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Commission approves industrial revenue bond ordinance to support CAMSO/Michelin expansion
Summary
The commission approved an ordinance authorizing issuance of industrial revenue bonds up to $60 million for CAMSO/Michelin to support building and equipment expansion; bond counsel said the bonds are not an obligation of the city and default would remove property tax exemption but not create city liability.
City staff and bond counsel presented an IRB package requested by CAMSO (Michelin) to support an expansion including building and equipment acquisitions. Bond counsel explained industrial revenue bonds create temporary tax‑exempt treatment for qualifying property and are not a loan or obligation of the city. Counsel said in a default the property would not become the city’s obligation and CAMSO would be required to resume property tax payments.
Duane Waterworth from Michelin joined to answer questions; staff said the total project value is near $109 million, of which $37 million (building portion) is being processed through the current IRB request, and the maximum bond authorization requested is $60 million to cover future phases. Commissioners asked about downside risk; bond counsel reiterated there is minimal direct fiscal exposure to the city because repayment obligations rest with private borrowers and the bonds are structured as taxable IRBs for equipment and real estate in the stated period.
The commission approved the ordinance after roll‑call; staff and counsel will finalize financing documents and closing details.
