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Recovery Zone designation could help Jackson County businesses and local governments

By Holly Klaft | Jackson Citizen Patriot
Friday August 07, 2009

Hard-to-find financing for major expansion or improvement projects could be within reach soon for local governments or businesses throughout Jackson County.

Economic development and county officials are considering naming the entire county as a Recovery Zone to make all area businesses and public entities eligible for about $28.7 million in federal bonds through the Recovery Zone Bond Program.

The bond program, which is part of the federal stimulus plan, will allow for the issuance of about $17.2 million in Facility bonds and $11.5 million in Economic Development bonds.

Tax-exempt Facility bonds would provide loans to both longtime businesses or start-up companies for projects that could create jobs. Economic Development bonds would help public entities, such as schools or governments, finance public improvement efforts. Municipalities also can use the bonds for job training and educational programs.

Recovery Zones are generally considered areas that have significant poverty, unemployment, home foreclosure rates and general distress. Oakland County also has been designated as a Recovery Zone.

The Jackson County Board of Commissioner’s Agencies Committee will discuss making the entire county a Recovery Zone during its meeting at 10 a.m. Monday at the Jackson County Tower Building, 120 W. Michigan Ave. The county board would have to approve making Jackson County a Recovery Zone.

Scott Fleming, CEO of The Enterprise Group, said the county economic development agency already has projects in mind that could benefit from the financing.

Fleming said there were many businesses that would like to get loans for new projects but had a hard time securing financing.

“These Recovery Zone bonds will definitely help out,” Fleming said. “We want to make sure we have every tool possible to bring economic development.”

The bonds will be available until the end of 2010.