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Commission gives preliminary approval to industrial revenue bond for Miscan expansion
Summary
Owensboro commissioners granted preliminary approval to an industrial revenue bond package to support a Miscan expansion estimated at $156 million and 44 jobs; the structure would abate much property tax by having the city own the project property while the company makes negotiated payments and the school district receives full funding.
The Owensboro City Commission granted preliminary approval to Municipal Order 19-2025, authorizing steps toward an industrial revenue bond (IRB) financing for a proposed Miscan expansion at the local facility. City staff said the expansion was previously estimated at roughly $156 million and expected to create about 44 new jobs.
City Manager Nate Pagan explained the financing structure: the city would technically own the land or property for the qualifying project so the property would be tax-exempt, and Miscan would make negotiated payments in lieu of taxes. Pagan said the negotiated structure includes a 75% property tax rebate for 10 years under the arrangement, with the company effectively paying 25% of what full property taxes would be; he added the school district will receive the full amount it would otherwise have received so local schools are made whole.
Pagan and staff characterized the item as preliminary approval; a similar item will return to a future agenda to finalize terms and any agreements, including a memorandum of agreement and payment-in-lieu-of-taxes (PILOT) instrument.
Commissioners approved the preliminary IRB action by voice vote; staff said this is an atypical but allowable structure and noted the community has used similar incentives in the past for large industrial projects. The commission’s approval does not finalize the incentive; final documents and any tax-equivalent arrangements will be brought back for review and vote.
Next steps: staff will negotiate final terms and present formal agreements and any required ordinances or resolutions for final approval.
