The Webster Progress-Times

WALTHALL - Front Line Apparel Group executives say they hope to begin production soon in Mathiston after closing an economic development loan with the county.

President Ron Levine and Vice President/Chief Financial Officer Victor Winogradow signed loan documents Friday at the Courthouse during a Board of Supervisors meeting. Their company has a government contract to make gloves and other apparel parts for the armed forces.

"We're finally glad to get some kind of closure of this," said board President Larry Crowley of the long-negotiated project.

FLAG is relocating its headquarters and manufacturing facilities from Norwich, Conn., to Mathiston, where it is leasing the former Red Kap building from new owners Larry and Melissa Knotts of Amory.

Winogradow told supervisors he expected new equipment to start arriving this week and Plant Manager Jerry Riggan said he expected the plant to finish its first gloves in February. They said 817 people applied for 75 full-time positions, which the company has committed to create.

Front Line expects to receive another military contract within two-three months, according to Winogradow, with hopes of also being able to use 200 sewing machines already in the plant.

"We have lots of opportunities to expand," he said.

Planner George Crawford of the Golden Triangle Planning and Development District, which the county contracted with for related administrative services, and Mathiston Mayor Jimmy Carden were also present for the closing.

The county is making the loan to FLAG from a Community Development Block Grant from the Mississippi Development Authority. The principal amount is $237,500, which the board had voted on Dec. 4 to transfer to FLAG upon closing and to sign a cash request to MDA. The loan is at 3 percent annual interest, with the first payment due June 1.

Of the loan proceeds, FLAG will use $150,000 as working capital and $87,500 to purchase additional equipment. The county will repay to MDA all loan payments it receives from the company.

Board attorney Buchanan Meek Jr., hired to close the loan on behalf of the county, reviewed provisions of the loan agreement with Levine and Winogradow on Friday.

On Dec. 4 and 18, the Board of Supervisors adopted various resolutions concerning the CDBG loan and spread them upon the minutes. The county, as the leinholder, agreed to pursue all legal remedies should Front Line default upon the loan or materially enter a period of nonperformance.