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PEDC Board Meeting Minutes October 20, 2017 Page 4 of 5 Multam creation of fifty-five jobs. Mr. Paris introduced Shawn Bushouse, Executive Vice President for J. Skinner Bakery, to talk about opening a new product line at J. Skinner. Mr. Bushouse presented a business update for the Board. Two of six production lines are being used to make three core products in seventy stock keeping units. The products, cinnamon rolls and Danish pastries, from this facility go to several different outlets including grocery and convenience stores. The company is planning for future growth at the Paris facility and making capital investments to fuel long-term growth. J. Skinner has potential opportunities with two customers that would add to that growth. Right now the facility is going through quality audits, supplier audits, and is close to completing the audit checklist for both companies. The proposal J. Skinner is presenting consists of a $400,000 of total investment that will be to create a transition incentive and invest in a bulk ingredient plan to drive variable cost margins. This investment will be tied to the creation of fifty-five new jobs and the retention of these jobs with payout only done on proof of performance. Mr. Bushouse commented on how J. Skinner purchased the Paris facility with no business in it knowing that this would allow for business expansion. The new opportunities would add an entire second shift at the facility. Mr. Bushouse opened it up for questions. Mr. Manning asked if this change with the two customers would turn things around for the J. Skinner Paris facility. Mr. Bushouse said that it would increase revenue to 150% of current revenue. For the facility, bringing in these two customers is just the beginning, since both customers have other products that could be produced in the Paris facility. Mr. Hamill asked how much of the facility is being used at the moment. Mr. Bushouse estimated approximately 40%. Mr. Manning wanted to know if the plan was to keep bringing more jobs to Paris. Mr. Bushouse said they absolutely would. Mr. Paris let everyone know that the portion of the jobs created below fifty-five would be pro -rated so everyone is sharing the risk and sharing the growth. The timeline on ramping up jobs is by the ending of the fourth quarter of 2017. Mr. Bushouse said the two potential customers already have suppliers so they don't need to change, but the $400,000 is the transition incentive that will be used to help these companies make the change. Mr. Paris asked about the transportation needed and if J. Skinner would be using rail. Mr. Bushouse replied that they would because it is ideal for bulk ingredients. Mr. Hamill inquired about the training required for employees and whether or not they would be trained here or in Omaha. Mr. Bushouse stated that they already use PJC for training and they have internal trainers from Omaha that come to the Paris facility to train employees. Mr. Hughes made a motion to approve $400,000 for a new product line at J. Skinner Bakery and the creation of fifty-five jobs. Mr. Hamill seconded the motion. Vote was 5 -ayes to 0 -nays. 111213IMMIURUAM MINMIJK112= Mr. Paris pointed out that the City Council made a flyer with facts about the upcoming election. The election is November the 7th with early voting starting next week. He asked that citizens' vote their conscience. Voting "For" is voting for the repair and maintenance of City streets; voting "Against" keeps the revenue going toward the Paris Economic Development. Mr. Banks interjected that the maintenance and repair of streets is only for the streets that were in existence on the day the vote was taken. No new streets or new sidewalks can be built with that money. Mr. Paris explained the differences between 4A Sales Tax and Chapter 380. The City of Paris has used Chapter 380 in the past. The 4A Sales Tax has 1/4 Ih of one percent for economic development and these funds are to be used on job creation and job retention. The guidelines are very specific for what can and what cannot be done with these funds. With Chapter 380 you can do any kind of economic development, but you do not