The Webster Progress-Times

WALTHALL - Front Line Apparel Group does plan to lease the Red Kap building in Mathiston, according to Webster County leaders.

FLAG officials told the Board of Supervisors in July the company had been awarded a defense contract to make gloves for pilots, and was subcontracting the manufacture of Navy trousers and protective glove lines.

Up until then, the county board had applications pending for state and federal loans to buy the Red Kap building, and in turn planned to lease it to FLAG. However, Larry Knotts of Amory informed the board last month that he was considering buying the building. Supervisors told Front Line to contact him about leasing all or part of it.

In late July, county officials said they understood that the parties had been unable to negotiate a lease agreement and that Front Line was interested in other sites.

However, board President Larry Crowley told the Progress-Times on Aug. 7 that Ron Levine, Front Line's president, had informed him the week before that he and Knotts were working out an agreement, and that FLAG was coming to Mississippi.

Also, Cynthia Wilson, executive director of the Webster County Development Council, informed the Board of Supervisors on Monday that Knotts had told her "everything's a go."

Knotts plans to close on its purchase of the building by mid-September, according to the discussion. Wilson said Front Line's first delivery date is in December and that it wants to move in as soon as possible.

As a result, the board is considering applying to the Mississippi Development Authority for a Community Development Block Grant of up to $500,000 to loan to Front Line in support of its location here. The loan would be for five years at 3 percent interest.

If approved, the loan would allow the Connecticut-based company to begin setting up its equipment and moving to its new location, and enable it to remain on schedule for opening its new facility here, according to a "pre-agreement" letter.

Planner George Crawford of the Golden Triangle Planning and Development District told the board on Aug. 7 that its obligation, if FLAG defaulted, would be to take every avenue to make the company repay the loan. The board voted that day to publish notice of and set an initial public hearing on the proposed application, which will be Sept. 5 at 10 a.m.