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Commission tables LJ Manufacturing agreement after debate over jobs and default terms
Summary
Commissioners and developer representatives clashed over removal of job-creation language and stiff default/clawback provisions in a revised economic development agreement for LJ Manufacturing; the board voted to table the item to allow staff and counsel to negotiate clearer cure and clawback language.
The Delaware County Redevelopment Commission discussed modifications to an economic development agreement for LJ Manufacturing on March 12 but postponed final action after members objected to several revisions.
Staff said the developer submitted a revised draft that altered key provisions, including whether the agreement guarantees new jobs, a commitment to install "three presses" and the agreement’s default/clawback timeline. Developer counsel David Karns told the commission his client sought softer cure periods and to avoid a clause that would force an immediate 30‑day repayment of the full incentive amount or create a total forfeiture of land and improvements. Karns asked for stair‑stepped remedies depending on which year a default might occur.
Commissioners expressed sharp disagreement with removing or softening the jobs and expansion commitments. One commissioner said the jobs metric had been the primary reason for prior support; another said altering the clawback to allow extensive cure time undermines enforcement. The developer clarified the final employment target as 22 net new employees (staff later said 33 total Delaware County employees when fully staffed, with currently two employees and several contractors). Counsel and staff agreed to rework the default and cure language and asked board members for guidance.
Outcome: after discussion the commission voted to table the item so staff and counsel can negotiate clearer, enforceable language on the jobs commitment, timeline for expansion equipment and a graduated cure/clawback structure. No final incentive award or amendment was approved at the March meeting.
