While full details of the sale transaction have not been disclosed, the new facility is being acquired with the help of a New Jersey EDA-approved $1.6 million tax-exempt bond issue. Of that total, $1.3 million is for 146 East 5th St. LLC, a related real estate holding company, to buy the building. The balance is being applied to fit out the facility with new processing equipment.
"As a food processor, J&K Ingredients is a manufacturer and is therefore eligible for tax-exempt bond financing," according to Al Koeppe, chairman of the EDA. "Low-cost, tax-exempt bond assistance is available to manufacturing businesses and to non-profit organizations."
In this case, Greater Community Bank of Totowa, NJ purchased the bond issue, which carries an initial interest rate of 4%.
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