Ring Can bonds approved
By Shellie Berg
By Shellie Berg
On Jan. 29, the Rockford City Council approved up to $4 million in aggregate principal amount revenue bonds for Tennessee-based Ring Can Corporation, which manufacturers plastic containers at 4689 Assembly Drive.
The council conducted a public hearing that night. Public hearings must occur as pursuant to the requirements of the Tax Equity and Fiscal Responsibility Act of 1982 before any approval.
Hearings occur when the city considers approving industrial revenue bonds, tax increases and annexations. Mayor Charles Box called on Alderman Robert Greene (R-1) to hold the hearing.
Since no objections were raised, the bonds were approved.
Ring Cans bonds are good for one year. They will be used for the acquisition, construction and installation of equipment, Greene noted. The company must pay the bonds back pursuant to the terms of the agreement. The city lacks financial obligations.
The bonds actually comes out of the federal treasury and are tax-exempt. Weve done this a couple of times for Ring Can, the citys attorney, Ron Schultz, stated.
The company procured the bonds from the city is because the companys financial burden is reduced. They get a better rate of interest than they would commercially, Greene said.
The projects must be financially beneficial to the community, Greene said. He noted that companies make requests for industrial bonds often, and he cant recall any time the city denied a request. He said the Ring Cans request is no exception. It is financially beneficial to the community, he said, adding the company will create more company and construction jobs because it will add on to its present facility at the Greater Rockford Industrial Park.
Ring Can, Inc. is headquartered in Oakland, Tennessee.