HomeMy WebLinkAboutAgenda Report - December 17, 1996AGENDA TITLE: Resolution in support of California Economic Development Financing Authority's Issuance of
Industrial Development Bonds to Arkay Industries, Inc.
MEETING DATE: December 17, 1996
PREPARED BY: City Manager
RECOMMENDED ACTION: That the City Council adopt the attached resolution showing
the City of Lodi's full support of Arkay Industries, Inc.'s
application to the State of California's Economic
Development Financing Authority for Industrial Development
Bond financing.
BACKGROUND INFORMATION: For the past several months, the City of Lodi and other
members of TEAM California have actively pursued Arkay Industries, Inc. and have encouraged
them to locate their West Cost manufacturing facility within the City of Lodi.
Incentives, with which the Council is familiar, were offered Arkay as inducement to favor Lodi and the
State of California over other northern California communities and the State of Arizona. Part of the
incentive package included the opportunity to apply for Industrial Development Bond financing
through the California Economic Development Financing Authority. The purpose of the attached
resolution is to show that the City of Lodi fully supports Arkay's efforts to obtain the appropriate
approvals from the State of California's Debt Limit Allocation Committee and the State of California's
Industrial Development Financing Advisory Commission.
Arkay Industries, Inc. will initially build a 30,000 to 35,000 square foot facility on a 6.69 acre parcel in
the Beckman Industrial Park. Their intentions are to eventually expand to a 60,000 square feet
manufacturing plant within two years. Arkay will provide 50 new permanent jobs during the first year
of operation. They will increase the size of its workforce to approximately 120 employees as plant
expansion occurs.
Arkay Industries, Inc. is a nationally and internationally recognized company specializing in custom
plastic injection molding products and assemblies. Their products include: automobile dashboards
and consoles, computer frames and storage containers. Arkay distributes product throughout the
US and Japan. Customers include: General Motors, Toyota, Subaru, Honda, Mercedes and IBM,
to name a few.
APPROVED:
H. D- n Flynn — C4 Manager,
The Lodi plant will be Arkay's only West Coast manufacturing and distribution facility. It will provide
needed employment opportunities, sales tax revenue and international exposure to the community.
Arkay Industries, Inc. is projecting sales totaling approximately $120 million for the 1996-97 fiscal
year.
FUNDING: Not Applicable
Respectfully submitted,
i
Dixon Plynn
City Manager
Prepared by: Tony C. Goehring
Economic Development Coordinator
RESOLUTION NO. 96-190
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LODI
IN SUPPORT OF THE REQUEST OF ARKAY INDUSTRIES, INC. FOR
INDUSTRIAL DEVELOPMENT BOND FINANCING
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WHEREAS, the San Joaquin Valley in general and the City of Lodi in particular would
benefit from industrial development within the City of Lodi; and
WHEREAS, the City of Lodi has actively pursued Arkay Industries, Inc. and
encouraged them to locate within the City of Lodi; and
WHEREAS, Arkay Industries, Inc. of Miamisburg, Ohio has chosen to expand to this
community by the establishment of its West Coast facility in Lodi; and
WHEREAS, the community will benefit from the employment opportunities which
Arkay Industries, Inc. brings to the community both immediately and through anticipated
expansion.
NOW, THEREFORE, BE IT RESOLVED that the City Council:
1. Fully supports Arkay Industries, Inc. in its efforts to secure Industrial Development
Bond financing through its application to the California Economic Development Financing
Authority; and
2. Supports the issuance of the requested Industrial Development Bond financing as
being consistent with the efforts of the State of California (TEAM CALIFORNIA) to encourage
the development of industry and jobs within the State and local communities; and
3. Requests that all state agencies take all actions necessary in order to approve the
application for Industrial Development Bond financing submitted by Arkay Industries, Inc. so
that it and the City of Lodi can benefit from this economic development project.
Dated: December 17, 1996
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I hereby certify that Resolution No. 96-190 was passed and adopted by the City Council of the
City of Lodi in a special meeting held December 17, 1996, by the following vote:
AYES: COUNCIL MEMBERS - Land, Mann, Sieglock, Warner
and Pennino (Mayor)
NOES: COUNCIL MEMBERS - None
ABSENT: COUNCIL MEMBERS - None
ABSTAIN: COUNCIL MEMBERS - None
JENNIFER M. PERRIN
City Clerk
96-190