The City of Pasadena (City) is issuing a Request for Proposals (RFP) for the purpose of eliciting interest and proposals from qualified applicants to receive allocations of Recovery Facility Zone bonds to finance qualified economic development projects within Pasadena’s “Recovery Zone” area.
The American Recovery and Reinvestment Act (ARRA) of 2009 was enacted on February 17, 2009. As part of the ARRA, the Internal Revenue Code of 1986 allows local public agencies to designate “Recovery Zones” for the purpose of issuing public and private bonds. Recovery Zone Facility Bonds provide tax incentives and lower borrowing for private entities to promote job creation and economic recovery in areas particularly affected by employment decline.
The Recovery Zone Facility (“RZFB”) allocations are not cash but are rather the ability to issue debt up to the allocated amount. RZFBs are tax exempt, private activity bonds that allow borrowers with a letter of credit or private placement commitment to finance depreciable property that involves the construction of new facilities or modernization of existing facilities. RZFBs enable private borrowers to borrow less expensively than by conventional means. RZFBs may only be issued for projects located within the “Recovery Zone” (entire City). The City’s allocation of RZFBs is $11.1 million however; the City intends to seek additional allocations from the State of unused allocations.
On or before April 2, 2010, all interested parties should submit their contact information and brief project description via email to dklug@cityofpasaena.net, to receive additional information as it may become available. All questions regarding the RFP must be directed to the email address listed above.
Download the RFP Packet