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RES NO 01-11-2004 I CITY OF VAN BUREN, ARKANSAS 0 RESOLUTION NO. -I -2004 RESOLUTION OE THE CITY COUNCIL OF THE CITY OF VAN BUREN, ARKANSAS CERTIFYING LOCAL GOVERNMENT ENDORSEMENT OF REL PRODUCTS, INC. TO PARTICIPATE IN THE TAX BACK PROGRAM (AS AUTHORIZED BY SECTION 15- 4- 2706(d) OF THE CONSOLIDATED INCENTIVE ACT OF 2003). WHEREAS, In order to be considered for participation in the Tax Back Program, the local government must endorse a business to participate in the Tax Back Program and benefit from the sales and use tax refunds as provided in the Consolidated Incentive Act of 2003; and WHEREAS, Said endorsement must be made on specific form available from the Arkansas Department of Economic Development; and WHEREAS, REL Products, Inc., located at 517 South 28th, Van Buren, Arkansas 72956 has sought to participate in the program and more specifically has requested benefits accruing from the expansion of the specific facility; and WHEREAS, REL Products, Inc., has agreed to furnish the local government all necessary information for compliance. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VAN BUREN, ARKANSAS, THAT: SECTION 1: REL Products, Inc., be endorsed by the City Council of the City of Van Buren, Arkansas for benefits from the sales use tax refunds as provided by Section 15- 4- 2706(d) of the Consolidated Incentive Act of 2003. SECTION 2: The Department of Finance and Administration is not authorized to refund local sales and use taxes to REL Products, Inc. SECTION 3: This resolution shall take effect immediately. PASSED AND APPROVED THIS DAY OF JANUARY, 2004. MAYOR J FIN RIG _ATTESTED: CITY CLERK/TREASURER i-,( 12/0472003 10:11 14754730E RELPRODLCTS PAGE 02 RR PRODUCTS Quality Products. Quality Service. I N C O R G O a a E C, REL PRODUCTS LNC. EST.1984 REL Products Inc., located in Van Buren, AR, is a manufacturer distributor of automotive aftermarket equipment. The main product line is the mechanic's creeper. For the past two years REL Products Inc. has found it necessary to import their products in order to remain competitive within their respective market. Importing products has obviously had an adverse effect on the number of employees needed in what was once a vibrant manufacturing facility. With the realization that the mechanic's creeper market is a mature market with demand possibly in decline. REL Products Inc. is constantly striving to expand their product line within and into other markets. Early September 2003, REL Products Inc. introduced the Tti -Fold Ramp to Wal-Mart during their annual review. REL Products Inc. has supplied mechanic's creepers to Wal- Mart for 19 years. Wal-Mart agreed to put the Tri -Fold (loading) Ramp into its store set for 2004. REL Products Inc. management and employees are eager to get the plant back into the manufacturing mode. NEW PRODUCT MANUFACTURING OVERVIEW PRODUCT NAME: THE TRI -FOLD RAMP DESCRIPTION: ALUMINUM RAMP WHICH FOLDS INTO THREE SECTIONS ALONG THE LENGTH. ADVANTAGES INCLUDE SMALL FOLDED SJ7F FOR PORTABILITY AND LIGHTWEIGHT FOR EASY TRANSPORTING. Aluminum extrusions will be supplied by Claridge Extrusions, in Harrison, AR. All other processes will be done at the REL Products facility. CAPITAL EXPENDITURES S200,000.00 NEW FULL TIME EMPLOYEES HIRED 25 -30 SPECIALIZED TRAIIv''ING NEEDED ALUMINUM. WELDING General Manager Jerry Lensing Sales Manager Tim Treadway Production Manager Roy Rogers 517 8 28'" ST VAN BUREN AR 729943 479374 -9450 FAX 478.4744051