Warsaw City Council Monday approved two resolutions for Winona PVD Coating that will allow the business to expand its facility.
The first resolution approved was the issuance of certain redevelopment commission tax increment special taxing district bonds.
The resolution states the bonds are not to exceed $865,000, the interest rate for the bond is not to exceed 6.5 percent and not mature before Feb. 1, 2030.
The second resolution is an agreement between Winona PVD, the city and commission that if the TIF revenues are insufficient to pay the principal, Winona PVD is required to pay the remaining amount.
The company operates a wheel coating facility at 1180 Polk Drive in the city consisting of a 60,000 square foot building.
The company previously undertook an expansion to include construction of a 101,000 square-foot building which enabled it to increase its manufacturing capacity by an estimated additional 720,000 wheels per year by introducing a second coating line.
The redevelopment commission previously issued $2.9 million of its tax increment special taxing district bonds in order to facilitate the original project by financing a portion of the acquisition costs of certain equipment.
Since that time the company has determined that is necessary to construct an approximately 80,000 square foot expansion to the new building for the purpose of accommodating new manufacturing equipment the company needs to satisfy demand.
The company has requested that the Redevelopment Commission undertake financing to assist with the acquisition of the equipment necessary to accommodate the company’s expansion of the site.
The commission will issue bonds not to exceed $865,000 to pay for the cost of redevelopment and economic development and financing a portion of the costs of acquiring equipment.
Jamie Visker, Winona PVD founder and board member, thanked the city council and redevelopment commission for their support from the time it built the original plant in 2007 and went into production in 2008.
Scott Dahl, Winona PVD CEO, said Winona PVD has world-class products and workforce.
“We are working six days a week, three shifts a day and sometimes Sundays to support the demand of 100,000 wheels a month,” Dahl said. “The need to expand is urgent for us.”
Dahl said there will be $9 million invested in equipment and 35 to 40 new employees hired.
(Story By The Times Union)
