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PEDC Board Meeting Minutes August 7, 2018 Page 3 of 4 We went to the budget items under Direct Business Incentives. Mr. Paris stated that we are hoping to hear something soon from American Spiral Weld. The budget shows what we anticipate if American Spiral Weld chooses Paris. The upfront incentive is for $1,500,000.00 immediately after construction begins. Out of this $1.5 million, $500,000.00 would come directly from the PEDC and $1 million would come from the local banks loan. The next line item shows American Spiral Weld Jobs at $1 million. This incentive is for jobs added above a base of sixty (60) jobs with those employees being with the company for at least six months. The money shown for American Spiral Weld is committed, but not spent at this point. Mr. Hernandez asked if the incentive for jobs was on head count or FTEs and if the timing was six months or one year. Dr. Hashmi clarified that the payment would not be on the first sixty employees, but on sixty-one and above. Also, the $25,000.00 per each employee over sixty would only be paid out once per employee. Dr. Hashmi asked about the interest rate we would be getting on the $1 million dollar loan. Mr. Paris answered that most likely it would be at 3.5% or below. Going on to J Skinner, we are committed to $400,000.00 if they meet all their requirements. Mr. Paris stated that it looks like everything is going in the right direction for J Skinner. Paris Lakes shows as being marked through and the reason for this is that they never pursued reimbursement for their sewer. The money set aside for Paris Lakes went back into our reserves. Both Bodyguard and Potters Industries were paid out this year. Campbell's was paid $400,000.00 for the Plum Line. This does not show in the budget because we have not done budget amendments for the end of the 2017-2018 fiscal year. The last line item is Daisy Dairy with an incentive of $94,900.00. They did not meet the requirements for the incentive and no payment was made to them. This coming year the budget shows $113,150.00 set aside for Daisy's incentive. Mr. Paris pointed out under Debt Service that the last payment on the bond will be made before the end of September 2018. The ASWP Local Banks Loan shows a total loan of $1 million dollars, a term of 5 - years, and a 3.5% interest rate. This would make the yearly payment approximately $218,301.00 per year. Mr. Paris stated that he would like to see this loan paid off in five years. Dr. Hashmi said he was opposed to paying off a 3.5% loan early. His reasoning is that the PEDC should keep the extra money in our account so we would be ready for another prospect. Mr. Paris went on to Capital Expenses saying that we have not placed anything in this category. We will wait on American's decision before adding any dollar amounts. Dr. Hashmi asked for the total amount of overhead to run the PEDC. After calculating, it was stated that approximately $450,000.00, which is 30% of the overall total. Mr. Paris voiced that the changes the Board discussed were in Marketing and Promotion, which were taking the line item from $115,000.00 to $90,000.00. Mr. Hernandez stated that we should keep the COLA in place for now and look into an incentive plan later. Dr. Hashmi stated that he would only oppose the COLA portion of the budget, the rest of the budget he approves. Dr. Hashmi made a motion to approve the budget without the COLA adjustment. No one seconded the motion. The motion failed. Mr. Manning asked for a motion to approve the budget with the COLA included and the adjustment of Marketing to $90,000.00. Mr. Hamill made the motion. Ms. Bills seconded the motion. Vote was 4 -ayes to 0 -nays.