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Governor Signs Kreitlow/Seidel Local Economic Development Bill

Wednesday, April 21, 2010

Legislation has strong support among central and western Wisconsin local government leaders

MADISON – During a ceremony at the State Capital today, Governor Doyle signed legislation into law, enabling communities to join together to offer tax exempt conduit bonding to private developers and businesses looking to build or expand in Wisconsin. The legislation, which was authored by Senator Pat Kreitlow (D-Chippewa Falls) and Rep. Donna Seidel (D-Wausau), passed both houses of the legislature unanimously.

“We introduced this legislation at the request of local government leaders looking to us for additional tools they can use to grow their local economy,” said Kreitlow. “In my area, a number of major employers are looking to grow, but the uncertain lending market has held them back. Now local governments and communities can help those companies access capital at a competitive rate.”

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.

“During the hearings held on this bill, we heard testimony about a number of projects that will create jobs and grow our economy, but are being held back because of a lack of access to capital,” said Seidel. “This bill will help communities move projects like those forward, helping Wisconsin’s economy get back on track. Creating jobs is my top priority, and this piece of legislation builds upon a number of success stories that we have already seen this year across Wisconsin.”