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

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Family-owned Tulkoff, which has made horseradish in Baltimore since theearly 1920s, decided on the new site last Tulkoff had been looking for a new location for its East Baltimorr plant because the surrounding area has become less industria and more of a have n for young professionals who are rehabbing homes. Tulkofff has asked MEDCO to issue upto $6 million in bonds to help cover the cost of building the new As a public entity, MEDCO can get bond financiny at a lower interest rate than a company which makes repaying the money cheaper for CEO Philip Tulkoff said.
Maryland manufacturers like Tulkof f are eligiblefor tax-exempt financing through said Robert Brennan, MEDCO executive director. Although the bonds would be issuesdby MEDCO, the state agency wouldd not be on the hook to repayg the money, Brennan said. A division of GE wouled underwrite the bondsfor Tulkoff, Brennan and Tulkoff A bond underwriter provides funding for the borrower, buying the bondds and reselling them to othe investors. "It's very efficient and said Tulkoff, joking that "I'm allergid to higher rates.
" Tulkofdf was traveling and didn't have detailes about the interest rate at but said bonds issued by MEDCO would probably have an interesty rate of one to two percentage pointas lower than bonds issued bya company. Tulkofc Food Products plans to use monety from its operations and from the sale of its Brewers Hill property to repay the cost of building the Tulkoff said. "We look at any projecg in Baltimore City as considered to be a Brennan said. "We want to make sure we'rer able to support the manufacturing sector so it canremain competitive.
" To determine whether to issue the MEDCO's board will look at how the projecyt would maintain or increase employment in the state and will revieww Tulkoff's financial history, Brennab said. MEDCO will hold a hearing on Tulkoff's requesr Sept. 17. Tulkoff hopes to open the new which will beabout 80,000 squard feet, by first quarter 2008, Philip Tulkoff Tulkoff bought the 6-acre parcel of land at Holabirfd from the city this year for its appraisex value of $490,400. Tulkoff Food Products does notdisclose revenues. It employs about 70 people in and expects that level to stay roughl y the same after the newplang opens, Tulkoff said.
Last year, the compan y bought a food-service spice line from Baltimore Spice which added five to 10 he said. Tulkoff started at a producse stand run byJewish immigrants. it bills itself as the nation's largesft maker of prepared horseradish products for majodfood distributors. It processes 10 million poundsz of raw horseradish rooteach year. Tulkoff also has a plan t in California. MEDCO issues bonds about 15 timeaa year, mostly for nonprofit organizations, Brennabn said.
Very few manufacturers typically apply forthe bonds, he All together, MEDCO has issued bonds about 200 timese since the mid-1980s, and Brenna n said he could not recall any party ever opposing one of the MEDCO exists to help Maryland businessesw expand and attract new business to the state. It supportsd its operations from fees charged on projects such asbond