Texarkana backing potential Cooper Tire project

TEXARKANA, Ark.—The city of Texarkana authorized the issuance of industrial development bonds valued at up to $250 million to be used to support investment by Cooper Tire & Rubber Co. in its car and light truck tire plant in the Arkansas city.

The bonds—"City of Texarkana, Arkansas, Taxable Industrial Development Revenue Bonds (Cooper Tire & Rubber Company Project), Series 2017"—will bear interest at 5 percent annually and will mature in 2047, according to the city's ordinance authorizing the bond issuance.

Cooper declined to comment on passage of the bond issue or on any plans it has to invest in the 53-year-old Texarkana plant, citing "competitive reasons."

The bond declaration, passed by the Texarkana board of directors at its Aug. 7 meeting, notes that "the company proposes to acquire, construct and equip certain additional facilities at the (Texarkana) plant…."

Texarkana is one of three tire plants Cooper operates in the U.S. It is rated at 31,000 tires a day with more than 1,700 hourly employees represented by United Steelworkers Local 752L.

The ordinance also calls for the city of Texarkana to own any "land, buildings, structures and other improvements related thereto and those items of machinery, equipment and other tangible personal property financed, in whole or in part, with the proceeds of the bonds" and lease such assets to Cooper for the duration of the bond period.

In addition, Cooper intends to enter into an agreement for payments in lieu of taxes with the city under terms outlined in documents presented at the board meeting.

The city is working with U.S. Bank National Association, a banking association "organized under and existing by virtue of the laws" of the U.S., with a corporate trust office in St. Paul, Minn.