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EDC hears Ace site presentation
Members of the Cocke County Economic Development Commission Executive Board, meeting Thursday heard from Michael Ball of LeGrace Properties. The Ace Products plant on the Industrial Road was closed down in 2006 and the deteriorated facility was donated to the Cocke County Partnership in 2010. Under the agreement negotiated that year with Ball, the 34 acre site was purchased for $300,000, but financed through 2015. It also included an option to exercise the purchase sooner, and a clause that the firm would not pay property taxes till 2016. But recently the company became delinquent on it's lease payments after having paid more than $150,000 toward the purchase price over the past four years. The agreement had earlier been re-negotiated to give the firm a sixty day window before the purchase would be found in default, but in April the firm again missed a payment. Partnership President Don Hurst told the Commission last week that on the sixty-first day, June 18, Ball attempted to make payment of the $41,000 that was delinquent but Hurst rejected the payment, choosing to come before the board to seek direction on the issue. Following that presentation the board voted to terminate the lease/purchase agreement. Ball appeared before the committee on Thursday, asking that the agreement be re-instated. He said at the time of the purchase no other firm wanted the site because of environmental concerns including a two acre landfill of tires, an oil/water separation system and an accumulation of rubber powder on the interior of the metal building. Cocke County Commission Chair Norman Smith said the presentation was the first time he had heard there were environmental issues with the site. According to Ball the building was torn down because it had a low ceiling and had the accumulated rubber from the previous manufacture of tires. He maintained he was paid only $15,000 for the salvaged metal. Ball went on to say he is currently in talks with five prospective buyers, who would provide from 28 to 76 jobs. He said the prospect for a sale is "55 to 75 percent." Mayor Vaughn Moore has been critical of the arrangement with Ball saying he had been an offer to purchase the site but Ball wanted $1,5 million for the property. In response, Ball said he never received a written offer to buy the property. "I'm willing to take a risk on the property and pay the $41,000 that is in arrears, and I ask that you take a chance on me," he told the committee. The full Economic Development Commission is expected to address the issue at it's next meeting. Partnership President Don Hurst reported that appraisals are underway on the ten acres owed by the county at the intersection of the new West Highway 25/70 and Highway 411 intersection. Hurst said he will present the appraisal to the Cocke County Legislative Body at it's Monday night meeting, but suggested the value likely will come in at the $600,000 per acre range. He said a record $9.3 million in sales tax revenue was collected in the county last year. Widening of South Highway 321 is awaiting funding from the Federal Highway Trust Fund which is bottled up in Congress. The planned 438 interchange on I-40 is also awaiting funding from the same source. And Hurst said he he is hopeful of state grant funding for the improvement of buildings in downtown Newport. The meeting was held at Phoenix Closures on the Industrial Road. Plant Manager Steve Hutson told the committee that the firm, founded in 1890, currently holds a number of patents. The Newport plant was opened in 2005 "and is focused on quality and customer service," he said. The plant last year produced 816 million plastic caps for the food, pharmaceutical, automotive and personal care markets. "We aren't the cheapest, but we are the best," touted Hutson. In addition, the site stresses safety and was the recipient of a safety award for the past two years. The plant is tobacco free, and is FDA and IMS (International Dairy Standardization) certified. The 65 employee facility, recycles all of it's waste plastic, with a re-grinding and re-using program. Hutson also reported that there are plans to add additional molding and lining machines in the plant, and to expand the operation in the future.
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Return to Today's News Stories - Front PageThursday, April 29, 2021
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