The Tupelo City Council on Tuesday voted to accept an agreement to borrow $1.5 million in a capital improvements loan from the Mississippi Development Authority, the state’s economic development agency, to purchase the former Mitchell Distributing warehouse on Commerce Street.
The city has formed a lease agreement with Hyperion and will allow the company to rent the building over several years. Hyperion will now pay the city around $12,000 per month over the course of 180 months, according to the lease agreement adopted by the city and the company.
The move is part of an expansion for the company, where the technology group is expected to hire at least 20 new employees initially and possibly hire 20 more new employees once the company gets settled in its new location.
“We’re in a very rapid growth mode right now,” Carter said. “We desperately need the space to keep growing.”
Hyperion is an engineering and technology company, and the majority of the work it does is for the U.S. Department of Defense and the military, although his work isn’t exclusive to the military. Carter said the company decided to stay in Tupelo because the city is “business friendly” and has a strong industrial base.
Carter said the company executives briefly thought about moving the company to Huntsville, Alabama, but dismissed the idea because most of their business relationships were in Mississippi.
A CAP loan is a low-interest loan that will not be a part of the city’s capital plan, which can help the city control its cash flow easier. Tupelo Mayor Jason Shelton said the deal was a “win-win for the city and for Hyperion” and is a great example of what public-private partnerships can do for economic expansion.
“We’re taking an unoccupied space in the city and turning it into a thriving business that will have new, high-paying jobs,” Shelton said.
Shelton said public-private partnerships is something he initially campaigned on and he is excited to see the partnerships lead to economic expansion.
“What you need is government to not be an impediment to job creation,” he said.
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