Philadelphia, December 23, 2010- The City of Philadelphia was awarded about $13 million in Recovery Zone Facility Bonds (RZ-FBs) through the American Recovery and Reinvestment Act (ARRA). The Commonwealth increased Philadelphia’s RZ-FB allocation, with the re-allocation of RZ-FB volume cap waived by other municipalities within the Commonwealth, based on the City’s ability to reallocate the funding before the end of 2010. RZ-FBs are a new, tax-exempt private activity bond created specifically by ARRA to be distributed by municipalities for business development activities. The City of Philadelphia will reallocate $16 million of RZ-FBs to Liberty Property Trust for use in connection with a new development project at the Navy Yard. The project details will be available in coming weeks.
“Recovery dollars keep flowing into the city and are having a direct impact in our communities and neighborhoods. We applied for and I am thrilled that we received more funding to create jobs, foster business growth and improve our communities,” said Mayor Michael A. Nutter. “Liberty Property Trust is a strong partner for the Administration, and I want to thank them for spearheading this project. Philadelphia is a smart choice for business.”
“The long-term commitment by the City of Philadelphia and PIDC to developing the Philadelphia Navy Yard as a new magnet for business is becoming fully realized,” said John Gattuso, Senior Vice President and Regional Director of Liberty Property Trust. “These funds will enable us to respond in the near term to the growing demand from leading edge companies to locate and grow in Philadelphia. We are appreciative of our partnership with the city and its affiliated entities and look forward to the continued emergence of the Navy Yard as a significant driver of Philadelphia’s future growth.”
The ARRA funding authorizes the City of Philadelphia to assign an issuing authority to issue tax-exempt bonds for private activity use. The Administration has partnered with the Philadelphia Authority for Industrial Development (PAID) to structure and issue the RZ-FBs on behalf of Liberty Property Trust. The Federal government is awarding an available $15 billion nationwide in RZ-FBs.
RZ-FBs are issued in Federal Recovery Zones, which are designated as:
1. Any area designated by the issuer as having poverty, unemployment, rate of home foreclosures, or distress;
2. Any area designated by the issuers as economically distressed by reason of the closure or realignment of a military installation pursuant to the Defense Base Closure and Realignment Act of 1990; and
3. Any area for which a designation as an Empowerment Zone or Renewal Community is in effect.