IDB Revenue Bonds Application

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THE INDUSTRIAL DEVELOPMENT BOARD OF THE COUNTY OF KNOX 17 Market Square, #201 Knoxville, TN 37902-1405

The Board meets monthly on the second Tuesday at 4:00 p.m. at l7 Market Square, #201, Knoxville, TN 37902-1405.

Project Application

Project Name

Location

Submitted By

(If a partnership, applicant should provide the partners’ names, addresses, and status, whether limited or general partner.)

Authorization – Amount Asking For

Estimated Project Cost and Breakdown

(i.e., land, building, equipment, etc.)

Procedure for Sale of Bonds

(Private vs. Public Placement, etc. See also Paragraphs 5 (3) (4) and (5) on next page)

Purchaser

Guarantor

Fiscal Agent

(if selected)

Attorney

(if selected)

Trustee

(if selected)

Brief Description of Project

(including the purpose, employment created, economic impact, size of buildings, land, etc., and other appropriate comments to fully explain.)

FINANCIAL STATEMENTS: If public placement is requested, include with the above: (1) financial summary of past 5 years; (2) current audit; (3) 3-5 year financial projections.

Optional File Upload

Drop files here or

Max. file size: 2 GB.

RULES: Compliance with the rules on the following page is the responsibility of Applicant. The Board reserves the right to amend or waiver any Rule without notice.

Rules

Procedure - The Project Application must be filed with the Secretary of the Board fourteen days prior to meeting so that copies can be mailed to all Board Members and counsel to the Board one week prior to Board meeting.

If a TEFRA hearing is requested, the completed TEFRA form and Application MUST BE RECEIVED by the Secretary not less than 20 days prior to the meeting.

If no TEFRA hearing is requested, the Application MUST BE RECEIVED by the Secretary not less than 14 days prior to the meeting.

Fee Schedule - Appropriate fees must be submitted with the request:

Projects and Bond Issues: The Industrial Development Board of the County of Knox and The Health, Educational and Housing Facility Board of the County of Knox
Agenda Fee: $500. This fee is assessed on matters considered by the Board of Directors at a regular meeting of the Directors. It is not assessed if (i) the Applicant has paid a Project Fee and (ii) the action requested is related to the same Project or Bond Issue for which the Project Fee was paid. If an Applicant requests further action related to an outstanding Bond Issue, the Agenda Fee will be due and payable.

Project Fee: 10 basis points (0.10%) of the Total Project/Bond Issue with a minimum of $2,000 and a maximum of $4,000.

Special Meeting Fee: $5,000 per Applicant.

Interlocal Agreement Fee: $1,000 per Applicant.

All fees are due and payable fourteen days before the meeting and should be payable to the applicable Board and delivered to the Board at its office located at 17 Market Square, #201, Knoxville, TN 37902-1405.

Housing – For housing and similar issues, the Board will require a feasibility study to be filed with the original application or for consideration at a regular meeting not less than one month prior to final approval. If consideration is at a regular meeting, the study must be mailed to members and counsel not less than 10 days prior to the meeting.

Refinancing – Generally, except for manufacturing or regional warehouse facilities, the Board requires that in any refinancing of existing debt, 25% of the bond proceeds be used for new construction or renovations.

General
1. Projects are approved and extended for 6 month periods.
2. Regardless of property ownership, applicants will be required to pay all property taxes as if owned by the applicant.
3. In the event applicant requests approval of a public placement, he should clearly designate such request on the application and should be prepared to provide reasons therefore at the appropriate Board meeting. A rating of AA or better will normally be required.
4. Unless otherwise designated, the Board will consider all requests for new issues to be request for private placements. Private placements shall mean that the bonds may not be sold, transferred or assigned by the holder thereof except (1) to an institutional investor and then only for the investment account of such institutional investor, or (2) an individual investor and then only for the account of such individual investor. For this purpose, an institutional investor shall mean a bank, savings and loan association, insurance company, or other financial institution having a combined capital and surplus of not less than $5,000,000. For this purpose, an individual investor shall mean one whose net worth is certified to be not less than $1,000,000. Bonds, notes and other documents shall bear an appropriate legend to reflect these restrictions. As a substitute for this, the Board will consider restrictions limiting the minimum bond size to $100,000.
5. In the event that the Board approves a public issue, it will not execute in connection therewith official statements or similar documents deemed by counsel to create unacceptable obligations.
6. Documents to be executed by the Board will include the following or similar paragraph:
  
  No recourse under or upon any obligation, covenant, or agreement or in any Bond or coupon, or under any judgment obtained against the Issuer, or by the enforcement of any assessment or by any legal or equitable proceeding by virtue of any constitution or statute or otherwise or under any circumstances, shall be had against any incorporator member, director or officer, as such, past, present, or future, of the Issuer, either directly or through the Issuer, or otherwise, for the payment for or to the Issuer or any receiver thereof, or for or to the holder of any Bond or coupon issue, of any sum that may be due and unpaid by the Issuer upon any such Bond or coupon. Any and all personal liability of every nature, whether at common law or in equity, or by statute or by constitution or otherwise, of any such incorporator, member, director or officer, as such to respond by reason of any act or omission on his part or otherwise for the payment for or to the Issuer or any receiver thereof, or for or to the holder of any Bond or coupon , of any sum that may remain due and unpaid upon the Bonds and coupons or any of them, is hereby expressly waived and released as a condition of and consideration for the execution of this Indenture and the issue of such bonds and coupons.
  
  The County of Knox, Tennessee, shall not in any event be liable for the payment of the principal of, premium, if any, or interest on any of the Bonds issued, or for the performance of any pledge, mortgage, obligation or agreement of any kind whatsoever herein or indebtedness by the Issuer, and none of the Bonds of the Issuer issued or any of its agreements or obligations herein or otherwise shall be construed to constitute an indebtedness of the County of Knox, Tennessee, within the meaning of any constitutional or statutory provision whatsoever.

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Business Parks

For more information about Knox County business parks, please contact Director of Site Operations Mac McWhorter.