80D - JT PH BOND ALLOCATION - Laserfiche WebLink

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Public Hearing - Bond Allocation for Ingardia Bros. Produce, Inc. August 20, 2007 Page 2 loan and/or issue a bond in a principal amount not to exceed $2,500,000 in Private Activity Bonds and lend the proceeds of such loan or bond to Ingardia Bros. Produce, Inc. for the acquisition of equipment for installation and use in their new Santa Ana facility. 2. Recommended that the Industrial Development Authority adopt a resolution authorizing entering into a loan agreement pursuant to which the Authority will borrow pursuant to the loan agreement and lend to Ingardia Bros. Produce, Inc. an amount not to exceed $2,500,000 in Private Activity Bonds and lend the proceeds of such loan to Ingardia Bros Produce, Inc. for the acquisition of equipment for installation and use in their new Santa Ana facility. DISCUSSION One of the incentives available in the Santa Ana Empowerment Zone is an allocation of $130 million of private activity bond volume cap for the issuance of Industrial Development Bonds (IDBs) to qualified businesses. The Industrial Development Authority has received an application from Ingardia Bros. Produce, Inc. requesting issuance of an IDB to finance the acquisition and installation of equipment for their new distribution facility located at 700 South Hathaway which is located within the Santa Ana Federal Empowerment Zone. As a condition of financing, thirty-five percent of Ingardia Bros. Produce, Inc. workforce must be Empowerment Zone residents. Ingardia Bros. Produce, Inc. is a wholesale distributor of produce, seafood, dairy, and groceries offering daily delivery service to more than 1,400 restaurants, schools, hospitals, caterers, and other food service operations in the southern California region. Ingardia Bros. has purchased 1.16 acres at 700 South Hathaway to construct a new 62,423 square foot distribution facility to augment its current 23,000 square foot facility in Costa Mesa. They are looking to complete construction and relocation of their operations by November 2007. Ingardia Bros. will use the bond proceeds to finance the purchase of walk-in coolers, racking, fork lifts, dock leveling equipment, ice makers and other equipment necessary for their operations. The company recently celebrated their 34th anniversary and currently employs 150 employees. 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 80D-2