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Perdue Working With IDB To Finalize Departure, Money Owed

The Cookeville Industrial Development Board met with a Perdue representative Wednesday to discuss the details of completing the plant’s departure from Monterey.

The board had questions on whether there are any other amounts owed by Perdue due to a couple of provisions included in the lease. Board Attorney Kent Moore said one provision in the lease states that taxes, assessments, and other charges shall be prorated to the date of early termination of the lease, and payments shall be immediately due and payable. He also said the lease states that if Perdue had a shortfall of 50 percent of employees by the end of the year, they would owe money.

“We need to generate a report, we need to figure out what the employment is, we need to figure out where the employment numbers were, we need to figure out what the termination date is, so it’s in that respect, just generally it appears there will be some amount due,” Moore said.

Perdue Representative Monica Conley said she is not at liberty to agree to anything, but Perdue could help figure out the amount of clawback taxes that are owed.

“We can provide updated employment numbers for those dates and then calculate a payment using the calculation method that’s in the lease up to that date,” Conley said. “Then once the recovneyance happens back, then I think whether we are under the lease making a payment in lieu thereof or paying the taxes, the number is going to be the same.”

The board agreed to use the formula in the lease to determine the prorated amount of clawback taxes that Perdue will owe with a lease termination date of March 28.

The board also had concerns with a $20 million bond that the IDB and Perdue had when the plant first moved to Monterey. Moore said the city, county, and IDB are not obligated to the bond.

“My recommendation would be a clarification that the bonds have been paid in full, that’s number one and if in fact, if that is not an accurate statement, that there will be no, whoever, Perdue, whatever entities that are in existence now that are sort of taking over this thing that they will hold the city, county, and IDB harmless if that statement is false,” Moore said.

Conley said in her conversations with Perdue the popular opinion is that the bond has been resolved. Conley said Perdue would likely not have a problem signing some sort of waiver to hold the city, county, and IDB harmless regarding the bond.

Moore said he would like to have numbers in front of him before agreeing on the amount that Perdue will owe. The board will meet again with Perdue to review numbers for clawback taxes and a waiver. A date for the special-called meeting has not been officially set.

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