AG 1997 04 21 - Laserfiche WebLink

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HANDOUT FOR CABARRUS COUNTY COMMISSIONERS INDUSTRIAL REVENUE BOND INDUCEMENT AGREEMENT DATED MARCH 10, 1997 FUN-TEES, INC. PROJECT Fun-Tees, Inc. is a private label manufacturer of t-shirts and related sportswear apparel products, which it sells to national retailers and other closing concerns. The Company currently produces and sells over 20,000,000 units per year. The Company was founded in 1974 and has been an employer in Cabarrus County since the early 1980's. The Company currently employs 275-300 people in the County at its two sites -- 245 Manor Avenue and 550 Cabarrus Avenue. The Company maintains its home office in Cabarms County, as well as a portion of its manufacturing and distribution operations. Total employment in North Carolina is 375-400 people. There are an additional 300 employees in South Carolina. The Industrial Revenue Bond Project (the "Project") involves the purchase of new tubular knitting machines and the installation of a commercial fabric knitting operation in the Company's existing site at 245 Manor Avenue. This operation will employ 45 persons, of which 37 have already been hired. The Company will be spending approximately $1.5 million in capital on the Project, primarily on new tubular knitting equipment. The fabric that is knitted at this site will be used as raw material for the Company. Prior to this Project, the Company purchased all of its knitting from third parties, none of whom were in Cabarrus County. The Company had a 100-employee sewing operation at the Manor Avenue site which was recently closed due to the Company's inability to compete effectively with other suppliers of knitted apparel products. The Company has been able to re-employ approximately one-third of the sewing division employees in other divisions. The average wage paid in the knitting division is 25% higher than the former sewing division and the average weekly wage paid at the Company's 245 Manor Avenue site exceeds the average weekly manufacturing wage in Cabarrus County (exclusive of the wages paid at Phillip Morris' plant). The jobs saved by the Company's new knitting operation, estimated at approximately 45 people, will generate revenue for the County as will the purchase of new capital equipment. The capital investment for this Project also enhances the Company's commitment to Cabarms County as a long-term employer in the County. The issuance of the Industrial Revenue Bonds for the Project will help the Company lower its costs, thereby improving its ability to compete in the knitted apparel market from its base of operations in Concord, North Carolina. F:~,OCS~BSI~SECURITB 250672_ I .DOC