Philadelphia, January 3, 2010-The City of Philadelphia will be able to use tax-exempt financing to promote development of the Navy Yard, thanks to a provision of the federal stimulus program. There will be a ceremonial ground breaking Monday afternoon.
The Recovery Zone Facility Bonds will be used to develop flexible use space at the Navy Yard. Alan Greenberger is Deputy Mayor For Economic Development. He says the bonds came to the city to help stimulate private investment.
“The federal government is allowing a certain amount of bond money to be put out into the market for private use tax free,” said Greenberger. “Typically you float bonds to raise money for a private project they are not tax free. These are tax free as if they were supporting a non-profit when in fact it’s being use to support a for-profit venture.”
Greenberger says Liberty Property Trust is taking advantage of the bonds and is talking to companies about moving into the new space, and an announcement is expected within a few weeks.
By Tom MacDonald, WHYY Newsworks