There are various resources available for new and expanding industry that the City of Madison IDB can assist with and facilitate. Contact us at (256) 772-2885 for more details.
Face-2-Face (F2F) with Industry
F2F with Industry, Madison’s face-to-face business visitation program allows you to connect with Elected and Appointed Officials/Representatives of the City Council, Industrial Development Board and the Madison Chamber of Commerce Board. These visits are conducted with manufacturers throughout the year and the result is a featured article (free advertising for you) and social media blitz through the City of Madison websites and social media outles. If you would like to request a visit please let us know! F2F visits are simple and effective for industry and may include:
- Your opportunity to provide a brief company overview, history of the company, and future growth desires;
- A facility tour with a photographer in tow;
- An opportunity to showcase your business success!
As a Madison business, Industry F2F visits provide an opportunity to speak directly to community leaders and give us a chance to hear more from you how we might assist in matters of workforce, roads and infrastructure, business growth and/or physical expansion, and overall marketing and promotion.
District Tour Program
The IDB can arrange a tour of vacant or underutilized properties or buildings with potential customers, construction specialties and other brokers to identify requirements that would provide value for inducing a sale or promotion of the property. The Team would provide a written summary of requirements that could be performed immediately to help make the property more desirable, improve safety and bring it into regulatory compliance. If you are interested in arranging this type of tour, please contact the IDB at 256-772-2885.
Business Round Tables
The IDB will periodically arrange a round table with existing businesses, industry leaders and elected officials to discuss concerns that impact businesses in Madison and develop solutions. If you have a desire to participate or would like to arrange and host a round table at your business, please contact the IDB.
Industrial Development Grants
Industrial development grants are available to the IDB that enable the leasing of land or buildings to a new or expanding company. The IDB can use the money to prepare a site for development or repair existing structures and provide an initial financial savings the company. See our Incentives page for additional financial savings opportunities.
Industrial Revenue Bonds
Industrial Revenue Bonds (IRBs) are financing instruments issued by designated local industrial development boards (IDBs) authorized by state law. Since 1949, IRBs have been a preferred method of financing used by industries locating to and expanding in Alabama. Often, financial institutions and other intermediaries participate by providing letters of credit backing the bonds. Thus, the company seeking the bonds must be considered creditworthy by the financial institution. The IDB issuing the IRB retains ownership of the bond-financed facility and leases it back to the company at a rate sufficient to pay the principal and interest on the bonds as they mature. IRBs provide financing for land, building, and equipment for new and expanding manufacturing plants. Certain expenses such as architectural, engineering, legal, and administrative fees associated with the sale of the bonds can be paid from the bond proceeds (subject to the limitations of Internal Revenue Service regulations.)
Tax Exempt Bonds
Tax-exempt IRBs are issued at rates lower than conventional sources because the interest paid on the bonds is exempt from both federal and state income tax. No more than $10 million in bonds may be issued by the Madison IDB and no company can have more than $40 million outstanding. Companies using an IRB may not invest more than $10 million in one location, regardless of fund sources, for a period of three years prior to the issue and three years after it.
Companies may choose to lease all or part of their equipment and therefore eliminate that portion from the $10 million limit. IRBs are not generally cost-effective for amounts under $1 million because of the fees involved in issuing a bond. To be eligible, the company must obtain a letter of inducement from the Madison IDB before any monies are expended on a project. In the case of tax-exempt IRBs, the Internal Revenue Code requires that land acquisition cost must be less than twenty-five percent (25%) of the total bond issue.
If the bond proceeds are used to finance the acquisition of an existing building, at least fifteen percent (15%) of the proceeds must be spent on renovation of the building within two (2) years. Bond proceeds may not be used to purchase used equipment except in limited situations. There are a number of other requirements, including a public hearing and volume cap allocation. With this type of financing, competent legal counsel should be obtained early in the project.