Salvage operations must cease
Manufacturer to expand, seeks tax break
By Pearl Cantrell
Monitor Staff Writer
MABANK–A man operating an auto parts export business in Mabank in view of the new Comfort Suites hotel for the past 16 years was hoping to gain the approval of the city council to install a scale in order to continue his operations. 
Instead, he was ordered to stop crushing cars, and given 60 days to clean up the property and come into compliance with existing ordinances, or close down.

Monitor Photo/Pearl Cantrell
Nathan Sullivan, 13, asks Mabank mayor Larry Teague to sign off on the completion of his Eagle Scout project during the city council's regular meeting April 5. The project entailed refurbishing 19 wood and wrought-iron benches placed along Market Street. “I am very thankful to the community and for the opportunity to work with all of you on this,” Sullivan said. “(You've) done a fine job,” Teague said. “They look real nice.” Councilwoman Shannon Steakley added, “And we appreciate it very much.”

The council was in full agreement on this when it met April 5.
Francisco Ortiz, who has operated a changing business, had submitted a plan to transform his property, which for all intents and purposes is actually a salvage yard in full view of the U.S. 175 overpass at State Highway 198 and all the south-facing hotel rooms at the one-year old Comfort Suites.
City rules do not allow salvage yards within the city limits. Any mechanical work must be done inside a building and no scrap piles allowed to accumulate on the ground – all must be inside designated bins.
In the past, jurisdictional disputes about the property allowed Ortiz to operate more freely.
Back on May 15, 2007, a site plan received city approval, but the plan was never realized.
Code enforcement officers had recently begun to issue citations for inoperable vehicles being stored there.
Ortiz’s main line of business seems to involve crushing cars, though he maintained that he breaks down 18-wheelers for parts and exports these parts overseas.
“The site plan has basically become null and void,” Economic Development Corporation executive director Scott Confer told the council.
The council has expressed to city code enforcement officials that it wants all the inoperable vehicles in the city to either be stored in a garage out of sight or towed off, as stipulated by city codes. Only operable vehicles that are clean and fit for resale can be stored on a lot within the city.
The vote was unanimous.
In a discussion on a similar subject, David Claxton of 104 E. Jeter St. inquired about the possibility of opening a small engine repair business out of his garage.
“Everything has to be inside that building,” councilman Dennis Terry said. “And I’d like to hear what the neighbors have to say.”
Convince the code officers first that your plan will conform to city regulations, and then if a variance is needed, return and request one, Claxton was told.
In other business, council members
• canceled the May 14 election, as each seat up for election drew one candidate.
• heard JIT Manufacturing would be seeking a property tax abatement on a sliding scale for five years on property valued between $1.8 million and $2.1 million – resulting in about $10,000 during the first year of the agreement, adjusting down to zero when five years have lapsed.
Owners David DeAlura and Kevin Bishop have plans to build a new 28,500-square-foot manufacturing facility with a low-interest Small Business Association loan application with several local banks. If all goes well, the partners hope to begin construction in July and see completion by December.
Current rules allow for tax abatement on any new investment higher than $200,000, Confer said. The last tax abatement agreement the city had was with Solar Turbines in 1992, he added.
“It will take 30 days for all agreements to crystallize and an itemized list of property for consideration under the agreement, sometime in May,” Confer said.
JIT manufactures small logo promotional items, principally can cozies.
Once the new facility is erected, between County Road 404 and Circle Inn, the concern expects to hire up to 140 employees. At its present location, behind Day Tire, it hires 60 during the off-season and 105 during peak production.
“We need the jobs,” mayor Larry Teague said. “We appreciate you wanting to be in Mabank.”
• approved a resolution in support of the Kaufman County Appraisal District expanding its facility, spending up to $365,000. The city’s quarterly payment is estimated to increase by $71.99, starting in calendar year 2012.
A once-grand plan has been whittled down to the addition of a very basic 2,964-square-foot building adjacent to the present building at an estimated 26 percent cost of the earlier failed proposal.
The more modest plan will provide for additional public meeting rooms and restrooms.
The appraisal district requires 10 of the 13 taxing entities in its district to approve the resolution before it can move forward with its plan.

Principal named finalist for Malakoff ISD superintendent
By Michael V. Hannigan
The News Staff
MALAKOFF–The new face in the Malakoff ISD Administration Building will be a familiar one.
Malakoff High School Principal Randy Perry was named the lone finalist to replace Dr. John Spies as superintendent Tuesday night. The vote was unanimous.
“It is quite an honor and quite a responsibility,” Perry said. “I am looking forward to leading the district into the future and continuing the progress in the district.”
While state law requires a 21-day waiting period before the district can finalize Perry’s contract, it will actually be a little longer this time. Perry is expected to take over his new position June 1 – May is a very busy month for a high school principal, after all.
Assistant Superintendent Sybil Norris will act as interim superintendent during May.
According to information released by the district, the board considered more than 50 applications before making its decision.
Perry has been an educator for 27 years, and served as a teacher, coach, athletic director, head football coach, assistant principal and principal. He has been principal of Malakoff High School since 2006.
Perry holds a Masters of Education degree from Texas A&M-Commerce and a Bachelor of Arts in Political Science from the University of Texas at Arlington.
Perry will be replacing Spies, who is leaving the district for the Van Alstyne ISD. His last day will be April 30.
“I am excited the board was able to find such a quality applicant. I know Randy as a man of integrity and high moral values who will lead this district in a positive direction,” Spies said.

Council accepts loan terms
By Pearl Cantrell
Monitor Staff Reports
GUN BARREL CITY–The city is closing in on its $1.5 million loan with First State Bank for the construction of the new Gun Barrel City Hall.
Tuesday, council members unanimously authorized the city manager to execute a commercial real estate bid letter drafted by the financial institution, stipulating the terms of the loan.
The loan is being secured through monthly sales tax receipts, a first lien position on the property and a $200,000 Certificate of Deposit for a 10-year period.
Annual audits of the city’s finances, along with monthly sales tax revenue reports, are also required.
In exchange, First State Bank is offering a fixed rate of interest at 2.99 percent for five years, 3.55 percent rate for 10 years and a 4.2 percent rate for 15 years, with an adjustments based on the Wall Street Prime Rate with a ceiling of 8 percent, according to the bid letter.
The first year, the city pays interest only on the draw amounts as construction progresses. Afterwards, the city expects to make quarterly payments of $23,280, or $93,121.64 a year.
Last year, the city collected $3,076,168.60 in sales tax revenue to fuel a conservative (FY) 2011 budget, based on a four-year average sales revenue collection of $2,307,000.
Last month, sales tax revenues were up slightly for a year-to-date percentage change of 1.15 percent, according to information released by the state comptroller’s office.
The city has been banking surpluses for at least two years in a row.
A special council meeting has been called for 6 p.m. Tuesday, April 19, to review bids, according to city staff. A tentative groundbreaking is tentatively set for Monday, April 25, with work expected to begin in earnest in early May.

 

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