75C - BOND-MEMORY EXPERTS INTL - Laserfiche WebLink

Home Browse Search

Public Hearing - Bond Allocation for Memory Experts International December 20, 2004 Page 2 2. Recommended that the Industrial Development Authority adopt a resolution authorizing entering into a loan agreement pursuant to which the Authority will borrow and lend to borrower not to exceed $4.7 for the acquisition, construction and installation of certain property and facilities, and authorizing various actions in connection therewith. By a vote of 11:0 (Absent: Anton, Bracho, Brewster, Burrier-Lund, Forgarty, Haro, Medrano, and Mejares) at its Regular Meeting of September 22, 2004. DISCOSSION One of the incentives available to businesses within the Santa Ana Empowerment Zone is an allocation of $130 million for the issuance of Private Activity Bonds to qualified businesses. Currently, the Empowerment Zone has issued two prior bonds to Gold Coast Baking Company and Laguna Cookie Company, thus reducing the original allocation by 17 million. The City has received an application from Memory Experts International requesting assistance in acquiring the property located in the Santa Ana Empowerment Zone (1651 St. Andrew Place). The financing also includes the acquisition and installation of manufacturing equipment to produce and distribute various computer products. As a condition of financing, 35 percent of Memory Experts International's Santa Ana workforce must be Empowerment Zone residents. Currently, Memory Experts International employs 57 employees and the company is prepared to work with the Santa Ana Empowerment Zone to comply with the 35 percent employee residence rule. Founded in 1994, Memory Experts International is a leading multi-national provider of enhanced storage and networking technologies that is outgrowing its 17,000 square foot location in Irvine. The company is looking to relocate its headquarters into a new 39,848 square foot facility. The new manufacturing facility is located in the city's State Enterprise Zone and Federal Empowerment Zone. Memory Experts International is requesting $4.4 million to acquire and improve the new facility and $300,000 for the purchase and installation of new manufacturing equipment In addition to receiving approval by the Industrial Development Authority, the Tax Equity and Fiscal Responsibility Act (TEFRA) imposes public hearing requirements for tax-exempt bonds. Before bonds can be sold, the legislative body within the jurisdiction where the project is located must hold a public hearing at which time the public may discuss the project and the issuance of the bonds. Notice of the public hearing was published in the D.C. Reporter on November 1, 2004. Bonds issued by the Industrial 75C-2