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County plans
two more
stimulus bond issues
County government
intends to give two more businesses the ability to sell
'recovery zone' bonds to help finance expansions. Ordinances
introduced into County Council on Nov. 9 and likely to be
enacted when Council next meets would permit sale of up to $10
million worth to finance a six-story 120-unit Sheraton Comfort
Inn motel on Old Baltimore Pike and up to $3.75 million so
United Electric Supply Co. can acquire a building on Bellecor
Drive for a new headquarters. Karl Kalbacher, director of
economic redevelopment, said the hotel would provide 85 new jobs
after it is built and the project would employ 250 workers
during construction. Electric Supply, he said, plans to add 14
people to its headquarters staff.
Because they are
issued in the name of a local government, 'recovery zone' bonds
command lower interest rates. However, they are instruments of
so-called conduit financing, which means the county has no
obligation to repay them or service the debt. It also receives
an administrative fee of 0.5% of the principal amount. The
bonds program is part of the federal government's job-creation
efforts. New Castle County can authorize up to $76 million worth
of private financing assistance. The pending issues would bring
the total authorized so far to $64 million. Kalbacher told
Delaforum that other projects under consideration would account
for the remaining $12 million if approved before the federal
program expires at the end of the year. |