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Speaking at the July 21 board of alderman meeting, William Rutledge, IDA chairman, said Husky had secured acknowledgment of the bank that would purchase the bonds.
The proceeds of the bonds will be loaned by the IDA to Draco and Cornoa and Collectibles LLC on behalf of Husky Corporation.
Husky will use the funds for renovating, expanding and equipping the Husky facility at 2325 Husky Way, Pacific.
The IDA and its low-interest industrial revenue bonds have become a part of Pacific's drive to bring jobs to the city.
Sheila Steelman, community and economic development director, is working with the IDA to promote the unique lending capability that allows cities to attract industry.
"The industrial revenue bonds are extremely valuable as a growth tool," Steelman said. "We'll be able to save Husky about $500,000."
Steelman said she would focus on trying to find new manufacturers to fill the plants idled by the Integram and Ventra closures, which took 700 jobs out of the city.
The Husky expansion is the second use of revenue bonds for local projects in recent months. Some $3 million in industrial revenue bonds were approved for Clayton Corporation in November 2008.
Clayton Corporation was the first local firm to apply for the industrial revenue bonds in recent memory.
"It's a good tool for us to assist firms with growth," Steelman said.
The IDA can approve up to $10 million in bonds a year for industrial development.
"We still have about $6.4 million available this year," Steelman said.
Steelman said she was currently working with three local firms that are putting together growth plans.
"All of these projects involve new jobs for our community," Steelman said. "We're looking at whether industrial revenue bonds are the best financing for these projects."
Steelman also expects to apply for about $4.6 million in federal stimulus money for economic development and the city could also apply for $6 million for community progress funds.
