The Borger City Council has approved an incentive agreement between the Borger Economic Development Corporation and a new business.
The agreement, which is between the EDC and Panhandle Maintenance, was approved last Tuesday.
Panhandle Maintenance, owned by Edward Rodriguez, is a Texas sole propietorship company that is engaged in, among other things, process safety including risk evaluations and preventative processes to avert accidents.
The company desires to establish itself in the Borger and Hutchinson County area, and will serve industry throughout the national and international markets.
At its regular meeting earlier this month, the Borger EDC board of directors approved providing a loan to Panhandle Maintenance in the amount of $192,057 for 60 months at four percent interest.
The monies will be paid upon the signing of the incentive agreement and presenting purchase orders, invoices, or job agreements.
The total funds advanced to Panhandle Maintenance under the agreement for the loan will not exceed $190,057. A line of credit will be extended to Panhandle Maintenance for $150,000 for one year at 10 percent interest.
Under the terms of the agreement, Panhandle Maintenance will hire 12 full-time employees on or before Dec. 31, 2014. The company will agree to submit to the BEDC employee reports on a quarterly basis until the incentive agreement is fulfilled.
Liens will be placed on all equipment with a title and UCC1 filings on all equipment that is not titled. All accounts receivable will have UCC1 filings attached. All of the equipment will be insured, and the BEDC will be named the loss payee.
Panhandle Maintenance will make all reasonable efforts, whenever possible and prudent, to contract with Borger vendors as the primary sources of goods and services necessary for the ongoing maintenance and operation of the business.