Additional Information about Industrial Development Bonds

THE INDUSTRIAL DEVELOPMENT CORPORATIONS ACT permits authorized local authorities to issue IRBs in order to finance the costs of certain types of projects without prior voter approval.

INDUSTRIAL DEVELOPMENT REVENUE BONDS (“IRBs”) ARE:

• A method of financing facilities for private corporations, partnerships, and individuals.

• Funds that can be obtained at a lower interest rate than conventional loans—interest on the bonds is tax-exempt from both federal and Missouri state income taxation.

Types of projects that may be funded with IRBs include industrial plants, warehouses, office buildings, hospitals, distribution centers, commercial facilities, agricultural facilities, and pollution control facilities. Land, buildings, structures, fixtures, machinery, and equipment connected with these projects may also be funded by IRBs. Excluded from this type of financing are facilities designed for the sale or distribution of cable-television or public utilities.

Qualified 501(c)(3) bonds are issued to finance facilities classified as “nonprofit”.