Metropolitan Redevelopment Bonds

Metropolitan Redevelopment Bonds, while similar in some respects to Industrial Revenue Bonds, have certain differences.  These projects are restricted to designated Metropolitan Redevelopment Areas, and are available to a wider variety of projects.  The public purpose for these projects is to stimulate redevelopment activities in economically distressed areas. 

Metropolitan Redevelopment Bonds provide a limited property tax abatement on the net improvements to the project site (i.e., current property taxes on the existing value of the property are not exempted).  The maximum property tax abatement period is for seven years. Also, Metropolitan Redevelopment Bonds do not offer gross receipts or compensating tax exemptions on the purchase of equipment for the facility.   However, they are a reasonable option for projects that may not generally qualify for Industrial Revenue Bonds.

As with Industrial Revenue Bonds, the City does not provide the financing nor credit enhancement for the bonds; the applicant is responsible for finding their own financing, based solely on the rates they can negotiate with the purchasers of the bonds.  All financing and legal costs are paid by the applicant.

The application process for both types of projects is similar, and is contained in the attached Applicants’ Packet.

MRB Applicants' Packet