Jul 28 2010
The San Francisco Bay Area city of Fairfield, California announces it has closed its bond financing for the Frank-Lin Distillers Products Ltd., construction project.
The city of Fairfield worked through the California Enterprise Development Authority (CEDA) to issue a $22 million tax-exempt Recovery Zone Facility Bond. Proceeds of this bond were used to finance the construction of a $34 million, 288,000-square foot building on 15 acres in the Tolenas Industrial Park. Frank-Lin was the first completed Recovery Zone Facility Bond project in California to go through the state reallocation process.
The Recovery Zone Facility Bonds are made available under the American Recovery and Reinvestment Act, signed into law by President Obama in February 2009 in response to the economic crisis. Fairfield was allocated $1.4 million in Recovery Zone Facility Bonds. The California Enterprise Development Authority (CEDA) applied on behalf of Frank-Lin for an additional $20 million, which was awarded to the business from the California Debt Limit Allocation Committee (CDLAC).
"We are thrilled to take part in one of the few successful Recovery Zone Facility Bond transactions in the state of California," says Mona Dmitrenko, executive director of CEDA. "The city of Fairfield was a tremendous partner and played a significant role in securing this transaction."
"The Frank-Lin Distillers Project is a perfect example of what the Recovery Zone Bond Program was designed to do," says Sean L. Spear, executive director of the CDLAC. "A brand new commercial facility is brought to Fairfield; creating jobs and helping to improve the operations of an important California business. CDLAC is proud to have provided the additional bond allocation that the project needed to get started."
Additional tax-exempt bonds in the amount of approximately $2 million have been issued through the Statewide Community Infrastructure Program (SCIP) to finance impact fees and public improvements.
Frank-Lin Distillers is a family and employee-owned bottling company that produces and distributes more than 2,000 distilled spirit, wine and beer products. It is moving to Fairfield from San Jose, California where it had been located since 1966. The Fairfield location will serve as the company's manufacturing plant and headquarters. It joins numerous other food and beverage companies that have locations or hold property in Fairfield including: Jelly Belly Candy Company, Anheuser-Busch, Calbee Foods, Guittard Chocolate Company, Crystal Geyser and Columbus Salame.
"Frank-Lin chose to locate in Fairfield because we have an abundant supply of top-quality water and a state-of-the-art sewer system which are critical to the manufacturing process," says Curt Johnston, economic development division manager for Fairfield. "The city's transportation access, value-priced land and pre-approved business parks with shovel-ready sites are additional factors that make the city an attractive location."
San Jose Construction is the general contractor on the project. The completion date is scheduled for the third quarter of this year.
"We believe our new Fairfield facility to be logistically ideal for our operations," says Vincent R. Maestri, president and CEO of Frank-Lin. "The geographic location provides immediate access to rail and interstate transportation, close proximity to our major materials suppliers, and a substantial skilled work force. In addition, we could not be more pleased with the manner in which our project has been received by the city of Fairfield."
Source: http://www.fairfield.ca.gov/