1995-08-06-Minutes - Laserfiche WebLink

Home Browse Search

192 Mr. Vest stated that the next item on the agenda concerned Prospect #08-101-95. He stated that the key element of this project is the Bits International Company, and is a startup manufacturing company. The company is relatively small by some standards in that their initial employment will be eighteen working in the factory and six management people for a total of twenty-four. He said the hourly will have a good salary plus a tremendous profit sharing program. He said the tax values with the plant and the equipment that will be taxed will add over one-half million dollars to our assessment rolls. He said the company has made a commitment to utilize local suppliers and vendors when possible. He said they would need a 20,000 square foot pre-engineered metal building with a sixteen foot wall height, 2,000 square foot of office and some varying foundation requirements due to machinery. He said most of the machinery in this plant will be controlled, heavy equipment with some of the slabs isolated due to vibration. He said their product will be mining bits. Mr. Vest said BITCO is asking the Paris Economic Development Corporation to construct the building. The board would enter a contract with them on a lease/purchase contract whereby after the third year they would purchase the building for the outstanding costs of the building and the site. He said the estimated cost of the building is $350,000.00. BITCO will be using approximately $250,000.00 worth of equipment and they have gone to the Northeast Texas Economic Development District for this amount. He said the Northeast Texas Economic Development District has agreed to provide the $250,000.00 equipment loan and will take a subordinate position on that loan. Mr Vest said a revolving loan fund requires 25% community participation and the Paris Economic Development Corporation is being asked to provide that '25% which will be $62,500.00 to make this loan. Working capital to be utilized by the company is approximately $350,000.00 put together by a bank consortium in Paris. Paris Economic Development Corporation has asked BITCO to secure their loan with a cash deposit, or an irrevocable letter of credit for Three years. When the loans are repaid the $250,000.00 plus interest comes back into the community and can be reloaned for other business loans. Mr. Vest said that in connection with the location he would like to propose the northwest industrial area that the board has looked at for constructing the model building. The Industrial Foundation owns ten acres and his recommendation is that they take five acres out of the ten acre site to locate the building, giving more room for parking, outdoor storage and future expansion. This property has the infrastructure the sewer at the back of the property. It would just be a matter of making a tap and the water would have to be extended five hundred feet. Mr. Vest said this was the most cost effective site which gives us some keys things such as the exposure to the Loop frontage. Boardmember Fendley questioned the wall height of sixteen feet. Mr. Vest said there was significantly more cost involved and they don't need the additional height. He said the sixteen foot height was still a good height and can be used for a lot of purposes.