Organization

County projects could get aid from stimulus program

Wednesday, June 24, 2009
By Keith Roberts
kroberts@citpat.com—768-4922

A new federal stimulus program could make it easier for governments and businesses in Jackson County to get financing for projects that would boost the economy. The Recovery Zone Bond Program, part of the American Recovery and Reinvestment Act, allows the issuance of $17 million in Recovery Zone Facility Bonds and $11.5 million in Recovery Zone Economic Development Bonds in Jackson County.

Facility Bonds would help businesses finance projects that would create jobs. Economic Development Bonds would help local governments finance public improvements by reducing their borrowing costs. Recovery Zones are areas that have significant poverty, unemployment, home foreclosure rates or general distress.

Scott Fleming, CEO of The Enterprise Group of Jackson, said the facility bonds could be issued for startups as well as longtime companies that are struggling and need to upgrade or expand to remain competitive. Fleming said banks are making sure businesses that ask for loans, particularly those in manufacturing or auto-related industries, have strong financial backing.

``We’re looking at this to kind of replace the subordinate funding businesses need to survive,’’ Fleming said.

The federal government will subsidize up to 45 percent of the interest payable on the Economic Development Bonds. Local governments can use the bonds to finance capital projects, infrastructure improvements, job training and educational programs.

Jackson City Manager William Ross said he is looking at options, but before any bonds could be issued the city would have to determine how they would be repaid, either through taxes or revenues from services such as water and sewer.

``The key is you need a revenue stream,’’ Ross said.

Jackson County Deputy Administrator Adam Brown said the program would give the county a line of credit, but it doesn’t need one.

``It’s not helpful to us right now,’’ Brown said.