Council approves SaeHaeSung changesPublished 12:00am Thursday, July 17, 2014
The Andalusia City Council on Tuesday agreed to changes in SaeHaeSung’s lease agreement as part of a financing project the company is doing.
Mayor Earl Johnson explained that SaeHaeSung, which operates in the city’s industrial park, needs to give assignment of its lease to the New York branch of the Bank of Korea to complete a loan.
“If SaeHaeSung defaulted in payment of the loan, the Bank of Korea could come in, step into the shoes of SaeHaeSUng, occupy the building, and run the business,” Johnson said. “This does not diminish our security, but I think it improves our position somewhat,” Johnson said.
The company has a 20-year lease purchase agreement for its building.
Mayor Pro Tem Terry Powell, who made the motion for the change, pointed out that the city did not borrow any money in this deal.
“The authorization is for SaeHaeSung,” he said.