The Development Corporation of Snyder (DCOS) board of directors will receive updates on the 2016-17 financial audit and executive director search during Wednesday’s meeting.
The audit is being conducted by the Abilene firm Davis and Kinard. This is the first time in recent history the DCOS financial information has been audited independently of the City of Snyder.
Board chairman Mark McClain will provide the update on the executive director search. The board, which is conducting the search, posted the opening on Dec. 1.
Board members will also discuss and possibly take action on the refinancing of the Texas Leverage Fund loan the DCOS received to construct the rail park and provide an incentive to WL Plastics to build its Snyder facility. The proposal has been tabled twice because more information was needed to make a decision.
McClain said at during a November meeting that the loan went from being classified as untaxed to taxable because only one company is using the rail spur.
The original loan was for $3.5 million over 15 years and under terms of the refinancing agreement that were presented earlier this year, the DCOS would make 110 monthly payments of $25,193 on the refinanced loan, on which it still owes more than $2.4 million.
In December 2011, the board approved the incentive package for WL Plastics. According to multiple articles in the Snyder Daily News, the incentive agreement included a $1.5 million cash grant, with $500,000 each for construction start-up, occupancy of the building and for 33 full-time employees, which was to increase to 41 once the company reached full production.
The company also received the land, valued at approximately $61,945 — based on what the DCOS paid for the entire parcel — as well as the waiver of permit and inspection fees and the proceeds of a bond issuance.
According to the contract, WL Plastics would make an $11.5 million capital investment in constructing the facility and would have rail spur access at no cost, except for installation of a rail track switch to connect the sub spur to the main line.
The meeting will begin at 7 a.m. in the DCOS office boardroom and is open to the public.