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PEDC Boardl Mleeting Knutes October 20, 2017 Page 2 of 5 Discuss and possibly approve Minutes of the SeRtember 22,20'I7,_Month1,y Meeting. Mr. Manning asked if there were any corrections to the minutes. No one from the Board had any changes. Mr. Banks made a motion to approve the minutes from September 22, 2017. Mr, Hernandez seconded the motion. Vote was 4 -ayes to -nays, Discuss and possibly approve September 2017 Financials. Mr. Hernandez said that the Cash Out statement showed that the expenses were normal. $25,000 was paid to Bodyguard for exceeding their employees by an extra five. The PEDC also paid the yearly bond payment of $339,000. Mr. Banks asked if the insurance payment made to Pierson Fendley was a new policy, The answer to the question; it is a renewal of the business policy. Mr. Banks then asked if other quotes were received before the policy was renewed, Mr. Paris stated that no other quotes were required because it was under the threshold of $1,500, Mr. Paris also highlighted an expense for the TEDC sales tax workshop that a City Councilor would be attending. He pointed out the expense of $640 to the Lamar County Chamber of Commerce for two tables at the Chamber Celebration, And the amount paid to Rocking E Moving was for shredding both the Industrial Park and the Build -to -Suit site. On the Cash Flow Report interest. earned is shown at $10,099.28, this is the yearly interest for the two investments pools we have, Mr. Banks made a motion to approve the September financials. Mr. Hamill seconded the motion. Vote was 4 -ayes to 0 -nays. Discuss and possibly approve to amend Single Serve Beverage (SSB) Line incentive agreement for. Campbell's Soup. Mr. Paris opened by saying that Campbell's Soup approached the PEDC about developing a new product line. This transition is due to market force changes happening in the food industry. Brett Munson, Plant Manager, is here to give us a presentation on this transition, Mr. Dunson introduced Shelia Coursey, Plant Controller, at the Paris plant. He then thanked the PEDC for the continued support of Campbell's in the community. Mr. Munson stated that he was at the meeting to make a two- part request of support. The first part of the request is related to the Single Serve Beverage agreement we currently have in place with the PEDC. The second part is a new capital investment awarded to the Paris plant. Mr. Dunson explained that mega trends in the food industry are changing because of consumer food preferences are changing to fresh and organic. This is a shift away from packaged foods. For Campbell's the shelf staple beverage industry is declining. The V-8 line of product-, has a big market share of this industry, but this segment of the food industry is still declining. In 2013 the Single Serve Beverage line was installed at the Paris plant with an investment of $23 million and the creation of fifty jobs. A decision has been made to close this line which will impact forty-one jobs. This also impacts the 2013 incentive Campbell's received from the PEDC. Mr. Munson noted that a new opportunity, the Plum Organics line, with $28.5 to $33 million in capital investment and the creation of 40-49 positions is being put into place. This new line is projecting upward growth and the Paris plant will be providing 55%-60% of the current Plum volume, We are asking for forgiveness on the Single Serve Beverage agreement; amending the agreement and then terminating the agreement. At the same time the Paris plant is requesting financial assistance with the Plurn investment. Mr. Paris questioned the consumer buying changes. Mr. Dunson stated that the consumer is looking for fresh foods and they do not want food with preservatives in it or food from cans. Mr. Hernandez asked about the employees projected for the line. Mr. Munson said the operation will be five days a week which