"We looked into relocating, but couldn't find another larger facility to meet our needs in this area," says DDG president Andrew Freedman. "So we decided to buy the facility and lease additional warehouse space next door. The space in the building we bought is now rededicated to manufacturing, and the adjacent warehouse will be used for storage."
The initial variable interest rate on the 10-year bonds is 2.17%, according to Freedman. The financing was obtained from the New Jersey Economic Development Authority, and Fleet Bank purchased the bonds. EDA is authorized to issue tax-exempt bonds under the federal Internal Revenue Code, and bond purchasers don't have to pay federal or state income taxes on the interest earned. The difference is passed on to the borrower in the form of lower interest rates.
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