Citizens won’t be on the hook for CAP Loan repayment, officials sayBy BRYAN DAVIS PUBLISHER,
Mississippi is well known nationally for its generous incentives when it comes to recruiting businesses to the state.
The business friendly atmosphere has helped bring in companies, large and small.
Parmida LED Technologies, which committed to occupying a large space in the old Modern Line building in Indianola on Tuesday, will receive a modest incentive package to move its latest North American e-commerce distribution operations center to the city.
According to a release from the Mississippi Development Authority, Parmida will receive an exemption from state income and franchise taxes related to the new location and sales and use tax exemptions on equipment and machinery during the initial construction or expansion at the facility.
MDA is also assisting in the renovation of the Modern Line building in the form of a $400,000 Community Development Block Grant and a separate CAP Loan (Capital Improvements Revolving Loan Program).
The county has already said it plans to borrow up to $1.2 million through MDA.
Sunflower County Board of Supervisors Attorney Johnny McWilliams said the loan will be paid back by Parmida over the course of the next several years.
Parmida’s lease-purchase agreement with the county amounts to 20 cents per square foot over the course of the seven-year lease, he said.
That revenue will be separate from the loan repayment by Parmida, McWilliams said.
In the event there is a default on the CAP loan, McWilliams said the county would have to repay it, but it would have a renovated building no matter what.