The Plymouth business Winona Building Product Inc. got the ‘green light’ to proceed with bonding for planned expansion after the Plymouth City Council and Economic Development Commission considered and approved documents related to the project.
The Plymouth EDC held a hearing over economic development revenue bonds for the project. Lisa Lee from Ice Miller, the City’s financial advisors provided some background information about the project during the hearing
She noted, “They’re looking at an investment of just over $60 million and they’re looking for an incentive somewhere between $5 and $7. This would be solely based by the project TIF they will generate by this manufacturing facility.”
Miller went on to tell officials how this project will differ from another one that was tackled recently.
She explained, “If the TIF generated by the project is not sufficient to pay the debt service on the bonds, the company has to make up the shortfall so it can not come back on the City at all. That’s a little bit different, if you were around for the Aquatic Center, in which some additional TIF revenues from other City areas were involved in that to help support that because it was more of public project so this is pretty much purely a private project.
Baker Tilly Director Heidi Amspaugh shared some of the financial information associated with this expansion project. She noted that the bond term is 15-years and all the TIF money generated during that time will go to the company to help them pay the debt service. For the 10-years immediately following that, the money raised will go back to the City.
She said that the company is planning four phases for their expansion and it involves real and personal property investments, with the purchase of equipment as well as renovating their current space and building onto their facility.
Amspaugh also noted that company reps say this will help bring in additional jobs, with 40 expected in the first quarter and 150 over the next 4 years. Starting pay is $18 per hour.
The EDC approved the project report and a resolution related to receiving the information. They also provided a favorable recommendation to the City Council to allow Winona building products to proceed with the bonding process.
The same information was re-iterated to the City Council when they met later on in the evening. Unanimous support was provided for an ordinance that authorized the bonds to be issued.
