Industrial Development Authority Board (IDA)

The Industrial Development Authority (IDA) of the City of Maricopa is comprised of a seven-member board serving staggered six year terms, each of whom must be qualified electors of the City of Maricopa. It was authorized for incorporation by the Maricopa City Council on December 18, 2007 through the unanimous passage of Resolution 07-66.

The seven members encourage economic growth and job creation in the City of Maricopa by making low-interest loans available to qualified projects through the issuance of tax-exempt bonds. Financing must meet state bond law requirements, and all projects are reviewed to ensure that financing candidates represent projects that will help to further the community’s vision for sustainability.

Interested in utilizing the IDA for bond financing?
Application Procedures and Policies
Fee Schedule

Meetings:
Generally held at 5:30 on the first Thursday of the month as necessary.
Locations may vary. Call 520/568.9098 for more information. View agendas, minutes and actions.

Staff Liaisons:
Danielle Casey, Management Assistant II
Roger Kolman, Finance Director

Bond Counsel:
Michael Cafiso, Greenberg Traurig, LLP

To contact members of the Industrial Development Authority of the City of Maricopa, email IDA@cityofmaricopa.net, or call 520.316.6812.

How does an Industrial Development Authority Work?
Private Activity Bonds are issued by an IDA to provide financing for qualified projects. Interest on private activity bonds in most cases are not subject to federal income taxes. An eligible applicant submits a proposal to the IDA. After review by the IDA Board for consistency with the State Statutes and goals of the City of Maricopa, approval or disapproval is given. The primary focus of the IDA is anticipated to be the creation of jobs for the City and assisting in the financing of projects of benefit to the community. The proposal is then submitted Mayor and Council for final approval. 
 
Responsibility of the IDA and the Mayor and Council?      
The applicant for a particular project has the burden to show the IDA Board, the Mayor and Council, the bond issuers and bond buyers that the applicant has the financial where with all to pay all the principal and interest. It is not considered a debt or obligation of the City or the IDA nor does it affect the legal borrowing capacity of the City.

Where do the bonds come from?
Arizona's allocation of the volume cap is administered by the Arizona Department of Commerce. Many types of projects that are eligible for tax-exempt financing are subject to the federally required annual volume cap which restricts the amount of certain tax-exempt private activity bonds that can be sold in any one state. Historically, in Arizona the demand for volume cap far exceeds the supply.

What is the benefit of an Industrial Development Authority?
These bonds are beneficial as they can provide reduced interest costs and longer terms than a traditional bank loan. They are not secured by the City’s credit but by the private owner of the property to be financed.

What types of projects can IDA Bonds fund?
Per Arizona law, IDAs may issue bonds to finance various types of facilities, although not all such financings would be tax-exempt. Many must be of nonprofit status or owned by the government. Examples of the types of facilities eligible to be financed by an IDA include:

• Industrial and manufacturing facilities and the purchase of equipment, residential rental projects, and facilities for the furnishing of water, sewage and solid waste facilities and more;
  
• Office building or buildings for use as corporate or company headquarters or regional offices;
• A health care institution as defined in Section 36-401;
• Repairing or rehabilitating single-family dwelling units or constructing or repairing residential fences and walls;
• Convention and trade show facilities;
• Airports, docks, wharves, mass commuting facilities, parking facilities, or storage or training facilities;
• Industrial park facilities (tax-exempt financing is not available);
• Air or water pollution control facilities (tax-exempt financing is not available);
  
• Any educational institution operated by a nonprofit educational organization that is exempt from taxation under Section 501(c)(3) of the United States Internal Revenue Code not otherwise funded by state monies or any educational institution or organization established under the provisions of Title 15, Chapter 1, Article 8 and owned by a nonprofit organization;
• Research and development facilities;
• A child welfare agency, as defined in Section 8-501;
• A transportation facility constructed or operated pursuant to Title 28, Chapter 26, Article 1 or 2 (tax-exempt financing only if owned by a 501(c)(3) entity);
• A museum operated by a nonprofit corporation;
• Facilities owned by a nonprofit corporation engaged in delivering the community services listed in the statute.
  

IDA Meeting Agendas, Minutes and Actions
April 3, 2008 (Agenda)