An obscure entity called the Private Activity Bond Review Board Thursday authorized $26.2 million in bonding for a longtime Utah company, a utility, a small medical products manufacturer and a company known for providing affordable housing.
Richard Nelson, board director, said that before 1986 the federal government allowed the state to issue up to $200 million in tax-exempt bonding for housing and $250 million for business projects.However, in 1986 the law was rewritten and the $450 million in bonding authority was reduced to $150 million, including the money for affordable housing. When an entity is given bonding authority it has 90 days to sell the bonds or the authority expires.
In Thursday's action, the board:
- Authorized $7.5 million in bonding to PacifiCorp, parent company of Utah Power, with the money being used to construct solid waste and sewage disposal facilities at the company's Hunter and Huntington coal-fired steam electric generating plants in Emery County.
PacifiCorp received a $5 million bonding authority during the board's May meeting. The company requested $10 million originally and received the $7.5 million in a compromise.
- Authorized $12.5 million in bonding authority for Kennecott Corp. with the money scheduled to be used in expanding the company's tailings pond project. Company officials said the tailings project is an integral part of the firm's $2 billion modernization program.
Nelson said the bonding authorization for Kennecott and PacifiCorp was possible when Circle Four Farms, Milford, relinquished $10 million in bonding authority. The money was scheduled to be spent on a solid waste disposal facility at the company, which raises and slaughters thousands of pigs each month.
Robert G. Adams, Circle Four Farms general manager, said it wasn't in the company's best interest to seek the tax-exempt bonding authority at this time but would probably return to the board next year and ask for a smaller amount.
- Zevex Inc., Murray, received $2.5 million in bonding authority with the money going to purchase land and construct a 32,000 square-foot building at 4400 S. 600 West. Zevex produces a variety of medical products.
Board members happily approved the bonding authority for Zevex, saying that is the type of business the state is trying to attract and keep because it is a clean manufacturing company paying good benefits and higher-than-normal salaries.
- Authorized $3.7 million in bonding authority to PSC Development Co. Inc., that will be used to rehabilitate the Villas at Vine Apartments at 5600 South and 900 East.
Peter S. Cooke, PSC president, said 102 one-, two- and four-bedroom units will be rehabilitated on the outside and inside.
"With private activity tax-exempt bonds and low-income housing tax credits, the development team can maintain a project at affordable income levels for 51 years at rents which are at least one-third less than surrounding apartment developments and provide five units for very, very low-income families," according to information PSC gave the board.
Board members also learned that Holnam Inc., sold $5 million in bonds Wednesday, a day before the authority would have expired. The company operates a cement production facility at Devils Slide, Morgan County, and will use the money to expand and upgrade its production capacity.