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The Industrial Development Authority of the County of Mohave, Arizona (The "Authority") is organized under Title 35, Chapter 5 of the Arizona Revised Statutes as amended (the "Act"), and was created and approved for incorporation by the Mohave County Board of Supervisors as a non-profit corporation on December 27, 1977. It also was designated by statute as a political subdivision of the State of Arizona.
The Authority was created to take advantage of federal tax laws allowing tax-exempt financing or refinancing for a variety of private concerns including the costs of the acquisition, construction, improvement, rehabilitation or equipping of a "project,", including:
The Authority has no taxing power and does not have the power to pledge the general credit or taxing powers of the County of Mohave, the State of Arizona, or any political subdivision thereof.
The Authority's interests include the promotion of economic development and the development of affordable housing within the County of Mohave, Arizona. A complete list of qualified projects in which the Authority may participate may be found in the Act.
The Industrial Development Authority of the County of Mohave (the " AUTHORITY ") was created in accordance with Arizona law to provide lower cost financing for qualified Projects through the issuance of revenue bonds (the " BONDS "). The Authority's Bonds are exempt from Arizona income taxation. Similarly, the bonds can be tax-exempt from federal taxation, provided that they are issued in compliance with the Internal Revenue Code of 1986 , as amended.
The Board of Supervisors is the governing body for Mohave County, Arizona. Each member represents one of five supervisorial districts, which are divided geographically and by population to include a mix of urban and rural constituencies. The Board of Supervisors appoints the Board of Directors for the Authority. The Board of Supervisors and the Board of Directors for the Authority then work together to consider and approve the issuance of bonds.
Once the Authority preliminarily approves an application, Bond Counsel prepares the financing documents and the financing participants review the materials.
When the participants approve these financing documents, the matter goes back for final approval before the Authority and the Supervisors. If they both grant final approval, the financing documents are executed and the bonds are issued, sold and delivered by the Authority.
This process has worked efficiently and has successfully assisted in creating jobs and enhancing Mohave County’s and the State's economic vitality.
The Authority does not provide bond funds to an applicant. Bond funds are provided by the bond purchaser(s). It is the responsibility of the applicant to obtain a purchaser for the Authority's bonds. In many cases, the purchaser of the bonds will be a financial institution or, in the event the bonds are to be sold to the public, an investment banker. Revenue bonds are not a direct lending or government guarantee program. Applicants must secure a purchaser of the revenue bonds on the merits of the project and the financial standing of the applicant. The Authority merely acts as a "conduit" or "pass-through" for the issuance of revenue bonds.
An applicant receiving a commitment from a lender or underwriter to purchase the revenue bonds must negotiate the terms of the revenue bonds, including loan amount, maturity, and interest rate, with that lender or underwriter. Interest rates charged to finance the project will be lower than conventional commercial rates because of the tax-exempt status of the revenue bonds. In addition to federal and state guidelines, the Authority looks for public purposes such as:
Each applicant is also responsible for all of the Authority's legal and review fees incurred in connection with the issuance of bonds to finance the applicant's project (whether or not incurred before or subsequent to the closing of the bond issue).
Qualified Projects are limited by the Internal Revenue Code of 1986, as amended, the Arizona Revised Statutes and by the Authority's policies. An eligible Applicant could be any public, private, or nonprofit organization.
Generally speaking, the proceeds of the Bonds can be used for either the purchase or lease of land, buildings, machinery or equipment which is suitable for:
The use of the Bonds for these purposes is affected by changes in state and federal laws. The Authority's Representative should be consulted prior to submitting an Application.
The Authority does not provide funds to an Applicant. Funds are provided by the bond purchaser. It is the responsibility of the Applicant to provide a purchaser for the Authority's bonds, which, in most cases, will be a financial institution or, in the event the bonds are to be sold to the public, an investment banker.
Under the Authority's open-door policy, the party ultimately responsible for repayment of debt associated with its bond is entitled to assemble its own financing team, rather than having outside people imposed on the process. With this approach, the Authority can respond to creative ideas for financing almost as soon as the ideas are developed.
Interested parties should contact the Authority for application information, and for consultation regarding the eligibility of the proposed project for revenue bond financing. If eligible, an application must then be submitted to the Authority for preliminary and final approval. The Mohave County Board of Supervisors also must approve the proposed bond issue.
Fees: At the time the application is filed, an application fee of FIVE HUNDRED DOLLARS ($500.00) for every ONE MILLION DOLLARS ($1,000,000.00) of proposed Bonds, or fraction thereof, with a maximum filing fee to be in the sum of SEVEN THOUSAND FIVE HUNDRED DOLLARS ($7,500.00) and a minimum filing fee in the sum of ONE THOUSAND FIVE HUNDRED DOLLARS ($1,500.00). In the event The Authority does not issue the requested Bonds for any applicant, fifty percent (50%) of any filing fee paid shall be non-refundable.
The Authority's Board of Directors is comprised of private, volunteer citizens appointed by the Mohave County Board of Supervisors. The Authority's Board of Directors is comprised of nine (9) Directors who serve a 6-year term. The Board of Directors of the Authority meets as required. The Authority will entertain Applications for Projects to be located in Mohave County. Click here for list of current directors
The governing body of the Authority is comprised of nine Directors, appointed for six-year terms. These dedicated people serve without compensation. Current Board Members of The IDA
For information or questions regarding the Mohave County Industrial Development Authority, please contact:
MANGUM, WALL, STOOPS & WARDEN, P.L.L.C.
Brandon Kavanagh, Counsel
100 North Elden Street
P.O. Box 10
Flagstaff, AZ 86002