Tulkoff asks for $6M in state bonds - Baltimore Business Journal:

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Family-owned Tulkoff, which has made horseradishg in Baltimore since theearlhy 1920s, decided on the new site last Tulkoff had been looking for a new location for its East Baltimorew plant because the surrounding area has becom e less industrial and more of a haven for young professionals who are rehabbingt homes. Tulkoff has asked MEDCp to issue upto $6 millio in bonds to help cover the cost of building the new As a public entity, MEDCO can get bond financinv at a lower interest rate than a company could, which makes repaying the money cheaper for CEO Philip Tulkoff said.
Marylands manufacturers like Tulkoff are eligiblefor tax-exempt financin through MEDCO, said Robert Brennan, MEDCp executive director. Although the bond would be issuedby MEDCO, the state agenc would not be on the hook to repay the money, Brennan said. A division of GE wouldf underwrite the bondsfor Tulkoff, Brennab and Tulkoff said. A bond underwrite provides funding forthe borrower, buying the bonds and reselling them to other investors. "It's very efficient and affordable," said Tulkoff, joking that "I' allergic to higher rates.
" Tulkoff was traveling and didn'g have details about the interesr rateat hand, but said bonds issue by MEDCO would probably have an interesg rate of one to two percentage pointsz lower than bonds issued by a company. Tulkof f Food Products plans to use money from its operationes and from the sale of its Brewers Hill properthy to repay the cost of buildingthe plant, Tulkofff said. "We look at any project in Baltimore City as consideree to bea priority," Brennan "We want to make sure we're able to supporft the manufacturing sector so it can remain To determine whether to issued the bonds, MEDCO's board will look at how the projecft would maintain or increase employment in the state and will revieew Tulkoff's financial history, Brennamn said.
MEDCO will hold a hearing on Tulkoff's requesty Sept. 17. Tulkoff hopes to open the new plant, which will be aboutg 80,000 square feet, by first quarter 2008, Phili Tulkoff said. Tulkoff bought the 6-acre parcel of land at Holabir d from the city this year for its appraisedr valueof $490,400. Tulkoff Food Productxs does notdisclose revenues. It employs about 70 peoples in Baltimore, and expects that level to stay roughly the same after the newplangt opens, Tulkoff said. Last year, the company bough a food-service spice line from Baltimore Spice which added five to 10 he said. Tulkoff started at a producre stand run byJewish immigrants.
it bills itself as the nation's largest makert of prepared horseradish products for majorfood distributors. It processes 10 millioj pounds of raw horseradish rooteach year. Tulkoff also has a plantr in California. MEDCO issuesa bonds about 15 timesa year, mostly for nonprofif organizations, Brennan said. Very few manufacturers typicall apply forthe bonds, he said. All together, MEDCO has issuesd bonds about 200 times sincethe mid-1980s, and Brennann said he could not recalk any party ever opposing one of the deals. MEDCiO exists to help Maryland businesses expand and attract new businesas tothe state. It supports its operationsd from fees charged on projects such asbond issuances.