The City of Lincoln, Nebraska has been awarded an initial allocation of national Recovery Zone Facility Bonds in the amount of $26,256,000 pursuant to the American Recovery and Reinvestment Tax Act of 2009. The bonds may be issued to finance Recovery Zone Property by a Qualified Business located in or attributable to an area within the jurisdiction of the City that has been determined has a significant level 'distress factors' such as poverty, unemployment, home foreclosures, or general distress.
Recovery Zone Property generally is any depreciable property if: (A) the property was constructed, reconstructed, renovated, or acquired by purchase by the taxpayer after the date on which the designation of the recovery zone took effect; (B) the original use of the property in the recovery zone commences with the taxpayer; and (C) substantially all of the use of the property is in the recovery zone and is in the active conduct of a Qualified Business. A Qualified Business is any trade or business except (1) the residential rental of real property located in a recovery zone and (2) any trade or business consisting of operating a private or commercial golf course, country club, massage parlor, hot tub facility, suntan facility, racetrack or other facility used for gambling, or any store the principal business of which is the sale of alcoholic beverages for consumption off premises.
The City Council of Lincoln, on March 8, 2010, passed Resolution A-85768 designating the area within the corporate limits of the City a recovery zone for the purpose of issuing both Recovery Zone Economic Development Bonds and Recovery Zone Facility Bonds.
At this time the City of Lincoln is making available $15,000,000 of Recovery Zone Facility Bonds. Eligible businesses who may have an interest in utilizing a portion of, or all of, the available $15,000,000 are asked to submit a Letter of Interest to:
City of Lincoln Finance Director Don Herz
555 S. 10th Street, Suite 103
Lincoln, NE 68508
The Letter of Interest should state the desired amount of bond requested and a detailing of the proposed development project to which the bonding will be applied, a contact name and information. Letters of Interest must be received, or postmarked, by April 16, 2010.
Local governments must demonstrate that they have either issued Recovery Zone Bonds, or will be able to issue Recovery Zone Bonds by December 31, 2010.