Times Staff Report
CHICAGO | Tax-exempt financing will allow a food and meat processing plant in South Holland to expand and bring more than 170 jobs to Cook County's southern suburbs.
Gov. Rod Blagojevich announced last week the Illinois Finance Authority issued $10 million in tax-exempt industrial revenue bonds to Rupari Food Services, Inc., which plans to add a 60,000-square-foot facility and nearly double its work force.
The hope is the expansion will help foster economic development within the southeast suburbs, Blagojevich said.
"This financing represents a significant step forward in delivering economic opportunities to people in Chicago's south suburbs and surrounding area," Blagojevich said in a news release. "Not only are we expanding and improving a growing Illinois business with this project, we're also putting more people to work."
Rupari Food Services' South Holland operation is a wholesale supplier of processed ribs to the food service industry.
The South Holland facility employs 150 workers. Officials expect the expansion to add more than 110 permanent jobs, and add at least 60 construction jobs.
The expansion will include adding a process freezer, tempering cooler, three blast freezers, shipping dock, machine room, USDA-approved production cooler and warehouse space with more than 8,000 pallet positions.
The project also includes a 10,000-square-foot expansion and renovation of Rupari's ready-to-eat production, a move that could increase cooking capacity from 20 million to 50 million pounds per year.
"We are excited about this project because it means we can continue to grow," Rupari Food Services CEO Robert Mintz said. "The additional production and cold storage capacity will help us meet demand and improve costs, and expand our business."
Rupari Food Services began its South Holland operation in 2005 with 75 employees. Since then, the business has become a leading supplier of spare ribs, back ribs, St. Louis-style ribs and other barbecue products to national restaurant chains, big-box retailers and major grocery chains.
The privately owned corporation began in 1978 and is headquartered in Deerfield Beach, Fla.
Each year, the federal government allows each state to provide a certain amount of tax-exempt financing for industrial expansion and business purposes, Illinois Finance Authority spokeswoman Diane Hamburger said. In Illinois, the amount of tax-exempt financing allocated is split between the state and home rule municipalities, she said.
To help pay for the Rupari project, the state provided $5.46 million in tax-exempt financing. The South Suburban Mayors and Managers Association -- which has 42 member municipalities that pool their home rule allotment -- allocated $4.54 million to the project.
The state financing provides long-term low interest rates for Rupari, which is responsible for paying the bonds, and allows the business to contribute to economic growth in the south suburbs.
"This project tells a positive story about the economic development progress in southern Cook County," South Holland Village President Don De Graff said. "The job growth and tax revenue will have a very positive impact."
