State officials said last week that the giant multi-national corporation has purchased $25 million in taxable bonds that will provide low-cost financing for a project that will be determined sometime this fall.

It will be the first-of-its-kind private investment in a Connecticut city, according to the Rocky Hill-based Connecticut Housing Finance Authority (CHFA).

Officials at GE said it's part of its banking division's commitment to reinvest in communities with environmentally sensitive and regionally oriented development. Bridgeport Mayor John M. Fabrizi said that it's one more example of how the city's development plans are moving forward. Earlier this year the city approved its master plan for downtown development.

He said a number of organizations and developers are organizing applications that will be presented for competitive screening before the Connecticut Housing Finance Authority.

"That money opens up a great opportunity for investors and developers and it's a sign of Bridgeport's revitalization," Fabrizi said, hoping that the money ends up funding work in Main Street's northern section.

"We do need the support in the East Beirut-looking looking section of Bridgeport, which is Downtown North and also in the Middle Street area," Fabrizi said in a phone interview.

He also wants a fagade rehabilitation program for existing buildings that will not be part of the next stage of development.

"It's really, really starting to come together now," Fabrizi said. "I'm looking forward to more progress."

The GE commitment was first reported in the Connecticut Post on May 1 and during CHFA's the June board meeting, GE was authorized to purchase bonds at a four-percent rate.

That meeting also approved announcing requests for proposals to use the money for various projects, with an August 31 submission deadline, according to Timothy Coppage, CHFA vice president for housing development. Various proposals will be announced at the end of September.

"This is the first time we've ever done anything like this," Coppage said in a recent phone interview. "It's very unique." The requests for proposal (RFPs) will be reviewed by a panel including officials from CHFA, GE and the city.

"We're fortunate that this money is flexible," Coppage said. "They're taxable bonds that can be used for mixed-use and mixed-income projects, including rental housing, home ownership and a wide range of potential projects."

Coppage anticipates that winning RFPs will be announced 30-to-60 days after the September 27 CHFA board meeting.

Nancy O'Brien, administrator in CHFA's housing-development division, said the area's proximity to the rail and bus lines is important.

"We're encouraging the development because it's in a specific geographic location," she said. "This can help alleviate congestion on highways and roads. We're encouraging green design and pedestrian-friendly space." About 1,000 potential developers and contractors were contacted and non-profit organizations were also encouraged, O'Brien said.

Gus Serra, manager of communications in GE's human resources unit, said last week that CHFA will make the final decision. "This is an investment," Serra said. "The GE Money Bank will purchase bonds at a socially motivated rate and CHFA has set up program with GE to set up implementation for Bridgeport's downtown development plan."

Serra said that even though the Money Bank division is located in Utah, GE's corporate headquarters in Fairfield makes Bridgeport eligible for the program. The company has 310,000 employees in 160 countries.

In 2006, GE - created in an 1892 merger and listed don the Dow Jones Industrial Index since 1896 - reported $163 billion in revenues and earnings of $20.7 billion of earnings.

Serra said the $25 million is in addition to $7 million already committed to $2 regional small-business start-ups; $3 million for a minority-owned lending institutions; and $2 million for supportive housing projects in Fairfield County; and other, smaller grants.

"We think this is an excellent vehicle for development grounded in 'green' and 'Smart Growth principles," Serra said. "It captures a new vision for the city."