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"This new stimulus program is an opportunity to build upon the progress we have made on Connecticut's responsible growth agenda by jump-starting many worthwhile projects," said Gov. M. Jodi Rell. "By lowering the costs of financing for these shovel-ready projects, we are providing a boost to the local and state economies and putting people to work when they need it most."
The governor said $90 million is for tax credit bonding for governmental-purpose projects by cities and towns, among others, and $135 million is for private sector projects. Sixty-two communities in Connecticut are eligible for this self-sustaining financing.
In June, the U.S. Treasury Department unveiled the Recovery Zone Bond program, authorized through the American Recovery and Reinvestment Act of 2009. The federal program makes available $25 billion in bond authority to boost critical financing and to stimulate economic development projects in "recovery zones," specially designated areas with significant poverty, unemployment, foreclosures or general distress.
The Recovery Zone Bond program is jointly administered by the Connecticut Development Authority and the Department of Economic and Community Development. The designated recovery zones are based on existing criteria for federal entitlement communities, public investment communities, targeted investment communities (those communities that have enterprise zones), distressed municipalities and enterprise corridor zones.
The Recovery Act allocates Recovery Zone bonding both directly to the state's largest municipalities and on a county basis.
The awarding of bond allocations for projects will be made on a competitive, ongoing basis by CDA based on criteria established by DECD and CDA. CDA will be the conduit of the self-sustaining tax exempt bonds, which must be issued before Jan. 1, 2011, for the projects selected.
For more information on the program and the application process, visit www.ctcda.com.
