Custom Bottling Agreement by aet98414

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									                                            Staff Report
Action Requested       Adopt Resolution 10-07 approving the Associate Membership by Contra Costa County in
                        the California Enterprise Development Authority and the execution of an Associate
                        Membership Agreement relating to Associate Membership of the County of Contra Costa.
                     Adopt Resolution 10-08 approving the Associate Membership by Marin County in the
                        California Enterprise Development Authority and the execution of an Associate
                        Membership Agreement relating to Associate Membership of Marin County
Prior Actions       On June 15, 2010, Marin County Board of Supervisors unanimously approved becoming an
                       associate member in the California Enterprise Development Authority.
                    On June 22, 2010, Contra Costa County approved becoming an associate member in the
                       California Enterprise Development Authority.
Public Benefits    Acceptance of both resolutions will allow CEDA to issue bonds and other tax-exempt
                   financings in these counties. CEDA’s issuance costs and ongoing annual fees are competitive
                   and/or lower than other issuers. The savings incurred by the end borrower can then be used to
                   further expand their underlying business, stabilize operations or hire additional employees.
Recommendation      Staff recommends approval of Resolution 10-07 which approves the Associate Membership
                       by Contra Costa County in the California Enterprise Development Authority and approves
                       the execution of an Associate Membership Agreement relating to Associate Membership of
                       the County of Contra Costa
                    Staff recommends approval of Resolution 10-08 which approves the Associate Membership
                       by Marin County in the California Enterprise Development Authority and approves the
                       execution of an Associate Membership Agreement relating to Associate Membership of
                       Marin County.
                                              Staff Report
Action Requested   Adopt Resolution 10-09 for an amount not to exceed $5,000,000 million for the purpose of
                   financing and refinancing the cost of construction, furnishing and equipping of certain facilities
                   for the benefit of the Gillespie School, providing the terms and conditions for such Loan
                   Agreement and other matters relating thereto therein specified
Borrower(s)        The Gillespie School
Borrower           The Gillespie School, formed in 1947, is a co-educational, non-denominational preschool and
Description        primary school in La Jolla, California.
Public Benefits    The refinancing of the borrower’s current outstanding loan will reduce the borrower’s interest
                   costs. Approval of this request will result in lowering the borrower’s overall debt service
                   payments. This may lead to potentially higher net income and will allow the borrower to
                   expand its needed services.
TEFRA Hearing      June 22, 2010
Eligibility and    The project has been reviewed by CEDA staff. The proposed financing is eligible pursuant to
Policy Review      state and federal law and addresses the objectives contained in CEDA’s Bond Issuance Polices
                   and Procedures
                       The Borrower is capable of meeting the obligations incurred under the financing
                        documents;
                       The Payments to be made are adequate to pay the expenses of CEDA in connection with the
                        financing and to pay debt service;
                       Proposed financing is appropriate for the project.
Recommendation      Staff recommends approval of Resolution 10-09 which authorizes and approves a loan
                        agreement, which allows up to a $5.0 million loan financing for The Gillespie School.
                        Proceeds from the loan will be used to refinance the borrower’s existing debt at a lower
                        interest rate.
                                              Staff Report
Action Requested   Adopt Resolution 10-10 approving the issuance and sale of California Enterprise Development
                   Authority Variable Rate Demand Recovery Zone Facility Revenue Bonds, Series 2010 (Frank-
                   Lin Distillers Products, Ltd. Project) in the aggregate principal amount of not to exceed
                   $22,000,000 for the purpose of financing or refinancing facilities for the benefit of the LMB
                   Partnership, LP and Frank-Lin Distillers Products, Ltd. and/or a related or successor entity;
                   providing the terms and conditions for the sale and issuance of said Bonds and other matters
                   relating thereto and authorizing the execution of certain documents therein specified
Borrower(s)        The LMB Partnership, LP and Operator, Frank-Lin Distillers Products, Ltd.
Borrower           Since opening their doors in 1966, the Maestri family has steadily built Frank-Lin Distillers
Description        Products, Ltd. (Frank-Lin), into a leader in the alcohol beverage field. Frank-Lin works with a
                   full range of clients, offering custom bottling, importing/exporting and wholesaling.
Public Benefits    The issuance of $22.0 million in Recovery Zone Facility Bonds will allow Frank-Lin to
                   construct a larger facility and consolidate operations under in one location. Their San Jose
                   facility, which consists of five separate parcels, will be taken over by eminent domain for use by
                   the commuter train in the bay area. The larger Fairfield location will allow the business to
                   streamline operations and improve business efficiency. Management anticipates that the
                   planned consolidation will result in considerable cost-savings and an increased cash flow.
TEFRA Hearing      March 2, 2010
Eligibility and    The project has been reviewed by CEDA staff. The proposed financing is eligible pursuant to
Policy Review      state and federal law and addresses the objectives contained in CEDA’s Bond Issuance Polices
                   and Procedures
                       The Borrower is capable of meeting the obligations incurred under the financing
                        documents;
                       The Payments to be made are adequate to pay the expenses of CEDA in connection with the
                        financing and to pay debt service;
                       Proposed financing is appropriate for the project.
Recommendation      Staff recommends approval of Resolution 10-10 which allows the issuance of Recovery
                        Zone Facility Bonds not to exceed $22,000,000 for the benefit of the LMB Partnership. LP
                        and Frank-Lin Distillers Products, Ltd.

								
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