Industrial Revenue Bond (IRB)
Definition
Tax-exempt bonds issued by government to finance manufacturing facilities. Interest savings reduce project costs, attracting industrial development. Company owns facility; government issues bonds receiving property tax payments instead of taxes.
Louisville Context
Louisville uses IRBs to attract manufacturing, particularly in Rubbertown and industrial corridors. Controversy: companies get financing benefits but may not deliver promised jobs/wages. Dave’s accountability: (1) job creation minimums, (2) living wage requirements, (3) clawback provisions if targets missed, (4) environmental compliance requirements, (5) community benefits agreements, (6) annual public reporting.
Why It Matters
IRBs are powerful tools attracting manufacturing, but without accountability they’re taxpayer-subsidized facilities that may not deliver community benefits. Accountability ensures public benefits justify public financing.
Dave’s Proposal
Continue IRB program with accountability: job creation minimums, living wage requirements, clawback provisions, environmental compliance, community benefits agreements, and annual reporting on delivered benefits.