More cheap govt funding for Springfield development

[zoo]

Springfield is an Ent/Emp/Recovery Zone, and has numerous already-cleared redevelopment sites.

(from the Cornerstone web site)

NEW RECOVERY ZONE PROGRAM WILL SOON GIVE JACKSONVILLE ANOTHER TOOL IN ITS ECONOMIC DEVELOPMENT TOOLBOX

10/14/2009 12:53:54 PM

Jacksonville is now able to take advantage of a new program, the Recovery Zone (RZ) bond program, created under the Obama administration's American Recovery and Reinvestment Act (ARRA), better known as the Stimulus package. The purpose of the program is to promote job creation and investment within distressed and underutilized areas.

The program calls for the local government to designate areas with significant poverty, unemployment, rate of home foreclosures or general distress, as an RZ. The Enterprise Zone, Empowerment Zone, Community Redevelopment Areas and the former Naval Air Station Cecil Field, will be designated as Jacksonville's RZ.

Designation of an RZ will allow the City of Jacksonville and the State of Florida to issue Recovery Zone bonds for private and public projects that promote job creation and economic recovery. The two types of RZ bonds are:

RZ Facility Bonds:
- Traditional tax-exempt private activity bonds which have lower interest rates because the interest is tax-exempt to the investors for Federal tax purposes. 
- Do not count against the state volume cap.
- Can be used by private businesses for depreciable capital projects (e.g., buildings and equipment) for original use in active businesses in recovery zones.
Jacksonville was allocated $24,518,000 in RZ Facility Bonds.

RZ Economic Development Bonds:
- Can be used by governmental entities for public capital projects in recovery zones and for job training and education.
- Conventional taxable bonds which allow states and localities to obtain financing at lower borrowing costs because the Treasury Department pays the State or locality a direct payment subsidy equal to 45 percent of the coupon interest on the bonds.
- Jacksonville was allocated $16,346,000 in RZ Economic Development Bonds.

RZ Bonds must be issued by January 1, 2011. Interested parties are encouraged to contact Lindsey Ballas, JEDC Business Development Chief, at (904) 630-2940 or lballas@coj.net.

[mtraininjax]

Lindsey, I really hope you and the JEDC can make this work and cast a bright light on Jax as a result!

[north miami]

There is a nostalgia for a Springfield most of us have never known.

Hanging between a past and a future ...........and taken hostage by militant outlying county promotions,sealed by the Beltway/TPO. And you were not even watching............

If you are in your (early) 20's perhaps all of this will prove of good.

In my 20's (70'S) I dreamed of jacksonville-Even employed at 20th & Main/Albritton Marine for a time.In the 80's.

For most of you,trust me: SKIP IT  Get out now.

[fsu813]

Yea.....and my parents should have never moved into Riverside in the 80's either...... that place is horrible!

[strider]

As a small business owner who has looked at these programs (Enterprise Zones, Empowerment Zones, ETC.) in the past, the admin side of things can be difficult and they often seem to be geared towards much larger companies.

Springfield is just one of the areas that can benefit from this type of program.  Historic Springfield is less likely to see the funds from these programs than several of the others, mostly due, I believe, to the zoning and past experience of other commercial developments. 

This program, as it has been presented here, appears to be geared towards hopefully bringing in new and larger commercial construction, or at least that seems like the hope of the original poster.  The projects that may take advantage of these programs must be able to stand on their own whether they are getting inexpensive low interest loans or not. If a project is almost viable without the low interest costs, then perhaps this program will make a difference, but generally, a project that takes advantage of the programs could/ would be done even without it. 

All I am trying to say is that programs like this may help, but generally do not make the impact most would like to believe they do.  In other words, you don't just go buy that new computer in January because the prices are the lowest, you buy a new computer because the need is there and you can justify the purchase.  You simple take advantage of the sales.

So, rather than look at sites that may be available, you must look at the projects that are already being considered and  perhaps are ‘on the fence” and see if they can take advantage of the program.  For instance, the possible development in New Springfield by Swisher.  The site is ready, the plans have been made so they are very likely to try for funds like this.