Burbank, Glendale, Pasadena to Receive Millions in Recovery Act Funds
| Friday, June 12, 2009 | Contact: Sean Oblack (202) 225-4176 |
Burbank, Glendale, Pasadena to Receive Millions in Recovery Act Funds
Funding will help create local jobs and revitalize communities WASHINGTON, DC – Today, Congressman Adam Schiff announced that the cities of Burbank, Glendale and Pasadena will receive millions of dollars in bonds as part of the American Recovery and Reinvestment Act (Recovery Act), which Congress passed and President Obama signed into law early this year. The bonds will help these local governments obtain financing for critical economic development projects, such as public infrastructure development, at lower borrowing costs. The funding from the Recovery Zone Bonds program administered by the Treasury Department is aimed at areas particularly affected by job losses and home foreclosures. “At a time when California is facing a record budget deficit and local cities are struggling to make ends meet, this is welcome news,” said Schiff. “These funds will help jumpstart our local economy putting people to work and revitalizing our community through new development.” Below is a list of the funding each city will receive:
Recovery Zone Economic Development Bond Recovery Zone Facility Bond Burbank $10,043,000 $15,065,000 Glendale $5,210,000 $7,815,000 Pasadena $2,552,000 $3,828,000
There are two types of Recovery Zone Bonds that the three cities will receive. The first is the Recovery Zone Economic Development Bonds, a type of taxable Build America Bond, that allow state and local governments to obtain lower borrowing costs through a new direct federal payment subsidy, for 45 percent of the interest, to finance a broad range of qualified economic development projects, such as job training and educational programs.
The second type of bond, the Recovery Zone Facility Bond, is a type of traditional tax-exempt private activity bond that may be used by private businesses in designated recovery zones to finance a broad range of projects that fall outside of typical public activities such as large manufacturing plants, distribution centers, and hotels.