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