Thursday, August 20, 2009

Distressed Kane County fits 'recovery zone' tag :: The Courier News :: Local News

How late will Boone County be. in obtaining this bonding power authority?

Doing so would allow [Kane] county to issue slightly more than $25 million in private-activity, or "Build America," bonds for new development.

Declaring Kane a recovery zone would make it easier for developers to secure financing for new projects through private-activity bonds, Economic Development Director Chris Aiston said. Private-activity revenue bonds are a means of financial assistance for economic development.

The whole point is to make more money more readily available, or at least cheaper to borrow," he said.

These bonds are unlike other kinds of bonds. They do not count against a county's debt limit or credit rating. Furthermore, should a developer or investor on whose behalf the bonds are issued default, the county would not be held liable for repaying the debt.

developers would receive a 45 percent refund on the federal taxes payable on the bond proceeds. The bonds would carry a lower interest rate as well.

 

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