Representatives from Americana Bayside, one of the largest residential communities slated for development in southern Sussex County, will go before Sussex County Council to request approval of $78.05 million in bonds issuance on Tuesday, Nov. 12.

If approved, the bond money would be used to fund the building of commercial structures and the development of a sewer system for up to 178,000 square feet of commercial space located on 887 acres west of Fenwick Island.

However, according to Director of the Sussex County Finance Administration David Baker, the money could not be used to build the entire development, which received preliminary approval several years ago from the Sussex County Planning & Zoning Commission for the development of 1,700 single-family homes. The project has yet to begin, and the outcome is still dependent on the developer's (Carl M. Freeman & Associates) ability to obtain all necessary state agency approvals and requests.

Their request for the Economic Development Revenue Bond was supported by Sussex County's Industrial Bond Review Committee Tuesday, Oct. 22. The committee

recommended Americana Bayside representatives go before council to request the bond issuance because the project meets federal guidelines.

"But we're not loaning Americana Bayside money to build their development," Baker stressed. The bonds are not a county liability, he added, but are the full responsibility of the Freeman group. County officials do not guarantee the bonds in any manner. They are allowing the bonds to be issued in the county's name only, Baker said.

Committee members, Robert "Bob" Stickels, county administrator, Eugene Bayard, county attorney, and Steve Masten, county economic and development director, along with Baker, reviewed the bond request and agreed it met federal standards.

"Any [person] or business [owner] can apply if they have an eligible project," Baker said.

Part of the money, $16,120, will be tax-exempt for the company, while the remainder, $61,930, will be taxable, according to Baker. If council approves the bond issuance, the county will earn 0.005 percent from the nontaxable bonds and 0.0025 percent from the taxable bonds, according to Baker. He said the county could earn nearly $200,000, providing Carl M. Freeman representatives borrow the entire amount.

In order for a project to eligible for this bond issuance, it must promote the local economy, Baker said. The sewer project and commercial space are eligible because they are expected to expand the local tax base by increasing the population and providing jobs.

Other Sussex County businesses have used this program, including Perdue Agri-Recycle, the manure pellet plant in Bridgeville and PATS, Inc. at the Sussex County Airport in Georgetown, according to Baker.

Requesting a bond issuance "is an expensive proposition," he said. "And [the business owner] probably needs $2 or $3 million to make it worthwhile."

Sussex County Council will hear the bond issuance request for Americana Bayside representatives on Tuesday, Nov. 12 during its regularly scheduled public meeting.

Reach Roxann Moore at (302) 537-1881, ext. 108, or by e-mail at mailto:rmoore@smgpo.gannett.com

Originally published Wednesday, October 30, 2002