Cincinnati City Council is considering an ordinance that would allow the City to issue up to $11.5 million in economic development bonds for the new Graeter's manufacturing facility, currently under construction in Bond Hill.

The ordinance would replace one passed in April and would tap into American Recovery & Reinvestment Act of 2009 (ARRA) Qualified Recovery Zone Facility Bonds, allowing the City to issue the debt at a lower rate.

Bond Hill was located in a U.S. Department of Housing and Urban Development Empowerment Zone prior to passage of the federal stimulus package, making it eligible for the ARRA bond program.

To service the bond debt, the City has extended a 20-year loan to the company at 2 percent interest for the first two years and 4 percent interest for the remaining 18 years.

The $11 million, 28,000-square-foot building at will allow Graeter's to quadruple its production to 1 million gallons annually.

The company will retain 68 jobs and create a minimum of 30 new jobs over the next three years.

Graeter's hopes to begin production at the new facility in January 2010.

The company plans to maintain offices at its current Reading Road facility, which will continue to produce candy and baked goods.

Previous reading on BC:
Cincinnati approves grant amendment for extra $300K for Graeter's (6/25/09)
Ohio could supply additional $300K for Graeter's project (6/16/09)
Cincinnati creates account for new Graeter's facility (4/23/09)
Plans for new Graeter's plan in Finance Committee (4/1/09)