Print
E-mail
EDC and Hornady Manufacturing seeking funds
By Tracy Overstreet
tracy.overstreet@theindependent.com
The Grand Island Area Economic Development Corp. has secured a nearly $1 million grant to improve the Platte Valley Industrial Park, but it requires nearly $1 million in matching funds.
On Tuesday morning, Economic Development Corp. President Marlan Ferguson will ask that $575,000 of the match come from Grand Island's LB840 funds.
Hornady Manufacturing will also request LB840 funds totalling $200,000 to accommodate a $2.5 million building expansion and 50 new jobs for the ammunition and reloading equipment manufacturer.
Both requests will be made to the Citizens Review Committee during a 7:30 a.m. Tuesday meeting at Grand Island City Hall.
The Citizens Review Committee oversees and makes recommendations to the Grand Island City Council on how the LB840 funds are spent.
LB840 is the legislative bill number that created the Local Option Municipal Economic Development Program that authorized cities to levy or collect tax dollars for the purpose of offering business incentives.
Grand Island puts $750,000 of sales and property taxes into the fund each year. There is currently $775,000 in the fund, so authorizing both requests Tuesday will deplete the fund through the Sept. 30 end of this fiscal year.
Ferguson said he's asking for the LB840 funds to support a $2.2 million project that is being supported with a state grant.
"We're in line for a $975,000 Community Development Block Grant for the development of the Platte Valley Industrial Park infrastructure," Ferguson said. "The state has indicated we're one of the mega-sites in the state that they want to see finished."
A mega-site is an acreage totalling less than 800 acres that is geared toward industrial development, Ferguson said previously.
Platte Valley Industrial Park East, which the Economic Development Corp. owns, is 280 acres bounded on the north and south by Schimmer and Wildwood drives respectively and on the east by Blaine Street. It's western border is the original Platte Valley Industrial Park site, which is almost completely developed.
Ferguson said prospective businesses are enticed by the site's access to Highway 281, Interstate 80, and an on-site rail spur.
Although the acreage has city electrical service, it lacks city sewer and water, upgraded storm drainage and new paving leading to the site.
"? the entire development cost is too much to bear at once and the highest priority must be given to providing city water and sanitary sewer," Ferguson wrote in his LB840 application.
He's already worked with the Grand Island Utilities Department and the Grand Island Public Works Department to contribute $700,000 toward the water and sewer line extensions. Those contributions come through the value of easements as well as ratepayer fees in a capital improvement fund that are used to extend those systems to potential new customers.
As the new customers hook into the infrastructure, the capital improvement costs are repaid.
The total project cost is $2.2 million, Ferguson said. The breakdown of the funding is $975,000 of a state grant, $700,000 split between the Grand Island water and sewer utilities and $575,000 from LB840 funds.
Although the project is a costly one -- at the same time the city coffers are struggling financially, Ferguson said it's the right time to invest.
"You don't necessarily withdraw when you're trying to develop and times are tough," Ferguson said. "The intent of this park is to get new business and industry and new tax base -- more people, more employers and the state is offering $1 million."
Ferguson is also recommending the city contribute $200,000 to Hornady Manufacturing for the company's second expansion in three years.
Hornady Vice President Jason Hornady is seeking a $125,000 forgivable loan to add 50 new jobs by July 1, 2011. The average wage of the new workers would be $14 an hour, his application stated.
Currently there are 325 workers with an average wage of $22 an hour, he said.
The remaining $75,000 that Hornady has applied for, would be a grant to aid in completion of a $2.5 million addition to the bullet manufacturing plant at 3625 Old Potash Highway.
It's the second such LB840 grant the company has sought.
In 2007, Hornady Manufacturing requested and received a $154,000 forgivable loan to add 77 workers in a newly created second shift and retained 182 workers. The company is in good standing on that loan, Ferguson said.
"A company like that is a little different than other metal manufacturing companies," Ferguson said of Hornady. "It's a different type of work and it's a company that could be anywhere -- they sell worldwide.
"We're glad they're sticking with Grand Island," he said.
If you go
What: Citizens Review Committee meeting.
When: 7:30 a.m. Tuesday.
Where: Grand Island City Hall, 100 E. First St.
Topics: $575,000 grant to aid in sewer and water line extensions to the Platte Valley Industrial Park; $75,000 building grant and a $125,000 forgivable loan to Hornady Manufacturing to add 50 jobs and a $2.5 million addition to its ammunition plant.
Tweet
On Tuesday morning, Economic Development Corp. President Marlan Ferguson will ask that $575,000 of the match come from Grand Island's LB840 funds.
Hornady Manufacturing will also request LB840 funds totalling $200,000 to accommodate a $2.5 million building expansion and 50 new jobs for the ammunition and reloading equipment manufacturer.
The Citizens Review Committee oversees and makes recommendations to the Grand Island City Council on how the LB840 funds are spent.
LB840 is the legislative bill number that created the Local Option Municipal Economic Development Program that authorized cities to levy or collect tax dollars for the purpose of offering business incentives.
Grand Island puts $750,000 of sales and property taxes into the fund each year. There is currently $775,000 in the fund, so authorizing both requests Tuesday will deplete the fund through the Sept. 30 end of this fiscal year.
Ferguson said he's asking for the LB840 funds to support a $2.2 million project that is being supported with a state grant.
"We're in line for a $975,000 Community Development Block Grant for the development of the Platte Valley Industrial Park infrastructure," Ferguson said. "The state has indicated we're one of the mega-sites in the state that they want to see finished."
A mega-site is an acreage totalling less than 800 acres that is geared toward industrial development, Ferguson said previously.
Platte Valley Industrial Park East, which the Economic Development Corp. owns, is 280 acres bounded on the north and south by Schimmer and Wildwood drives respectively and on the east by Blaine Street. It's western border is the original Platte Valley Industrial Park site, which is almost completely developed.
Ferguson said prospective businesses are enticed by the site's access to Highway 281, Interstate 80, and an on-site rail spur.
Although the acreage has city electrical service, it lacks city sewer and water, upgraded storm drainage and new paving leading to the site.
"? the entire development cost is too much to bear at once and the highest priority must be given to providing city water and sanitary sewer," Ferguson wrote in his LB840 application.
He's already worked with the Grand Island Utilities Department and the Grand Island Public Works Department to contribute $700,000 toward the water and sewer line extensions. Those contributions come through the value of easements as well as ratepayer fees in a capital improvement fund that are used to extend those systems to potential new customers.
As the new customers hook into the infrastructure, the capital improvement costs are repaid.
The total project cost is $2.2 million, Ferguson said. The breakdown of the funding is $975,000 of a state grant, $700,000 split between the Grand Island water and sewer utilities and $575,000 from LB840 funds.
Although the project is a costly one -- at the same time the city coffers are struggling financially, Ferguson said it's the right time to invest.
"You don't necessarily withdraw when you're trying to develop and times are tough," Ferguson said. "The intent of this park is to get new business and industry and new tax base -- more people, more employers and the state is offering $1 million."
Ferguson is also recommending the city contribute $200,000 to Hornady Manufacturing for the company's second expansion in three years.
Hornady Vice President Jason Hornady is seeking a $125,000 forgivable loan to add 50 new jobs by July 1, 2011. The average wage of the new workers would be $14 an hour, his application stated.
Currently there are 325 workers with an average wage of $22 an hour, he said.
The remaining $75,000 that Hornady has applied for, would be a grant to aid in completion of a $2.5 million addition to the bullet manufacturing plant at 3625 Old Potash Highway.
It's the second such LB840 grant the company has sought.
In 2007, Hornady Manufacturing requested and received a $154,000 forgivable loan to add 77 workers in a newly created second shift and retained 182 workers. The company is in good standing on that loan, Ferguson said.
"A company like that is a little different than other metal manufacturing companies," Ferguson said of Hornady. "It's a different type of work and it's a company that could be anywhere -- they sell worldwide.
"We're glad they're sticking with Grand Island," he said.
If you go
What: Citizens Review Committee meeting.
When: 7:30 a.m. Tuesday.
Where: Grand Island City Hall, 100 E. First St.
Topics: $575,000 grant to aid in sewer and water line extensions to the Platte Valley Industrial Park; $75,000 building grant and a $125,000 forgivable loan to Hornady Manufacturing to add 50 jobs and a $2.5 million addition to its ammunition plant.
Tweet
 |
 |
|
| Pedal pull draws county fair crowd, thousands expected at State Fair | Simultaneous accidents |
