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Economic Development Agencies
Dan Fogelberg Memorial
Recovery Zone Approved
Action Requested: RECOMMENDATION FROM THE ECONOMIC DEVELOPMENT STAFF AND THE INTERIM CITY MANGER REQUESTING THAT THE CITY COUNCIL ADOPT THE ATTACHED CITY OF PEORIA RECOVERY ZONE MAP DESIGNATING THE CITY OF PEORIA A RECOVERY ZONE FOR PURPOSES OF UTILIZING RECOVERY ZONE BOND FINANCING AND TO AUTHORIZE THE LEGAL DEPARTMENT TO DRAFT AN ORDINANCE.
Background: The American Recovery and Reinvestment Act of 2009 (ARRA) made a number of changes to the tax code that pertain to tax-exempt revenue bonds. Taken as a whole, the changes in the stimulus bill mark the most significant revisions to the municipal bond market since the 1986 Tax Reform Act.
A potential immediate opportunity for the City of Peoria and its businesses relates to the creation of two new categories of bonds. The two new categories are, (1) taxable tax-credit governmental bonds issued as Recovery Zone Economic Development Bonds (“RZEDBs”), and (2) private-activity bonds issued as Recovery Zone Facility Bonds (“RZFBs”). The RZEDBs are similar to the Build America Bonds in that the issuer can receive a direct pay credit from the Treasury Department equal to 45% of the interest payable, instead of the 35% permitted for a
Build America Bond.
The proceeds of these two new categories of bonds are to be invested in “Recovery Zones”. In order for the City of Peoria to take advantage of these new opportunities, the City needs to designate an area within the City as its Recovery Zone. Staff is recommending that the entire City of Peoria be designated as a “Recovery Zone”. A copy the map is attached.
According to the ARRA, the recovery zone must:
1. have significant poverty, unemployment, general distress, or rate of home foreclosures;
2. be any area for which a designation as an empowerment zone or renewal community is in effect; or
3. an area designated by the issuer as economically distressed by reason of the closure or realignment of a military installation pursuant to the Defense Base Closure and Realignment Act of 1990.
The proposed City of Peoria Recovery Zone is based on: (See Attachments)
1. Unemployment Rate
2. Poverty Rate
3. Home Foreclosures
4. Neighborhood Stabilization Target Areas Map
Eligible expenditures:
New money capital expenditures for property in a recovery zone
Public infrastructure (wherever located) that promote economic activity in a recovery zone
Expenditures for job training and educational programs
The City of Peoria issues bonds for a variety of projects throughout the year. The City issues G.O. or revenue bonds for its own governmental purposes. The issuance of RZEDBs could provide the City with a more economical alternative for financing its own governmental bonds. The City also provides revenue bond financing for housing, manufacturing and industrial companies which may be either tax-exempt or taxable. The creation of RZFBs broadens our ability to issue tax-exempt revenue bonds for projects that previously would have been done on a taxable basis. For example, if a company were proposing to build a mixed-use commercial building within the Peoria Recovery Zone, we would now be able to issue tax-exempt revenue bonds at a lower interest rate for the project.
The use of Recovery Zone Bonds is just one piece of our economic recovery efforts. As Economic Development Staff develops potential users for the bonds, we will bring forth the requests to the City Council just as we currently do for other forms of revenue bond financing.
RECOMMENDATION: It is staff’s recommendation that the attached City of Peoria Recovery Zone Map designating the City of Peoria a Recovery Zone be approved.
Financial Impact: Broadens the City’s ability to issue tax-exempt revenue bonds for projects that previously would have been done on a taxable basis. Provides lower cost borrowing for private sector development.
NEIGHBORHOOD CONCERNS: None
Impact if Approved: The City would now be able to issue tax-exempt revenue bonds at lower interest rates for projects. Private borrowers would be able to access lower interest bonds.
Impact if Denied: The City would not be able to issue tax-exempt revenue bonds at lower interest rates for projects.
RELATIONSHIP TO THE COMPREHENSIVE PLAN: The establishment of the City of Peoria Recovery Zone is consistent with the Comprehensive Plan.
VISION: WE HAVE A HEALTHY, THRIVING ECONOMY.
GOAL: A. Provide an economic environment that supports existing and new businesses.
The One State Together in the Arts Conference
http://artsalliance.org/conference.shtml
Developing Downtown as a Key Economic Driver
Be a part of the change you wish to see in your community. Learn firsthand about the joys and challenges of developing a vision and strategy for revitalizing downtown through the arts, and hear from experienced developers and city officials how to navigate the ins and outs of transforming a downtown area into a thriving neighborhood for the arts and business.
Presenters
Pat Sullivan, Local Developer and Business Owner
Craig Hullinger, City of Peoria
Jim Richerson, Lakeview Museum
http://artistrelocation.blogspot.com/
Apollo Theater
E-mail: edith@barnardcommunications.com
Phone: +1 309 922 9058
"Find your voice, change your life!" --Edith
Revolving Loan Fund
Central Illinois Angels
American Recovery and Reinvestment Act
Information re the Notice of Funding Availability (NOFA) from the Illinois Commerce and Economic Opportunity (DCEO) re the Community Development Assistance Program (CDAP) as it pertains to the American Recovery and Reinvestment Act of 2009 ("ARRA") which has an application deadline of June 5, 2009 –
This discussion is limited to the economic component of the program:
CDAP grants are available only to units of general local government that are not “entitlement” communities (in the Peoria MSA that includes the cities of Peoria and Pekin). In Illinois, only municipalities, townships and counties are eligible to receive CDAP funds. Those entities can pass through funds to special purpose districts for eligible projects, but the applications must be identified “on behalf of” to avoid the risk of not being disqualified.
After reading the synopsis of the situation below, any interested party is urged to contact the EDC for a quick evaluation of a potential project. A determination would have to be made on a case-by-case basis whether a project may be eligible and satisfy the rating criteria. Also, it is important to point out that it is will be infeasible to prepare but very few applications because of the short time available.
A list of eligible activities includes:
Financial assistance to pay for the expansion of a factory or commercial business, or the establishment of a new facility or business. Under this provision, there are no restrictions for how this financial assistance might be structured. For example, the CDBG funds could be given to the company with which to:
✓ Purchase land;
✓ Construct a building or other improvements;
✓ Renovate an existing building to accommodate the business;
✓ Construct tenant improvements/finishes;
✓ Lease space in or purchase an existing building;
✓ Purchase capital equipment;
✓ Purchase inventory;
✓ Use as working capital;
✓ Provide employees with higher wages or fringe benefits (such as health insurance) that the company would not otherwise provide; and
✓ Provide job training to newly-hired employees who otherwise would not qualify for those jobs.
Activities that are ineligible include:
Activities generally prohibited under regulations governing the regular CDBG (CDAP) program, are also excluded under ARRA, including:
· Construction of buildings or portions thereof
· Facilities used predominately for the general conduct of government (e.g., city halls, courthouses, jails, police stations)
· General government expenses
· Operation and maintenance costs
· Servicing and refinancing of debt
For more information on the program or to discuss a potential project, please contact us at:
Jim Cummings, 495-5957 or Sally Hanley at 495-5953.
Draft Economic Development Strategy
Growth Cell
Updated Enterprise Zone Map
Economic Stress Nationwide
Government Blog
Move to Peoria
PEORIA, IL 61604
MLS #1105910
How Green is Your Municipality?
How Green is Your Municipality?
Seminar for the:
International Institute of Municipal Clerks Conference
Thursday May 21, 2008 10:00 am to 12:00 Noon
Palmer House Hotel Chicago, IL
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Presentors - in Order of Presentation
Charles Eckenstahler CEDc - Farm land & open space preservation, Green Checklist
Allen Morris Vice President, Teng Development - LEED, Public Buildings, building retrofits
Chris Setti, 6 Sigma Black Belt and Special Projects manager for the City of Peoria "Green Process", Peoria Urban Living Iniative
Craig Hullinger AICP - Green Land Planning, Sustainable Development, Economic Development
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Chuck Eckenstahler is a Senior Consultant with McKenna Associates a,Northville Michigna based municipal planning consulting firm serving clients in Micihgan, Ohio and Indiana. He is a 35 year veteran real estate and municipal planning consultant who teaches economic development subjects in the Graduate School of Business at Purdue Northwest, Westville, Indiana and serves on the faculty of the Lowell Stahl Center for Commercial Real Estate Studies at Lewis University, Oakbrook Illinois. He holds two Masters' Degrees, one from Governors State University and the other from the University of Notre Dame. He is an active writer, having more than 100 articles published on various economic development, land use planning and real estate development topics. He can be contacted at ceckenstahler@mckc.com or by phone at 219-861-2077. http://www.mcka.com/
Allen Morris Vice President, Teng Development. He has extensive experience in the planning and construction of major public buildings, and has participated inthe development of numerous with LEED and "green technology buildings. He has also worked on project planning and development. http://www.teng.com/
Chris Setti is the Special Projects Manager for the City of Peoria. He is a 6 Sigma Black Belt and formerly the City's Senior Economic Development Specialist. In his current role at the City, Chris spearheads the City's energy efficiency efforts, including coordinating the Energy Efficiency and Conservation Block Grant. Chris has also helped lead the Peoria Urban Living Initiative, an effort to increase home ownership in older neighborhoods in Peoria. Chris has a Bachelor' degree in Political Science and a Master's degree in Public Administration.
http://renaissanceparkpeoria.com
Craig Harlan Hullinger AICP, is the Economic Development Director for the City of Peoria, Illinois. He has developed numerous successful “Green” developments, and is currently guiding Peoria’s efforts to create new urban mixed use development in the downtown area along the Riverfront. Craig has a BA Degree in Public Administration and a Master's Degree in Environmental Planning. He can be contacted at 309 494- 8639 or Hullingerc@gmail.com.com. More information can be found at http://www.peoria.blog.com/
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Green Land Planning, Sustainable Development
References
http://sustainablepeoria.blogspot.com/
http://greencitydevelopment.blogspot.com/