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Recovery Zone Facility Bonds

The Recovery Zone Facility Bond (RZFB) program was created in 2009 by the American Recovery and Reinvestment Act and expired December 31, 2010. The bonds were allocated by the Capital Resource Corporation, a sister to the Industrial Development Agency. Because of the unique nature of these resources and due to the interest of various constituency based groups about how the bonds would be allocated, GJNY tracked RZFB proposals.

Summary of RZFBs criteria in New York City

Private businesses may use RZFBs to finance a broad range of construction projects, including office buildings, industrial facilities or retail complexes. The New York City Industrial Development Agency (NYCIDA) has issued six criteria for determining which projects will qualify for RZFB financing.

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GJNY Report: Kept in the Dark: Poor Reporting on New York City's Recovery Zone Bond Deals

March, 2011

Want to learn about how a Recovery Zone Facility Bond project in your neighborhood is creating jobs? Or even whether a particular development is financed by one of these special bonds authorized under the American Recovery and Reinvestment Act of 2009 (Recovery Act)? Good luck.

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Albee Square / City Point

Despite being one of the most profitable retail destinations in the city, Albee Square Mall in Downtown Brooklyn was demolished in 2007 to make way for a new retail development called City Point. The developer benefited by the city's displacement of existing stores and $20 million in Recovery Zone Facility Bonds, (a $3.2 million subsidy package approved for City Point in 2007 fell through).

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E Smith Legacy, LLC

This proposal for a new hotel in Harlem did not receive Recovery Zone Facility Bond financing even though it was authorized for $19.7 million by the CRC board.

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St. Barnabas Hospital/Arthur Management Project

On December 15, 2009, The Board of the New York City Capital Resource Corporation (CRC) approved $19.8 million in tax-free Recovery Zone Facility Bonds (RZFBs) to be used by Arthur Management Corporation for the construction of a parking facility. The facility would serve St. Barnabas Hospital in the Bronx, and would replace existing parking facilities. 

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Wythe Hotel

In December 2010, the Board of the New York City Capital Resources Corporation approved $15 million in Recovery Zone Facility Bond financing for a luxury boutique hotel in Williamsburg, Brooklyn. Good Jobs New York opposed the project on two main points, first that it was located in an industrial zone, intended promote industrial use; second, that in the project application, the developer made no effort to quantify the ways in which the neighborhood would benefit from the development, by local hiring practices or in a commitment to local product sourcing.

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Bonds and the Recovery Act: A Guide to Municipal Bonds Enabled Under the 2009 American Recovery and Reinvestment Act and Their Potential Impacts on New York Communities

January 2010

Allison Lirish Dean

Perhaps the most obscure aspect of the $787 billion American Recovery and Reinvestment Act is how it seeks to expand bond programs for public infrastructure and private economic development projects. A report released today by Good Jobs New York explains how the Recovery Act's new and expanded bond programs are facilitating economic recovery and where opportunities exist for public input.

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