Blue Oak Arkansas To Receive Act 9 Bonds
by December 21, 2014 8:00 pm 312 views
A plan to help a new industry cleared a hurdle this week with Osceola city council members, Mayor Dickie Kennemore said Friday (Dec. 19).
The council approved an ordinance to issue Act 9 bonds for Blue Oak Arkansas during a council meeting Monday at Osceola City Hall.
Council members heard from attorney Tom Leggett with the Little Rock-based firm of Friday, Eldridge and Clark about the proposal.
Kennemore said the municipal bond program would help the company secure a better interest rate, plus help with taxes.
According to the Arkansas Economic Development Commission website, Act 9 bonds help manufacturers with competitive financing to buy land, buildings or equipment to expand their operations.
Cities and counties, which are not obligated to make payment on the bonds except from project income, can issue the bonds.
The bonds also have to be underwritten on the company’s financial strength or guaranteed by the AEDC or the Arkansas Development Finance Authority, according to the website.
Kennemore said the program also allows the city to receive a payment in lieu of taxes from the company.
Blue Oak Arkansas broke ground June 10 on a 30-acre plot of land on Ohlendorf Road, near the American Greetings factory in Osceola.
The business, which will hire between 30 and 50 people, will recycle metals, like gold and silver, from circuit boards, cell phones and other equipment, officials said at the groundbreaking.