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PEDC Board Meeting Minutes September 18, 2018 Page 2 of 4 Discuss and possibly approve August 2018 Financials. Mr. Hernandez said the first item shown in the August disbursements was $400,000.00 to J. Skinner. Mr. Paris commented that J. Skinner has fulfilled and exceeded their agreement. Mr. Hernandez stated the next item was the bond payment. This was the last payment on the ten-year bond. Under the Personnel Expenses the amount was higher because there were three pay periods in August. The Administration Expenses were normal for the month. Mr. Paris pointed out that Marketing and Promotion shows GHD Services was for Phase I environmental on our properties and Hayter Engineering was additional surveying for our prospect American SpiralWeld. Mr. Hernandez stated that The Results Company was reimbursed $50,000.00 for the completion of job training. Under the Equipment expense the amount $6,895.00 was the purchase of a new copier. Ms. Bills made a motion to approve the August financials. Mr. Hamill seconded the motion. Vote was 4 -ayes to 0 -nays. Discuss and possibly approve a Master Economic Development Agreement with American SpiralWeld Pipe Company, LLC, relating to an incentive package offered to that company. Mr. Paris said the Master Agreement has components for the Incentive Agreement. There was a change to the incentives from 35 hours FTE to 32 hours FTE per week. This was at American SpiralWeld's request because of the fluctuation in the market. Ms. Harris added that American will still pay benefits on a 32 hour workweek schedule. Ms. Harris stated that American made an addition of a sentence to the Indemnity paragraph at the end of the agreement. She said it was legalese and she did not have a problem with the sentence. The tax abatement agreement will be changing to account for construction taking place over more than a one year period. Mr. Paris let the Board know American would use temp -to -hire staffing for the first 90 days before permanent hiring. The temp positions will not count toward the incentive agreement. Mr. Paris asked the Board to look on page two of the agreement where the components that make up the agreement are listed. The first component is the land transfer: Phase I is the Greenfield, Phase II is the Brownfield, and Phase III is the Wetlands. Also included in the first component of the agreement, are the cash incentives of $1.5 million after the first fourteen days of construction and the cash -for jobs incentive of up to $1 million based on job creation. The second component is a Chapter 380 agreement between the City and American granting the 9 acres with the SuddenLink tower on it. Since the land is City owned, a Chapter 380 is needed for the land transfer. The third component is the Tax Abatement agreement between the City and American. Ms. Harris told the Board that the documents are structured for ease of use. Mr. Manning praised the City Attorney, Ms. Harris, for all the work she has put into the agreements. Mr. Paris advised the Board that their approval of the Master Agreement is needed. After approval, the Master Agreement will be taken to City Council for their approval. Mr. Manning made a motion that the PEDC approve a Master Economic Development Agreement with American SpiralWeld Company, LLC, and authorize the Chairman to execute such an agreement in substantial conformance to what we may have presented in our agenda packets subject to a change. The definition of FTE positions from 35 to 32 hours per week subject to the approval of City Council. Mr. Hamill seconded the motion. Vote was 4 -ayes to 0 - nays. Discuss and possibly approve terms for the Loan with Local Banks. $1 million for American SpiralWeld and $1.5 million for land acquisition and development. (Coiirnrectuuoin tl1ic a niouiunt, 1oiirr laird acquii�s�ii�tuuoin a ind develope cant. is $1.1 millii�oin not $1.5 m�illii�oin.) Mr. Paris stated there was a discussion about using the local banks to provide a loan arrangement of the upfront monies for American SpiralWeld. As the purchase of the land on the South Loop for a new