County uses 'recovery zone' to woo new industry

Commissioners were told by their attorney, John T. Bobo, that the designation, part of a federal program, won't cost the county anything and that industrial bonds will be handled the same way as in the past with the industry, not local governments, responsible for repayment.

Bobo told the county that Bedford County is one of three locations being considered for a plant which County Mayor Eugene Ray said would employ 118 people, and the recovery zone designation could help make the difference.

"We're trying to get the jump on this prospect," he said.

Bobo offered no specifics about the prospect or how soon a decision might be made.

"There's no timetable that we know of," he said.

Chamber of Commerce CEO Walt Wood said one industrial prospect in the past two weeks specifically asked about the designation.

The resolution to create the county-wide recovery zone cites the county's July 2009 unemployment rate of 12.4 percent, with 2,870 unemployed.

The recovery zone designation would give a potential industry a federally-subsidized discount on interest rates for an industrial bond. As in the past, the city-county industrial board would issue the bonds. Commissioner J.D. "Bo" Wilson noted the county is at the end of its recommended debt load and asked whether issuing such bonds would obligate the county. Bobo said it would not; any bonds would be the responsibility of the industry to repay.

The subsidy is achieved by tax incentives. According to an Internal Revenue Service publication, "In general, Recovery Zone Bonds provide tax incentives for State and local governmental borrowing at lower borrowing costs to promote job creation and economic recovery that is targeted to areas particularly affected by employment declines."

The American Recovery and Reinvestment Act of 2009 created the bond program, which according to IRS authorizes state and local governments to issue Build America Bonds in 2009 and 2010 to finance any capital expenditures for which they otherwise could issue tax-exempt governmental bonds. State and local governments receive a direct federal subsidy payment for a portion of their borrowing costs on Build America Bonds equal to 35 percent of the total coupon interest paid to investors.

In other action Tuesday night:

* Commissioners approved a rezoning request from Roger Smith at 3225 U.S. 231 North from A-1 (agriculture) to C-1 (commercial) for the construction of a proposed Dollar General store. The normal procedure for re-zoning requests is that a public hearing is held just prior to the commission meeting. Sometimes, such hearings require little or no public comment, but they are required by zoning rules.

No such hearing was held prior to Tuesday night's commission meeting. Immediately after the meeting was adjourned, a Times-Gazette reporter asked Ray why not, and Ray -- saying it had been an oversight -- took the microphone and asked those in attendance whether anyone wanted to speak about the rezoning request.

* Commissioners voted in favor of a model resolution asking the state to delay implementing the Voter Confidence Act, saying that approved voting machines aren't yet available. The act will require paper ballot voting machines, which create a paper trail that can be used for recounts.

* Commissioners voted to approve writing off Bedford County Emergency Medical Service bad debts in the amount of $142,161. This is the figure discussed last month by the county's Financial Management Committee. A much lower figure, $8,700,was mistakenly listed in the commission's agenda.

* Commissioners passed a resolution allowing the county to contribute $6,729 to Argie Cooper Public Library for a new heating and air conditioning unit. The expense had already been approved in concept by commissioners.

* Ray read a resolution honoring the Hoodlum Alley Claybusters, a local youth trapshooting team, for winning two recent national tournaments. In July, the team -- composed of fourth and fifth graders -- won the Scholastic Clay Target Program national championship, and in August, they won the AIM/ATA Grand National Competition.