The Economic Development Corporation (EDC) of the city of Detroit is accepting applications for $74 million in Recovery Zone Facility Bonds that were authorized by the American Recovery and Reinvestment Act. The bond financing can be used by new and existing businesses anywhere within city limits that will create new jobs or have some other related public purpose. One stipulation is that the money cannot be used to poach jobs from another Michigan city; others are spelled out in the lengthy application form available upon request from the EDC.
The bonds will be administered for the EDC by the
Detroit Economic Growth Corp. Art Papapanos, DEGC's vice president of board administration, says there have been numerous inquiries, but that the agency has not yet issued any bonds. As for goals as to the total numbers of jobs created by issuing the bonds, he says, "We welcome any requests. Every job counts in the city of Detroit."
"These bonds are a new and powerful tool to attract private investment and create new jobs in Detroit," said George W. Jackson, Jr., president and CEO of DEGC, in a statement.
The bonds are similar to the $462 million of private activity bonds the EDC has issued in the past to support major projects, including the Greater Detroit Resource Recovery Facility, the three Detroit casinos and the 36th District Court Building.
Source: Art Papapanos, DEGC
Writer: Kelli B. Kavanaugh
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