City May OK Bond to Help Firm Build

A $4-million bond that would help build a corporate center for a manufacturer of nutrition supplements will be considered by the City Council tonight.

The bond would be issued through a California League of Cities-sponsored organization that helps promote economic growth in communities.

Although Lake Forest would not be financially responsible for the bonds, the city’s approval is needed before the California Statewide Communities Development Authority would go forward with the project.

Bioglan Laboratories Inc. could use tax-exempt bonds for a 200,000-square-foot building in the Pacific Commercentre industrial complex.

Now located in Laguna Hills, Bioglan has nearly completed construction of its corporate offices and expects to occupy the building by the end of June.

Because investors would pay no taxes on their interest earnings, the bonds can be sold at a lower interest rate, a savings for the company. Bioglan would provide financial backing for the bond issue.

“It’s a way to allow companies to expand or help them move into cities,� said Dave Bass, who is in charge of city finances. “It would mean more property tax to Lake Forest. It also shows our willingness to be business-friendly.�

Bass said federal tax law requires that the tax-free bonds be approved by the local government. If approved, the bond sale will start next week, company officials said.

The council meeting will be at 7 p.m. in City Hall, 23161 Lake Center Drive, suite 210. Information, (714) 461-3400.