|
Concord NY IDA - Available Programs
|
The Town of Concord Industrial Development Agency offers a variety of financing programs to help your company relocate, expand or begin operations with our community.
These programs can be used to finance both the purchase and improvement of land, the construction or a new facility, and the acquisition of existing buildings.
Although these types of financing programs are very similar in nature, there are slight differences between them. They include:
Industrial Revenue Bonds
Similar to the conventional mortgages, local banks, insurance companies and/or pension funds purchase the bonds issues by the Town of Concord IDA.
The rates, terms and conditions are all set be the purchaser and are backed by the full faith and credit of the borrower, not the Town of Concord IDA. There are two types of Industrial Revenue Bonds available:
Tax-Exempt IRB’s – These bonds are exempt from federal income tax. With the tax changes of 1986, tax-exempt bonds can only be issued for manufacturing facilities and for civic facilities.
Taxable IRB’s – These bonds are not exempt from federal income tax although they are exempt from state and local taxation.
Second Mortgage
This financing tool is used only when there is a mortgage already on the property. There are typically two types of second mortgages available:
Second Mortgage – This is used for tenant improvements and/ equipment when the builder/owner needs to borrow additional money.
Equity Asset Mortgages – This is used for permanent working capital when the borrower/owner borrows the appreciated value or equity in an existing building.
Supplemental Bond
This is used when additional money is needed for cost over-runs or other unanticipated construction costs. This is typically used for projects that are less than one year old and involve the original lender.
Lease Transaction
This is used for projects when no financing is needed. Typically the project is financed internally by the company or developer.
Interim Lease Agreement
This is used to allow the company to receive real property tax abatement prior to obtaining financing. It contemplates that a financing will take place at a later date and the Interim Lease Agreement would be replaced with a Lease Agreement.
|
|
| |
|
|
|
