Kane County ready to dole out $42 million in bonds

Kane County is ready for local governments and businesses to line up for their share of $42 million of bonds made available through the federal stimulus that local officials hope will spur local economic growth.

County officials said Tuesday they'll host two rounds of applications and use five criteria to decide who gets the money.

The county's Economic Development Advisory Board will serve as the review panel and forward recommendations to the Kane County Board's Development Committee. Successful applications will demonstrate:

1. The ability to catalyze additional economic growth in a neighborhood and community.

2. The potential to create or retain jobs both short- and long-term.

3. Oversight and management by a team with an experienced track record to make the project happen.

4. The ability to proceed quickly.

5. A plan consistent with county and local government plans for the area in which the project will occur.

The $42 million is available in two forms.

There is about $16.8 million in economic development bonds. Those bonds are for use by local government agencies for public improvement projects. County officials said Carpentersville may be one community interested in this type of bond to finance the construction of a new public works facility. St. Charles has also expressed interest in these bonds to help fund its downtown development known as First Street. These proceeds of the bonds are taxable, but 45 percent of the interest paid will be reimbursed by the federal government.

The remaining $25.2 million of bonding authority is available through facility bonds. Those bonds can be used by local for-profit or nonprofit businesses to finance the purchase, construction and/or rehabilitation of property used in their businesses. The proceeds of these bonds are exempt from federal taxes. Eligible projects include the construction of office or professional buildings, warehouses, retail shops, shopping centers, car dealerships, restaurants or industrial facilities.

The time frame on when the application process will begin should be set after the first of the year.

Interested applicants should contact the Kane County Development Department at (630) 232-3480.