Frequently Asked Questions
An Economic Development Tool
The WIEDA region includes the Illinois counties of Adams, Brown, Cass, Fulton, Hancock, Henderson, Mason, McDonough, Morgan, Pike, Schuyler, Scott and Warren.
What is the Western Illinois Economic Development Authority?
WIEDA is an economic development finance
tool that is available in 13 western Illinois
counties that can help to lower the cost of
financing for businesses, not-for-profits,
senior housing and public projects in the
region.
How was it created?
WIEDA was created by an act of the General Assembly as a Special District (70 ILCS 532/).
2-3% lower
interest rate that is generally 2-3% lower than conventional financing
bank backed
bonds are generally backed by a bank letter of credit
6.25% sales tax
exemption of the 6.25% sales tax on building materials
Powers
What kinds of financial instruments does WIEDA have available to it?
Depending upon the project, WIEDA can issue: industrial revenue bonds for manufacturing firms, senior housing bond for developers; taxable revenue bonds; local government bonds; non- profit bonds and environmental bonds.
The financial instruments, that an authority such as WIEDA chooses to use, is largely limited only by its enabling statute and the policies established by its board, and does not take away any authority of a participating county or municipality to issue bonds on their own.
WIEDA simply provides another financing tool to help communities in the region.
Area of Expertise!
Primarily WIEDA is designed to be a double tax-exempt, low interest, financing tool for development and redevelopment in the region.
As a development authority, WIEDA is authorized – with the written approval of the Governor – to issue bonds and notes. The
outstanding amount of bonds shall not to exceed $250 million in taxable and tax-exempt bonds for the purpose of developing,
constructing, acquiring or improving properties or facilities for businesses, and some other public and not-for-profit entities, locating or expanding within the territorial jurisdiction of the Authority. Given the limitations that municipalities and businesses often face in obtaining financing, WIEDA provides a new way to obtain low interest financing.
The day-to-day operations are handled by the Executive Director. The Executive Director is the chief administrative and operational officer of WIEDA and directs and supervises its administrative affairs and general management. The Executive Director presents a project for approval by the board of directors. WIEDA then engages attorneys, underwriters and other professionals and consultants as needed to issue the bonds.
By state statute WIEDA is governed by a 21-member board. There six members appointed by the Governor with the advice and consent of the State Senate,
and a member from each of the counties in the WIEDA region, appointed by the county board chairpersons of the respective counties. The final two members of the WIEDA board are the Director of the Illinois Department of Commerce and Economic Opportunity, or designee, and the Director of the Department of Central Management Services or designee who serve as ex officio members.
WIEDA has no taxing power, generally receives no appropriations from the state for operations. WIEDA operates solely based upon fees charged to issue bonds. The fees charged are much less than the benefit the borrower receives in a lower rate of interest.
So what must a county government pay to become involved?
Nothing. WIEDA is operationally self-
supporting. All that a county needs to do to become involved is to make its appointment to the WIEDA board and have that person commit to attend scheduled board meetings.
Whom should I contact for more information?
Andrew Hamilton, Executive Director, Western Illinois Economic Development Authority (WIEDA), Macomb Office: 510 North Pearl Street, Suite 300, Macomb, IL 61455, Tel: 866-325-7525, Email:
andrewjhamilton@wieda.com
Rural Advantages
Is this financing only useful in urban or more industrial areas?
No! And that’s one of the advantages of
WIEDA. Many of the existing programs
at the state and federal levels do not take
into account the special financing needs of
more rural and less industrial
areas. WIEDA can.
Rural counties often call upon similar authorities in their regions to help with project financing. They have, for example, aided in the construction of a local YMCA, provided funds for the expansion of a local hospital, as well as many other projects that are not specific to urban or industrial areas.
Most of the regional authorities established in Illinois serve a more rural region. These are the areas that have the greatest need for low cost project financing.
Rural counties often call upon similar authorities in their regions to help with project financing. They have, for example, aided in the construction of a local YMCA, provided funds for the expansion of a local hospital, as well as many other projects that are not specific to urban or industrial areas.
Most of the regional authorities established in Illinois serve a more rural region. These are the areas that have the greatest need for low cost project financing.
What kinds of people might a county appoint to the WIEDA board as public members?
That is up to the county, but the statute
says that public members shall be persons
of recognized ability and experience in
one or more of the following areas:
economic development, finance, banking,
industrial development, state or local
government, commercial agriculture, small
business management, real estate
development, community development,
venture finance, organized labor, or civic
or community organization.