HomeMy WebLinkAboutPR 12033:EDC-RESCINDING POLICYPort Arthur Economic Development Corporation
P. O. Box 1089 · Port Arthur, Texas 77641-1089
409/983-8195 · 409/983 8222 fax
Emai]: portarthuredc¢~eonet.net · http://www.portarthur, com/edc
Memo
To: Mayor, City Council and City Manager
From: Ike Mills, Executive Director/~
Date: December 13, 2002
Re: P.R. No. 12033
Attached is P.R. No. 12033 a resolution rescinding Resolution No. 02-15 as it
pertains to a performance-based incentive policy as recommended by the
Cornerstone Group as it relates to the Port Arthur Section 4A Economic
Development Corporation.
P,R. NO 12033
12/11/02 bjm
RESOLUTION NO.
A RESOLUTION RESCINDING RESOLUTION NO. 02-15 AS IT
PERTAINS TO A PERFORMANCE-BASED INCENTIVE POLICY AS
RECOMMENDED BY THE CORNERSTONE GROUP AS IT RELATES
TO THE PORT ARTHUR SECTION 4A ECONOMIC DEVELOPMENT
CORPORATION
WHEREAS, the City Council approved the Cornerstone performance
based incentive policy per the terms of Resolution No. 02-15, a copy of this
resolution being attached as Exhibit "A" and
WHEREAS, the City of Port Arthur Section 4A Economic Development
Corporation now desires to rescind these Guidelines for a Performance-Based
Incentive Policy and
WHEREAS, the vote for rescinding the policy was unanimous at the
December 10, 2002 EDC Board Meeting; and
WHEREAS, it is necessary for the City of Port Arthur to approve policies
for program administration pursuant to Section 8.19 of the Economic
Development Corporation bylaws.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF PORT ARTHUR:
Section 1. That the facts and opinions in the preamble are true and
correct.
Section 2. That the Resolution No. 02-15 Cornerstone Guidelines for a
Performance-Based Incentive Policy is rescinded as it pertains to Economic
Development Corporation incentive program.
Section 3. That a copy of the caption of this Resolution be spread upon
the Minutes of the City Council.
READ, ADOPTED AND APPROVED on this day of .,
A.D. 2002, at a Regular Meeting of the City Council of the City of Port Arthur,
Texas by the following vote:
AYES: Mayo~ .,
CityCouncil
NOES:
ATTEST:
OSCAR ORTIZ, MAYOR
EVANGELINE GREEN, CITY SECRETARY
APPROVED AS TO FORM
MARK SOKOLOW, CITY ATTORNEY
APPROVED FOR ADMINISTRATION:
STEPHEN FITZGIBBONS, CITY MANAGER
EXHIBIT "A"
EC~CORP
BY , ~/'
RESOLUTION NO.
P. R. No. 11575
oi/15/o2 jb
0 -I¥
A RESOLUTION APPROVING THE GUIDELINES
FOR A PERFORMANCE-BASED INCENTIVE
POLICY AS RECOMMENDED BY THE
CORNERSTONE GROUP AS IT RELATES TO THE
PORT ARTHUR SECTION 4A ECONOMIC
DEVELOPMENT CORPORATION
WHEREAS, the City of Port Arthur Section 4A Economic Development
Corporation approved the Guidelines for a Performance-Based Incentive Policy as
recommended by the Cornerstone Group, attached hereto as Exhibit "A~; and
WHEREAS, the vote for the new policy was 3 to 1 at the September 18, 2001
Board Meeting; and
WHEREAS, it is necessary for the City of Port Arthur to approve policies for
program administration pursuant to Section 8.19 of the Economic Development
Corporation bylaws.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF PORT ARTHUR, TEXAS:
Section 1. That the facts and opinions in the preamble are true and correct.
Section 2. That the Cornerstone Guidelines for a Performance-Based Incentive
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Policy is approved as it pertains to Economic Development Corporation incentive
programs. The first sentence of "General Eligibility" shall read as follows: "To be
eligible for a tax abatement or incentives from the City or thc Port Arthur Economic
Development Corporation, an applicant should meet all five of the following unless it
is waived due to exceptional circumstances by the Economic Development Corporation
or by the City Council".
Section 3. That the policy as it relates to City programs is not approved ar this
time, until it can be fully evaluated by the City Manager or his designee.
Section a~. The Economic Development Corporation will give the City Council
an update on these guidelines in three months.
Section 5. That a copy of the caption of this resolution be spread upon the
Minutes of the City Council.
A.D., 2001, at a Regular Meeting of the City Council of the City of?orr Arthur, Texas,
bythe following vote: AYES: Mayor
.; NOSS:
, Councilmembers
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~LAYOK ~
APPROVED AS TO FORM:
CITY ATTORNEY
APPROVED FOR .ADMINISTRATION:
CITY' MANAGER
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EXHIBIT "A"
GUIDELINES FOR A PERFORIglANCE-BASED
INCENTIVE POLICY
For the City of Port Arthur mid ·
The Port Arthur Economic Development Council
Recommendations Submitted To:
City Council of the City of Port Arthur
Board of the Port Arthur Economic Development Corporation
Submitted by the
Incentive Policy Committee
AUGUST 2001
Facilitated by
The Cornerstone Group
306 W. 7'" Street, Suite 401
Fort Worth, TX 76102
817/332-8906
iV[EMBERS OF THE INCENTIVE 1)OLICY COMMITTEE
TI~E
City of Port Arthur
Mayor oscar Orfiz
Bob Bowers, Council Member
Craig Hannah, Council Meml~er
Port Arthur Economic Development Corporation
Malcolm Clark, Board Member
Rondo Hawkins, Board Member
Small Business Development Center
Lamar State University - Port Arthur
Conrad Cooper, Business Advisor
Port Arthur Chamber of Commerce
Verna Rutherford, President
The Cornerstone Group
Bill R. Shelton, Facilitator
INTRODUCTION
The Incentive Policy Committee recommends these policy guidelines to the City Council of the City
of Port Arthur (City) and the Board of the Port Arthur Economic Development Corporatio.n'(PAEDC)
for the administration and implementation of a performance-based abatement and incentiv~ policy to
attract, retain and expand business in Port Arthur.
As with any guidelines, these policies are designed tO apply in the majority of cases but can be
modified as necessary in specific cases. Additional levels of incentives may be granted for values or
benefits received. Levels may be lower for certain projects that have less impact or value to the city.
CONTENTS
Parts Page
I. Administration of Incentive Policy ......................... -,.. 1
II. Application Process . . · ..................................... 2
III. Aligning Incentives with Benefits Derived ........................ 3
IV. Eligibility Criteria to be Considered for Incentives .................. 5
V. Performance Requirements ................................ I1
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PART I, ADMINISTRATION OF INCENTIVE I)OLICY
Public incentives are an important economic development tool used to influence the attraction and
expansion business. Handled responsibly, incentives can result in economic and social benefits greater
than the dollar value of the incentive. The purpose, of this performance-based incentive policy is to
establish guidelines that will ensure that Port Arthur receives valuc and benefits 'from any public
incentive granted.
A successful incentive policy may not win every business location or-expansion, but it will .win'projects
that are good for Port Arthur. The important elements of this policy are:
1. Contains safeguards to protect Port Arthur's intel-est
2. F_.stablishes a procedure for quicker response and approval. The board of the PAEDC will
assume the role of tile Grant Incentive Committee thereby ehmmatmo one step in the
review process.
3. Pre-set thresholds for investment and employment.
4. Contains a process for evaluation of benefits
5. Establishes monitoring and evaluation processes
Administrative Processes
1. The City Council has tile ultimate authority to approve the use of public incentives.
Initially, all public incentives should be presented to the Council for processing and
consideration. As confidence develops in the incentive guidelines, the Council may allow
the Board of the PAEDC approval authority at certain levels and within certain parameters.
2. Applications for Industrial District (Agreement. Not to Annex) will be processed throngh
the City Manager's office and will not be reviewed by the Board of the PAEDC.
3. Tile City Council, from lime to time, may desire to revitalize certain neighborhoods by
establishing Neighborhood Empowerment Zones. The terms and conditions for property
and sales tax rebates and the waving of permit and special fees will be set for each Zone
by the Council depending on circumstances.
4.. Tile adoption of these guidelines will require modifications of Port Arthur's Abatement
Policy and PAEDC's Incentive Application forms.
5. Monitoring and evaluation of is an ongoing function for the PAEDC requiring detailed
record maintenance. The City Council should be presented an annual report and evaluation
of all active public incentives. It is recommended that this report and evaluation be
conducted by the City's Finance Department and be on the Council's agenda in March of
each year.
6. Incentives should be negotiated· Before negotiations begin, a cap or maximum'amount of
incentives offered should be set. The community's focus on benefits and performance
keeps the perspective on the company and what it can do for Port Arthur.
PART II. TI3 E APPLICATION PROCESS
The purposes of the application process is to (1) put the company on record as an applicant; (2) provide
the necessary information to determine if the applicant is qualified to be considered for incentives; and
(3) provide information to determine level of incentives to be offered.
The following process is designee/to minimize the time required to evaluate the desirability of a
project:
1. A business desiring to be considered for an abatement or incentive will submit a "Letter.of
Intent" to the Board of the PAEDC. The Letter must show the applicant meets the general
eligibility requirements as detailed in Part IV.
2. If the Letter of Intent is compIete, the PAEDC will provide the company with "An
Acknowledgment of Receipt" of the letter, an application and an "information requested
checklist."
3. When the application and attachments are returned, it will be reviewed by the PAEDC staff
for completeness, and analysis. No later than two weeks from the date of receipt of the
application, the applicant will'be advised by letter that: (1) additional information, is
required or (2) the date the Board will consider the request.
4. If the application is for an abatement from the City, a copy of the application will be
submitted to tile City Manager for review and comment.
5. The PAEDC Board will review the application based on procedures that follow and make
a recommendation to.the Council. The applicant will be notified by mail that the
recommendation has gone to the Council and the date the Council will consider it.
6. The Councilwillconsider theBoard'srecommendation, and approve, reject or send it back
to the Board for additional information.
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7. From the time the application is accepted to the Council's .conskleration should normally
be no more than six weeks. The process can be fast-tracked by the Board and the Council
holding called rather than regular meetings.
8. The staff of the PAEDC will maintain a log of each application with dates of all activities.
9. The application form should contain these statements:
9.1
"The City of Port Arthur and the Board of the Port Arthur Economic.
· Development Corporation are required by the Texas Open Meetings and Public.
Information Acts to make certain records and financial information open to the
public. Before confidential information is submitted with this application, .an
attorney's ruling should be obtained to deterinine if the information can be
considered confidential or may be made public."
9.2
Acknowledge that the City and PAEDC be granted access to property and/or
records for review to ensure compliance with the agreement and that the company
will provide requested in-formation and data during the terms of the agreement.
III. ALIGNING INCENTIVES WITH BENEFITS DERIVED
Measuring the values that a community may derive from a business is complex and subjective. There
are no known formulas or models that can guarantee success. Yet, the core of an incentive policy is
to determine potential benefits that can be derived and aligning the amount of incentives that will be
provided to secure the benefits.
Publicized failure of communities that have had bad incentive experiences can often be attributed to:
1. The lac~c of control procedures.to assess the viability of a project;
2. The absence of a system to measure the potential benefits of a project to the community;
and
3. Failure to monitor and evaluate the project.
Public incentives must be considered as an investment in the community. An investment is a
transaction that has inherent risk. While it can be argued that community economic development
funding must take more risk ihan commercial institutions, there are levels of'unacceptable risk. The
following are designed to minimize Port Arthur's risk when providing incentives:
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Conduct n Business Evaluation
The first screening of an applicant for incentives should be a business evaluation. By establishing due
diligence review procedures, the PAEDC board should first make a determination if an applicant has
the experience, history and capital to dedicated to the project so it can operate on a sound financial
basis and has file prospects of repayment ability. With this review, the board can make a determination
to proceed with the application or reject it.
.Oualif¥ing Benefit Levels
Any. system of measuring benefits levels is difficult and subjective.
these major objectives:
· It should take into consideration a number of important factor~ and it should assign weights
to the factors based on importance.
A good measuring system has
· It should take into consideration the desired results that the community wants.
· It must take into consideration that many factors cannot be qualified or quantified.
· It should be simple to administer.
· It must be flexible enough that factors and their respective importance can ~hange due to
changing circumstances.
The review process should examine the costs and benefits ora project. Entergy, as community service,
provides a cost/benefit analysis that will aid in the review process. Tlfis analysis can be an extremely
valuable tool and should be used in conjunction with other measurements to assess a project's impact.
Following is a recommended matrix to be used by the PAEDC board to help qualify tile benefits from
a project and to help quantify the level of incentive to be provided. It is suggested that each member
of the board would complete the matrix and the scores of all members would be averaged to determine
the benefit level.
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QUALIFYING BENEFITS FOR LEVELS OF INCENTIVES
' ' : '~'/":':-"' """':" ~ ....... .':,'.'.,' · ...... '. ' ' ' Limited
' ~' "' '"" .... '""
. .. , . .... ., ...,.....: , .. Factor
1. iobs Created, Number 3
2. Wages~enefits Paid 3
3. Cost~enefit Analysls 2 ; ~-~'
4. Valuation Added to Tax Role 2
Attraction of Other Buslness~ 1
5.
6. ~oation in Ente.rise Zone
Total ~eneHt Score
BE~T SCALE
Total Score Level o~.Incentive
35 plus ~vel A - 75 to I00~
25 - 34 ~vel B - 50 to 74~
15-24 ~veI C- ~ to 49~
0- 14' No incentive
5
GROUP
Monitor and Evaluate Results
To ensure that a company is performing as agreed, it is essential that a formal monitoring process be
in place. Periodic review, at least once a year, also be should be performed to evaluate the
effectiveness of incentive policies and to recommend appropriate changes.
It is recommended that the review be assigned to the Finance Department of the City and that it takes
place ever year in early spring before budget planning takes precedence.
.... ]DART I-V. ]~LIG12311,ITY CILITERIA TO BE
'CONSIDERED FOR IN'CENT.IVES
General EIigibilit¥ Criteria for Tax Abatement or Incentive
To be eligible for a tax abatement.or incentives from the City or the PAEDC an applicant must meet
all five of ~e following:
1. 13e a private, for-profit firm, including corporatipns, partnerships, sole proprietorship or
cooperative organized to conduct business.
2. Be in a basic business or a producer/service firm that derives at least 75 % of its revenues from . outside of Port Arthur.
3. Proceeds will be used to expand, upgrade or relocate an operation within the city limits of the
City of Port Arthur.
Have not received a building permit for the project.
Submit a "Letter of Intent" to th~ Port Arthur Economic Development Corporation that std.!es:
5.1 The applicant meets ali four of the first four requirements above
5.2 What benefits will accrue to Port Arthur
5.3 That the project would not happen without the abatement or incentive
5.4If the project includes an abatement and is not located in an established Enterprise
Zone must request that the City establish an Reinvestment Zone.
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6
QUALIFYING BENEFITS FOR LEVELS OF INCENTIVES
'' " ':' :" ';'" ' "" <" '":'"" ........ "'~: i - Limited
· '"'" ' ..... '~' ";" ~: :"' = ....y }~,,~oderot~
· , ...,... ...:.,.., .... · .' .......
. . : .c.--,': , ,. :: :.,..., .., ' Beneficial Be'neflt.or
· · · :- . :' -.'::~,:,...=....:.,: v:...... .--..:,'::- !,., . Beneficial· Benefit
.. ~ . :,~ ..,.,....... · :,:..:,,.,: .. ,-'.-.: .. ~;- ~....' · ' .Ur~k//own
· "'"'' "'"""'' "'-' Relevancy ,.
' "' ' '"' '"< '"' ":"":?'": Factor 'V~elgtl;
... ,.? . ¢~..,: ..... . .... ~ 4 2 1 0
· '.'.' "? ?:,: F~ctor: ' ;O7:%':. ~_; ',i-::2
1. Jobs Created, Number 3 ~;~,~
2. Wages/Benefi~ Paid 3.
3. Co*t~enefit Analysis 2
4. Valuation Added to Tax Role 2
5. Attnction of Oth= B=iness= 1
6. ~eation in Ente~rise Zone I ~
7. Elevates Port Arthur Profile I
Total BeheSt Score
BE~T SCALE
Total Score Level of. Ineentlve
35 plus ~vel A - 75 to 100%
~ - 34 ~vel B - 50 to 74%
15 - 24 ~vel C - ~ to 49%
0 - 14 No incentive
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Monitor and Evaluate Results
~edule~
apany is performing as agreed, it is essential that a formal monitoring process be
. review, at least once a year, also be should be performed to evaluate the
:ntive policies and to recommend appropriate changes.
~at the review be assigned to the Finance Department of the Citland that it takes
trly spring before budget planning takes precedence·
)ART IV. ~ELIGIBrLIT¥ C1LITERIA TO BE
CONSIDE12_ED FOR INCENT. IVES
· aI Eligibility Criteria for Tax Abatement or Incentive
ax abatement.or incentives from the City or the PAEDC an applicant must meet
ing:
r-profit firm, including corporati.ons, partnerships, sole proprietorship or
nized to conduct business.
ness or a producer/service firm that derives at least 75 % of its revenues from
.rthur.
used to expand, upgrade or relocate an operation within the city limits o~[the
.ur.
:I a building permit for the project.
)flntent" to th~ Port Arthur Economic Development Corporation that s[a[es:
t meets all four of the first four requirements above .
; wiI1 accrue to Port Arthur
~-ct would not happen without the abatement or incentive
includes an abatement and is not located in an cstablished Enterprise
~uest that the City establish an Reinvestment Zone.
muary i of the year
specified in the tax
In for a maximum or
y of Port Arthur will
are not met, the City
it,
fthe application, the
required by the City
me year period, the
expected to be dire,--""-~ ~
be indirectly recovereea, .x -~
funding sources by
provide a clear and
alified businesses or
d incentives are used
~.pecific Eligibility Criteria
Tax Abatements or Industrial District Agreements
In addition to the applicant meeting ali of the five requirements list above, aa applicant of an abatement
mustmeet the following requirements. Applicants for Industrial District Agreements (Agreement Not
to Annex) which are companies located in Port Arthur's Extra Territorial Jurisdiction (ETJ) must also
meet the following:
Company New to Port Arthur
1. Minimum Capital Investment - $100 Million
2. Minimum Job Creations - 50
3.
4. An application fee of $1,000
Company Operating in Port Att'hut for at Least Five Years
1. Minimum Capital Investment - $75 Million
Three years after opening 25 % of the permanent positions must be Port Arthur residents
2. Minimum Job Creation - 37
3. Three years after opening 19 % of the permanent positions must be Port Arthur residents
4. An application fee of $750
Eligible Pro~ects For Abatemm~.ts
2.
3.
4.
Real Property
Tangible Personal Property
Machinery and Equipment
Infrastructure Improvement or Upgrades
Conditions and Terms of Abatements
Abatements can only be considered for the increased valuation above the existing valuation and
the amount and terms wilI be determined by the costs and benefits to the City of Port Arthur.
If approved, the abatcments would be phased-in under the following schedule~
Taxes Paid
Year .Level A Level B Level C
1 10% 15% 20%
2 20% 25% 33%
3 30% 55% 66%
4 50% 66% 100%
5 75% 85%
6 85% 100%
7 100%
Abatements granted for a project will normally become effective on January I of the year
following the issuance of a Certificate of Occupancy unless otherwise specified in the tax
abatement agreement: Abatements may be considered during construction for a maximum or
two years. The maximum number of years for an abatement from the City of Port Arthur will
not exceed a total of seven.
3. If a project is not completed as specified, or if the terms of the agreement are not met, the City
of Port Arthur has the right to cancel or amend the abatement agreement.
If the construction on the project is begun within one year from the date of the application, the
application fee shall be credited to any permit, impact or inspection fee required by the City
of Port Arthur. If the project is not constructed or begun after the one year period, the
application fee is not refunded or credited..
Specific Eligibility Criteria
Incentives from the PAEDC
The following guidelines apply to incentives from the PAEDC which are expected to be directly
recovered through loan payments and incentive funds which are expected to be indirectly recovered:
The PAEDC seeks to fill financing gaps that exist in public and private funding sources by
funding projects that will create an above average number of jobs and provide a dear and
positive benefit to the community. The funds can be used for new qualified businesses or
expansion of existing businesses within the city. To ensure that funds and incentives are used
properly, any funding will be subject to interest rate adjustment or the loan called if
pei'formance requirements do not occur.
2. The maximum amount of funds that can be allocated to one project in one year will be limited
to 15 % of PAEDC's projected sales tax revenues for the year, Commitments beyond one
year are subject to annual review which takes into consideration funding availability and
benefits of the project.
3. The maximum PAEDC participation in any project will not exceed 50 % of the project costs.
The PAEDC will review the various cost elements of a project in order to establish the basis
for establishing the amount of PAEDC participation. A commercial lending institution.may
be required to participate in the project. The PAEDC prefers not to be the lende? of last
.~resort.
4. All loans will require full collateral coverage and ~.II collateralized assets must have full
insurance coverage.
5. Security for a loan may require personal guaranties by the principals.
2.
3.
4.
Any loan granted a project wilI become effective on the day the issuance of a Certificate of
Occupancy (CO) for the new or expanded facility unless otherwise specified in the
performance agreement.
Eligible Projects for Incentives
Acquisition or construction of facilities
Site purchase and development to include infrastructure
Leasehold improvements or upgrade
Machinery and equipment
Ineli ble Projects
Venture or equity capital
Working capital
Personal loans
4. Inventories, supplies and tools
5. Property with an economic life of less than 15 years
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6. Vehicles, aircraft
7. Deferred maintenance
8. Housing
. 9.Debt service
Level A.
Incentive Programs
For companies whoge benefits level is A__, the following incentive~ could apply:
1.
Loan of up to 50% of tl~e cost of the project amortized over five years with the possibility of
these terms based upon agreed performance:
I. 1 Interest and principle payment deferred for up to two years
1.2 Interest rate 3 % lower than prime at time of closing
1.3 At end of five year period, the interest and all or a part of the principle paid may be
rebated depending on the company exceeding agreed performance levels
Level B.
For companies whose, benefits level is B, the following incentives could apply:
2. Loan of up to 50 % of the cost of the project amortized over four years with the possibility of
these terms based upon agreed performance:
2.1 Interest and principle payment deferred for up to one year
2.2 Interest rates 2% lower than prime at time of closing
2.3 At end 'of four year period, the interest paid may be rebated depending on the company
exceeding agreed performance levels
2.4 A personal guaranty by the principals in the project may be required
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PERFORMANCE riEQUIREMENTS
Any incentive provided to a company should be targeted to achieve either Port Arthur's
economic and social goals.
2. If the business is not of sufficient quality or th~ terms of the deal ~fsufficient quality, your
perspective andjudgement will be challenged. Obviously, prospective businesses have to
be screened, but there must also be a mechanism to detail what is expected of the recipient
of any incentive. -This mechanism is a performance agreement.
.3: As long as the incentives are in force there should be a performance agreement that details
the company's responsibilities and the obligations that they assume by taking the incentive.
This should be an executed agreement that details the .incentives provided and the
performance requirements for the company.
There must also be a system in place to monitor the company to confirm compliance. If
the company does not or cannot comply, the incentive should cease or if agreed be paid
back (Clawback provision) i
Normally, these performance agreements will be part of the incentive negotiations. By
demanding performance levels, it helps to defin~ the quality of the transaction.
6. If the project is not good for Port Arthur, there must be the ability to walk away.
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L_Level C..
For companies whose benefits level is _C the following incentives could apply:
3. Loan of up to 50% of the cost of the project amortized over th~'¢e years with tl~e possibility
of these terms bases upon agreed performance:
3.1 Interest payment deferred for up to one year
"~.2 Interest rate 1% lower tlmn prin4e at time of closing
3.3 At end of three year period, one-half of the interest paid'may be rebated depending on
the company exceeding agreed performance levels
3.4 A personal guaranty by tlxe principals will be requi[ed
Workfor e Training for Levels A, B and C
In addition to other incentives provided, the PAEDC will consider workforce training grants of up to
50% of the company's contribution for formal workforce training programs undertaken in a state
approved program.
Enterprise Challenge Program
The PAEDC will contribute up to $75,000 annually for a competition for new and small businesses
to compete for grants up to $25,000. The business must have an approved business plan to -enter the
competition. Special consideration will be given to basic businesses. The PAEDC can establish the
rules and enter into negotiations for the Small Business Development Center at Lamar State University-
Port Arthur to conduct the competition. .
Small Business Interest Rebate Program
The PAEDC ~,ill rebate a part of an expansion loan to a qualified Port Arthur business that obtains the
loan from a bank or financial institution. To qualify the business must employ less than 25 and the
expansion will aad jobs due to flxe expansion. If the company maintains the level of employment and
wages agreed on, the first year's interest will be rebated in full and one-half of interest for the next four
years for a maximum of $25',000. The PAEDC must approve the transaction prior to the closing of
the loan.
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