Richardson: Approving Redevelopment Plan Will Save Millions of Dollars
Mount Pleasant Community Development Authority Chairman Rob Richardson addressed the proposed redevelopment plan for the Foxconn Project Area, in the Racine Journal Times:
"When an area is designated as subject to a redevelopment plan, it gives the Community Development Authority the power to issue debt obligations. When a CDA issues bonds, the bonds are 'double tax exempt,' meaning that interest payments received by bondholders are exempt from both federal and state income taxes," said Richardson. "Because of the unique benefits of double-tax exempt bonds, they are generally sold with lower interest rates than traditional bonds, decreasing the financing costs for the project. Though dependent on the market, initial estimates anticipate the village could see a minimum of $3 million in savings if the CDA issues the bonds for the Foxconn project."
Read Richardson's full commentary in the Racine Journal Times.