County’s industrial board to consider approval of industrial revenue bonds

The county's industrial and pollution control financing board will consider the approval of issuing $4.2 million in industrial revenue bonds to pay for new machinery at Plasticard-Locktech International.

The Buncombe County Industrial Facilities and Pollution Control Financing Authority will hold a meeting on Tuesday, March 31, to consider the approval of financing new machinery for the Plasticard-Locktech International facility at 605 Sweeten Creek Road. The meeting will be held at noon at 46 Valley Street in downtown Asheville.

To finance the project, the county’s industrial and pollution authority board will issue a maximum of $4.25 million in industrial development revenue bonds, which Plasticard, a manufacturer of magnetic strip cards for gift and hotel key cards, will be obligated to repay, with interest, when the bonds are due.

This issue was last discussed at the Dec. 1 Buncombe County Board of Commissioner’s meeting, where the issuance of these bonds was approved 7-0. Xpress reported:

After the swearing-in ceremony [for newest Commissioner Miranda DeBruhl], the commissioners convened for a succinct agenda. They voted 7-0 to approve a resolution for the Buncombe County Industrial Facilities and Pollution Control Financing Authority to issue $4,250,000 in bonds to Plasticard-Locktech, which manufactures the magnetic-stripped cards used for gift cards and hotel keys, among other applications. According to County Attorney Michael Frue, the resolution does not involve county money.

“The county is not obligated on any of these funds once they’re issued; it’s a method of financing for manufacturing of tangible personal property,” he said. “It had to come to this board because the Internal Revenue Code provisions require that the board of commissioners, in any locality where this money is being borrowed, approve it.”

On the March 31 meeting, Frue adds, “This [meeting] is not a big deal. … These bond things are kind of weird because you have to go back and get final approval after it’s already been approved by all the other boards. … It’s really just a wrap-up of what happened last fall,” with all documents getting final approval.

There will be no public comment at the meeting, and the Industrial Facilities and Pollution Control Financing Authority is expected to approve the resolution to issue the bonds.

More in the meeting notice from Buncombe County:

NOTICE is hereby given that the Buncombe County Industrial Facilities & Pollution Control Financing Authority, a political subdivision and body corporate and politic of the State of North Carolina (the “Authority”), will hold a special meeting on Tuesday, March 31, 2015 at 12:00 noon in the Planning Conference Room at 46 Valley Street in downtown Asheville to consider the approval of a RESOLUTION APPROVING AND AUTHORIZING THE ISSUANCE OF $4,250,000 MAXIMUM AGGREGATE PRINCIPAL AMOUNT OF INDUSTRIAL DEVELOPMENT REVENUE BONDS (Plasticard-Locktech International PROJECT), SERIES 2015 OF THE AUTHORITY; APPROVING THE FORM AND AUTHORIZING THE EXECUTION AND DELIVERY OF THE BONDS; APPROVING THE FORM AND AUTHORIZING THE EXECUTION AND DELIVERY OF THE LOAN AGREEMENT; APPROVING THE FORMS OF THE ESCROW AGREEMENT AND THE GUARANTY AGREEMENT; MAKING A TAX ELECTION; APPROVING THE FORM AND AUTHORIZING EXECUTION AND DELIVERY OF THE CLOSING CERTIFICATES, ALL IN CONNECTION WITH FINANCING A PROJECT FOR Plasticard-Locktech International, LLP. (“Plasticard”). Plasticard has requested that Buncombe County and the Authority authorize the issuance and sale of revenue bonds, pursuant to the terms of Article V, Section 9 of the Constitution of North Carolina and Chapter 159C of the General Statutes of North Carolina, as amended, as then in force, in an aggregate principal amount of up to $4,250,000 for the purpose of the acquisition and installation of new machinery and equipment to be located at 605 Sweeten Creek Industrial Park, Asheville, Buncombe County, North Carolina, which will be used for the manufacturing of magnetic strip cards for the hotel key, gift card and/or other types of industries (the “Project”) in Buncombe County, North Carolina. Plasticard has determined that as a result of the Project approximately 40-45 jobs will be created or saved.  Plasticard will be obligated to pay sums sufficient in the aggregate to pay the principal of and interest and redemption premium, if any, on the bonds when and as the same shall become due and payable.

Jon Creighton, Secretary

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About Hayley Benton
Current freelance journalist and artist. Former culture/entertainment reporter at the Asheville Citizen-Times and former news reporter at Mountain Xpress. Also a coffee drinker, bad photographer, teller of stupid jokes and maker-upper of words. I can be reached at hayleyebenton [at] gmail.com. Follow me @HayleyTweeet

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