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IRB

The IRB Mission Statement

The Certification or IRB Committee is a standing committee of the Community Improvement Corporation (CIC). The members of the Committee are appointed by the President with the advice and consent of the Board of Trustees. The primary purpose of the certification Committee is to certify Industrial Revenue Bond Projects and other similar projects that may from time to time require certification by the C.I.C. The Committee consists of no less than eleven (11) and not more than thirty (30) trustees. The Trustee representing each public entity, who has designated to the C.I.C. as its agent, must be represented on the certification Committee (appointive or elective official). The Committee meets at such times as are necessary for the certification of projects. The Committee chairman presides over all certification meetings and also serves on the Executive Committee of the CIC. When the need arises, it appoints its own assistant secretary who then submits accurate minutes of all committee meetings to the secretary of the corporation.

WHAT IS INDUSTRIAL REVENUE BOND (IRB) FINANCING?

Purpose:

The Community Improvement Corporation of Lake County, Ohio was established in 1963 to assist in the financing of industrial and commercial expansion through the issuance of industrial revenue bonds, which are exempt from Federal Income Taxation. Under Ohio law, manufacturing, distribution, commercial or research facilities are eligible.

Tax-free revenue bond financing permits 100% financing of land, building and equipment, as well as the development and financing costs of the project, at interest rates lower than those usually obtained through other methods of financing. Principal and interest on the bonds are paid solely from the lease rental of installment payments made by the company.

The Corporation is the designated agent in accordance with Section 1724.10 of the Ohio Revised Code for the following political subdivisions: County of Lake, Cities of Eastlake, Mentor, Painesville, Perry, Madison, Fairport Harbor, Willoughby, Mentor-on-the-Lake, Willoughby Hills, Wickliffe, Willowick, Kirtland, Townships of Concord and Madison.

Guidelines:

  1. The project must provide potential additional jobs or preserve jobs in industry, research, distribution or commercial operations.
  2. The applicant must show proof of financial ability.
  3. The applicant shall have arranged for placement of the bonds with an underwriter or through private placement contingent only upon CIC-Lake certification, approval by the City Council or Board of Commissioners where project is located.
  4. Projects will not be considered which depend on speculative investment of capital in real or personal property. Prevailing wage rates must be paid to laborers and mechanics employed on the construction of the project.

Procedures for dealing with the Community Improvement Corporation of Lake County:

  1. Preparation by the Company of the CIC Application Form for Project.
  2. All Trustees on the Certification Committee and CIC counsel receive the Application Form for Project, financial information, and commitment letter.
  3. Request to Chairman of Certification Committee of CIC-Lake to have project placed upon the agenda at the regular or special meeting of the Certification Committee.
  4. Meeting of Certification Committee of the CIC with the Company submitting the project. At the meeting, Company officials respond to any questions of the Board pertaining to the project. The non-refundable service fee according to the Fee Schedule must be received on or before the meeting date by the Treasurer of the CIC-Lake (Greg Waina, 308 E. 208th Street, Euclid, OH 44123)
  5. Official certification of approval of a project by the Certification Committee to the issuing municipality is effected. (Resolution to Certify Project).

The legislative authority of the county or municipality then proceeds with the necessary legislation to issue the bonds and the certified copy of the resolution of the CIC-Lake approving the project is included in the bond transcript together with evidence of the CIC-Lake to act as Agent for the county or municipality issuing bonds.

Bond Counsel:

A law firm with national reputation in municipal bond law must be retained to serve as bond counsel, and to issue an unqualified opinion as to the validity and tax exemption of the issue. Bond counsel will prepare all of the basic documents. Fees of bond counsel may be paid from the bond issue proceeds.

Underwriter:

The underwriter provides investment banking services, including the marketing of industrial revenue bonds, to corporation, financial institutions, and individual investors. There are numerous investment bankers in the Lake County area available for industrial bond financing and assistance.

COMMUNITY IMPROVEMENT CORPORATION OF LAKE COUNTY CHARGES:

  1. $1,000 non-refundable service fee, payable at the latest upon presentation of the project to the Board of Trustees.
  2. Additional fee as set forth in the Fee Schedule adopted on October 21, 1994.

Application For IRB

FEE SCHEDULE – ADOPTED OCTOBER 21, 1994

  1. Applications presented for consideration to the CIC must be accompanied by a certified or bank check in the amount of one thousand dollars ($1,000.00) payable to the Lake County Community Improvement Corporation. Said sum shall be a non-refundable service fee which shall be a credit against any of the total fee due upon issuance of bonds or any other certified project, according to the authorized fee schedule.
  2. The following fee schedule applies to approved projects, resulting in sold bond issues, as follows:
    1. FOR THE FIRST $2,000,000 OF AN ISSUE ¼ of 1% (.0025) of the total amount of the bond issue, payable upon issuance of the bonds.
    2. FOR THE BALANCE OF AN ISSUE OVER $2,000,000 1/5 of 1% (.0020) of the total amount of bond issue, payable upon issuance of the bonds.
  3. All fees are payable no later than at the time of sale of the revenue bonds, and shall be paid by the certified or bank check payable to the Lake County Community Improvement Corporation.
  4. Any variance from the approved fee schedule requires the prior approval of a majority of the trustees.

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Last modified: 04/30/04