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Posted by Are You Pandering to the electorate? on October 15, 2004 at 17:16:24:

In Reply to: DORIA BILL TO ENCOURAGE INVESTMENT IN IMPROVEMENT DISTRICTS APPROVED posted by NJ Senate Democrats on October 15, 2004 at 15:50:01:

: FOR RELEASE: Immediate CONTACT: Jason Butkowski
: October 14, 2004 Tel: (609) 292-5215
: Fax: (609) 984-1235
:
: DORIA BILL TO ENCOURAGE INVESTMENT IN IMPROVEMENT DISTRICTS APPROVED

: TRENTON - A bill sponsored by Senator Joseph V. Doria which would allow special improvement districts (SIDS) to borrow money from private lenders, such as banks, under long-term financing contracts was unanimously approved by the Senate Community and Urban Affairs Committee today.

: "The saying goes that Rome was not built in a day, and I don't think that they could rebuild it in a day either," said Senator Doria, D-Hudson. "Improvement districts are our State's answer to help blighted areas within a municipality rebuild, but currently, we impose strict time limits on how long they can borrow money from private lenders. By allowing SIDS the flexibility that a long-term financing contract provides, we are improving the chances for success in these districts."

: The bill, S-1723, would authorize SIDS to enter into long-term financing arrangements with private lenders in order to provide more funding for downtown improvements and allow greater latitude to implement long-range programs to revitalize downtown business areas. Currently, SIDS can only borrow money from private lenders for 180 days. Senator Doria argued that by giving SIDS the ability to enter into long-term borrowing agreements, we are also opening up a market in-demand by many private investors.

: "If you look at how fast private investors grab up publicly-issued bonds, you would see that investors want to get involved in public revitalization projects," said Senator Doria. "The market is there to forge strong public-private partnerships to rebuild and revitalize many of the downtown areas throughout the State that have fallen on hard times. We should open up the floodgates, and see what kind of a positive response we can get from the investment community in helping our downtowns thrive and flourish."

: The bill now heads to the full Senate for consideration.

: ###


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