PDA OKs funding for new railcar company

Local News

October 30, 2007

Approves changes in loan to Windham Castings

From Staff Reports

AMERICUS — In a special called meeting at 8 a.m. Monday, the Americus-Sumter County Payroll Development Authority (PDA) quickly approved two items of business.

One was the approval of an agreement with a new business, Southeast Railcar and Locomotive Services Inc. The PDA had fully discussed this matter at its October meeting, but could not vote on it for lack of a quorum when Authority member Jared Stevens abstained from voting. The matter was tabled until Monday’s meeting.

Southeast Railcar and Locomotive Services Inc. had requested some help with funding its location on U.S. Highway 280 West.

PDA attorney Mike Fennessy had drafted a memo of an agreement that would provide a $25,000 grant to the company and a $105,000 loan. He told the PDA in October that the grant would be forgiven when the company’s first work order was completed, which should be soon. The plant employment is expected to be 50 full-time jobs by the end of the third full year of operation on Dec. 31, 2010. At that time, if the number of employees is 50 or greater, the loan will be forgiven. However, if the average number of employees is less than 50, the loan will be forgiven in the amount of 1/50th of the loan amount for each employee the company has based on the average number of employees for the quarter ending Dec. 31, 2010, as verified by the PDA accountant’s audit.

The guarantors of the loan are Atlantic Western Transportation Inc., Heart of Georgia Railroad, “or individuals in the discretion of the PDA.”

In the other item of business, the PDA approved a change in the loan to Windam Castings Inc., a Plains firm.

Three of the original guarantors of the $737,322 loan — Russell Thomas Jr. (20.833 percent), Brent Williams (20.833 percent) and Ronnie Greer (8 percent) — have proposed to sell their corporate stock in the company to new and existing shareholders, who will assume the responsibility for the loan.