LEE COUNTY ECONOMIC DEVELOPMENT CORPORATION
Southern Base of the Research Triangle Region

NEWS RELEASE

FOR IMMEDIATE RELEASE
Monday, August 16, 2004


LEE COUNTY EDC ENDORSES "AMENDMENT ONE"
TO ALLOW LOCAL SELF-FINANCING BONDS

SANFORD -- The Lee County Economic Development Corp. has endorsed a proposed 
amendment to the state constitution allowing local governments to issue 
self-financing bonds.

The measure -- called "Amendment One" because it will be the first proposed 
amendment listed on the statewide ballot in November -- was supported by the 
local economic development group in a resolution approved last month.

"Self-financing bonds are one important way we can attract more business," 
said Bob Heuts, Lee County's director of economic development. "North Carolina 
and Arizona are the only two states that don't allow this option already. In a 
competitive environment, we can't afford to be at a disadvantage."

Self-financing bonds allow local governments to borrow money to fund public 
improvements -- streets or water and sewer lines, for example -- without long 
delays required to approve traditional bonds.

Because self-financing bonds pay for themselves, local taxes do not need to be 
raised and the community does not need to pledge its taxing power to repay the 
bond.

According to North Carolinians for Jobs and Progress, an advocacy group 
established to promote Amendment One, self-financing bonds are traditionally 
used for development projects such as the reuse of abandoned plants, 
construction of affordable housing and development of industrial parks.

Once these bonds are issued to support some specific project, higher property 
taxes collected in the newly-improved development district provide the money 
needed to repay the bond.

Before the bond can be issued, under the proposed constitutional amendment, 
projects must be approved by both the local government and the North Carolina 
Local Government Commission in the State Treasurer's Office.

The approval process, Heuts said, is a critical component of what makes 
self-financing bonds work.

"What the amendment does is allow the option to use this tool," he said. "But 
local governments still must approve each specific project to make sure it 
will work in each particular case. And, then, the proposal is reviewed in 
Raleigh to make sure the financial package is sound."

Heuts also said the change could help attract jobs that otherwise might go to 
neighboring states.

"South Carolina and Georgia have been particularly successful with this kind 
of financing," he said. "And companies looking here also are looking at 
communities in these states, just over our borders."

Three former governors -- Govs. Jim Holshouser, Jim Hunt and Jim Martin -- are 
serving as honorary co-chairmen of North Carolinians for Jobs and Progress.

Amendment One has been endorsed by a long list of governmental and economic 
development groups, including the North Carolina Association of County 
Commissioners, North Carolina League of Municipalities, North Carolina 
Citizens for Business and Industry, and North Carolina Economic Developers 
Association.

The Lee County Economic Development Corp. is a nonprofit organization 
established to attract industry, enhance job opportunities and promote sound 
planning across Lee County. Funding is provided by the county, as well as the 
City of Sanford and Town of Broadway, the county's two municipalities.

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Media Contacts:
Bob Heuts, Director
Jane Haber, Administrative Assistant
919-774-8439 (phone)
919-775-5410 (fax)
info@lcedc.com (e-mail)

LCEDC Media Web: http://www.lcedc.com/media/
This release: http://www.lcedc.com/media/releases/nr081604.txt