Dock and Wharf Bonds

Description

The Upper Illinois River Valley Development Authority (UIRVDA) acts as the issuer of the bonds, passing along its DOUBLE TAX-EXEMPT status to “exempt facilities” for certain type of projects to finance capital costs directly related to activities on a body of water, including piers, pilings, pillars, wharves, bulkheads, quay walls, breakwaters, jetties, cranes, grain silos, grain conveyors, cargo loading equipment, storage and handling equipment, dry dock repair and maintenance facilities and related storage, handling, office and passenger areas that satisfy the public use requirement. The project can include the acquisition of fixed assets including land, buildings and equipment. Because the interest on the bonds is not subject to state or federal income taxes, investors and lenders require a lower interest rate to achieve an equivalent after-tax return. Therefore, the borrower receives a preferential interest rate, generating substantial savings.

An Attractive Investment for the Bondholder.

Eligibility

  • Funds can be used to finance capital costs related to activities on a body of water
  • Project must qualify as an “Exempt Facility” in which 95% of the net proceeds are used to provide docks and wharves which are used by the general public
  • Private dock or wharf owners must be leasee from lessor that serves the general public
  • Funds expended prior to sixty days before receiving initial approval from UIRVDA may not be eligible.
  • The capital improvements must take place in the territory of UIRVDA in the counties of Bureau, Grundy, Kane, Kendall, Lake, LaSalle, Marshall, McHenry and Putnam.

Benefits

application, request, ipad

Application

Interested entities should compete a one-page application and submit a non-refundable application fee. There is an issuance fee paid at closing along with other professional costs. The cost of issuing a bond is generally more expensive than a conventional loan, but the total costs are usually recovered in the first year of interest savings and will continue through the life of the bond.

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