An Arizona dairy has won a state lottery to receive tax-exempt federal stimulus bonds.
Paloma Dairy of Gila Bend, Ariz., was one of three Arizona business selected in a lottery drawing Monday to share $29.7 million in recovery zone facility bonds for private construction projects, the Arizona Republic reported today.
Paloma Dairy will use the $6 million it requested to add a second dairy to its operations, the newspaper said.
Drake Cement LLC, a cement plant, and paint-maker Dunn-Edwards will receive $17.7 million and $6 million, respectively. The funds will be used for construction projects.
The Arizona Department of Commerce, which oversaw Monday’s lottery drawing, recouped $78 million in bonds from five cities and five counties that could not find projects that met federal eligibility requirements. The bonds are an inexpensive loan that is tax-exempt, lowering the cost of repayment.
“This really means additional jobs for Gila Bend and the surrounding area," Jeff Shook, the controller for the family-owned dairy, is quoted as saying. "We expect when we're up and fully operational probably to add around 35 jobs, which is quite a bit for the area because it's pretty economically depressed.”
The dairy has 9,000 dairy cows, and ships milk from Gila Bend to the United Dairymen of Arizona plant in Tempe. With the expansion, it will add 6,000 cows, Shook said.
The American Recovery and Reinvestment Act of 2009 gave $225 million in bonds to Arizona.
Eight cities and seven counties received bonds for projects but have until Jan. 1 to award them to projects.
Federal guidelines say cities and counties must "use it or lose it" by the deadline, or the bonds will expire and no one could use them. To keep the bonds in the state, the Commerce Department asked cities and counties to waive their bonds if they could not find eligible projects.
An official with the state’s Commerce Department said there would be no more lottery drawings in Arizona this year.
Read more: http://www.azcentral.com/12news/news/articles/2010/10/19/20101019arizona-businesses-stimulus-funds-lottery.html#ixzz12qKUMag3