Newspaper Article
MARBLE FALLS — Ron Motor Co. has announced it is leaving Marble Falls in 30-60 days for Houston, signaling the end of a stop-and-go relationship between the would-be eco-friendly car manufacturer and the city.
--------------------------------------------------------------------------------
PHOTO 1: Ronn Motor Co. plans to leave the Colt Circle building in Marble Falls owned by the Economic Development Corp. in 30-60 days. Staff photo by Raymond V. Whelan
--------------------------------------------------------------------------------
During the last four years or so, in which the company first located in Cottonwood Shores, left for Austin, reappeared in the Highland Lakes and then moved to Marble Falls to lease a publicly financed building, dealings between City Hall and Ronn Motor Co. were fraught with questions, contracts and controversy.
But any bad blood is now a thing of the past, officials said Dec. 22 after the online business news service MarketWatch.com released a report about the motor company's move in 30-60 days to Houston, the fourth largest U.S. city.
"They are leaving Marble Falls on good terms," said Christian Fletcher, executive director of the Economic Development Corp. "It makes sense for them to move to Houston, where they will be close to international ship channels and airports."
Earlier this year, the company signed a three-year lease with EDC for 66,000 square feet in a former candle factory at 1707 Colt Circle. The company moved from Cottonwood Shores into the building in March.
There is no violation of the lease, Fletcher said.
The EDC board and the company recently attempted to hammer out a new performance agreement — a basic outline of goals and objectives for job growth.
Originally, Ronn Motors estimated it could hire 100 workers at the Colt Circle building. However, their estimate has since dwindled to 16.
As negotiations continued earlier this month, Ronn Motors hired the Houston-based firm ThinOps Capital LLC as its business adviser.
"We believe the move to the Houston area best enables us to capitalize on the opportunity to produce a superior quality product for delivery to a national, and eventually, an international client base," Ronn CEO David McGee told MarketWatch.
The company plans to produce and market hydrogen fuel cells to power cars.
With an eye toward boosting local vocational training, EDC officials bought and rehabilitated the Colt Circle building about two years ago, the same time Ronn Motors eyeballed it for expansion, Fletcher recalled.
The cost to EDC to purchase and fix up the building is about $3 million, he added.
Before Ronn Motors moved into the building last spring — after weeks of delay caused by tax problems and other financial difficulties — the company contributed $250,000 to help pay for new construction.
The firm still owes a balance of $70,000 on their lease with EDC, Fletcher said.
"They will pay it," he added.
The building will continue to be "an incubator" for business and jobs, officials said.
