SWEET SHOP CANDIES INC. TO LOCATE PRODUCTION

FACILITIES IN MOUNT PLEASANT, TEXAS

Sweet Shop USA® owner Jim Webb announced today that he would be locating his company’s production facilities in Mount Pleasant, Texas.  Sweet Shop USA® is a producer of fine hand-dipped chocolates which are sold to candy shops, florists, specialty gift stores as well as in many fine department stores throughout the United States and Canada.  The company has been in business for 36 years. Fudge Love® and Texas Brags® are a few of Sweet Shop’s registered trade marks along with Mrs. Weinstein’s Toffee ™ and Price’s Fine Chocolates® which is famous for its Annaclairs®. They are currently located on White Settlement Road in Ft. Worth, Texas.  The federal flood control project on the Trinity River has forced the relocation of the company. 

Owner Jim Webb indicated that he and his wife Krista visited many possible locations in their search for a suitable available building.  Their initial search focused on a location in or near Ft. Worth but spread to a state wide search when a suitable building at a suitable cost could not be found in the metro area.  The Webbs visited Mount Pleasant on five to six occasions-looking in one town then coming back through Mount Pleasant before going home.  Their focus always came back to the building located at 1316 Industrial Drive, formerly occupied by “Sincerely Yours” a home décor business.  The decisions were finalized this week after completing negotiations with building owner Jim Shanahan and receiving commitments of assistance from the Mount Pleasant Industrial Development Corporation.

After purchasing the almost 80,000 sq. ft. facility, the Webb’s will remodel and renovate the facility for the manufacture of fine, hand dipped chocolates.  A large part of the building will require air conditioning. Total renovations to the building are estimated at $1.5 million dollars.   The company will place over $400,000 in existing equipment in the facility.   A portion of the building will be dedicated to retail sales of their various products.  The Webb’s have indicated a desire to build their retail sales in the facility by offering tours which demonstrate the many steps involved in producing fine chocolate truffles.

Sweet Shop USA® has pledged to employ approximately 50 persons during their first year of operation in Mount Pleasant.  That number will increase to 58 within 24 months.  Positions are primarily full-time with some increases during high production seasons which run from September through March.  The owner spent a great deal of time searching for a community in which to locate with the hope that many of his existing employees would relocate with the company and continue to work for them.  The Webb’s indicated a strong corporate culture, pride and feeling of “family” which was present in their business and they want to build on that in Mount Pleasant.  The company is offering a relocation assistance package to existing employees but anticipates hiring many new employees from the Titus County area.  Employees are offered health and dental insurance, 401K retirement plan and paid vacation days.   The company will announce an application process and minimum requirements for employment in the very near future.

Charles Smith, Executive Director of the Industrial Foundation indicated that he had first met the Webbs in late November of last year.  Since that time he has addressed questions regarding a potential location and worked with the Industrial Development Corporation to put together a package of assistance which would assist the Webbs in their location.  Smith indicated that the IDC Board first considered a package for Sweet Shop USA® in their meeting on February seventh after Board President, Erman Hensel and Vice President, Rick Strudthoff had met the owners. 

The assistance package includes a partial tax abatement to the company on the improvements they make to the building (current land and building can not receive an abatement under state law).  Major equipment will also be included in the abatement.  The tax abatement will include only those taxes paid to the City and the County and will be based on a formula of 90% abatement for years one, two and three then 75% abatement in years four and five.   The tax abatement requires the approval of the City Council and Titus County Commissioners Court but it falls within the guidelines set by the two bodies. 

In addition, the IDC pledged a total of $275,000 in the form of a loan to the company for a period of three years.  The company may qualify for the entire loan amount to be forgiven by providing verification that employment measures and company investment have been made.  The IDC’s action to provide this assistance along with the Tax Abatement is to be considered by the City Council during their meeting on April 1, 2008.  Council will also consider the creation of a Reinvestment Zone for the building which allows the tax abatement and approve the expenditure of funds for and Enterprise Designation Application which, if approved by the State allows the company to recoup certain sales taxes paid to the state during the process of renovation to the building.

Jim Webb indicated that he had been impressed with the Mount Pleasant community and it’s workforce and thought it was a good match to his company’s needs.  “We are excited to make Mount Pleasant the new home for our company and look forward to helping make the

“Sweetest Town in Texas” even sweeter.”

 Erman Hensel, President of the Industrial Development Corporation indicated that the Corporation had been impressed by the quality product and image Sweet Shop USA® provided.  “Every industry has leaders and each of us felt Sweet Shop USA® is a leader in fine quality chocolate candies and one that will spread the word about the many advantages of Mount Pleasant to the Food Industry.  First Pilgrims Pride Corporation, then Laura’s Cheesecake and Newly Weds Foods- all are leaders in the food industry within their niches-  now Sweet Shop USA® will join the Mount Pleasant food industry leaders and we are very happy to welcome them to Mount Pleasant.” Other members serving on the IDC Board and working on this project are Rick Strudthoff, Tommy James, Henry Harris and Joyce Buck.  Members of the Board are appointed by the City Council.  The IDC is a 4A Corporation organized under the City of Mount Pleasant in 1993 and funded by a sales tax increment.  The original concept of a 4A Corporation was carried in the 1989 State Legislature by Senator Bill Ratliff from Mount Pleasant.  Today over 500 communities have 4A or 4B Corporations to encourage economic development.  It has been touted as one of the most important tools for economic development available in the State of Texas and the only tool with local control.