March 14,2012 APPROVE A $5,500,000 INDUSTRIAL DEVELOPMENT BOND INDUCEMENT RESOLUTION FOR PACKAGING INNOVATORS CORP. AND ITS SUCCESSORS OR ASSIGNS

Transcription

1 AGENDA,MARCH 27, 2012 COUNTY ADMINISTRATOR SUSAN S, MURANISHI COUNTY ADMINISTRATOR DONNA LINTON ASSISTANT COUNTY ADMINISTRATOR March 14,2012 Industrial Development Authority of Alameda County Administration Building Oakland, CA Dear Authority Members: SUBJECT: APPROVE A $5,500,000 INDUSTRIAL DEVELOPMENT BOND INDUCEMENT RESOLUTION FOR PACKAGING INNOVATORS CORP. AND ITS SUCCESSORS OR ASSIGNS RECOMMENDATION: It is recommended that your Industrial Development Authority approve the attached resolution expressing the Authority's intent to proceed with a $5,500,000 Industrial Development Bond (IDB), for Packaging Innovators Corp. (Applicant). DISCUSSION/SUMMARY: Packaging Innovators Corp. is applying for a $5,500,000 tax-exempt IDB to acquire and install equipment at 6650 National Drive, Livermore, California 94550, for use in the manufacture of specialized packaging products including corrugated containers, displays, foam and allied materials for a variety ofconsumer industries. Growing sales and market share require the company to expand its production and products using the most efficient equipment technology available. This investment will help them be more competitive. The IDB fmancing will purchase and install a Martin five-color Flexo gluer with die cutter and make equipment upgrades to their seven-color Flexo gluer press. Packaging Innovators Corp. currently employs 88 people and anticipates the creation of 14 additional jobs over the next two years as a result ofthis project. Since the Applicant will pay all County costs and the project poses no liability to the County, staff recommends that your Authority approve this Inducement Resolution OAK STREET. SUITE S55 OAKLAND. CALIFORNIA (510) FAX (510)

2 Industrial Development Authority 2 March 14,2012 FINANCING: The project will retain jobs, create employment and increase the property tax base of Alameda County at no cost to the County. Very truly yours, Susan S. Muranishi County Administrator SSM:KE:ks V:\ED\KS\IDB\BOSIDA \INDUCE\Packaging 2012 Inducement LetterKEnewformat.doc Attachment cc: Auditor-Controller Treasurer-Tax Collector County Counsel John Marchand, Mayor, City of Livermore Marc Roberts, City Manager, City oflivermore Rob White, Economic Development Director, City of Livermore William M. Lofton, Lofton & Jennings Walter Vennemeyer, Progressive Capital Mark Mazzocco, Vice President, Packaging Innovators Corp.

3 INDUSTRIAL DEVELOPMENT AUTHORITY OF THE COUNTY OF ALAMEDA RESOLUTION NO. A RESOLUTION MAKING DETERMINATIONS WITH RESPECT TO THE FINANCING OF A PROJECT FOR PACKAGING INNOVATORS CORP. AND DECLARING OFFICIAL INTENT WITH RESPECT TO BONDS WHEREAS, Packaging Innovators Corp., and its successors and assigns (the "Applicant") desires to acquire and install equipment in its facility located at 6650 National Drive, Livermore, California 94550, for use in the manufacture of specialized packaging products, including corrugated containers, displays, foam and allied materials for a variety ofconsumer industries (the "Project"); WHEREAS, the Applicant is willing to acquire and install the Project within the jurisdiction of the Industrial Development Authority ofthe County of Alameda (the "Authority") ifthe Authority will issue tax-exempt industrial development revenue bonds to finance a portion of the costs ofthe Project pursuant to the California Industrial Development Financing Act, being Title 10 of the California Government Code, as supplemented and amended (the "Act"); WHEREAS, the Applicant has submitted, and this Board ofdirectors ofthe Industrial Development Authority ofthe County ofalameda (this "Board of Directors") has accepted, an application ofthe Applicant requesting financing of the Project; WHEREAS, the Authority may not issue bonds to finance the Project until this Board of Directors makes certain determinations with respect to the public benefits and qualification ofthe Project as required by the Act; WHEREAS, the Board ofdirectors has carefully considered and discussed the information contained in such application and other information necessary to make such determinations; WHEREAS, this Board of Directors desires to induce the Applicant to commence acquisition, construction and installation of the Project at the earliest possible time so as to produce the public benefits set forth herein; WHEREAS, the Authority expects that the Applicant will pay certain expenditures (the "Reimbursement Expenditures") in connection with the Project prior to the issuance of indebtedness for the purpose offinancing costs associated with the Project on a long-term basis; WHEREAS, the Authority reasonably expects that debt obligations in an amount not to exceed $5,500,000 will be issued and that certain ofthe proceeds of such debt obligations will be used to reimburse the Reimbursement Expenditures; WHEREAS, Sections ( a)( 5) and ofthe treasury regulations promulgated under the Internal Revenue Code of 1986, as amended (the "Treasury Regulations") require an issuer oftaxexempt obligations to declare its reasonable official intent to reimburse, from proceeds of such obligations, expenditures made prior to the issuance ofsuch obligations; and I \initial-res

4 NOW, THEREFORE, this Board ofdirectors ofthe Industrial Development Authority ofthe County of Alameda does resolve as follows: Section I. correct. Section 2. This Board of Directors finds and declares that the foregoing recitals are true and This Board ofdirectors hereby finds and determines that: (a) the activities and uses of the Project as part of a facility for the manufacture of specialized packaging products, including corrugated containers, displays, foam and allied materials for a variety of consumer industries are in accord with Section ofthe Act; (b) the use of the Project is likely to produce (i) employment benefits (within the meaning of Section 91S02.I(b)(I) ofthe Act) by securing or increasing the number ofemployees ofthe Applicant and any direct users ofthe Project or the compensation for such employment; and (ii) consumer benefits (within the meaning of Section (b)(3) of the Act) by improving the quantity or quality or reducing the price of products, energy or related services or facilities, and by producing new or improved products or related services or facilities; (c) the issuance of industrial development revenue bonds by the Authority in an amount sufficient to finance certain costs ofthe Project is likely to be a substantial factor in the accrual of one or more ofthe public benefits from the use ofthe Project as proposed in the Applicant's application; and (d) of the Act. the proposed financing is otherwise in accord with the purposes and requirements Section 3. The Authority hereby declares its official intent to use proceeds ofindebtedness expected to be issued in an amount not to exceed $5,500,000 to make a loan to the Applicant, a portion of which will reimburse the Applicant for Reimbursement Expenditures. Section 4. The declaration ofthis Board of Directors in Section 3 is made solely for purposes ofestablishing compliance with the requirements of Section (a)(S) and Section ofthe Treasury Regulations. This declaration does not bind the Authority to make any expenditure, incur any indebtedness, or proceed with the financing of the Project. Section 5. The Secretary or Deputy Secretary is hereby authorized and directed, as soon as possible, to certify and file with the Board of Supervisors of the County of Alameda, a copy ofthe application from the Applicant accepted by this Board of Directors. Section 6. The Secretary has caused to be published one time in a newspaper of general circulation in the County ofalameda a notice offiling ofthe application by the Applicant as required by Government Code Section 91S30(e) and is hereby directed to mail a copy of such notice to the City Council ofthe City of Oakland, which is the city in which the Project will be located. J \initial-res 2

5 Section 7. This Resolution shall take effect immediately upon its passage. * * '" '" '" Approved as to Form DONNA ZIEGLER, County Counsel, as counsel to the Authority, By: ~~ Deputy \initial-res 3

6 The foregoing resolution was passed and adopted by the Industrial Development Authority of the County of Alameda on March 27, 2012, by the following vote: AYES: NOES: ABSTENTIONS: EXCUSED: ATTEST: President Secretary \initial-res 4

7 ST ATE OF CALIFORNIA ) COUNTY OF ALAMEDA ) CERTIFICA TE I, Crystal Hishida Graff, the duly appointed, qualified and acting Secretary of the Industrial Development Authority of the County of Alameda, do hereby certify that attached hereto is a true, complete and correct copy of Resolution R-, adopted at a duly called meeting ofthe Board of Directors of said Authority held in accordance with law on March 27, 2012, at which meeting a quorum was present and acting throughout, all as appears in the records ofthe Board of Directors of said Authority in my custody as the Secretary ofthe Authority IN WITNESS WHEREOF, I have hereunto subscribed my name this day of CRYSTAL HISHIDA GRAFF, Secretary Industrial Development Authority ofthe County of Alameda \initial-res 5