The Department of Economic Development has sent all communities receiving a direct allocation of Recovery Zone Bonds an Official Notice containing the allocation amounts (RZB Allocation) and explaining how Federal Stimulus Bill (ARRA) and HB 191 will be implemented by the state.

ARRA created three new bond programs of special statewide interest: Build America Bonds, Recovery Zone Economic Development Bonds and Recovery Zone Facility Bonds. A description of the two types of Recovery Zone Bonds is attached to the Notice. Additional information can be found at http://www.gilmorebell.com/memoranda.shtml.

The aggregate principal amounts of bonds issued under each of the Recovery Zone Bond programs may not exceed set dollar amount allocations. The allocation is for the remainder of 2009 and calendar year 2010.

The Notice identifies each community receiving a direct allocation as an “Allocation Designee” and contains specific instructions these communities will need to follow in order to issue bonds under either program. Important highlights of the Notice include:

1. 1. An RZB Allocation will be deemed waived on September 1, 2009 unless the Allocation Designee provides the Department with written notice of intent to issue Recovery Zone Bonds stating the amount and type to be issued.
2. 2. Any RZB Allocation that is not used by July 1, 2010 is automatically recaptured by the Department for reallocation.
3. 3. An Allocation Designee may authorize a public entity created by the Allocation Designee (e.g. a county Industrial Development Authority or a county public building corporation) to issue Recovery Zone Bonds. Similarly, an Allocation Designee may use another public entity authorized by state law to issue bonds (such as the Missouri Development Finance Board) pursuant to an arrangement where the proceeds of the bonds will be loaned to the Allocation Designee and used for the purpose of financing the specific project.
4. 4. An Allocation Designee may allocate all or a portion of its RZB Allocation to an unrelated political subdivision located within its jurisdiction. Such a reallocation will permit that political subdivision to issue Recovery Zone Bonds (e.g. a city located in the county of the applicable Allocation Designee).