grants, and each cabinet is responsible for projects assigned to it. He said the ability of those four cabinets to follow every dollar into every community is limited, which is why each project has an MOU with the provision for audits and reports to ensure the public’s money is spent in the way it is intended.
Chairman Damron asked, if at some point, the Committee could receive an update from these four cabinets on how the money has been spent. Mr. Hintze said he thought that would be a fair and reasonable request.
Chairman Damron said there were a number of other items on the agenda, and unless there were objections, they would be voted on as a group, with the exception of the school bond issues, which would be taken up separately.
Representative Wayne made a motion that all action items on the agenda be approved, with the exception of the School Facilities Construction Commission (SFCC) bond issues. The motion was seconded by Representative Graham and passed by voice vote.
The action items approved were as follows:
(1) Economic Development Bond grant of $500,000 to the City of Danville, Boyle County. Danville will use the grant to make a forgivable interest-free loan to Caterpillar, Inc. In return, the company will be required to create and maintain 101 full- time equivalent jobs over a two-year period with an average wage of $32,000. If Caterpillar does not create and maintain the employment levels, it may be required to repay the loan at a rate of $4,950 per job not created and maintained.
(2) Economic Development Bond grant of $500,000 to the City of Hopkinsville. Hopkinsville will purchase equipment and lease it to the Budd Corporation for 20 years at a rate of $1 per year. The Budd Company and Tallent Engineering, Ltd., will build a facility in a joint venture as Budd/Tallent Corporation. The company will be required to create 247 full-time jobs by December 31, 2000, with an average wage of $26,628, and maintain those jobs through December 31, 2003. If the company does not create or maintain those jobs, it may be required to repay $2,024 per job.
A Kentucky Infrastructure Authority loan from Fund A (Federally
Assisted Wastewater Revolving Loan Fund). KIA will lend $1,240,094 to the City Mayfield to renovate portions of its sewer system. The terms of the loan are 3.8% for years. Sewer user rates will not increase.