September 07, 2004--Posted at 10:30 p.m. CDT
JONESBORO --Jonesboro City Council approved an ordinance that will allow Frito-Lay to issue an industrial revenue bond for up to $200,000,000. Frito-Lay's parent company, Pepsi Co., will issue the entire amount of the bond.
Industrial revenue bonds are just one way a company can finance an expansion of this magnitude.
Some folks at the council meeting on Tuesday night were concerned this bond issue may mean a loss of revenue for school districts in our area.
Harold Perrin is a member of the Jonesboro City Council. He says this type of bond was passed by the Arkansas State Legistlature, and city council has no authority over it. Perrin says this expansion could mean more jobs for folks in our area, and more revenue to an economy that continues to grow and prosper.
Richard Wang lives in Jonesboro, and attended the meeting on Tuesday night. "Let the people know what is being contemplated and let us deliberate on the question, and what I really wanted was that,"said Wang.
"Corporations can borrow money in a bond issue. In lieu for that, than they don't have any taxes that would go to public school districts. That is in any bond issue, that's what he's saying,"said Perrin.