The City of Hobart, under certain circumstances, can serve as a conduit for issuing industrial development bonds (IDBs) for small manufacturing companies. This allows for money to be borrowed on a tax exempt basis. The Economic Development Commission and City Council must both take action in order to issue IDBs.
The City of Hobart assumes no liability associated with the issuance of these types of bonds. There is no risk to tax payers. The bond proceeds are loaned directly to the company who in turn is responsible for the debt service payments. All legal costs for the city attorney and city’s special council are borne by the company.
An allocation or volume cap must be issued by the Indiana Finance Authority before bonds can be issued by the city since there is a limit of IDBs set per state based on population.
(This application is currently being revised by staff to reflect new special counsel & changes to the Economic Development schedule. Please contact the Director of Development for more information.)