The city of Fairfield announced that it has closed a recovery zone facility bond financing to construct a liquor bottling plant.
The $22 million tax-exempt financing is the first completed RZFB project in California to go through the state reallocation process, according to officials in Fairfield, a suburb of San Francisco.
Proceeds of the bonds, issued through the California Enterprise Development Authority, will be applied toward construction of a $34 million building for Frank-Lin Distillers Products Ltd, a bottler and distributor of wines and spirits.
Fairfield was allocated $1.4 million in recovery zone facility bonds, which were authorized by the federal stimulus legislation in 2009. CEDA successfully applied to the California Debt Limit Allocation Committee for an additional $20 million for the Frank-Lin project.
“We are thrilled to take part in one of the few successful recovery zone facility bond transactions in the state of California,” Mona Dmitrenko, executive director of CEDA, said in a statement.
Frank-Lin Distillers, which produces and distributes more than 2,000 distilled spirit, wine and beer products, is moving to Fairfield from San Jose, where it had been located since 1966.