Small Town News

County commission ponders $5.3 million in recovery bonds

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The Rolette County Board of Commissioners met last Tuesday to discuss what to do with its Recovery Zone Bonds.

Representatives from area schools, the city of Dunseith, and business owners from Rolla and Rolette were present to learn more about the Recovery Zone Bond program, in which the county received close to $15 million in bonds. The program is intended to stimulate economic activity and support qualified economic development projects within Rolette County.

The county received an allocation of $5,349,000 for Recovery Zone Economic Development Bonds, which are issued to county, city, school districts, and other political subdivisions for public projects and will be reimbursed by the federal government for 45 percent of the interest paid on the bonds; and $8,159,000 for Recovery Zone Facility Bonds, which are used to finance retail or commercial facilities for private business, with the interest being exempt from state and federal income tax, resulting in a lower interest rate.

According to the website of the United States Treasury, $90 million in economic development bonds, and $135 million of facility bonds were issued to counties in North Dakota.

"Do we have anything we'd be able to use these for?" asked George Youngerman, director of the Rolla Job Development Authority. If there isn't, it was pointed out, the state wants the money back as soon as possible so it can be reallocated to other counties. Should the county decide to return the bonds, there are already two requests made: one for $5,349,000 in economic development bonds for public-entities for Williston State College, and another for $5 million for a housing development in Minot.

In a teleconference with Myron Knutson, Public Financial Management, Inc., it was explained to the group that the money can be used for the expansion of an existing business, but not for operating capital. Any amount can be requested for a project, although the allocation needs to be approved by the county commissioners, he added.

The allocation and issuance of funds must be made by December 31, 2010. The board of commissioners, along with any interested party, will meet at the Rolette County Courthouse on Tuesday, May 18, at 1:00 p.m. to discuss the matter further. In the meantime, an application will be created for those wishing to apply for the funds. Questions can be directed to Val McCloud, county auditor, at 701-477-5665.



Copyright 2010 Turtle Mountain Star, Rolla, North Dakota. All Rights Reserved. This content, including derivations, may not be stored or distributed in any manner, disseminated, published, broadcast, rewritten or reproduced without express, written consent from SmallTownPapers, Inc.

© 2010 Turtle Mountain Star Rolla, North Dakota. All Rights Reserved. This content, including derivations, may not be stored or distributed in any manner, disseminated, published, broadcast, rewritten or reproduced without express, written consent from DAS.

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