Adair County Commission approves federal recovery zone
Wed, 12 Aug 2009 16:56:18 GMT —
Some possible good news for the Human Identifications Technologies, or H.I.T., expansion to Kirksville. The Adair County Commission approved a motion to become a federal recovery zone which allows the county to be eligible for private bond allocations of just under $3.5 million. Kirksville TMs Director of Job Creation, Phil Tate, asked that the entire bond be allocated to H.I.T. so they can continue development of their lab in the heartland. Unlike most government issued bonds, taxpayers aren't responsible for repayment of these privately backed bonds.
No local taxpaying entity is on the hook. They do have tax exempt status as a result of the federal government. So, we're all a part of the federal government ...So we participate in that manner. But, these bonds are not secured by any local public subdivision," Tate said.
The commission did approve the allocation request. According to Tate, it is up to a bonding company to determine how much funding, if any, H.I.T. will receive.
"A bonding company or trust company of a bank has to make that determination based on the credit worthiness of the company itself. So, that amount and other terms of the bond such as interest rates and length of time will be determined after close evaluation of the company by an entity that does that for a living. Not by us, not by K-REDI, not by anyone locally, said Tate.