Ruston Taxpayers to Guarantee Rent for Monster Moto

Taxpayers of the City of Ruston will be on the hook for the rent “pursuant to certain terms and conditions,” for a new business that is locating at the old Ruston Airport on South Farmerville Street, according to a resolution that will be considered at Monday’s meeting of the Board of Aldermen. Additionally, the City will donate the land where a 100 thousand square foot factory will be built in which Monster Moto plans to manufacture mini bikes and go carts.

From the resolution:

WHEREAS, to induce the LLC to construct the Building which will be used by the Company, the City desires to guarantee the payment of rent by the Company to the LLC under the Sublease pursuant to certain terms and conditions;

See here the complete document.

Also, the land upon which the factory is to be built will be donated.

From the Cooperative Endeavor Agreement:

2. CITY OBLIGATIONS. City agrees to: 2.1 Convey to LEDC the property described on attached Exhibit “A” (the “Property”) and shown on the survey plat depicted on attached “Exhibit B”.

See here the complete document.

The meeting will begin at 5:30 PM Monday, Ruston City Hall, 401 North Trenton, first floor.

See here the agenda.

29 Responses to “Ruston Taxpayers to Guarantee Rent for Monster Moto”

  1. Vee Says:

    When we established a business, it never occurred to me to expect other hard working people to subsidize my business.. My understanding was/is one’s business is one’s business and not the responsibility of anyone else.
    If individuals think the business should be subsidized , then those individuals should donate out of their own pockets. I don’t recall a locally subsidized business that ever returned to the taxpayers what it costs us. Never have our taxes been reduced as a result of a subsidized business that I recall.

  2. Vee Says:

    The more I think about our local city elected representatives using our city taxpayers’ dollars to give welfare assistance to a corporation, the more irate I become.
    WELFARE is a detriment to the economy.
    I read in the document they “expect” economic benefit to the city, parish and state .
    Think how much MORE benefit tax dollars of the city residents could generate if our taxes were REDUCED by the same amount of the value of the free land gift and the expected rent money they plan to give to ONE business on welfare.
    With reduced taxes, every city taxpayer would benefit with more money to spend in their pursuit of happiness.(Declaration of Independence). Family lifestyle would be enriched and workers would be rewarded for their hard work. As a result businesses would grow and put more people to work. More people working would further grow businesses. A win-win situation for the taxpayers of Ruston.

  3. Bsting Says:

    Good idea to do the minimum research before giving away the store, This is one of (2) claims against this great firm. Remember Monroe is still waiting for V Car to open after approving tax increases for parish and city. If Ruston expects love from these people read this.

    “APT MotoVox Group Inc. filed suit against Monster Moto, LLC and former associates of the company in July 2014, alleging misappropriation of trade secrets and a litany of various tort claims. The suit and the motion for preliminary injunction were filed in the United States District Court for the Western District of Missouri as APT Group Inc. d/b/a/MotoVox vs. Monster Moto, LLC, Olen Rice, Robert A. Rice Sr., Jon Umsted, Kenneth Francis and Beck Salander. On November 9, 2014, the company executed a contingent settlement…”

  4. skipprT Says:

    Monroe has been paying people to come to Monroe for years and has never learned the lesson. All of the call centers have left and Mayo is still a hero. Go figure. CT Link can only get foreign nationals to move to Monroe.

  5. Anonymous Says:

    come on mayor! this isn’t what we elected you to do. start by helping the businesses that already support this town. help them grow instead of handing over land and rent to a fly by night company that won’t be here in 2 years!!

  6. deleted Says:

    you know if this company is so great why can’t they pay their bills?

  7. NoNewTaxesIllWasteMyOwnMoneyThanks Says:

    I can’t believe the stupidity of this. This sounds like a fly-by-night outfit to begin with. But then: If they want to give these people something, they should at least build the building on City property, retain ownership and let these crooks use it as long as they are able to remain in business; then when it flops, the city will at least have the building and property. This is just a giveaway to someone who will end up with a free building and property formerly owned by the City.
    I though it was illegal in Louisiana for the government to give away anything of value.
    Stupid. Surely the taxpayers of Ruston won’t stand for this.
    You are EXACTLY RIGHT, “deleted”.

  8. Bill Says:

    I don’t live in Ruston and only pay some sales taxes there, but this concept has been bugging me for years. Guess it’ll continue as long as some cities are willing to negotiate similar deals. As far as I’m concerned the city shouldn’t go any farther than helping them with such things as getting the necessary utilities available to the factory and maybe modifying a curb and/or street to provide access, but let the company either lease or buy the land and build their own factory. If the business has real potential, the owners need to have the burden of the start up costs on them. Otherwise, it’s too easy to shut down on the first hiccup in the economy.

  9. Cowboy Says:

    The only thing government should ever do to stimulate business activity is to create the conditions which allow businesses to thrive in the first place! This means eliminating excessive business over-regulation which allows government to insinuate itself into every business transaction and distort the marketplace to its own advantage by allowing it to control that marketplace. It also means running government as lean and efficient as possible so as to require the least amount of money to be skimmed from the productive class to fund its operations. That translates into lower taxes and allows for a higher standard of living by allowing taxpayers to keep more of their hard earned money.

    Schemes such as tax abatements, land giveaways, tax credits, etc. are mere masks covering up the real problem which is that government is too intrusive and takes too much from us in the first place! Government intrusion is so bad that these schemes are necessary to attract established businesses and allow new businesses to form! I’ve got no problem with extending a road or utilities to a business location, but granting tax credits to a new business while existing businesses are expected to pay is not fair to the established businesses, or to the taxpayers who have to ultimately fund these schemes. This goes for land giveaways and promises of taxpayer funding for buildings and equipment!

    Louisiana should be a place businesses wish to locate because it is a well run state with business-friendly policies and efficient government. The reason Louisiana is forced to offer these taxpayer-financed subsidies is to mask the fact that it currently is NOT a business-friendly state despite all the lies coming from the Jindal administration. Now we have local governments emulating these disastrous policies that we can ill-afford and which studies show do NOT deliver the promised rosy returns used to justify their enactment.

    The legislature is currently debating extension of film tax credits which are bankrupting the state and being abused by charlatans looking to make a quick buck instead of a movie! It’s great to see Louisiana portrayed positively in films, but that pales in comparison to living in a state where jobs are plentiful and the standard of living is high that we all wish Louisiana had! THAT lasts long after the movie credits have rolled or the fly-by-night outfit promising jobs to get state cash has evaporated in the mist of another con job! And that is exactly what we residents of Louisiana should be demanding from our elected officials! If they don’t deliver, then let’s show them what the unemployment line looks like! God knows enough of us have seen that!

  10. LiberalsAreCrazy Says:

    Politicians take money from lots of people. This is money they would have spent or otherwise used in the economy; it is rerouted to government. Then the pols build something, call it economic development, and there you have it: “Look at what we did for you!”
    At best it’s a wash; at worst an absolute waste of money on a “show” project which amounts to nothing.
    People don’t know any better, and the pols never seem to be around nor take any blame when these projects go tits up.
    People are simply…well, I don’t know what the best word is…

  11. Bob Sherunkel Says:

    There seems to be alot of hype and much of it I understand.
    Establish a couple things here first…

    A “guarantee” of rent is not equal to payment of rent. It can certainly become that but is not, on its face, the same.

    Investing in roads we can all agree, is a duty of the government. Investing in potential long term employment and future tax receipts thru concessions is debateable to be sure but plenty of arguments can be made in favor (and in opposition).

    Being the guarantor is essentially cosigning for the term of the lease and as such, ensures that the building’s owner (most probably a local) will get all of his/her lease. The city will also be able to occupy that space should MOTO peeps fail to complete their terms.

    • Vee Says:

      Way would the city need more buildings to occupy, pay insurance on, and keep repaired if MOTO fails? We need smaller government, not larger with more liabilities.

      • Bob Sherunkel Says:

        Please bear in mind that the city, in the case of a default, can also attempt to sublet the property to another business venture and it would behoove them to do so since they would be required to pay the balance of the lease anyway.

        It is indeed a sad fact of life that businesses go where the deal is sweet. There is nothing intrinsically “better” about Ruston than 100 other places, (obviously some of us feel that Ruston is great!) but the fact is, if Ruston were unwilling to make some overture toward business in order to lure them, then they would be lured someplace else that did so.

        Do you think Super 1 has a coca cola display at the front of the store because they bought too much coke and need to get rid of it? or do you think coca cola wrote them a check to be there? They both will profit and while it may be unappealing to a purist, it is the way business is done.

        Oh yeah, I know I’m the lib. Not even close!
        I am a business owner and while I think it would be great to simply let Ruston live or die by its own merit, it simply doesn’t work that way. No, I don’t own the property but the guy who does must risk his own money (and potentially the jobs of his employees) to take that risk. To have an administration who recognizes that, and is willing to help, is invaluable. The property owner is about to spend hundreds of thousands of dollars to build out to the occupants specs. This construction will employ people. Business will grow. Other businesses around the country dont live in a vaccuum so they see success in Ruston and they too may wish to locate here.

        In the end, either play the game within the rules of reality or buy a few acres and grow your own food so you can be absolutely self sufficient.

        • Vee Says:

          You ” think it would be great to simply let Ruston live or die by it own merit, it simply don’t work that way.”
          WHY? It’s because not enough people oppose the politicians who practice communism by taking from those who work and earn money and donate it to certain ones who haven’t earned it.
          WHAT IS THE RISK OF WHICH YOU SPEAK? First, be it known, that the taxpayers own the land. No one forced the person building the building for the company transferring from Dallas to Ruston to spend his money. Secondly, I fail to see where the “risk” is with the generous guarantee he gets up front that all rent will be paid. Show me where the RISK IS IN THIS DEAL! (for anyone except the TAXPAYERS) Money confiscated from Ruston taxpayers WILL be used to eliminate any risk, it has been promised so that money won’t be used for the benefit of the ones who earned it; it is to be reserved to insure no risk for the builder OR the company. The taxpayers didn’t vote to have our collective tax money dedicated to eliminating risk for one individual and one company. It was voted on to be used to be used for the good of all.

  12. Anonymous Says:

    Who is the landlord? That would be a nice rental agreement….

    • Mr. E Says:

      James Davison was the landlord for the V Vehicle scam in Monroe. He wasn’t involved in the scam, but he positioned himself well to take advantage of the politicians falling all over themselves to prop that scam up. Nothing wrong with that as Davison is an astute businessman. It is the politicians like Jindal and former Economic Development head Stephen Moret who are most deserving of our anger in that sorry episode.

  13. Go Saints Says:

    This is why I have moved to Ruston from Baton Rouge!! I think that the new Mayor is truly looking out for the welfare of all residents by helping to create more jobs! Where else can you go and hear that you are taking jobs away from China? I hope that none of the above people posting negative comments have relatives, friends, fellow church members, or acquaintances needing a job if Monster Moto does not open for business.

    • deleted Says:

      OMG you idiot do you really think monster moto will be around in 2 years? these people where in dallas and found a sweet deal to make some money off the idiots like you in ruston!

    • Vee Says:

      The new mayor is disregarding the Constitution of the United States, by not protecting our God given rights to enjoy the fruits of our own labor; taking from those who have earned money and handing it over to those who have not earned it.

    • Vee Says:

      Please, if you can, cite where the Constitution gives the authority for ANY government to create jobs. It is simply not there! Governments have no money except what it takes from the people and freedom loving people recognize that laws contrary to the Constitution violate citizens rights.

  14. Vee Says:

    Of course, some may say , creating a standing military is creating jobs. True, but job creation is not the purpose ; our national defense is the purpose so that in our republic the citizens may enjoy the pursuit of happiness.

  15. Just The Facts Says:

    A little clarity…

    First, Monster Moto is headquartered in Dallas and will continue to be headquartered in Dallas. They are merely moving the manufacturer/assembly of the bikes from China to Ruston, as production in China has proven unreliable and shipping cost are very expensive.

    Ruston facility…

    So if Monster is successful and pays rent as proposed, ownership of the building will revert to LEDC (the nonprofit entity set up by the city) in 25 years and LEDC will (1) have a new income stream of approximately $400,000 a year (not adjusted for inflation) and (2) will never have put any material amount of funds into the project. Nor will the city have put any material amount of money into the project and a number of jobs will have been created that betters the lives of our citizens and puts more money into our local economy.

    If Monster Moto is not successful, the city will be on the hook to the tune of $34,000 a month until a new tenant can be found. Although that is a big concern, a number of prospects have recently shown interest in locating to Ruston but we do not currently have a structure of this size to lease. As such, I doubt this building would sit idle for an extended period of time.

  16. Just The Facts Says:

    Per the Louisiana Secretary of State website, LEDC was established in 2010 and registered by the city attorney. Rent will be approximately $34,000 a month. Annually, that comes to $408,000. I also believe that LEDC has the option of buying the facility at a discounted price from ExcellenceStarted, LLC is Monster Moto does not honor the lease.

    • Vee Says:

      The building will be occupied by Monster Moto, and leased for 25 years. Excellencestarted, a private company will hold title to the building until the lease expires or is terminated, in which case the title would then go back to LEDC., according to an article found on this blog.
      Maybe I’m showing my ignorance, but it seems to me the Ruston taxpayers are guaranteeing two private companies won’t be the losers: Monster Moto and Excellencestarted.

  17. WasteMyOwnMoney Says:

    I bet Ruston hopes the mini-bike business holds up for 25 years…

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