SALT LAKE CITY, UT – November 16, 2010 – (RealEstateRama) — Tooele County has received approval from the Utah Division of Housing and Community Development’s Private Activity Bond Board for a $11.4 million allocation of Recovery Zone Bonds for use in building a new county jail.
The bonds will help construct a new 72,551 square foot building including a 264 bed jail, a booking area, medical clinic and administrative area. According to the county’s application, the current facility is dated, overcrowded and costly to operate, requiring regular repairs.
“This facility is expected to bring short-term construction jobs to Tooele County and once complete, another two dozen permanent jobs at the county jail to handle any increased capacity,” said Gordon Walker, Utah Division of Housing and Community Development director. “This financing tool, provided by Recovery Zone Bonds, helps local governments, such as Tooele County obtain the funding needed to revitalize their community during an economic time when a project like this would be placed on hold.”
Created by the American Recovery and Reinvestment Act (Recovery Act), Recovery Zone Economic Development Bonds are available to municipalities that are located within a designated Recovery Zone to fund public infrastructure projects in support of economic development. Recovery Zone Economic Development Bonds are taxable bonds that finance public infrastructure projects for which the federal government will reimburse the governmental issuer for 45% of the interest paid.
The Private Activity Bond Authority is Utah’s tax-exempt bonding authority creating a lower cost, long-term source of capital under the Federal Tax Act of 1986. As a result, the federal government allocates over $30.8 billion per year to states on a per capita basis, with Utah receiving $273,775,000 in volume cap in 2010.
The program is managed by the Division of Housing and Community Development under the Utah Department of Community and Culture.