By Dan Spalding
News Now Warsaw
WARSAW — Warsaw City Council approved plans to temporarily acquire Warsaw Chemical property in a move aimed at establishing an orthopedic innovation center with Grace College.
City Council voted 5-2 with opposition from Cindy Dobbins and Juergen Voss as the city moved forward to acquire the land on Argonne Road for $6.5 million in an effort to bring together an engineering school at Grace College that would be the home to an innovation center intended to support the orthopedic industry.
Jeremy Skinner, director of Community & Economic Development, said the acquisition of the property by the city redevelopment commission would be short-term and that Grace College would eventually operate the property.
Several council members asked if the city’s acquisition would rely on property tax dollars.
Skinner said they plan to use state income tax revenue made available from the state as a result of the city’s tech park.
Council member Diane Quance said she felt better after hearing the response.
Voss said he finds the proposal to be a “great opportunity,” but has heard concerns from some residents.
He said some people have reached out and “Can’t understand why we’re paying four times the appraised value for a building that is contaminated and is probably worth half that much if they were to sell it privately.”
Voss said some wonder why the city is “enabling” a company to move.
Skinner said the company is willing to move to accommodate the city’s redevelopment plans for Argonne Road.
He said some of the acquisition costs include money to help the company move to its future location at the corner of SR 15 and CR 350N.
Skinner added, “I can tell you this, Warsaw Chemical is not selling 140,000 square feet for $2 million. Not going to do it. Why would they?”
The city and Grace College officials have been looking at the site for years, Skinner said.
He said housing an innovation center with an engineering school could create some synergy between the entities.
“You could have a potential start-up company that comes in that needs some engineering work that could utilize Grace College’s engineering students, and at the same time, they’re trying to do a prototype. Maybe they’re using high school students, training them on helping them make a prototype on those machines,” Skinner said.
“That kind of collaboration is what we’re looking for and I think there’s a possibility that we can do that here,” Skinner said.
The ultimate goal is to prepare students who want to work in the orthopedic industry, which would ultimately help companies in the local industry remain in the area.
The proposal to renovate the property could eventually cost around $25 million and is relying heavily on $7 million Grace lined up through a Lilly Endowment grant, a proposed $5 million from OrthoWorx money provided by the General Assembly and another $5 million generated from the city’s tech park.
Skinner said they are seeking more financial support from local entities and through grant money.
Warsaw Chemical does not plan on moving for about 18 months.
Mayor Jeff Grose was enthused about the efforts by Skinner and the opportunities for economic development.
“Blurring the lines, working with other stakeholders — public and private — to get things done. This hits the mark. Just looking at it, right now, in the multi-million of dollars, it’s very exciting,” Grose said.
