Kalamazoo County takes step that could lead to arena funding

A resolution to declare Kalamazoo County a recovery zone so it can take advantage of $46 million in low cost bonds — which could be used to help build an $81 million downtown event center — has been approved by the Kalamazoo County Board of Commissioners, reports the Kalamazoo Gazette. The low cost bonds are available through the federal stimulus program and $27.65 million can go to private borrowers in the form of tax-exempt financing. The county can use another $18.43 million to build public infrastructure, like roads or water and sewage systems. In the story, County Board Vice Chairwoman Deb Buchholtz says few local projects would qualify for the bonds. Excerpt: “Whatever project is funded with those bonds has to have the financial backing to pay off the bonds,” said Buchholtz, R-Cooper Township. County officials are looking to use the facility bonds toward the $81 million arena proposal in downtown Kalamazoo, if the project moves forward. The county board is considering whether to ask voters in August to approve a new tax on food and drinks in bars and restaurants, as well as an increase in the hotel tax, to pay off the construction debt. Buchholtz said the $27.65 million was a “sizable amount,” but that Kalamazoo County was still working to access the unused bonding allocation that had been granted to other counties in the state. For more on other funding the county is seeking, read the rest of the story. Source: Kalamazoo Gazette