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07/25/2016
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CITY CLERK
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Regular Council Meeting <br />July 25, 2016 <br />Page 4 <br />well as put them in a position for possible future expansion should that be necessary. He <br />outlined the five areas of expansion of the plant. <br />Council Member Trenado inquired how many additional employees would be hired. Mr. <br />Kressig reported they would add four additional employees, so there will be forty-four. Council <br />Member Clifford referenced the contract language to reflect they were going to decrease the <br />number of employees from forty-one to forty. Mr. Kressig explained one employee from the <br />Brownwood facility was transferred to the Paris Plant and that employee would be transferred <br />back to the Brownwood facility. He said they planned to hire four additional people. Council <br />Member Clifford wanted to know if the four new employees were going to be temporary and Mr. <br />Kressig said that was not their plan. Council Member Clifford said the contract reflected they <br />could be contract employees and they did not have to pay benefits to the employees. Council <br />Member Clifford also said the City would be giving the maximum allowed by State Law and <br />after ten years, it looked like the City would only be getting about $400,000 on the tax roll. He <br />expressed concern about the level of investment and percentage of abatement according to the <br />policy passed by City Council. Council Member Frierson said the Council made a differentiation <br />about investments made by local companies and that he had been part of that discussion. <br />Council Member Clifford said after reading the contract, and realizing that the City of Paris was <br />only going to get about $500,000 taxes, he had a difference of opinion. He said he was in favor <br />of an abatement but wondered if the maximum allowed by State Law was appropriate. Council <br />Member Frierson it goes way back and was really about looking at sustainability of a facility, the <br />work force and if the company had been here a long time. He said he looked at it from a <br />different point of view. Council Member Clifford questioned the point of a declining percentage <br />if they were not going to stick to it. Council Member Frierson said that was the topic of large <br />discussion in previous meetings and the thought process that a company new to the area would <br />need further constraints. Michael Paris added there had been votes in past waiving existing tax <br />abatement guidelines. He said there was an assumption made that the only benefit to the <br />community was the actual taxes off of the assets. He also said the local school districts and PJC <br />were still getting their taxes and there was a positive economic impact after one year on an <br />investment. Mr. Paris said most employers hire temporary people to find out if they were going <br />to be good employees prior to hiring a full-time permanent employee. Council Member Clifford <br />said there were very few cities that gave 100 percent ten-year tax abatement on machinery alone. <br />He said it could be done according to State Law, but questioned if they wanted to do that or go <br />by the criteria they had in place. Mr. Paris said he agreed and that is why he came to them April <br />25, in order for Potters' local plant to be able to compete to attract the capital investment. <br />Council Member Clifford said there was nothing in the contract that reflected the jobs would be <br />well paying jobs. He also said he was very glad Potters wanted to expand, but was questioning <br />the level they were granting and Council going against their own criteria. <br />Mayor Pro -Tem Lancaster opened the public hearing and asked for anyone wishing to <br />speak in support or opposition of the item, to please come forward. Michael Glatfelter wanted to <br />know how much an employee would be making when they started working at Potters. Mr. <br />Kressig said approximately $18.00 to $19.00 an hour. Mr. Glatfelter said he was curious <br />because of how things went with the bakery. Chad Lindsey spoke in favor of this abatement and <br />said the company had been a part of the community for a long time and it would was very <br />
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