03-B PEDC Mtg Min 03-08-06 - Laserfiche WebLink

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PEDC Minutes March 8, 2006 Page 2 in securing the $1,100,000 loan to build the C- Tech building. To receive the loan Bremer Bank needs to be the listed first in the right of reverter. C- Tech will lease the building from Paris Holdings LLC for 17 years. If for some reason C- Tech needs to leave the building the company must stay in the county. The group discussed the agreement where Bremer Bank will be listed first in the lien, Paris Holdings LLC will be second and the PEDC will be listed third. There will be no release of liability on PEDC's part. The bank wants to close on Friday if the board will approve this amendment. Rodney Bass wanted more time to review the incentive agreement change because this was the first time he had seen the document. No action was taken. The board decided to proceed with the other items on the agenda and a recess will be taken until Thursday, March 9th at 1:30 PM so that more time can be taken to read over the C- Tech amendment. Phil discussed the tax abehnent for Campbell's Soup. This project will create 28 new jobs and will be a $17,700,000 project. Campbell's has asked for 10 years at 100%. The board agreed with the tax abatement committee in giving them an 100% abatement for 3 years and 20% less for the next 4 years. The abatement was approved on a motion by Rodney Bass and a second by Dick Severson. We-Pack wants to start construction on a new 150,000 SF building behind their existing facility. They are asking for and abatement for only 150,000 SF building due to the fact that this is still in the planning phase. This will not add new jobs but is a $3,150,000 project. The tax abatement committee recommended that the PEDC give We-Pack and 80% abatement for 3 years and 20% less each year after that for the next 4 years. This was approved on a motion by Dick Severson and a second by Rodney Bass. Project Hurricane will not receive anything from the Governor's Office due to the fact that they feel this is a start up company. The owners have been notified and will get back to us on their decision. Gary talked about giving the company more money up front to help them in getting their loan. Sims Norment said he does not want this project to leave and said we should do what ever we can to get this project. Gary said the PEDC has the money to do this but it will put us back some. Gary will talk with the company and we will wait to hear back from them before taking any action.