Vanderbilt Law Review


Alfred E. Abbey

First Page



Several years ago a national business magazine carried an article styled "You Gotta Have A Golf Course."' The article outlined the efforts of a small town to attract new industry and the awkward realization by the city fathers that they were losing out to the competition because their community lacked such a recreational facility. After this finding, several public spirited citizens raised the necessary funds and constructed a nine-hole course. These efforts were soon rewarded when a large industrial concern located a new manufacturing plant in their city. Industrial development bonds are essentially intended to serve the same purpose as this golf course, and, at least from the point of view of the issuer, this paper could be sub-titled "You Gotta Have the Money." One of the principal problems facing any industrial concern that may be considering the addition of a new facility is financing the cost of this venture. Therefore, when the municipality concerned present'a ready-made and expense-saving solution to this problem, a major obstacle is cleared and the relative bargaining position of the municipality is proportionately increased. In recent years, and with a marked increase during the past decade, many states have authorized their counties and municipalities to issue "industrial development bonds" for the declared purpose of providing increased and more diversified employment.