With Moon River's financial condition, the bonds will be a bit difficult.
Moon River FIRST has to arrange financing and deposit in the bank. Then they can buy the taxable bonds, which unfortunately carry a higher interest rate than the tax exempt bonds.
Remember this from IDA's John Henry?
“They acquire outside financing, deposit it in their bank, then buy their own bonds in whatever amount they need for the project,” said IDA Chairman John Henry. “This is a simple conduit that we do for most projects. We have no financial obligation. We do not provide any funds or incur any financial liability under these bonds.”
Now Moon River seems to be pretty desperate to ask the IDA to risk leased land as collateral. And the IDA seems to be buying it hook, line, and sinker. I sure hope someone at the IDA reads the last two 10Q's.
The IDA was also to get $3 million from the state after creation of 1,000 jobs. How likely is that to happen anymore?
