Description: WKRDA issues taxable revenue bonds for commercial, industrial, transportation and recreational projects including warehouse distribution facilities, office buildings, shopping centers, etc. which are not eligible for tax-exempt financing. Proceeds can be used to purchase land, buildings and equipment and/or to construct new or renovate existing facilities.
Benefits: The benefits of Taxable Revenue Bonds include:
- Long term – Maturity of the bonds is flexible and can range from ten to thirty years.
- Favorable Interest Rate – Rates are generally 1.0% to 1.5% below Prime Rate with Moral Obligation Credit Enhancement.
- Flexible Terms – Interest rates may be fixed or variable and can finance up to 100% of the eligible project costs.
- Favorable Terms – There is no fixed minimum job creation or capital investment requirements, although some jobs have to be created.
- Quasi-State Guarantee – The bonds can receive a quasi-state guarantee (Moral Obligation) from the State of Illinois which allows the borrower to attach to the State’s credit strength.
Eligibility: Any commercial, industrial, transportation and recreational project including warehouse distribution facilities, office buildings, shopping centers, etc. which are not eligible for tax-exempt financing. Taxable Revenue Bonds do not require volume cap.
Fees: A $2,000 non-refundable application fee is due when the application is submitted. An issuance fee of 60 basis points and Professional fee of 20 basis points due at closing plus the cost of Issuer’s legal counsel.
Contact: For an application or additional information please contact Andrew Hamilton, Executive Director, Will Kankakee Regional Development Authority (WKRDA), Two Rialto Square, 116 N. Chicago Street, Joliet, Illinois 60432, Tel: 815/723-9070.