Letter From Congressman Wilson

Dear Friends,

I’m excited to tell you about a new program that will help stimulate investment in hard-hit economic Recovery Zones like those in Ohio’s Sixth District.

Today the U.S. Treasury Department announced that $45,477,000 in bond authority will be immediately available for local governments in Ohio’s Sixth Congressional District under the Recovery Zone Bonds program. Recovery Zone Bonds, created under the American Recovery and Reinvestment Act, are targeted to areas particularly affected by significant job loss and will help county governments obtain capital for much needed economic development projects.

These bonds will help in so many ways. The program will make it easier for counties and private businesses to borrow money at a better rate. The counties and businesses that make up my district can then use that money to improve infrastructure, increase job training and help families struggling with this tough economy.

According to details released by the Treasury Department today, the program includes two new types of Recovery Zone Bonds: Recovery Zone Economic Development Bonds and Recovery Zone Facility Bonds.

Recovery Zone Economic Development Bonds are another type of taxable Build America Bond that allow State and local governments to obtain lower borrowing costs through a new direct federal payment subsidy, equal to 45 percent of the interest cost. The funds will finance a broad range of qualified economic development projects, such as job training and educational programs. Ohio’s Sixth Congressional District is eligible for $18,191,000 in Recovery Zone Economic Development Bonds.

Recovery Zone Facility Bonds are tax-exempt private activity bonds that can be utilized by private businesses in designated areas for a range of projects; however the bonds cannot be used for multi-family housing. Ohio’s Sixth Congressional District is eligible for $27,286,000 in Recovery Zone Facility Bonds. Private businesses will apply to the county receiving the bonds.

All twelve of the counties that make up the Sixth District have been allocated Recovery Zone Bonds:

County Recovery Zone Economic Development Bond Recovery Zone Facility Bond
Athens 243,000 364,000
Belmont 262,000 394,000
Columbiana 3,518,000 5,277,000
Gallia 1,171,000 1,756,000
Jefferson 488,000 732,000
Lawrence 1,904,000 2,856,000
Mahoning 6,971,000 10,456,000
Meigs 728,000 1,092,000
Monroe 268,000 402,000
Noble 621,000 931,000
Scioto 1,413,000 2,120,000
Washington 604,000 906,000
total 18,191,000 27,286,000

Counties will be working on specific plans to use these bonds. In addition, I’m told that the Ohio Department of Development is reviewing the IRS guidance and devising a plan to use any Recovery Zone Bond allocations that may be waived by counties that don’t expect to use them. I hope all 12 of the counties that make up my district use all of the bonds available to them for local projects that will directly benefit our citizens.

Sincerely,


Charlie Wilson
Member of Congress
Ohio’s Sixth District

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