Three poor sections of California will get an economic boost from the California Enterprise Development Authority (CEDA), which will issue bonds for three major consumer product manufacturers.
The three recipients are Pocino Foods Co. in the city of Industry, Los Angeles County, $9 million; Kieran Label Corp., San Diego County, $3 million; and Ramar International Corp., Pittsburg, $10 million.
The bonds clear the way for all three companies to expand their operations, creating more jobs and higher-than-average wages in impoverished areas, according to Wayne Schell, president and CEO of the California Association for Local Economic Development.
The aid to Pocino Foods took advantage of a change contained in the housing stimulus legislation passed by Congress and signed into law by President Bush last summer. The provision allows CEDA to be the first issuer in California of a support letter of credit secured from the Federal Home Loan Bank Board for an industrial development bond.
This means that if a bank’s rating is not strong enough or the market is skittish, the company can pay a fee for a back-up letter of credit and this facilitates the business’s access to expansion capital.
Pocino Foods produces meat and poultry products sold at Safeway and Subway, among other places. The company’s facility needs infrastructure upgrades and new equipment to comply with current and future food processing industry standards.
Pocino Foods, which employs 190 people, expects to add 20 new jobs within two years of completing the project.
Kieran Label, which manufactures tags and labels for companies such as Home Depot, Costco, Epson and Dell, has outgrown its 30,000-square-foot location in El Cajon and is planning to expand into a 54,000-square-foot building in the Otay Mesa Enterprise Zone.
The $3-million bond will finance the expansion, which will add 23 jobs at Kieran.
Ramar International manufactures and distributes frozen Filipino and Asian food in the United States. To meet increased demand, Ramar needs the $10 million bond issue to expand into an adjacent building. The financing will enable the company to add 67 manufacturing jobs.