CEDAR FALLS - Gov. Chet Culver wants his proposed $700 million stimulus package to combine with the federal stimulus package to pull Iowa out of the recession.

"We need to control our own destiny. We can just sit back and hope the federal money keeps coming, or we can take control ourselves," Culver said.

Culver is touring the state drumming up support for his $700 million bonding proposal as well as talking about disaster relief efforts. On Thursday he stopped at the Grout Museum to meet with local leaders and tout the plan.

The bonding proposal would be targeted at "shovel-ready" infrastructure projects including road, bridges, mass transit, housing and flood control improvements, among many others.

Prior to Culver's talk, Cedar Falls Mayor Jon Crews and Waterloo Mayor Tim Hurley gave brief presentations about projects they would like to see funded.

The projects involve a number of road construction and building projects, nearly all of them pulled from the two cities' existing capital improvement programs.

Crews and Hurley pointed to various parts of their proposals and noted potential for short-term construction jobs and, hopefully, long-term jobs through economic development.

Hurley said Waterloo's plans focus on flood mitigation, economic development and transportation.

"We appreciate the efforts you've made to address that," Hurley said to Culver.

Culver said spending on infrastructure now will position Iowa to have a stronger economy in the future.

"We can come out of this in better shape long term. It's going to be tough," Culver said.

The governor voiced his opposition to raising taxes during a recession and said the bonding plan would be a way to stimulate the economy without making a tax impact.

According to Culver, federal stimulus money targeted for infrastructure would pass down to the states for distribution. The lists being generated by the state right now could then be searched for projects that apply to various facets in the package. For example, if some amount of federal money came with requirements that it be used to make older government buildings more efficient, the state could dig through requests and find projects like adding geothermal climate control to a courthouse.

Culver said his plan will be subject to a great deal of debate at the Statehouse.

"Exactly how it looks at the end of the day, we're not there yet," he said.

During his speech, Culver announced the Preserve at Crossroads will receive $12 million in low-income housing tax credits. The project is planned as 12 buildings with 96 units of family housing located north of the Crossroads SuperTarget store.

The Iowa Finance Authority administers the federal tax credit program. The state received additional money this year for disaster relief.

The project, developed by TFG Development of Indianapolis, is one of five projects that have applied for the tax credits in Waterloo. Culver said more announcements will be made in the future.

Contact Jon Ericson at (319) 291-1461 or jonathan.ericson@wcfcourier.com.