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About The Baker County press. (Baker City, Ore.) 2014-current | View Entire Issue (April 22, 2016)
THE BAKER COUNTY PRESS — 3 FRIDAY, APRIL 22, 2016 Business & Ag Tasty Bake’s problems CONTINUED FROM PAGE 1 Peter Johnson, former President and co-owner from 2001-2014 of Tasty Bake, with his wife, Brenda Johnson, filed a lawsuit on March 14, 2016, also in Baker County Circuit Court, seeking over $750,000, from Tasty Bake, and Cereal Hold- ing Company, of Wis- consin claiming among other items, economic losses, fraud, and breach of the sales contract. The Johnsons are represented by Yturri Rose LLP, of Ontario. According to the lawsuit the Johnsons had filed, they sold Tasty Bake to Cereal Holding Company, in September 2014, for $500,000, which required Cereal Holding Company to pay $275,000 in cash, and to execute a secured promissory note for the re- maining $225,000. Cereal Holding Company gave the Johnsons the mort- gage deed for the Tasty Bake property, at 1945 8th Street, in order to secure the payment of the note. In addition, the Johnsons were also to be paid up to $535,000 in the form of earn-out, at the rate of 50% of the actual EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), during the four years following the closing of the sale. To assist with the owner- ship transition, Peter was hired by Cereal Holding Company in October 2014, to serve as Vice President of Tasty Bake, for up to one year after the sale, and he would be reimbursed for regular expenses, such as for travel, and meals, in connection with the business. The Johnsons claim that Cereal Hold- ing Company breached this employment contract, and had not paid Peter for expenses incurred since May 2015, estimated at $1,960.93. According to the John- sons, Cereal Holding Company was required to pay the first installment, of $50,609.24, on April 1, 2015, under the terms of the note and mortgage. Cereal Holding Company paid $29,625 on April 1, 2015, resulting in a short- age of $20,984.24, causing the Johnsons to claim a default on the note and mortgage, and to seek fore- closure, with the principal amount owed stated as $203,250, plus interest. The Johnsons claim that Cereal Holding Company fraudulently misrepre- sented that it would make a significant capital invest- ment in Tasty Bake; that it would hire a qualified sales team, to expand the business; and that it would make every effort to grow, and expand Tasty Bake. They claim that, after the sales contract was executed, Cereal Holding Company “...made little or (no) effort to grow Tasty Bake or (to) even maintain Tasty Bake’s current busi- ness.” This resulted in the Johnsons’ estimated claim of damages, in the amount of $535,000. As part of the claim for relief, the Johnsons are seeking to order the sale of the Tasty Bake prop- erty by the Baker County Sheriff. According to Baker County records, the property was appraised at $319,470 in 2014. According to Lesaffre Yeast Corporation’s claim, the company provided baking materials, including SAF Instant Red Mix Dry Yeast, Red Star Double- Acting Baking Powder, and Red Star Active Dry Yeast, to Tasty Bake on the following dates, which in- cluded invoices, for a total of $21,082.75: April 20, 2015; June 1, 2015; June 25, 2015; July 16, 2015; and September 11, 2015. Lesaffre Yeast Corpora- tion claims that requests and demands for payment had been made for the balance, the last one on December 3, 2015, from Accounts Receivable Supervisor Jamie Olender, including the notice to Tasty Bake that the ac- count would be turned over to a collection agency, and/ or legal counsel; however, the company had not yet paid the balance due. As stated in the Friday, April 8, 2016 issue of The Baker County Press, nei- ther Tasty Bake President Yasar Samarah (who is also Cereal Holding Com- pany Vice President), nor Tasty Bake Chief Financial Officer Amit Shukla had returned phone calls to comment on the halt in op- eration, or the future plans for Tasty Bake; however, Samarah recently stated via email that he could not provide any comments at this time, citing corporate policy. According to Illinois State records, Samarah is also listed, among other positions currently or previously held, as the president of Merchants Capital Corporation; the president of Samarah And Company; the president of Samarah And Company Of Chicago; the president of Samarah Enterprises Of Chicago, Inc.; and the president of Samarah Holding Company. According to Oregon State records, Shukla is also listed, among other positions currently or previously held, as the registered agent, president, and secretary, of Mayur Technosoft, Inc.; the regis- tered agent, and president, of Tech Atop, Inc.; and a member of Wings Travel, LLC. As of this writing, there is no indication that a re- sponse to either lawsuit has been filed in Baker County Circuit Court, by either Cereal Holding Company, or Tasty Bake, Inc. BY TODD ARRIOLA Todd@TheBakerCountyPress.com A BCVibe (Baker County Vibrancy) meeting was held on Thursday, April 14, 2016, 10:30 a.m., in the Commission Chambers of the Baker County Court- house, in order to discuss the rough draft of the scope of work for the Commu- nity Program Development Contract Facilitator posi- tion, and to further discuss ways of marketing Baker City, and Baker County. Attendance included Baker County Commission Chair Bill Harvey, Baker City Manager Mike Kee, Baker County Economic Development Director Greg Smith, Smith’s assis- tant Julee Smith, Historic Baker City (HBC) Presi- dent Larry Abell, Baker City Council member Rosemary Abell, Bake Heritage Museum Director Lea Gettle, Crossroads Art Center Executive Direc- tor Ginger Savage, Blue Mountain Community College Small Business Development Center (BMCC SBDC) Advisor Jeff Nelson, and Baker County Tourism Marketing Director Tim Bishop. Kee called the meeting to order, and he asked Savage to begin the discussion, regarding the Facilitator position description, in the rough draft stage. Sav- SEE BCVIBE PAGE 5 Friday, April 15, 2016 — Eastern Oregon Prices trended generally steady compared to week-ago prices in a very limited test. Many producers have decided to hold on to their hay for now, in hopes for higher prices or to feed to their own animals. Many hay producers are sold out for the year. Tons Price Range Wtd Avg No new sales recently. Two week ago results were: Alfalfa —Large Square Good 400 150.00-150.00 150.00 Alfalfa / Orchard Mix —Small Square Premium 10 195.00-195.00 195.00 USDA Market News Service—AMS.USDA.gov — Cattle Market Report — Wednesday, April 13, 2016 Vale, Oregon Cattle sold through the auction: 1239 Steer Calves 300-400# Bulk 189.00 - 204.00 Top 205.00 400-500# Bulk 177.00 - 211.00 Top 212.50 500-600# Bulk 167.00 - 192.00 Top 196.00 Heifer Calves 300-400# Bulk 167.00 - 185.00 Top 188.00 400-500# Bulk 166.00 - 180.00 Top 181.00 500-600# Bulk 151.00 - 161.00 Top 163.50 Yearling Steers 600-700# Bulk 156.00 - 177.00 Top 178.50 700-800# Bulk 139.00 - 153.00 Top 157.75 800-900# Bulk 135.00 - 141.00 Top 143.00 900-1,000# Bulk N/A Top N/A Yearling Heifers 600-700# Bulk 133.00 - 148.00 Top 151.50 700-800# Bulk 126.00 - 133.00 Top 135.00 800-900# Bulk N/A Top N/A 900-1,000# Bulk N/A Top N/A Thin Shelly Cows 53.00 - 67.00 Butcher Cows 69.00 - 81.00 Butcher Bulls 64.00 - 84.00 Stock Cows Yng. N/A Pairs. 800.00 - 1350.00 Stock Cows Older. - 900.00 - 1375.00 BCVibe meeting focuses on grants age said that grant writer Kat Davis had been given a copy, and that BCVibe would need to match the grant funding, on a one-to- one ratio. Though BCVibe felt $5,000 total would be enough to fund the position (making BCVibe’s con- tribution $2,500), Savage said that Davis recom- mended more. Kee said he didn’t real- ize it would be a matching fund grant, at a one-to- one ratio, as he had heard $5,000 would be provided, but he said BCVIBE could provide $3,000 without an issue, bringing the total funds to $8,000, if needed. Harvey also said he thought it would be a matching, one-to-one ratio grant, as did Gettle, who said she understood it to be for a total of $6,000, with $3,000 from BCVibe. Rosemary said that, typically, The Ford Family Foundation grants are on a matching, one-to-one ratio basis, and she cited those dispersed to Historic Baker City, as an example. Savage asked Kee about the funds, and he said, it will work, whatever the actual total will need to be, and that the matching funds will come from a combination of sources, from the City. — Weekly Hay Report — ProducersLivestock.com 541-473-3136 — Log Price Report — Price per 1,000 board feet: Northeast Oregon Todd Arriola / The Baker County Press The second regular BCVibe meeting this year was held at the Courthouse last week back to back with the Economic Development Council meeting. Currently the local log market is flooded with fire salvage logs. The log buyer for Malheur Lumber Co. stated they have all the logs they need under contract and are not accepting any new purchases. BCC/LLC of La Grande has receive so many burned fire salvage logs they are no longer accepting logs at the La Grande log yard. Any additional pine logs have to be delivered to the Elgin Log yard cut in plywood lengths and to a 8 inch top. For these pine logs cut in plywood lengths, BCC is offering $280.00/mbf. They are also paying $410.00/ mbf for Doug Fir & Western Larch. For White Fir they are offing $310.00/mbf. At the Pilot Rock Saw Mill BCC is offing $360.00/mbf for a 12 to 15 inch top, for 16 to 19 inch top $400.00/ mbf & offing $425.00/mbf for 20 inch plus top Courtesy of Arvid Andersen, Andersen Forestry Consulting — Precious Metals Report — Price per ounce, USD Gold: $1,255.60 Silver: $16.98 Platinum: $1014.66 Palladium: $583.52 Bloomberg.com — Ag Commodities — Corn: $357.00/bu/USD Wheat: $472.50/bu/USD Soybeans: $904.25/bu/USD Oats: $185.00 bu/USD Rough Rice: $9.79/cwt/USD Canola: $480.20 CAD/mwt Live Cattle: $120.75/lb./USD Feeder Cattle: $150.20/lb./USD Lean Hogs: $79.00/lb./USD Bloomberg.com
