Twelve Communities To Receive Local Revitalization Financing Funds

For Immediate Release: September 15, 2009

OLYMPIA -- Governor Chris Gregoire today announced that the state will provide 12 communities with a total of $4.35 million annually for up to 25 years to help finance public infrastructure improvements.

Bellevue, Clark County, Federal Way, Kennewick and Wenatchee will receive $2.1 million through a first-come, first-served phase of the Local Revitalization Financing program. Bremerton, Auburn, University Place, Spokane, Tacoma, Whitman County, and Vancouver will receive $2.25 million under a demonstration project phase.

�I�m pleased to announce that the state will help these communities make key public improvements that will improve their economic vitality� Gregoire said. �This truly is a solid investment in the future.�

Approval of an additional first-come, first served application from Renton depends on the city resubmitting paperwork demonstrating it can proceed with its project with the remaining $400,000 available instead of the $500,000 it requested.

The Local Revitalization Financing program was enacted by the Legislature this year and signed into law by Gregoire. Recipients receive up to $500,000 each annually to help pay the debt service on bonds issued to finance a variety of infrastructure improvements to facilitate private investment in specific areas.

The legislation authorized cities and counties to create revitalization areas, sell bonds to pay for public improvements within those areas, and pay off the bonds with the state money, local contributions, and sales and property tax revenue generated by new activity within the revitalization areas. The state money comes from a share of the state sales tax generated in the community.

More information on the individual projects and the Local Revitalization Financing program is available at http://dor.wa.gov/content/doingbusiness/localrevitalizationfinancing.aspx.