The Will Kankakee Regional Development Authority (WKRDA) was created by action of the Illinois General Assembly and is a general development agency for the counties of Willand Kankakee. It is one of ten regional development authorities within the State of Illinois. The other Regional Bond Authorities are located in the Quad Cities (QCREDA), the Upper Illinois River Valley (UIRVDA), Southeastern Illinois (SIEDA), Eastern Illinois (EIEDA), Central Illinois (CIEDA), Western Illinois (WIEDA), Southwestern Illinois (SWIDA), Peoria Region (TCRDVA) and Southern Illinois (SIDA).
The Authority’s powers enable it to issue taxable or tax-exempt revenue bonds on behalf of a company for the purpose of developing, constructing, acquiring or improving properties or facilities locating in or expanding within the territory of the Authority. These revenue bonds can be privately placed or publicly sold as rated bonds by a bond rating agency.
Bond proceeds can be used to purchase lands, buildings and equipment or to construct new or renovate existing facilities. Interest on bonds is DOUBLE-TAX EXEMPT from state and federal income tax. The maturity of the bonds is flexible and can range from ten to thirty years; interest rates may be fixed or variable and again depend upon current market rates discounted to reflect tax-exempt status. In issuing revenue bonds for the borrower, The Authority acts as a “conduit” or “middle-man.” It advertises that it has bonds for sale which will be paid off by revenues available from the borrower. The Authority then receives an offer to purchase these bonds from insurance companies, banks, mutual funds or even from brokerage houses on behalf of individuals.
It accepts an offer based upon financial considerations and “transfers or loans” the money made available from the purchase to the borrower for the project. The borrower then pays the money back directly to those who bought the bonds from the Authority on an annual basis until the debt created by the project is eliminated. IRS regulations and federal law has indicated that certain goals are so important for the future welfare of this country and its citizens that they should be assisted with tax exempt financing. Such financing reduces the cost of the project by lowering the interest rate on the money borrowed or loaned thereby encouraging that the project be undertaken.
View Our WKRDA Legislation.