[Durham INC] Durham Seeks Recovery Zone Business Applications

[Blalock, Amy]

CITY OF DURHAM

Office of Public Affairs

101 City Hall Plaza

Durham, NC 27701

 

 

News Release

 

For Details, Contact:

Amy Blalock

Sr. Public Affairs Specialist

(919) 560-4123 x 11253

(919) 475-7735 (cell)

Amy.Blalock at durhamnc.gov

 

For Immediate Release:  February 22, 2010

 

 

Durham Seeks Recovery Zone Business Applications

Recovery Zone Facility Bonds Enable Lower Financing Costs for Private
Businesses; Deadline to Apply is March 19

 

DURHAM, N.C. - Private businesses interested in setting up shop within
the city limits are now urged to apply for the City of Durham's
allocation of recovery zone facility bonds (RZFBs).  

 

RZFBs were created through the American Recovery and Reinvestment Act of
2009 (ARRA) as a new debt financing option that supports local economic
development for private entities.  The State of North Carolina received
more than $627 million, of which the City is seeking a portion of from
the North Carolina Department of Commerce.  The City is now seeking
applications for private development projects from businesses interested
in having a substantial impact on the physical, economic vitality of the
community within the City Council-approved recovery zone boundary
limits, which are all areas within the city limits.  Examples of
eligible business and industry sectors include, but are not limited to,
manufacturing and bio-tech; finance and insurance; corporate centers,
research and development, and information technology; transportation
warehousing logistics; hospitality, tourism, and retail; and higher
education institutions.

 

According to Kevin Dick, director of the City's Office of Economic and
Workforce Development, the City wants to introduce RZFBs to Durham's
private entities as a way to spur economic development without
obligating the City of Durham for the funding.  "Recovery zone bonds are
a great alternative funding source to help economic development projects
that have difficulty accessing traditional means of financing," Dick
said.  "RZFBs are new types of tax-exempt bonds that have lower interest
rates and allow for-profit businesses access to federal tax-exempt
financing.  They can also be used for a broad array of financing - from
construction of new and expanded buildings to the purchase of equipment.
Right now, with the credit markets remaining very tight, many viable
business projects have been unable to get off the ground and help with
our local economic recovery process.  We're hoping that by facilitating
this effort, we can connect these viable, for-profit businesses with
RZFBs and help kick-start our local recovery."

 

According to Dick, the City is seeking applicants that will stimulate
economic development activities and whose projects can demonstrate the
following:

*         Stimulate economic revitalization by leveraging private
investment;

*         Make permanent jobs accessible to lower-income neighborhood
residents, including persons who are unemployed;

*         Engage community involvement and support;

*         Strongly encourage local partnerships; and

*         Create and retain permanent, full-time livable wage jobs.

 

The deadline to apply for the RZFBs is March 19, 2010.  For a complete
description of the private recovery zone facility bonds use guidelines
and application process, visit the City's Web site at 
www.durhamnc.gov/departments/eed/pdf/recovery_zone_solicitation_request2
.pdf.  Interested applicants may also contact Chris Dickey, senior
economic development manager with the City's OEWD, at (919) 560-4965,
ext. 15204 or via e-mail at chris.dickey at durhamnc.gov.

 

About the Office of Economic and Workforce Development

The City of Durham's Office of Economic and Workforce Development (OEWD)
seeks to increase the city's tax base through several revitalization
initiatives, including new development efforts in the central city area.
The department also identifies and recruits target industries as well as
assesses and trains Durham residents to fill new jobs.  For more
information, visit www.durhamnc.gov/departments/eed. 

 

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