Supervisors pass incentive plan for CL industry
Wednesday, 26 February 2014 14:42
The Cerro Gordo County Board of Supervisors Tuesday have joined Clear Lake leaders in approving measures which could potentially bring a regional warehouse and distribution center here.
The Supervisors approved a 10-year, $656,000 forgivable loan to an unnamed company which says it will employ 160 persons, paying an average salary of $39,000. The proposed 340,000 square foot warehouse, with the capability of being expanded to 440,000 square feet, would be located in the city’s Larry Luker Industrial Park on 39 acres of undeveloped space west of Titan Pro SCI.
According to County Administrative Officer Tom Drzycimski, the county funds will not come from property tax revenue. Instead, $250,000 will come from local option sales tax revenue earmarked for economic development. The remaining $400,000 will come from the county’s “capital improvements fund.” That fund is comprised of money received from the sale of county land and other resources that have been set aside. Drzycimski emphasized no property tax dollars will be used.
Last week the Clear Lake City Council approved a development agreement with Windmill Realty, LLC which includes an “annual appropriation” property tax rebate payments not to exceed $7.3 million over a 15-year period. The Development Agreement also provides for a 10 year Forgivable Loan in the amount of $1,675,000.
The Council set March 3 as the date for a public hearing on a proposal to enter into a $1.62 million general obligation economic development 10-year forgivable loan agreement with the company for site acquisition and development in the Clear Lake Consolidated Urban Renewal Area.
A firm decision from the company about its intention to locate in Clear Lake is expected by the end of March.
If Clear Lake is selected for the project, site construction would start in the spring and last about 18 months.