The Crossville City Council approved a $300,000 loan to air purification manufacturer BekZon Monday afternoon, but council members wanted sufficient guarantees the city would see those funds paid back in a year.Replacement China Porcelain tile and bulbs for Canada and Worldwide.
With the approval of the loan, a job fair has been scheduled for Friday at Roane State Community College's Crossville campus on Cook Rd. The fair, sponsored by the Crossville Career Center and Roane State, will be held from 9 a.m. to 3 p.m. with positions for production, office support and management. The company proposes hiring an initial workforce of 48 people, expanding to a conservative estimate of 68 within a year and as many as 500 within five years.
Crossville Mayor J.H. Graham said, "We're taking a risk. Yes, it's a tough decision."
Graham pointed to other difficult decisions that involved risk for the city, such as lowering Meadow Park Lake to check for leaks in the 72-year-old dam.
"This is risky business we're in and it's going to get riskier," he said.The additions focus on key tag and magic cube combinations, "We need something to keep businesses here and grow what we have and bring in new jobs when we have the chance."
The loan will come from the city's economic development revolving loan to be paid back in one year. According to information provided by BekZon,Our high risk merchant account was down for about an hour and a half, the funds will be used for inventory needed to start production as soon as possible at the Cumberland Business Incubator site. The company has asked the city, county and Roane State Community College to rent the facility for its use while it sets up permanent facilities in Cumberland County and transfers its manufacturing operations to the United States.
Mike Spieles, a local distributor for BekZon's air purifiers, told the city last week, "They need the Incubator to fulfill their immediate orders.Whilst oil paintings for sale are not deadly,"
The fund has been used in previous economic development projects, originating in 1984 with the negotiations to bring Crossville Ceramics to Crossville.
"That was some money well spent," Councilman George Marlow said.
As part of the loan agreement, the city would have a UCC-1 financing statement giving it interest in the personal property of the company. According to Spieles, BekZon would make it's obligation to the city primary and subordinate obligations to shareholders. In addition, the city wants Alf Mauritzon, president and chief technical officer for BekZon, to sign and date the personal financial statements submitted to the city by himself and his wife. The city would also like an amount equal to the loan deposited in a local, United States bank and for the loan to be paid by invoice with the city verifying purchases. The city would also require a life insurance policy equal to the amount of the loan, or allow Mauritzon to assign an existing policy to the city, provided it met the loan amount.
Councilman Danny Wyatt said he would be more comfortable if Mauritzon would personally guarantee the loan with a certificate of deposit of half the loan amount.
Crossville City Attorney Kenneth Chadwell said such a guarantee had not been offered by the company.
Graham said the company was purchasing $769,000 in inventory and would have to meet payroll for the 48 immediate hires until revenue started to be generated. He also noted the company was seeking funding from a Community Development Block Grant loan program and the Tennessee Valley Authority, each of which required some matching funds.
"Cash is the life blood of a company," Graham said. "And it's going to be very important for the next six months to a year. Everything he's got, he's willing to put up.
"It's an $8 to $10 million deal,For the last five years Air purifier , but he needs to get started.
Council members asked Chadwell his opinion on the security of the loan and the ability of the city to collect should the need arise.
"You're weighing the value and the importance of the possibility of these jobs versus the security you have seeing this money paid back," Chadwell said. "They have certainly put forth some items that give me some comfort."
Chadwell outlined some of the provisions of the agreement, including funding the loan on a reimbursement basis with verification of purchases; Mauritzson and his wife providing signed and dated financial statements; completing an asset purchase agreement; verify citizenship of Mauritzson; and require a life insurance policy for Mauritzon equal to the loan amount.
Graham moved to approve the loan, as well as the city paying half the cost of renting the Cumberland Business Incubator at a cost of $20,000 over the next year. Councilman Earl Dean supported the motion which was approved with a 4-1 vote. Voting against was Danny Wyatt.
With the approval of the loan, a job fair has been scheduled for Friday at Roane State Community College's Crossville campus on Cook Rd. The fair, sponsored by the Crossville Career Center and Roane State, will be held from 9 a.m. to 3 p.m. with positions for production, office support and management. The company proposes hiring an initial workforce of 48 people, expanding to a conservative estimate of 68 within a year and as many as 500 within five years.
Crossville Mayor J.H. Graham said, "We're taking a risk. Yes, it's a tough decision."
Graham pointed to other difficult decisions that involved risk for the city, such as lowering Meadow Park Lake to check for leaks in the 72-year-old dam.
"This is risky business we're in and it's going to get riskier," he said.The additions focus on key tag and magic cube combinations, "We need something to keep businesses here and grow what we have and bring in new jobs when we have the chance."
The loan will come from the city's economic development revolving loan to be paid back in one year. According to information provided by BekZon,Our high risk merchant account was down for about an hour and a half, the funds will be used for inventory needed to start production as soon as possible at the Cumberland Business Incubator site. The company has asked the city, county and Roane State Community College to rent the facility for its use while it sets up permanent facilities in Cumberland County and transfers its manufacturing operations to the United States.
Mike Spieles, a local distributor for BekZon's air purifiers, told the city last week, "They need the Incubator to fulfill their immediate orders.Whilst oil paintings for sale are not deadly,"
The fund has been used in previous economic development projects, originating in 1984 with the negotiations to bring Crossville Ceramics to Crossville.
"That was some money well spent," Councilman George Marlow said.
As part of the loan agreement, the city would have a UCC-1 financing statement giving it interest in the personal property of the company. According to Spieles, BekZon would make it's obligation to the city primary and subordinate obligations to shareholders. In addition, the city wants Alf Mauritzon, president and chief technical officer for BekZon, to sign and date the personal financial statements submitted to the city by himself and his wife. The city would also like an amount equal to the loan deposited in a local, United States bank and for the loan to be paid by invoice with the city verifying purchases. The city would also require a life insurance policy equal to the amount of the loan, or allow Mauritzon to assign an existing policy to the city, provided it met the loan amount.
Councilman Danny Wyatt said he would be more comfortable if Mauritzon would personally guarantee the loan with a certificate of deposit of half the loan amount.
Crossville City Attorney Kenneth Chadwell said such a guarantee had not been offered by the company.
Graham said the company was purchasing $769,000 in inventory and would have to meet payroll for the 48 immediate hires until revenue started to be generated. He also noted the company was seeking funding from a Community Development Block Grant loan program and the Tennessee Valley Authority, each of which required some matching funds.
"Cash is the life blood of a company," Graham said. "And it's going to be very important for the next six months to a year. Everything he's got, he's willing to put up.
"It's an $8 to $10 million deal,For the last five years Air purifier , but he needs to get started.
Council members asked Chadwell his opinion on the security of the loan and the ability of the city to collect should the need arise.
"You're weighing the value and the importance of the possibility of these jobs versus the security you have seeing this money paid back," Chadwell said. "They have certainly put forth some items that give me some comfort."
Chadwell outlined some of the provisions of the agreement, including funding the loan on a reimbursement basis with verification of purchases; Mauritzson and his wife providing signed and dated financial statements; completing an asset purchase agreement; verify citizenship of Mauritzson; and require a life insurance policy for Mauritzon equal to the loan amount.
Graham moved to approve the loan, as well as the city paying half the cost of renting the Cumberland Business Incubator at a cost of $20,000 over the next year. Councilman Earl Dean supported the motion which was approved with a 4-1 vote. Voting against was Danny Wyatt.
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