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DURHAM, N.C. – Private businesses interested in setting up shop within the city limits are now urged to apply for the City of Durham’s allocation of recovery zone facility bonds (RZFBs). 

RZFBs were created through the American Recovery and Reinvestment Act of 2009 (ARRA) as a new debt financing option that supports local economic development for private entities.  The State of North Carolina received more than $627 million, of which the City is seeking a portion of from the North Carolina Department of Commerce.  The City is now seeking applications for private development projects from businesses interested in having a substantial impact on the physical, economic vitality of the community within the City Council-approved recovery zone boundary limits, which are all areas within the city limits.  Examples of eligible business and industry sectors include, but are not limited to, manufacturing and bio-tech; finance and insurance; corporate centers, research and development, and information technology; transportation warehousing logistics; hospitality, tourism, and retail; and higher education institutions.

According to Kevin Dick, director of the City’s Office of Economic and Workforce Development, the City wants to introduce RZFBs to Durham’s private entities as a way to spur economic development without obligating the City of Durham for the funding.  “Recovery zone bonds are a great alternative funding source to help economic development projects that have difficulty accessing traditional means of financing,” Dick said.  “RZFBs are new types of tax-exempt bonds that have lower interest rates and allow for-profit businesses access to federal tax-exempt financing.  They can also be used for a broad array of financing – from construction of new and expanded buildings to the purchase of equipment.  Right now, with the credit markets remaining very tight, many viable business projects have been unable to get off the ground and help with our local economic recovery process.  We’re hoping that by facilitating this effort, we can connect these viable, for-profit businesses with RZFBs and help kick-start our local recovery.”

According to Dick, the City is seeking applicants that will stimulate economic development activities and whose projects can demonstrate the following:
     • Stimulate economic revitalization by leveraging private investment;
     • Make permanent jobs accessible to lower-income neighborhood residents, including persons who are unemployed;
     • Engage community involvement and support;
     • Strongly encourage local partnerships; and
     • Create and retain permanent, full-time livable wage jobs.

The deadline to apply for the RZFBs is March 19, 2010.  For a complete description of the private recovery zone facility bonds use guidelines and application process, visit the City’s Web site at www.durhamnc.gov/departments/eed/pdf/recovery_zone_solicitation_request2.pdf.  Interested applicants may also contact Chris Dickey, senior economic development manager with the City’s OEWD, at (919) 560-4965, ext. 15204 or via e-mail at chris.dickey@durhamnc.gov.

About the Office of Economic and Workforce Development
The City of Durham’s Office of Economic and Workforce Development (OEWD) seeks to increase the city’s tax base through several revitalization initiatives, including new development efforts in the central city area.  The department also identifies and recruits target industries as well as assesses and trains Durham residents to fill new jobs.  For more information, visit www.durhamnc.gov/departments/eed.