After an executive session on Thursday, The Athens Economic Development Corporation Board of Directors made some alterations to a contract with HVAC Manufacturing concerning the company's expansion plans.
“They approved a loan to construct a 15,000 square foot facility for $324,000, with a five-year note at 4.5 percent interest,” Executive Director Lisa Denton said. “And they approved a $130,000 loan for equipment purchases out of our restricted, low interest loan account.”
The rate on that loan is 5.5 percent.
The board also agreed to a job creation incentive up to maximum of $45,000 to create 30 jobs over their current base.
“It would be credited against the principal of the building interest loan at the end of each year, based on the number of jobs created,” Denton said.
The previous proposal was for construction of a 10,000 square foot building and a sound chamber room.
“They've decided that rather than build the sound chamber room, they can purchase some equipment that will basically do the same thing.
“This way, they can bump up the building to 15,000 feet, which will allow them more manufacturing space,” Denton said.
The item is expected to go before the city council on Monday.
HVAC is located on West Corsicana Street is now on its fourth expansion since relocating to Athens from California nearly three years ago. The company has invested $2.7 million at the Athens facility and more than doubled its original job estimates.
The board also voted to establish a committee to select a replacement for former board of directors member Cliff Barrett who resigned after moving out of Athens City Limits. Denton said, hopefully, the board will have a recommendation by the July meeting.
Any nomination from AEDC will have to be approved by the City Council. The city council can also bring its own nominee.
The board approved:
• repairs on the Partnership Center building roof and exterior stucco.
• a draw request from Biomerics, totaling $78,510.41 for renovations at 1704 Enterprise Street;
• removing from investment accounts and adding new board secretary, Cliff Bomer