Everybody knows the country has faced economic challenges over the past year and that the federal government passed a nearly $800 billion economic stimulus package, called the American Recovery and Reinvestment Act of 2009 (ARRA), in February.
What is far less well-known is that L.A. entertainment businesses can apply for tax-exempt facility construction bonds under the program.
The City of Los Angeles was awarded an allocation by the U.S. Department of Treasury to issue up to $269,191,000 in tax-exempt Recovery Zone Facility Bonds through December 31, 2010. Eligible projects must be located in the City’s designated Recovery Zone (see above map). Projects located outside the Recovery Zone can also be financed as long as the assets being financed benefit the Recovery Zone.
This Zone is a geographical overlay of existing Federal Empowerment Zones, Federal Renewal Communities, the Los Angeles — Hollywood, East Los Angeles and Harbor State Enterprise Zones, Community Redevelopment Agency Project Areas, Airport Hospitality Enhancement Zone and others.
Eligible projects include the construction of facilities for entertainment, motion picture and recording businesses. Priority consideration will be given to projects that will create permanent new jobs, those that pay prevailing and living wages, Green projects with LEED Silver certification, those within a half mile of fixed rail transit stations and those which have obtained CEQA and other entitlement approvals.
For more information on the program, contact David Hirano in the Los Angeles City Administrative Office at 213.978.7621 or [email protected]