In Your Region
Industrial Development Revenue Bonds:
- Fitzpatrick Bros., Inc., Quincy, IL (April 2009) – $10MM
- Construction and equipping of a new, 65,000 square foot manufacturing facility on an approximately 8.0 acre site in Quincy
- Project resulted in relocation of Company’s manufacturing facility from a nearby state
- The Quincy facility manufactures powdered cleansing products under both proprietary labels and on a contract basis for third parties
- Bison Gear & Engineering Corporation, St. Charles, IL (July 2010) — $9.2MM with approximately $5.1MM of new money
- Acquisition, renovation, and equipping of an existing, vacant manufacturing facility that will serve as the Company’s second production facility in St. Charles and new equipment for the Company’s existing manufacturing facility in St. Charles
- Additionally, approximately $4.1 million of proceeds were used to refinance existing Tax-Exempt Industrial Development Revenue Bond debt
- Bison Gear is a fully-integrated manufacturer of fractional horsepower gear motors and AC and DC electric motors
- AML Campus LLC & Alef Sausage, Inc., Mundelein, IL (December 2010) - $3.0MM
- Acquisition, renovation, construction and equipping of an addition to the Company’s existing manufacturing facility in Mundelein
- Alef Sausage, Inc. manufactures over 40 varieties of European cooked and smoked sausage and other cured meats
Participation Loans for Business and Industry:
- Midwest Investment Solutions, Inc./Orbital Tool Technologies Corp., Belvidere, IL; IFA purchased an approximately $468,261 participation interest in an approximately $936,522 bank loan.
- Participation Loan Proceeds purchased an interest in a mortgage loan originated by Alpine Bank
- The IFA Participation Loan and Bank Loans financed construction of an 11,400 square foot addition to an existing 23,920 square foot manufacturing building used by Orbital Tool Technologies Corp. in its industrial services and fabrication business
- Orbital Tool Technologies Corp. provides its customers with complete outage support services, specializing in on-site field machining, shaft restoration, reverse engineering services, machine tool manufacturing, on-site welding service and fabrication teams that provide repair services for electric power generation facilities, chemical and petrochemical production facilities, and commercial and military marine cargo ship turbines
Exempt Facilities Revenue Bonds Issued Under Special, Limited Provisions of the Internal Revenue Code:
Federal Freight Transfer Facilities Revenue Bonds:- CenterPoint Joliet Terminal Railroad, LLC, Joliet, IL (December 2010) - $175.0MM
- Bond proceeds will assist in financing infrastructure located generally on an approximately 4,000 acre site (including 1,400 acres of industrial buildings and between 12 to 15 million square feet of warehouse/light manufacturing facilities) including the acquisition of the subject land, installation of infrastructure improvements and the construction of facilities for the transfer of freight including, without limitation, rail facilities, warehouse and other storage facilities, cranes, loading docks and other equipment integral to the transfer of freight at CenterPoint Intermodal Facility Joliet (and generally located between I-55 and Illinois 53 and south of the Des Plaines River in Joliet).
Note: These CenterPoint Project Freight Transfer Facilities Revenue Bonds were issued under a US Department of Transportation (“US DOT”) award of a portion of US DOT’s $15.0 Billion one-time national allocation of Tax-Exempt Bond issuance authority for privately-owned highway, railway, and toll bridge projects of “regional” or “national” significance as determined by US DOT. In this case, CenterPoint applied to US DOT to receive the necessary allocation of US DOT bond issuance authority to enable this transaction to be financed with Tax-Exempt Bonds.
Availability of Freight Transfer Facilities Revenue Bonds is currently limited to an aggregate issuance amount of $15.0 billion for projects nationally.
Please call IFA’s Chicago Office (312-651-1300) for additional information regarding prospective Freight Transfer Facilities Revenue Bond financings.
Midwestern Disaster Area Bonds (“MDABs”):
- KONE Centre Project (KONE Investment Fund, LLC), Moline, IL (December 2010) - $20.2MM
- Bond proceeds were used to finance construction of a portion of the construction costs for a new, 8-story, 115,000 square foot office building (i.e., the “KONE Centre”) located on an approximately 2.18 acre site in Downtown Moline
- The anchor tenant of the KONE Centre Building is the KONE, Inc., which is leasing approximately 4 ½ floors and will use the building as its American operations center
- Additional bond financed space in the building (i.e., approximately 2 ½ floors) will be leased to a various office, retail, and other commercial tenants
Note: The KONE Investment Fund, LLC Bonds were issued using a portion of the State’s $1.5 Billion allocation of Midwestern Disaster Area Bonds, a special category of Tax-Exempt Bonds for privately-owned projects enacted in 2008 under federal tax law to provide and enable redevelopment financing to 18 Illinois counties that suffered substantial flood and summer storm damage in 2008. Under the Internal Revenue Code, MDABs may be used to finance industrial and commercial projects with Tax-Exempt Bonds through 12/31/2012.
2009-2010 Recovery Zone Facility Bonds (“RZFBs”) under the American Recovery and Reinvestment Act of 2009 (“ARRA”):
- Navistar International Corporation, Lisle, IL Headquarters/R&D Facility and Joliet, IL Warehouse/Distribution Facility (October 2010) - $135MM
- Lisle Headquarters/Research & Development Facility: Bond proceeds were used to finance the substantial renovation of an existing renovate, equip, and construct building additions to nine existing buildings totaling approximately 1.2 million square feet and located on an approximately 87 acre site at 2601-2701 Lucent Lane in Lisle (DuPage County), Illinois.
- The Lisle facilities will serve as Navistar’s new corporate headquarters and Research & Development facility.
- This project is retaining Navistar’s Headquarter and expanding is Research and Development Facilities operations in Illinois.
- Extensive renovations and upgrades will include landscaping, roof renovations, parking lots renovations, lighting upgrades,interior space build-out, elevator upgrades, and exterior building improvements
- Additions totaling approximately 25,000 square feet are planned to three of the existing buildings.
- Joliet Warehouse/Distribution Facility: Bond proceeds will be used to finance leasehold improvements and to equip a warehouse facility that will be expanded prior to occupancy by Navistar (pursuant to a lease with the building owner).
- This new facility, currently 522,520 square feet, would be expanded to a total of 860,100 square feet and will be leased from a developer under a thirteen-year lease.
- Navistar’s capital investment for this project would include new rack, bin, mezzanine, systems, equipment, conveyer equipment, forklifts, scissor lifts and furniture.
Bonds issued for Navistar financed two major projects by Navistar
Note: Recovery Zone Facility Bonds were a temporary provision available in calendar years 2009 and 2010 (and expired as of 12/31/2010) that enabled Tax-Exempt Bonds to be issued for privately-owned industrial and commercial projects (in designated areas) that would not otherwise qualify for Tax-Exempt Bond financing as Small Issue Industrial Development Bonds or Exempt Facilities Revenue Bonds under the Internal Revenue Code.