Loading...
HomeMy WebLinkAboutMINUTES - 05081984 - T.3 � 3 THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA Adopted this Order on May 8, 1984 , by the following vote: AYES: Supervisors McPeak, Schroder and Torlakson NOES: None ABSENT: Supervisors Powers and Fanden ABSTAIN: None SUBJECT: Industrial Development Bond Proposal for Feralloy Corporation in Pittsburg This being the time fixed for the Board to hear the propo- sal that the Industrial Development Authority of the County of Contra Costa issue industrial development bonds to Feralloy Corporation for the purpose of assisting the financing of its facilities at 1601 Loveridge Road, Pittsburg; and Mr. Anthony Dehaesus, Director of Planning, having reviewed the process of issuing industrial development bonds and the mechanisms for determining eligibility for such financing, including training and hiring of local unemployed persons, and having urged approval of the proposal; and Mr . Jim. Martin of Merit Ends, Pittsburg, having appeared in opposition to the proposal and requested the Board to reconsider its commitment to issue the bonds, as he was of the opinion that Feralloy would be competing with his company and may eliminate jobs at his plant; and Board members having discussed the opportunities of the industrial development bond program with Mr. Martin; and d Mr. John Garcia, Treasurer of the City of Pittsburg, and a member of the Pittsburg Economic and Housing Development Corporation, having appeared in opposition to issuing bonds for the benefit of Feralloy, and having suggested forming a committee to work with county staff to establish guidelines and policy for issuance of industrial development bonds; and Mr . Henry Cano, International Staff Representative of the United Steelworkers Union, having urged the Board to defer its deci- sion on this matter to provide time to determine whether the County needs Feralloy' s expansion, whether Feralloy would compete with existing industries, whether it would use U. S. or foreign steel and how its pay scale compares to like industries, and whether its plant would be permanently located in Contra Costa County or if in the future it might be moved to another location; and Mr. Dan Gutierrez, representing United Steelworkers, Local 1440, having expressed concern that Feralloy would take jobs away from U. S. Steel and would pay a lower. wage; and Mrs. Barbara Zivica, resident of Walnut Creek, having advised that she was of the opinion that the County' s involvement in the = 'tax-free bonds for any one particular corporation is unwarranted and inappropriate, and having suggested that it would be better for the Board to set policy and let the Contra Costa County Development Association or a like agency review the applications; and 00 ,x.83 r+l Mr. Henry Clarke, representing the Contra Costa Employees Association, Local 1, having urged formation of' a committee con- sisting of industry and union representatives .,involved to establish criteria, review needs and evaluate the total impact on the community; and Mr. N. J. Murphy, President, Feralloy Corporation, having responded to many of the questions and concerns raised, and having advised that the application met all the qualifications and require- ments and having therefore urged the Board to act favorably on the application for Industrial Development Bonds; and Supervisor Fanden having inquired if the County would incur liability if Feralloy failed to pay off the bonds; and Dena Peterson, representative of Bond Counsel, Orrick, Herrington & Sutcliffe, having assured the Board that the bank pro- posing to purchase the bonds understands that in the event of a bond default it is the bank' s loss, and the County has no responsibility for paying off the bonds; and Ms. Peterson, in response to further questions by members of the Board, having assured the Roard that it had the ability to set criteria and that neither State nor Federal law requires the County to determine need in considering applications for the bonds, but State law does require determination of public benefit; and Michael Tucevich, Attorney for Merit Ends, having urged the Board to defer any decision on the proposal to issue bonds until more information on total economic benefit is available; and Board members having discussed the matter, including the time limits applicable to said proposal; IT IS BY THE BOARD ORDERED that decision on the proposal is DEFERRED to May 22, 1984 at 10: 30 a.m. , and staff is REQUESTED to review issues relative to competition, qualifying criteria, employment potential, and text for a contractual commitment by a firm participating in the program to continue its operation in the County. t P.enby certify that this is atrue ard correct COPY of an actior.takers and entered on the minutes of the Board o:SuPeroso *oan.the_data shown. r J.R.OLSSON,COUNTY CLE.:RK and ex offlclo Clerk of the Board By • Deputy cc: Director of Planning County Administrator County Counsel 00 184 4