New financing tool available for area business
- Details
- Published on Thursday, 13 October 2011 13:50
- Written by The Peorian
Businesses in the Peoria area have a new funding resource to tap into.
The Heartland Partnership on Thursday announced the Tri-County River Valley Development Authority (TCRVDA) is now operating and has authority to issue up to $100 million in bonds for economic development and is a general development tool for Peoria, Tazewell and Woodford counties.
The TCRVDA is one of 10 similar development authorities in the state. The others have issued more than $900 million in bonds since the early 1990s, the Heartland Partnership said in a news release.
The legislation for such development authorities was approved by the Illinois General Assembly in the early 1990s but the TCRVDA was not operational until a board of directors was chosen and seated by the Heartland Community Development Corp. and the Heartland Partnership, said Kip McCoy, vice president of the Heartland Partnership.
McCoy said the Heartland Partnership had been looking into various avenues to offer additional support to local companies and projects that are seeking financing. “We determined TCRVDA could bring additional financing options to the local communities. The Heartland Partnership is administering the program, and the Heartland Community Development Corporation has agreed to fund the first 12 months of TCRVDA activity, which will enable the Authority to begin operations without seeking additional start-up capital. After the initial 12 months, the TCRVDA will need to have a plan in place to be self sustaining,” he said.
McCoy believes the TCRVDA offers the region another economic development tool that can work closely with our local municipalities and civic leaders. It will provide long term financing using bonds instead of traditional lending and is most beneficial for manufacturing and non-profit businesses.
TCRVDA can issue bonds allowing local companies to access an additional allotment of bonding volume cap that is presently not available. TCRVDA has authority to issue taxable or tax exempt bonds, moral obligation bonds with the consent of the governor, or issue notes or other evidence of indebtedness.
The 11-member board includes Gary Densberger, East Peoria; Jimmy Dillon, Peoria County; John Abel, Pekin; Bob Knepp, Woodford County; Russ Crawford, Tazewell County; Tim Riggenbach, City of Peoria; Marc Miller, Illinois Department of Natural Resources; Tony Rolando, Illinois Department of Commerce and Economic Opportunity, and three others to be appointed by the Governor.
For more information about TCRVDA funding contact McCoy at kmccoy@h-p.org.
