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County Approves Business Expansion Assistance Plan

Low-Interest Bonds to be Made Available in Recovery Zone

By Michael P. Neufeld
Saturday, October 31, 2009

San Bernardino, CA– San Bernardino County businesses wanting to expand, and public agencies planning major infrastructure improvements could save hundreds of thousands of dollars by tapping into more than $115 million in low-interest bonds authorized by the Board of Supervisors.

(Photo by County of San Bernardino.)

The Board approved the creation of a countywide Recovery Zone that enables the issuance of more than $46 million in economic development bonds and more than $69 million in private facility bonds.

The program aims to spur economic development and job creation by offering attractive financing to businesses and public agencies. The Recovery Zone program was made possible by the American Recovery and Reinvestment Act signed by President Barack Obama earlier this year.

Second District Supervisor Paul Biane (Photo by Michael P. Neufeld.)

"These bonds can help the county expedite critical transportation projects like the reconstruction of the interchange at Cherry/I-10 or the widening of the railroad over-crossing on Cherry Avenue ," Second District Supervisor Paul Biane said. "At the same time, these bonds can provide local businesses with the type of low-interest financing they need to expand and enhance their operations."

"This is an important step in the county's continuing efforts to work in partnership with our local business community to rejuvenate our economy," Supervisors Chairman Gary Ovitt noted.

The County of San Bernardino Economic Development and Redevelopment agencies will administer the program. The County will issue conduit revenue bonds, meaning it will be neither the lender nor the borrower of the funds. Costs associated with issuing the bonds will be the responsibility of the borrower. The bonds can be issued through December 31, 2010.

The Recovery Zone program is designed to boost economic development in areas experiencing significant poverty, unemployment, high rates of home foreclosures and other economic ills. The unemployment rate in San Bernardino County is currently 13.9%.

The facility bonds are tax-exempt, private activity bonds that allow issuers with a letter of credit to finance private depreciable property that involves the construction of new facilities or the modernization of existing facilities. Interested businesses will be considered on the basis of whether their plans are ready to proceed and if they would create jobs and stimulate economic activity.

The economic development bonds are taxable government bonds that can be used to finance public facilities and infrastructure. County departments or other local agencies will issue their own bonds for "shovel ready" projects, and the federal government will reimburse local governmental issuers 45 percent of the interest paid.

TENTATIVE SCHEDULE

The program will operate according to the following tentative schedule:

• 11/4 - Proposers' Conference
• 11/13 - Deadline for Submission of Questions
• 11/30 - Questions/Answers Posted on County Website
• 12/14 - Deadline for Submitting Proposals
• 1/8 - Successful Applicants Notified
• 1/12 or 1/26 - Board Approves Bond Allocations
• 5/31 - Deadline for Applicants to Complete Financing or Lose Allocation

This article was first published on Tuesday, October 27, 2009 at 4:38 pm. This article has been viewed 261 times.

Michael P. Neufeld, Senior News Editor, is a graduate of the Dwight Bentel School of Journalism at San Jose State University. His first job out of San Jose State was with the Associated Press in Los Angeles as overnight Radio Editor. Prior to joining RIMOFTHEWORLD.net, Neufeld was editor of two weekly newspapers—THE MOUNTAIN NEWS and CRESTLINE COURIER-NEWS. He also has experience as editor of an employee newspaper for a major utility company and during his tenure as executive director of the San Jose State University Alumni Association served as faculty advisor to the association's monthly newsletter. He also spent eight years in commercial radio doing everything from news to advertising sales and writing commercials to being an announcer and on-air personality. Neufeld is actively involved the mountain communities including serving as master of ceremonies for the Arrowhead Arts Music Festival held each summer.

The views expressed in this article do not necessarily reflect those of RIMOFTHEWORLD.net. This column is copyrighted by Michael P. Neufeld.