HomeMy WebLinkAboutMINUTES - 10151991 - 1.42 %
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TO: BOARD OF SUPERVISORS C ntra
FROM: Harvey E. Bragdon ' `✓V�71�.
Director of Community Development 7.......(M"", CO
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DATE: October 15, 1991
SUBJECT: Feralloy Corporation and Industrial Development Bonds
SPECIFIC REQUEST(S) OR RECOMMENDATIONS(S) & BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS
As—the Contra Costa Industrial Development- Authority approve the
transfer of assets owned by Feralloy Corporation and financed by the
Contra Costa Industrial Development Authority to an alternative
location.
FISCAL IMPACT
The proposed alternative location is not within Contra Costa County.
The transfer of the financed equipment will marginally affect property
tax revenues being generated at the current location in the short.
term. The industrial- development bonds issued by the Authority are
secured by a corporate,' guarantee. All principle and interest payments
due on the bonds have been made as scheduled.. This action would not
impair the security for the bonds.
BACKGROUND/REASONS FOR RECOMMENDATIONS
In May 1984 the Industrial Development Authority of the County of
Contra Costa approved the issuance of industrial development bonds to
Feralloy Corporation in the amount of $2 million. The proceeds of the
bond issuance were utilized to acquire steel slitting equipment for
their Pittsburg facility. The approval of the Authority was based on
an unconditional commitment by Feralloy to remain in Pittsburg for
three years and ten years or longer if the. business climate remained
favorable.
CONTINUED ON ATTACHMENT: X YES SIGNATURE:
J
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDA OF BO D COMMIT E
APPROVE OTHER
SIGNATURE(S) :
ACTION OF BOARD ON OC 1991 APPROVED AS RECOMMENDED OTHER
VOTE OF SUPERVISORS
` I HEREBY CERTIFY THAT THIS IS A
< UNANIMOUS (ABSENT ) TRUE AND CORRECT COPY OF AN
AYES: NOES: ACTION TAKEN AND ENTERED ON THE
ABSENT: ABSTAIN: MINUTES OF THE BOARD OF
SUPERVISORS ON THE DATE SHOWN.
cc: Community Development OCT 1
County Administrator ATTESTED
County Counsel PHIL BATCHELOR, CLERK OF
Private Industry Counsel THE BOARD OF SUPERVISORS
Orrick, Herrington & Sutcliffe AND COUNTY ADMINISTRATOR
(via Community Dev. Dept. )
Feralloy West Company BYC� r DEPUTY
(via Community Dev. Dept. )
SRA19/jb/fraloybd.bos
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Feralloy Corporation met their three year commitment. Due to
continuing unfavorable business climate, they have requested the
Authority's consent to transfer the equipment to a facility in
Fremont. Feralloy Corporation has sustained losses in its
Pittsburg operation in five of the last seven years. In order to
stem the losses, Feralloy Corporation is planning to merge with a
division of Reliance Steel and Aluminum in Fremont.
The Feralloy operation in Pittsburg employed approximately 40
people. The company is working with the union to develop a
mechanism by which all workers who so desire can be transferred to
the Fremont operation. For those employees who do not wish to
relocate to the Fremont facility, the company has met with the
County's Private Industry Council representatives and the State
Employment Development Department representatives to develop an
assistance program to mitigate the impact of their job loss.