Recovery Zone Bond Program - Policy & Application Procedures


Click here for the Recovery Zone Bond Application Form 


 Morton County Commission

Recovery Zone Bond Program


Policy & Application Procedures


Adopted May 11, 2010



1. Goals of the Recovery Zone Facility Bond Program:

a.   To create/retain jobs;
b.   To encourage private investment;
c.   Increase tax base.


2. Threshold Criteria:

Applicant must meet the following criteria to be considered for RZFBs tax exempt bonds:
a.   Meet the minimum requirements of published IRS guidelines. Those include any trade or business except residential rental, golf course, country club, massage parlor, hot tub facility, suntan facility, racetrack, gambling business, or sale of alcoholic beverages for off-premises consumption;
b.   Investment can only occur after October 8, 2009, the day the Recovery Zone was designated in Morton County;
c.   Must have an arrangement to purchase the bonds from a financial institution or bond underwriter demonstrating that the project is credit worthy;
d.   Project will be a catalyst for development or for multiple redevelopment opportunities in the County;
e.   Project will create new County property taxes within three years of project commencement.
f.    Applicants delinquent on real estate taxes for a project may not submit an application for allocation until its real estate taxes are paid current.
g.   Applicants must be current on any fees or other taxes.  


3. Evaluation Factors:

Proposals for tax exempt bonds which meet the appropriate threshold criteria
will be considered based on the extent to which a project addresses the
following evaluation factors:
a.   The amount of new property taxes to be generated by the project;
b.   The amount of investment in buildings and equipment;
c.   The project allows a primary sector business to expand in the County, retains a significant number of jobs in the County, and/or will add jobs.
d.   The project fills gaps for needed products or services in the subject community or County.


4. Application Procedures:

Morton County has developed certain procedures and forms that must be
completed and followed for persons seeking RZFB financing through Morton
County. The purpose of the instructions is to help the County facilitate the
process through all applicants following the same procedures. It is also the
desire of Morton County that applicants check out the legality and feasibility of
their projects prior to applying for RZFB financing in Morton County. As a part
of that desire, the County requires a $500.00 application fee which is non-refundable.
Second, a completed application form, a copy of which is attached to this policy, must be completed at the time of the application. Applications must be filed with the County Auditor’s Office by noon on the 10th day prior to a County Commission meeting to provide time for review of the application prior to the meeting by the county’s legal counsel.
The applicant is responsible for retaining their own bond counsel who shall prepare all necessary resolutions to be adopted by the County Commission. Resolutions must be filed with the County Commission Office by noon on the 10th day prior to a County Commission meeting to provide time for review of the resolution prior to the meeting by the county’s legal counsel.


5. Fee for Issuing Bonds:

The County has set an issuance fee for RZFB’s of $500.00.


6. Other Conditions:

If the bonds are not issued within 120 days after the allocation is given, it expires and goes back into the allocation “pool”. In all cases, all bonds must be issued no later than Jan. 1, 2011.


7.   The Morton County Commission reserves the right to determine the allocation amount, if any, on a case by case basis.