From
Wilmington City Council meeting minutes for1/3/13
Paul
Hunter – 200 Randolph Street – gave a presentation regarding the
TBS contract
with
the city for their facility on Nelson Avenue, in the waste water treatment’s
building.
He explained that the company pays a $1 rental for the building and
the Sewer
Department
contributed over a half million dollars to purchase it. He said the
expectation
in
the five-year lease was the company would employ 100 workers and the
income tax
receipts
would make up for the free use of the building. He said that he
estimates that
they
only have around 20 employees and are almost two years into the
contract, which is
much
lower than expected. He said that number of employees [20] would
generate about
$900,000
in annual wages or around $9000 in income tax to the city, which is
far short
of
the $550,000 that the sewer department has spent on that property. He
added that TBS
can,
at the end of the 5-year period, exercise an option to purchase the
building for
$1
million or simply walk away and find another distressed city to set
up shop on a 5-year
plan.
Mr. Hunter added that the city is also paying more in property tax
than it is
collecting
from TBS and said that Brenda Woods was working on that. He said it
was his
opinion
that the city should be talking to the company and attempting to
modify the
agreement
or seek some legal form assurance that TBS is committed to purchasing
the
property
and/or increasing employment to the 100-jobs level that they
promised.
Meeting
Minutes 2/7/13
Councilman
Wells said he checked over at TBS and did not think there was
anything
going
on at the business. Mayor Riley said that they workers had just
returned a week or
two
ago from Texas as they were doing on-site installation. He said there
is traffic in and
out
of there every day. He added that a lot of their business is not new
ovens but in
refurbishing
other units. He said that he goes out and sees the owner of Total
Baking
Solutions
every month or so. Paul Hunter said that if they were working
off-site, then the
city
might not be getting income tax for that work. He said that we should
be checking in
with
them to see how their progress is going to justify the $1/year rental
of the building.
Mayor
Riley said that he is staying in contact with the owners. He added
that the bakery
business
is undergoing many changes right now but they were hoping it would
stabilize
soon
Posted
by Paul Hunter