Notes

Outline

Deshler Chemical Company Vs The City of Conroyville, Tenn. Presented by: Lisa Dames, Leah Roe, Rachel Bell, Amber McPartlin, and Jennifer Schumaker

The Problem At Hand Polluted Creek Who will fund it? Deshler Conroyville Background Information Generous purchase fees for Deshler at beginning

Critical Issues Deshler paid $18,000 for land Year round employment of at least 50 employees Responsible for 16% of the payroll in Conroyville. Not an all purpose building-specific for Deshler Repay the cost of the building monthly for 12 years w/interest rate of 5.5% City will not collect property taxes for 10 years

Critical Issues Neither side feels that they are not responsible for the clean up Deshler feels that they have done more than the original agreement required If forced to pay, Deshler threatens to relocate The water of Hickory Creek is being polluted and cannot continue With the city expanding, Conroyville wants to build a new park on Hickory Creek

Alternative Solutions Take out a loan Split the Cost Pay initial cost Publicize contamination problem Sell bonds

Alternative Solutions Find a cheaper product Raise money through fundraising Build the park elsewhere Raise taxes Ask for donations

The Solution Combination of alternative solutions Deshler pay annual operating cost Conroyville take out a loan Company pay as much as possible, but still keep 3% profit margin City raise money through benefits Keep both sides stratified

Implementation The Deshler Chemical Company and the city of Conroyville must agree to the solution. Once the solution has been agreed upon, they must meet to write up a new, revised contract.

Three Guideline Questions Where will the park be located? Who will pay for the annual operating cost of waste treatment program? Who will pay for the cost of the waste treatment equipment?

Guideline One The park will be developed on the original site chosen by the city. Although the water is contaminated, it will be properly treated before the opening of the park, and will be safe.

Guideline Two The Deshler Chemical Company will pay the annual cost of $50,000 for the waste treatment program, due to the large amount of pollution in which the company creates.

Guideline Three The Deshler Chemical Company and the city of Conroyville will split the cost of the waste treatment equipment in half, with each paying $375,000

Paying What Is Due Deshler pays with a 10 year, 8% interest bearing loan Annual Payments of $67,500 on the loan $117,500 total annual payments New net profits will be $151,456.17 New profit margin will be 3.9673%

Paying What Is Due City pays with a 10 year, 0% interest bearing loan from the federal government Annual payments of $37,500 paid by: Quarterly events Small fees for recreational activities in park Concessions Private Donations

In Conclusion... We feel that this is the best choice for both the city of Conroyville and the Deshler Chemical Company, and that it will continue to promote good relations between the two.