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SCHENECTADY COUNTY
Feds OK $12.3M in bonds for local projects
BY MICHAEL LAMENDOLA Gazette Reporter
Reach Gazette reporter Michael Lamendola at 395-3114 or lamend@dailygazette.com.

    The federal government is making up to $12.3 million in “recovery zone bonds” available to Schenectady County to stimulate public and private development projects.
    The county received an allocation of $7.3 million in bonds for private economic projects and an allocation of $5 million in bonds for public projects. The bonds are part of the American Recovery and Reinvestment Act of 2009.
    The county’s use of the bonds is optional. However, if it takes advantage of them, it has to issue the bonds by Dec. 31, 2010.
    Ray Gillen, commissioner of planning and economic development for Schenectady County, said the bonds “give us another tool: low-cost financing for public and private projects in the county.”
    The private project bonds are attractive because they provide tax-exempt financing for projects that are not tax-exempt, such as manufacturing plants, hotels, research facilities and distribution centers.
    The public project bonds allow the county to get reimbursed from the federal government for 45 percent of the interest paid, making their cost lower than tax-exempt bonds.
    Gillen, who also is chairman of the Metroplex Development Authority, said Metroplex may use $5 million of the $7.3 million in bonds set aside for private projects toward construction of General Electric’s $100 million sodium-storage battery plant on the GE Energy Campus off Erie Boulevard.
    Gillen added that Metroplex also could issue regular bonds for the GE project and then use the federal bonds for other private development projects. He said the decision will be based on the best interest rates. Metroplex has a strong bond rating and can get good rates on bonds, Gillen said. For a recent bond issuance, Metroplex got an interest rate of slightly less than 2 percent. ....................>>>>...............>>>>................http://www.dailygazette.net/De.....r01001&AppName=1

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For a recent bond issuance, Metroplex got an interest rate of slightly less than 2 percent.

And that's why consumer CD's and savings accounts are in the tank.  TYVM.

If the money being awarded by the federal government is intended to fund the creation of jobs, I would like to see it awarded as loans, not grants,
to finance private industry ventures rather than to create more public sector jobs.  Further, rather than awarding the majority of the low interest loans
and tax exempt loans to GE, the loans should be provided to new start up companies in technology, manufacturing, and research & development.
These small businesses need the support more than does GE.  If successful, these start ups could create many new high paying jobs and expand their
presence in Schenectady County.

These funds should NOT be used to finance additional retail establishments.  We need to attract employers who offer full-time, high paying, career
opportunities not temporary, part-time, and minimum wage jobs.  Without the existence of high paying positions with benefits, there will be no
discretionary income to be spent at retail establishments, restaurants, and service providers.

Let us see if our economic development team can think outside of the box to attract companies from other counties and states rather
than relocate businesses from one neighborhood of the county to another.

Ya, good luck with that one Brad - that's so far out for them it's not even funny.

I thought the same thing when I read it. Why would they even consider GE, who can well afford to set up business anywhere, over businesses on a much smaller scale?

What caliber jobs and how many will this sodium-storage battery plant provide?

Because GE is the preferred corporation, in line with Obama and ready to back him up politically.

Quoted from GrahamBonnet

Because GE is the preferred corporation, in line with Obama and ready to back him up politically.

So I guess it is true.....it does run downhill!

I thought the $700 billion Federal stimulus package was supposed to re-capitalized the banks and unfreeze the credit markets?  Why aren't private lenders and venture capital being invested into Schenectady?  Because it's a losing investment!  No sense in investing in Schenectady County without a government subsidized loan and PILOT.  

The only LONG TERM solution is to cut spending WAY back, re-negotiate these public contracts and drop tax rates across the board.  I know it's a radical concept, but  we will just continue to chase our tails with this current plan of begging for federal money, and funneling sales tax money to those politically connected.  

$5 MILLION of the $7.3 MILLION in bonds to GE? WTF?

   Instead of creating new opportunities and helping new companies come to this County more of this nonsense. The GE project will not create any new employment- it will retain existing employment-that would have been laid off due to reduced worldwide demands for turbines.

    Brad is right-start improving the County infrastructure-increase rail lines-create an industrial zone by the airport-reindustrialize the ALCO plant. Watch it be wasted on "green projects" like choking traffic on Erie, County summer day camps, and condos/parks at ALCO.

Quoted from CICERO

I thought the $700 billion Federal stimulus package was supposed to re-capitalized the banks and unfreeze the credit markets?  Why aren't private lenders and venture capital being invested into Schenectady?  Because it's a losing investment!  No sense in investing in Schenectady County without a government subsidized loan and PILOT.  

The only LONG TERM solution is to cut spending WAY back, re-negotiate these public contracts and drop tax rates across the board.  I know it's a radical concept, but  we will just continue to chase our tails with this current plan of begging for federal money, and funneling sales tax money to those politically connected.  

Let's see what Moody's rating says......