What types of projects may be funded with project development bonds?

Project development bond proceeds may be used only to finance the capital costs of specified purposes that enable, facilitate, or benefit private development within the development financing district.

The following chart details the purposes for which project development bonds may be issued, as specified in G.S. 159-103(a). Note that both counties and municipalities may issue project development bonds to fund all of the specified purposes, regardless of whether the unit of local government may issue general obligation bonds to fund the specified projects or activities.

Permissible Uses of Project Development Bonds for both Counties and Municipalities

Capital costs of providing airport facilities

Capital costs of providing auditoriums, coliseums, arenas, stadiums, civic centers, convention centers, and facilities for exhibitions, athletic and cultural events, shows, and public gatherings

Capital costs of providing hospital facilities, facilities for the provision of public health services, and facilities for care of the mentally retarded

Capital costs of art galleries, museums, art centers, and historic properties

Capital costs of on- and off-street parking and parking facilities, including meters, buildings, garages, driveways, and approaches open to public use

Capital costs of providing certain parks and recreation facilities, including land, athletic fields, parks, playgrounds, recreation centers, shelters, permanent and temporary stands, and lighting

Capital costs of redevelopment through acquisition and improvement of land for assisting local redevelopment commissions

Capital costs of sanitary sewer systems

Capital costs of storm sewers and flood control facilities

Capital costs of water systems, including facilities for supply, storage, treatment, and distribution of water

Capital costs of public transportation facilities1, including equipment, buses, railways, ferries, and garages

Capital costs of industrial parks, including land and shell buildings, in order to provide employment opportunities for citizens of a county or city

Capital costs of property to preserve a railroad corridor

Capital costs of providing community colleges facilities

Capital costs of providing school facilities

Capital costs of improvements to subdivision and residential streets

To finance housing projects for persons of low or moderate income

Capital costs of electric systems

Capital costs of gas systems

Capital costs of streets and sidewalks

Capital costs of improving existing systems or facilities for transmission or distribution of telephone services

Capital costs of housing projects for low- or moderate-income persons

To provide or maintain beach erosion control and flood and hurricane protection, downtown revitalization projects, urban area revitalization projects, drainage projects, sewage collection and disposal systems, off-street parking facilities, and watershed improvement projects in a municipal service district


1 G.S. 159-103(a), as amended by S.L. 2007-395 (SB 1196), specifically exempts certain types of parks and recreation facilities - stadiums, arenas, golf courses, swimming pools, wading pools, and marinas.