Job Creation and Other Benefits
In addition to being a qualified activity, a project must demonstrate public benefits in order to warrant CIDFAC approval. The CIDFAC members have designated job creation as the primary public benefit to be achieved. In the absence of other benefits, the Commission uses as a guideline that there be at least a ten percent increase in the number of jobs at the Project site within two years of Project completion. In addition to this guideline, which is not a mandate, the Commission looks favorably on projects which will employ individuals participating in job training or placement programs. The Commission also favorably regards projects which are located in an economically distressed area of the state. The Commission gives special priority to projects located in state-designated Enterprise Zones. Applicants should include written descriptions of the public benefits as part of their application.
Other public benefits that the Commission will consider include job retention, energy and resource conservation, environmental stewardship, a good average hourly wage, and employer contribution to medical, dental, vision and retirement benefits. The Commission is required by the Act to determine that the proposed bonds are "fair, just and equitable to the purchaser of the bonds." To comply with this provision, the Commission generally requires that credit enhancement - either bond insurance or an irrevocable letter of credit - be applied to the bond issue, if they are publicly offered. Private placements do not require credit enhancement if the placement is limited to an Approved Institutional Buyer and has restricted resale provisions.