INDUSTRIAL DEVELOPMENT REVENUE BOND FINANCING IN MIAMI-DADE COUNTY
By definition, Industrial Development Revenue Bonds (qualified small issue bonds or IDBs) are securities issued by a local government agency for the purpose of acquiring or constructing capital facilities for use by private business and industry.Customarily, the facilities are then leased or sold by the agency to qualifying industries for the lease or installment purchase payments necessary to retire the bonds.The debt service on the bonds is paid solely from the revenues or payments received from the company, and there is no undertaking on the part of the local agency, county or any other governmental unit to make such payments other than from the lease or installment payments received.
In its simplest form, IDB financing may be compared to ordinary note and mortgage financing, i.e., a private lender (bond purchaser) agrees to lend funds (buy bonds) to a private company.The facilities (capital project) which the lenderís funds are used to finance are mortgaged to secure the repayment of the loans (bonds). In many cases, the repayment schedule (debt service) is structured similarly to level debt amortization schedules for typical mortgage loans.
In the case of IDBs, the local issuing agency (Industrial Development Authority) serves as a conduit.The loan is made to the Authority; the Authority relents the bonds (bond proceeds) to the private company to pay the cost of the capital project.For IRS purposes, the action of passing the loan through the Authority results the loan being treated as a special obligation of a local governmental agency.
All scheduled meetings are to be held at 1:30pm in the Miami-Dade County Industrial Development Authority Conference Room, Brickell City Tower, 80 SW 8th Street, Suite 2801.
Please contact the Authority for meeting confirmation.