CDA votes on bond issue for Kimoto Tech new equipment purchases
Both the Cedartown Development Authority and the Cedartown Planning Commission were set to meet after press time on Monday to take care of business on local issues.
The development authority was set to meet on Monday evening at 5 p.m. to vote on whether to approve a bond resolution for Kimoto Tech to help cover costs of expansion of their manufacturing capability.
Announced in late July, the $6 million capital investment project will allow the film-coating company to progress with the advancement of new technologies and sustain their global competitiveness, according to a previous release.
The bond issues require local government approval to be sold on the general market, much in the same way that the Cedartown-Polk County Hospital Authority issued their bonds to pay off long term debt.
Bonds would have to be paid back to investors on an annual basis in stepped growth to cover the equipment purchases and construction costs.
During the July 25 meeting, the Cedartown Development Authority approved a memorandum of understanding to allow Kimoto Tech to move forward with selling bonds to pay for their equipment purchases locally, along with an agreement to allow for a tax abatement from several of the local authorities when selling the bonds.
Later, the City of Cedartown, Polk County, and the Polk School District also signed off of their approval for tax abatements.
Cedartown Kimoto Tech president Miguel Leal said one line will be getting a $1 million equipment upgrade following several years of 8 major upgrades to the line. A previous production line shut down prior to economic hard times was moved out, and the rest of the investment will be spent on equipment purchases and facility upgrades for what Leal called the “compact line.”
New equipment has been ordered and is being produced, Leal said, and should be delivered and begin full operations in April or May of 2017, depending on how long upgrades take to complete.
The investment will include the addition of a Class 1000 Clean Room Compact Coating Line and multiple technology upgrades to the existing coating line.
Kimoto Tech, owned by of Kimoto Co. Ltd, headquartered in Saitama, Japan, is making an investment mainly in new equipment for a production line in the 110,000 square foot manufacturing and corporate office facility.
Cedartown is also the site for Kimoto Tech’s 13,000 square foot Research and Development Center.
The planning commission met earlier in the morning on Aug. 22 to discuss real estate matters in executive session, with the meeting opening and closing without discussing any open business.