Australian textile firm seeks Henry County site; council briefed on possible $500,000 forgivable loan

Henry County Council members were briefed on a proposal from Ennio (spelled E-N-N-I-O), an Australian family-owned textile company exploring a 25,000-square-foot manufacturing, office and warehouse facility in the county's industrial park.

The company, identified in the meeting by economic development staff, would produce nettings and casings for the meat and poultry industry and wants to begin as soon as late fall. Lisa Lee with Ice Miller, describing the transaction as "a reimbursement agreement between the RDC and the company," said the firm has committed to hiring 50 people over five years and seeks local capacity in the United States.

The county presentation centered on a forgivable-loan structure instead of issuing bonds. Lee said state statute authorizes local governments to provide a loan in place of a bond sale; the ordinance being drafted would allow a loan not to exceed $500,000, a term not to exceed 10 years and an interest rate not to exceed 6 percent if the loan is not forgiven. The loan would be funded from redevelopment commission cash on hand and secured by a mortgage on the property in addition to a promissory note.

Forgiveness would occur in benchmarks tied to completion and operations, Lee said: 50 percent forgiven upon project completion and issuance of a certificate of occupancy, an additional 25 percent after two years of operations and the final 25 percent after five years if the company has created the 50 jobs. Interest would begin accruing on disbursement; any forgiven portion would include the interest accrued to that point, Lee said.

County staff said the parcel being considered is in the industrial park on the north and west corner at Hayes Way and Brooks Drive. The redevelopment commission (RDC) will hold a public hearing this Friday on a related plan amendment that would create a new TIF area (noted in meeting as "HSN Lot 4"), and staff said the RDC plans final action in the coming weeks with a hoped-for county council action in November.

Council members were told no vote was requested at the meeting; the item was informational and staff will return with an ordinance and the form of the forgivable-loan agreement. Council discussion included confirmation that the loan funding would come from RDC cash on hand, not the county general fund, and that the RDC assumes the upfront risk and would be repaid from tax increment generated in the new TIF area if the project performs as planned.

The council recorded an administrative introduction on the agenda (record number 255) for later formal consideration.

Details remaining to be finalized include the exact loan amount (presented as a parameter up to $500,000), the number and timing of draws, whether unpaid balances would amortize at maturity or be paid semiannually, and final exhibit language for the forgiveness benchmarks.