New Delta Energy lease approved by supervisors

Published 1:10 am Wednesday, May 10, 2017


NATCHEZ — Adams County Supervisors approved a new $15,000 per month lease Tuesday with Delta Energy Natchez to use a county building.

Natchez Inc. Executive Director Chandler Russ said the agreement is the last round of documents needed for the finalization of financing for an expansion of the business. Russ said he would not be able to release details on the possible expansion until next week.

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Supervisors in a specially called meeting approved the lease 4-1, with District 5’s Calvin Butler voting no. Russ said supervisors are still under a non-disclosure agreement until next week.

Butler said his no vote was due to the company promising to bring approximately 100 jobs to the community during the first year of operation in 2015, but in two years, that has not come to fruition.

Russ said he did not know exactly how many employees Delta Energy has currently, but he said it was minimally staffed.

Butler said Delta Energy may bring the jobs it is promising now, but that he could not continue to support the project against the will of his constituents.

“It is very frustrating because people in the community want jobs,” Butler said. “We have had all these busted deals and here is Delta Energy coming back again wanting an extension. At this point it should be up and running.”

Russ said Delta Energy Natchez is expected to make yearly payment installments of $180,000 for the first two years rather than pay monthly installments of $15,000.

Russ said the company would have the option to purchase the facility for $3.775 million.

After two years if Delta Energy does not exercise the option to purchase, the lease rent goes up to $25,000 per month, Russ said.

Delta Energy Natchez produces carbon black and some oils for industrial purposes. The company is located on Carthage Point Road at the former International Paper mill site.

For the past year, the company has paid $10,000 per month to lease the building. The lease agreement also included improvements to the building, such as the fire suppression system, Russ said.

The company met the obligation to make improvements to the building, Russ said.

In other news, the board approved a $17,600 payment for architectural fees for the swimming pool.

The supervisors approved paying the Natchez-Adams County Recreation Commission, which would make the payment to Waycaster and Associates Architects.

Board attorney Scott Slover said the total contract is worth approximately $85,000, paid in installments.

4 The board also forwarded seven objections to homestead disallowance to the Mississippi Department of Revenue.  Approximately 145 applicants for homestead exemptions were denied for various reasons. Applicants had 30 days to object to the disallowance and only seven did so.