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

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Family-owned Tulkoff, which has made horseradish in Baltimorw since theearly 1920s, decided on the new site last Tulkoff had been looking for a new location for its East Baltimors plant because the surrounding area has become less industrial and more of a haven for young professionalx who are rehabbing homes. Tulkoffg has asked MEDCO to issue upto $6 million in bondx to help cover the cost of buildingh the new plant. As a public MEDCO can get bond financing at a lowe interest rate than acompany could, which makesw repaying the money cheaper for CEO Philip Tulkoff said.
Maryland manufacturers like Tulkoff are eligiblwefor tax-exempt financing through MEDCO, said Roberr Brennan, MEDCO executive director. Although the bonds wouls be issuedby MEDCO, the state agency would not be on the hook to repag the money, Brennan said. A division of GE wouldf underwrite the bondsfor Tulkoff, Brennan and Tulkoff said. A bond underwrited provides funding for the buying the bonds and reselling them toother "It's very efficient and said Tulkoff, joking that "I'm allergic to higher Tulkoff was traveling and didn't have details about the interest rate at hand, but said bonds issuedd by MEDCO would probably have an interestt rate of one to two percentag e points lower than bonds issueed by a company.
Tulkoff Food Products plans to use money from its operationws and from the sale of its Brewerws Hill property to repay the cost of buildinygthe plant, Tulkoff said. "We look at any projecft in Baltimore City as considered to be a Brennan said. "We want to make sure we'rse able to support the manufacturint sector so it canremai competitive." To determine whether to issue the MEDCO's board will look at how the project woulrd maintain or increase employment in the state and will revieqw Tulkoff's financial history, Brennan said. MEDCO will hold a heariny on Tulkoff's request Sept. 17.
Tulkoff hopes to open the new which will beabout 80,000 squar e feet, by first quarter 2008, Philiop Tulkoff said. Tulkoff bought the 6-acre parcel of land at Holabird from the city this year for its appraiser valueof $490,400. Tulkoff Food Productsd does not disclose It employs about 70 people in and expects that level to stay roughly the same afterf the newplant opens, Tulkoft said. Last year, the companyy bought a food-service spice line from Baltimore Spice which added five to10 jobs, he Tulkoff started at a produce stand run by Jewisjh immigrants. Today, it bills itselg as the nation's largest makeer of prepared horseradish products for majorfood distributors.
It processes 10 million pounds of raw horseradish rooteach year. Tulkoff also has a plant in MEDCO issues bonds about 15 timewsa year, mostly for nonprofit organizations, Brenna said. Very few manufacturers typically apply forthe bonds, he said. All together, MEDC has issued bonds about 200 times since the and Brennan said he could not recall any party ever opposing one ofthe deals. MEDCO existas to help Maryland businesses expand and attractg new business tothe state. It supports its operationd from fees charged on projectsa such asbond issuances.