Innovative Tire Recycler Gets Go-Ahead to Issue Tax Exempt Bond

High-tech tire recycler could receive first bond for urban rejuvenation

 

MGP Corp., a tire recycling located in Arizona, was given the authorization by the Tucson Empowerment Zone to issue up to $33.5 million in tax-exempt bond financing to build a tire recycling operation in an empowerment zone in Tucson, Ariz.

 

The facility, which aims to break down tires to their base components of carbon black, steel, fiberglass and nylon cord, will be located at the Arizona Science and Technology Park.

 

According to local press reports the project would become the fourth of 30 federally designated urban empowerment zones to issue tax-exempt bonds and the first from the third group of zones established in February 2002. Tucson may bond up to $130 million.

 

One challenge that needs to be met would be that to qualify for the tax exempt financing the company needs to have at least 35 percent of its workforce come from what is deemed inner city neighborhoods. The company expects to employ around 64 people when it becomes operational.
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