxable Build America Bond that allow State and local governments to obtain lower borrowing costs through a new direct federal payment subsidy, equal to 45 percent of the interest cost. The funds will finance a broad range of qualified economic development projects, such as job training and educational programs.
Recovery Zone Facility Bonds are tax-exempt private activity bonds that can be utilized by private businesses in designated areas for a range of projects; however the bonds cannot be used for multi-family housing.
Private businesses will apply to the county receiving the bonds, Wilson said.
All 12 of the counties in District 6 have been allocated Recovery Zone Bonds
“Turning things around requires innovative strategies, which is what the Recovery Act has provided in the form of the Recovery Zone Bonds. The innovative financing tools provided by Recovery Zone Bonds will help state and local governments obtain the financing needed to revitalize our communities.”