Sale/Lease Back Transactions
As an alternative to conventional industrial revenue bond financing, the OEDA/IDA can assist industrial, distribution, research & development and tourism projects by utilizing a Sale/Lease Back Transaction. This program, which is ideally suited to real estate/facility projects, places title to the project with OEDA/IDA for a predetermined time frame. During this time, the property is leased back to the tenant/company, with a PILOT agreement providing real property tax abatements, mortgage recording and sales tax exemptions. This form of project financing should be reviewed with the OEDA/IDA staff to determine eligibility and benefits.

Industrial Revenue Bonds
This form of financing is best suited to larger, financially strong, industrial, manufacturing, agribusiness, corporate office and research and development projects. Loan proceeds are used to finance fixed assets including real estate and building acquisition, construction, or renovation and the acquisition and installation of machinery and equipment. The two forms of bond financing are tax exempt for industrial projects and taxable bond financing for most others. Common benefits of both are the ability to finance 100 percent of the fixed assets, exemption from sales tax on construction/building materials, equipment fixtures, and real property tax abatements. An added advantage of financing "manufacturing" projects of less than $10 million dollars with tax exempt bonds is the preferred interest rates available to qualified projects. It is best to review the proposed project with the OEDA/IDA staff to determine eligibility and impacts.