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LEE
COUNTY RECOVERY ZONE FACILITY BONDS
Low interest financing
opportunities for Lee County businesses.
Time is of the essence.
Applications are now being accepted and processed on a first
come, first serve basis until the $56.1M allocation has been
exhausted or though September 30, 2010, whichever happens first.
Overview
The Federal government has made
$56.1 million in tax-exempt financing available to Lee County
businesses through Recovery Zone Facility Bonds (RZFBs).
The purpose of these bonds is to provide tax-exempt, low
interest financing to businesses that would normally not qualify
for tax-exempt debt. This conduit financing program has
been implemented by the Lee County Industrial Development
Authority (IDA) to promote growth and economic development in
the County, per Lee County
Ordinance #09-029
Who Qualifies?
If a business qualifies for regular
bank financing, there is a good chance it will qualify for a
tax-exempt bond under this program. A qualified business
includes any trade or business except for residential rental
facilities, golf courses, country clubs, massage parlors, hot
tub facilities, suntan facilities, race tracks or other gambling
facilities or any store of which the principle business is the
sale of alcoholic beverages for consumption off property.
What Types of Projects are
Eligible?
Generally, RZFBs can be utilized for
capital improvements to an existing facility or construction of
a new facility within Lee County. Specifically, RZFBs may
be issued for any depreciable property (e.g. not land) that:
-
Is in Lee County:
-
Is in the conduct of
a qualified business: and
-
Was constructed,
reconstructed, renovated or acquired on or after
December 21, 2009;
Typical projects might include (but
are not limited to) the following:
-
Commercial
build/lease project (medical office
building/strip mall)
-
For profit
healthcare project (doctor-owned
surgery/diagnostic center)
-
Otherwise
disqualified manufacturing facility project
(e.g.>$20M cap. Expenses)
-
Profit/non-profit
new businesses (bank/pharmacy/gas
station/big-box retail)
-
Expansion of
existing business (new warehouse/showroom/office
space)
-
Reimbursement of
expenses related to the above after a Recovery
Zone is designated (but not for refunding of
existing debt)
Review of eligible projects may
include (but is not limited to) consideration of the following
criteria:
-
Type of industry
-
Number of current or
projected employees
-
Average wage of
employees
-
Capital investment
-
Average job growth
-
Financial stability
-
Results of an
economic impact study
-
Sustainability
-
Commitment to local
procurement and local hiring
-
National or state
recognition
-
Regional Impact
-
Amount of debt to be
issued
-
any other activity
or factor proposed by the applicant that can be
demonstrated in a satisfactory fashion to the
Board to promote economic development within the
County.
How to Apply
Applications are currently being
accepted for projects requesting at least $3,000,000 in
financing. Completed applications will be reviewed and
analyzed by the IDA staff at the Lee County Office of Economic
Development utilizing (but not limited to) the eligibility
criteria above. The IDA will present feasible
recommendations to the Lee County Board of County Commissioners
for ultimate approval.
Additional guidance on the program
as well as application instructions is in the
application package.
Costs
An application fee of $1,500 for
bond applications up to $5,000,000 and $2,500 for applications
over $5,000,000 is required at time of submission. The
application fee is non-refundable.
Additional financing fee apply at
time of bond issuance.
Questions
Questions about the program,
including inquiries about what types of projects are eligible
can be submitted to
EDO@Leegov.com or call 800-330-3161 or 239-338-3161.
*RZFBs issued by the County
or IDA do not institute a debt, liability, or obligation of the
County, IDA, any municipality, or the State of Florida, and
bondholders shall never have the power to compel the exercise of
ad valorem taxation for the payment.