Tuesday, August 07, 2007
$3.5 Million in Tax Exempt Bonds Approved for New Plant, Equipment
Governor Jennifer M. Granholm and James C. Epolito, president and CEO of the Michigan Economic Development Corporation, announced today that bond financing in the amount of $3.5 million has been approved to support the expansion of office furniture products manufacturer G. A. Richards Company and GA Richards Plant 1.5 LLC in Grand Rapids, Kent County, through the use of the Private Activity Bond Program.
Bonding issued by the Michigan Strategic Fund (MSF) chaired by Epolito will be used to finance construction of a 39,827-square-foot manufacturing facility at 1060 Ken-O-Sha Industrial Drive, S.E. and the equipping of the G. A. Richards Company’s existing manufacturing plant on adjacent property. The project includes refunding of the company’s MSF 1997 revenue bond. The land and facility portion of the project will be owned by GA Richards Plant 1.5 LLC and leased to G. A. Richards Company. The latter will own the machinery and equipment and operate the entire project in the manufacture of products for the office furniture industry.
Private activity bonds are issued to finance projects for manufacturers and certain non-profit corporations. The MSF acts as an intermediary between a borrowing company and lending party to lessen the cost of borrowing because the interest paid to the bond buyer is exempt from federal, state and local taxes.
The Michigan Economic Development Corporation, a partnership between the state and local communities, promotes smart economic growth by developing strategies and providing services to create and retain good jobs and a high quality of life. For more information about the MEDC, please visit the Web site at www.MichiganBusiness.org..
John Boll, president