By CRAIG HAMILTON
Executive Director
Jasper County Economic Development Corp.
The Iowa Legislature is considering a new economic development tool that will positively impact the area around the Iowa Speedway. Known as House File 2480, this bill creates a bonding tool that would directly benefit Newton, but also develop new destination sites anywhere in Iowa.
The risk is on the private sector and not on any government entity or individual taxpayer. Site developers must provide an attractive destination site that will gain the confidence and purchasing of bonds by investors.
The legislation, if approved, would allow a city or county to establish a bonding district. Four cents of the state sales tax nickel would be used to retire bonds issued to support these projects. There's no real risk to communities. Neither of the two local option taxes - the ones that go to schools and local governments - would be touched in retiring the debt. The bonds would not be backed with local property tax revenues either. In fact, the additional sales taxes from new shopping and attractions would increase the revenue that supports schools and communities.
The bill is designed for large projects that generate at least $50 million in capital investment, 200-plus new jobs and $25 million or more in new taxable sales. The public will have a voice in the decision. That's because a local referendum is required to establish the district and then the Vision Iowa Board must approve specific projects.
Modeled after a program that spurred development around the Kansas Speedway, the STAR (Sales Tax Anticipated Revenue) Bonds there have turned empty land into new retail areas generating millions of new dollars annually, as well as jobs and increased property values.
In today's extremely competitive economic development environment, it often takes this kind of boost to help a community stand above the crowd. HF 2480 is just the kind of legislation that will strengthen Newton and Jasper County for the long-term. With more than 10 million cars per year traveling on I-80, this is a prime opportunity to capitalize on what Jasper County offers.
It's a win-win situation. Contact your Senator and Representative in the Legislature. Tell them you support HF 2480. Then, if given the opportunity, vote yes to establish such a district in Jasper County.
Editor's Note: A subcommittee of the House Ways and Means Committee will discuss the proposed legislation at a meeting at the statehouse at 11 a.m. Monday.

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