Bond Issues

 Industrial Revenue Bonds

Industrial Revenue Bond financing is a method of financing in which the City of Fort Wayne can assist private business development and expansion by issuing low-interest tax-exempt bonds. The low-interest feature of industrial revenue bond financing is attributed to the fact that the interest on the bonds is exempt from federal and state income taxes.

All Industrial Revenue Bond issues must be approved against the State of Indiana's "pooled" allocation or volume cap through the Indiana Finance Authority:  
IFA Volume Cap Informations

THE PROGRAM

Legislation enacted by the State of Indiana authorized the creation of economic development commissions and the issuance of Industrial Revenue Bonds. The Fort Wayne Economic Development Commission (EDC) was established in 1972 with the authority to issue tax exempt revenue bonds to assist industrial and commercial development.  Operating under   Bylaws  in accordance with the Indiana Code, the    EDC Board  consists of five members with staggered terms.

The maximum bond amount available is $10 million per project, with maturity as long as 40 years. Interest rates from 65% to 75% of the prime market rate are anticipated. The actual rate is negotiated between the buyer and the seller of the bonds.

Bonds are available for 100% financing of the project, with no equity injection required.

ELIGIBLE EXPENSES

ELIGIBLE PROJECTS

Bonds may be used for the  purchase, construction, renovation or improvement of:

• Manufacturing plants and ancillary facilities

• Pollution control facilities

• 501(c)(3) organization bonds

• Qualified residential rental projects

ADVANTAGES

• 100% financing of projects

• Favorable interest rates

• Long term loans (up to 40 years)

THE APPLICATION PROCESS

After completing an application obtained from the Community Development Division, the Fort Wayne EDC holds a public hearing and makes a recommendation to City Council. City Council then adopts an inducement resolution. Final approval and issuance of the bonds may occur within 30-60 days. Per Commission policy Inducement Resolutions are granted for a maximum of 180 days before final approval is requested.  

CLICK    SCHEDULE  FOR THE 2012 SCHEDULE OF EDC MEETINGS AND APPLICATION SUBMISSION DATES.

THE STEPS IN THE APPLICATION PROCESS (Typical)

1. Submit Application to Community Development Division (Last Thursday of Month)

2. Submit Volume Cap Application to the Indiana Finance Authority (Last Monday of Month)

3. Legal Notice Published for EDC meeting (14 days before EDC meeting)

4. Indiana Finance Authority Board meeting - Volume Cap awarded

5. EDC meeting held, public hearing conducted, inducement resolution approved

6. Inducement Resolution and EDC recommendation introduced to City Council (4th Tuesday)

7. Inducement Resolution discussed by City Council

8. Inducement Resolution approved by City Council

9. EDC holds meeting to discuss and approve final resolution

10. Bond Ordinance introduced to City Council (4th Tuesday)

11. Bond Ordinance is discussed by City Council

12. Bond Ordinance approved by City Council

13. Bond Closing

 PROJECT REVIEW

Due to the expenses incurred by the City of Fort Wayne during the bond process, a fee of 50 cents for every $1,000 of the bond issue is required. One-half is paid at the time of the application, while the remainder is due at closing. This fee is non-refundable.

last updated: 2/11/09

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