Home > Uncategorized > Council approves funding for company expansion

Council approves funding for company expansion

By Aaron Blevins ablevins@reporter-times.com
March 6, 2011

MOORESVILLE — The Morgan County Economic Development Corp. announced Tuesday that an un-named Mooresville company is slated to undergo a $4.9 million expansion over the next few years.

The Mooresville Town Council helped spur this development by approving an extension of water and sewer lines for the company. The company would chip in $100,000 toward the more than $350,000 extension.

At Tuesday’s town council meeting, MCEDC executive director Joy Sessing said the company wished to remain confidential until the deal was nearly finalized and that it was asking the town for some financial support.

However, she stressed that the project could be mutually beneficial for both the company and the town.

“It is for the future growth of Mooresville,” she said.

Sessing said the expansion should result in the addition of 60 new employees with an average salary of $45,000 by 2015. She said the company will also retain its 54 current employees.

According to information supplied by the MCEDC, “Project Red Bird” involves an existing company looking to expand onto a noncontiguous site that is more than 110 acres within town limits.

From 2011 to 2014, the company aims to spend approximately $3.5 million on the construction of a training facility and warehouse. It also plans to spend $1.4 million on personal property such as furniture and fixtures, manufacturing equipment, computer hardware and software and telecommunications equipment.

That investment also included approximately $500,000 to $600,000 for the purchase of two overhead cranes and to do outside concrete work at its existing facility.

However, the business is asking for help from Mooresville taxpayers. Sessing said the company needs to have water and sewer lines extended to the future warehouse property. She said this project will also allow for the expansion of other developments in the area.

An estimate by Ross Holloway of Holloway Engineering priced the project at $354,234. Although, it is possible the price could come down. Holloway said project organizers would like to take two soil borings on both sides of Ind. 67 to refine the estimate. The cost is $1,500 per boring.

For the water line extension, the property owner would be chipping in $100,000, Sessing said, and the town has been asked to contribute at least $50,000 for the extension. In addition, the town agreed to pay the full price for the sewer extension, $178,270, she said.

Sessing said the town could pay for its share of the extension through its $1.8 million food and beverage fund, as it allows town officials to use the funding for water and sewer projects.

The Mooresville Redevelopment Commission may support the project with some tax increment financing, and the MCEDC may offer some funding as well, Sessing said.

“So, we’re … all in this together,” she said, adding that the business will likely pursue a tax abatement later.

Estimates suggest that the overall economic impact of “Project Red Bird” will be more than $38 million between 2011 and 2015, Sessing said. And that includes jobs, payroll, output, tax revenues and secondary impacts at other local businesses.

“Does that just get deposited in our account as soon as the project is over?” Council President George Watkins joked. He added that he was a “huge fan” of the project.

Tony Langley, council vice president, also praised the expansion project.

“The price tag, for what we get in return, is well worth the project,” he said.

Langley made the motion to approve the financing for the project subject to the property owner’s $100,000 investment. The board voted unanimously in favor of “Project Red Bird.”

The identity of the company should be released in the next two weeks.

Copyright: Reporter-Times.com/MD-Times.com 2011

Categories: Uncategorized
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