By Zach Spicer | The Tribune
Twice in the past 12 years has an industry that has chosen to come to Seymour benefited from a local loan incentive program.
Jim Plump, executive director of Jackson County Industrial Development Corp., recently told the Seymour Redevelopment Commission that he was in the home stretch trying to finalize another new business coming to town.
This company is interested in benefiting from the Seymour-Economic Lending Incentive Program, also known as ECLIPSE.
This program, developed 15 years ago by JCIDC, provides a cash loan to help offset start-up costs based on job creation. The loan proceeds come from funding tax increases or economic development income tax funds, and the amount of the loan is directly tied to the number of new jobs (permanent full-time positions) and salaries.
“We may come back to you sooner rather than later for first loan approval for a business,” Plump told the redevelopment commission.
“We’ll come back with more details,” he said. “We’ll never ask you to do this without being able to announce who the company is, what it’s going to do, who it’s going to hire. We won’t commit you to anything until we can tell us everything we know about the company Full transparency.
Both existing and new industrial companies are eligible to apply, provided the applicant creates at least 25 new jobs. An applicant is eligible to apply for a loan based on the number of employees who live in Jackson County.
The program is designed as a forgivable loan. Job creation time
would be determined for each project, although generally the time period would be between one and three years, and the terms of the loan would also be determined for each project.
Each year, the company would submit a compliance form to the redevelopment commission and the city council to show the jobs created, salaries and residency of the employees.
Based on compliance, city councils would approve loan forgiveness for that year. If it is not in compliance, the business could be required to repay that year’s loan. The interest rate would be determined per project as part of the terms.
Initially, the loan amount ranged from $500 per job paying a minimum of $25,000 per year to $2,500 per job paying more than $65,000.
Over the years this has been changed and Plump said he was offering to change it even more.
“More and more, as we look for higher paying jobs to attract, I’m kind of using the 6% rule,” he said.
This would translate to jobs paying $80,000 a year worth a $5,000 incentive, jobs paying $100,000 a year worth a $6,000 incentive, jobs paying $125,000 a year worth a $7,500 incentive $ and capping it at jobs paying $150,000 a year worth a $10,000 incentive.
“I don’t think it’s something we want to put on as the absolute end of everything,” Plump said, noting that an amendment was made during negotiations with Pet Supplies Plus when that company received an ECLIPSE loan in 2012 to move its warehousing operations to Seymour. .
Trellis Earth is the other Seymour industry that has benefited from the ECLIPSE program. It was 2014 when it acquired the assets of bioplastics company Cereplast Inc. and was ready to restart the manufacturing plant with an improved business plan. Today, this company is known as Alterra Plastics.
Both of these industries are located in the Eastside Industrial Park.
After Plump spoke at the recent meeting, redevelopment commission member Nate Tormoehlen asked Plump how many employees the new company would have.
All Plump would say is “I have a rough idea”.
“We look forward to hearing from you in the not too distant future,” said Tormoehlen.