Industrial Development Bond* (IDBs) Financing
| • | Bond Proceeds must be used to finance land, building, and new equipment that will be engaged in manufacturing and certain processing activities. Manufacturing facilities means any facility that is used in the manufacturing, creation, or production of tangible property or, prior to January 1, 2011, intangible property. Intangible property means any patent, copyright, formula, process, design, know-how, format, or other similar item. It is intended for this purpose to include, among other items, the creation of computer software and intellectual property associated with biotech and pharmaceuticals. |
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| • | Existing manufacturing facilities (including equipment) may be acquired by bond proceeds under certain circumstances. |
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| • | Capital expenditures by the borrower (and related parties) within the city where the bond proceeds are being spent are limited to $20 million aggregating during a six year period beginning three (3) years prior to the bond closing and continuing until three (3) years after the bond closing. |
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| • | Borrower must obtain an Inducement Resolution from the Authority within 60 days of taking title to assets that are to be financed with bond proceeds. |
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| • | Minimum financing of $2,000,000 is recommended in order for the transaction to be economically advantageous. | |
| • | Borrower has up to three (3) years to spend bond proceeds and may want to consider several phases of expansion plans. |
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| • | Current refundings of existing IDBs may also be available. |
Eligible projects
The projects may include acquisition, construction, equipping, or improving the borrower's land, building, or equipment. Tax-exempt IDBs are available for manufacturers, processors and non-profit organizations. The project may include industrial or manufacturing plant, a research or development park, an agricultural processing or storage facility, a warehousing or distribution facility, a headquarter facility, a tourism facility, and education facility, a commercial project in an enterprise zone or a healthcare facility.
*Small Issue Tax-Exempt Revenue Bonds