Business deal to create jobs in limbo

CLOVIS, N.M. (KRQE) - A deal made to bring hundreds of jobs to New Mexico, is still in limbo. Taxpayer money was used, and now the city of Clovis is giving the company that signed the deal a strict deadline to hold up its end of the bargain.

The Clovis factory, once Frozfruit, sits abandoned. The parking lot is empty, even though hundreds of people should be working there at a new cosmetics manufacturing facility.  

"Certainly it's disappointing, we assisted with the anticipation that they would be in operation in Clovis early this year," explained Joe Thomas, Clovis City Manager.

The city of Clovis has given Beauty Health and Science Innovations more than $1.8 million to help pay for the company's move from California.

The cosmetics company agreed late last year to fix up the old factory and move to Clovis by May 1.

"They ran into some unexpected issues with the property they'd acquired, and the refurbishment was going to be more extensive than originally planned," said Thomas.

Now, the Clovis Industrial Development Corp., sent a letter to the company on behalf of the city, giving them until November 28 to uphold the deal.

Thomas said the best outcome would be that the company does what it needs to to get this facility up and running and bring the jobs to Clovis they committed to in the contract.  

The city agreed to give up to $3 million to the company as long as they employed 300 people for at least a year after opening.
 
Right now, city officials say 80 percent of the renovations inside the plant are finished, but the city still hasn't gotten a solid moving date from the company.

"To some degree it's a cash flow issue, they'd lose their potential income if they completely shut down while they relocate, and there are just several issues that have to be worked through," explained Thomas.
     
Wen asked if it's possible BHSI has pulled a fast one on the city, Thomas said there's no indication that's the case. "If in fact has occurred, that would fall into a criminal matter that we really wouldn't discuss at this point."

Ultimately, officials said they need to protect the publics investment, which for now is seeing no return. "It is a concern to us, and we're doing everything that we can to assist and work with them but also make sure that they meet their obligations," said Thomas.

BHSI officials could not be reached for comment. If the company does not move to Clovis, they could try to find another company to take over the current contract.

If the deal falls through, city officials said they could foreclose on the property and do what they can to recover funds.