Change Font Size: [+] [-]

Senate Committee Passes Conduit Bonding Bill

Thursday, February 25, 2010

Senate Committee passes Kreitlow/Seidel Conduit Bonding Bill

Legislation creating new economic development tool for Wisconsin communities moves forward: Full Senate expected to take bill up soon

MADISON - Legislation that enables communities to offer tax exempt conduit bonding to private developers and businesses looking to build or expand in Wisconsin moved forward today as the Senate Committee on Economic Development passed SB 399 by a 7-0 vote. The legislation, which was authored by Senator Pat Kreitlow (D-Chippewa Falls) and Rep. Donna Seidel (D-Wausau), is expected to be taken up by the full Senate next week.
"This legislation is another step in the right direction for economic development and job creation in Wisconsin," said Kreitlow. "By giving communities the ability to pool resources and maximize their access to the tax exempt bond market, we are giving them another critical tool to use in their efforts to grow their economy and create and retain jobs."

The bill allows local governments to join together to create a local economic development financing authority that has the ability to issue tax-exempt bonds for projects that promote economic development and provide a public benefit to cities, counties, schools, and other governmental entities in Wisconsin and throughout the country. The conduit bonds issued by the financing authority to eligible private entities would be the debt obligations of the private borrower and not the participating local government; therefore, the local government has no liability for repayment of the bonds and no taxpayer dollars are at risk. The local economic development financing authority's activities would focus on providing access to financing for eligible borrowers and projects, such as multifamily affordable housing, nonprofit institutions operating medical, educational and cultural facilities.
"This legislation is a great example of our efforts to find creative new ways to encourage private investment in Wisconsin," said Seidel. "Our local governments have been asking us to give them more economic development options and this bill does just that.'

The proposed authority would be created by local government, for local government. No proposed project will go forward without a public hearing and approval from the local government in the jurisdiction in which the project resides, thus ensuring that the local government and its citizenry maintains a voice not only through the local economic development financing authority but also relative to a particular project. Importantly, all of these benefits come about through the proposed legislation with no fiscal impact to the State or its local governments.

Last Updated (2010-03-02 11:36:31)