Four Oklahoma Tribes Receive Approval to Issue $90 Million in Tax-Exempt Development Bonds

Sept. 11, 2009 - PRLog -- EDMOND, OK – The Internal Revenue Service has approved the plans of four Oklahoma Tribes to issue $22.5 million apiece in tax-exempt bonds for economic development and infrastructure projects.

The projects proposed for the bond issues include projects for the Kaw Nation, the Ponca Tribe of Oklahoma, the Delaware Tribe of Indians and the Fort Sill Apache Tribe.

Earlier this year, as part of federal economic stimulus efforts enacted under the American Recovery and Reinvestment Act of 2009 (“ARRA”), the Internal Revenue Service established a new tax-exempt Tribal Economic Development Bond (“TEDB”). The IRS set a $2 billion cap on the total amount of amount of TEDBs that could be issued nationwide.

The IRS started sending approval notices to approved applicants on Wednesday. The maximum possible bond allocation a Tribe could receive was $30 million.

“We are extremely excited,” said Kaw Nation Chairman Guy Munroe. “We have had this project in mind for a long time. When completed, the project will benefit Kay County and surrounding communities.”

The bond applications were prepared and submitted with the help of attorneys Ken Bellmard and Valerie Devol from Rubenstein McCormick and Pitts in Edmond, Oklahoma.

“Tribes have long needed easier access to the capital markets to finance economic development and infrastructure projects,” Bellmard said. “Our hope is that this stimulus program will help demonstrate that investments in Tribal projects are safe and profitable.”

Devol agreed. “Many people have been hesitant to invest in Tribal projects in the past without realizing the tremendous opportunities and advantages Tribes have to offer. Through this bond program, we can now promote these benefits to a wider audience.”

Tribes that receive bond allocations have until December 31, 2010, to actually issue the bonds.

The attorneys of the Native American Practice Group at Rubenstein McCormick and Pitts possess extensive and comprehensive experience in all facets of Native American law, including Tribal governance, gaming and economic development. Our practice group is composed of Tribal members who are leading lawyers in the field of Indian Law. Combined, our attorneys have nearly 50 years of experience serving the needs of our Native American clients. Although our primary focus is on the representation of Native American Tribes and Nations, our clients also include Indian-owned businesses and individuals.

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Attorneys of the Native American Practice Group at Rubenstein, McCormick and Pitts possess extensive and comprehensive experience in all facets of Native American law, including Tribal governance, gaming and economic development. Our practice group is composed of Tribal members who are leading lawyers in the field of Indian Law. Combined, our attorneys have nearly 50 years of experience serving the needs of our Native American clients.

We provide comprehensive legal services to Tribal governments and Tribal agencies in matters involving the expansion, enhancement and protection of Tribal sovereignty, the protection of land and natural resources, federal recognition, gaming, and financing Tribal projects. We are currently representing multiple Tribes in lawsuits against the United States seeking redress for past mismanagement of Tribal trust assets, holding the United States accountable for violating its treaty-based and statutory obligations to our clients.