EDC continues negotiations
to fill vacant spec building
By Sherrie Williams
During a special called meeting Tuesday evening, the Economic Development Corporation board another proposal was put on the table in an effort to bring Charles Bennett and Advanced Technologies and 20 new jobs to Iowa Park.
ED Director David Owen told board members he had presented their last proposal to Bennett and he (Bennett) was still uncomfortable with providing the EDC with a personal guarantee of ATI and its subsidiary companies.
However, Owens told the board that he and Bennett had discussed a lease of the EDC’s spec building without any local incentives.
The board then discussed the following terms: providing a two year lease of the 15,000 square foot spec building to Charles Bennett and Advanced Technologies, Incorporated with a one time two year extension of the lease; monthly lease payments would be set at $5,000 a month; However, ATI would receive a monthly job creation/maintenance credit of $1,500 per month in exchange for twenty jobs; the EDC would bring all of the required utilities to the outside building wall and Bennett and ATI would be responsible for the build out of improvements including office space, restrooms and utilities inside the spec building; Bennett and ATI would hire a Texas licensed architect or engineer to prepare and approve plans of any improvements he and ATI will make to the EDC’s building prior to the start of any improvements; the EDC would hire, at their expense, a third-party construction inspector to oversee the building improvements construction; Bennett and ATI would be required to have the EDC as an additional insured on all insurance coverage; the lease would be triple net requiring Bennett and ATI to be responsible for maintenance on the facility and to pay for all insurance costs and property taxes and Bennett would be required to guarantee the lease.
The board voted to authorize Owen to convey the terms with Bennett.
Also, the board discussed changes in the draft for economic development incentive. The EDC’s attorney Jay Cantrell briefed the board on the recent changes to the draft of the economic development incentive agreement with S-5! Manufacturing.
The primary change to the draft was the start-up time for the ten jobs to be created; S-5! has requested a start-up date of June 1, 2012. Directors agreed to modify the draft to allow S-5! to have until April 1, 2012 to create the ten full-time positions.
Also, it was noted that no word has been received to-date concerning the two guaranties, the promissory note agreement, the special deed of trust agreement and the tax abatement agreement.
Of concern to the board and their legal counsel was the tax abatement agreement because a draft of the agreement must be provided to both the Iowa Park Independent School District and the County of Wichita by 5 p.m. Friday, if the tax abatement agreement was to be discussed by the City Council on Monday, Nov. 14.
However, a lease agreement with the city for the Wal-Mart building has been signed.