Charlotte County is considering adding a new "tool" to its tool
box to attract companies to locate and expand in Charlotte County.
It is called The Charlotte County Industrial Development Authority
(IDA). The idea of forming an IDA has been a consideration of
the economic development office for some time, however, when a
recent company inquiry asked about financing a new facility with
tax exempt industrial development revenue bonds (IDRB's), it became
a top priority.
The Florida Statutes authorizes a county to create an IDA as a
conduit to assist in financing and refinancing projects that foster
economic development. The primary tool of an Industrial Development
Authority is its ability to issue IDRB’s, sometimes referred
to as “private activity bonds”, under guidelines authorized
by the Internal Revenue Service. IDRB's are securities sold to
investors with the proceeds used to finance a particular project.
The borrower pays the principal and interest on the debt.
The bonds issued by the IDA do not constitute a debt, liability
or obligation of the IDA or Charlotte County. The IDA evaluates
requests for IDRB's based on the ability of the proposed project
to produce tangible economic benefits to Charlotte County in new
employment, preservation of existing employment, or new capital
investment. Although the IDA can issue both, taxable and tax exempt
bonds, most qualifying projects prefer tax exempt bonds to help
lower financing costs. The interest on tax exempt bonds is exempt
from federal income tax, generally resulting in a lower rate than
conventional debt financing.
Bonds can be used for construction, demolition, new machinery
and equipment, land purchase (up to 25% of the bond value) and
other specified items as defined by state statute. A few specific
projects that are potentially eligible are: manufacturing and
industrial plants, research and development parks, corporate headquarters,
health care facilities and educational facilities.
The Board of County Commissioners will consider a Resolution forming
an Industrial Development Authority for Charlotte County at its
July 25th meeting.
Betty Williams is economic development manager for the Charlotte
County Economic Development Office (www.PureEconomics.org). You
can call her at (941) 627-3023 or e-mail her at PureEconomics@charlottecountyfl.com.
