Warsaw Council Revisits Nextremity MOU Discussion
June 2, 2020 at 2:04 a.m.
Warsaw Council Revisits Nextremity MOU Discussion
By David [email protected]
To correct that, the council and Nextremity representatives revisited that discussion on the council’s meeting Monday night.
After explaining what happened at the May 18 meeting, Warsaw Mayor Joe Thallemer Monday night read the minutes from that meeting. They said the resolution was presented for approval, and that the resolution “approves an Economic Development memorandum of understanding with Nextremity Solutions Inc., who will be expanding their current manufacturing and packaging in-house. The city will provide an economic development loan of $250,000 for their new facility they will be leasing at 1195 Polk Drive. The dispersement of the funds, as listed in the MOU, and the loan may be forgiven if certain evidence is provided per the MOU as well.” The minutes state the resolution for the MOU was approved unanimously.
Thallemer said the $250,000 is funding the city will use to purchase equipment and dispose it back to Nextremity as an incentive. “This helps with the covering of the costs that the city had agreed to with West Hill Development,” he said. “And then there will be a $250,000 loan that will be doled out – $50,000 a year – if certain incentives are met. There’s clawback provisions in the equipment disposition. The loan will only be distributed if those certain numbers are met that have been agreed upon.”
Councilman Mike Klondaris said he and Councilman Jeff Grose both sit on the Redevelopment Commission, which thoroughly reviewed the MOU and approved it at its May 18 meeting unanimously.
“The other thing that I think is important for the public to know is that these are not tax dollars that are being spent. This money is being generated by the Tech Park TIF fund and it’s being plowed back in. Think of it as an investment in the city’s future,” Klondaris said.
Kosciusko Economic Development Corp. CEO Alan Tio, who coordinated the incentives by the state and locally for Nextremity, applauded the city for its decade-long partnership with the certified Tech Park, one of two dozen in the state.
“It’s a great collaboration with West Hill Development, and, of course, that third spec building that you put up now creates the opportunity for Nextremity to grow in the community,” Tio said.
He then applauded Nextremity for being a locally-owned, locally-grown company that put down roots in Warsaw about a decade ago and “for their willingness to consider future expansion here.”
Tio said he worked with the state of Indiana on this project. According to a previously published news release, the Indiana Economic Development Corp. offered Nextremity up to $1.6 million in conditional tax credits and up to $100,000 in training grants based on the company’s job creation plans. The incentives are performance-based, meaning the company is eligible to claim incentives once Hoosiers are hired.
Nextremity CEO and President Rob Mayer began his comments with gratitude.
“We’ve accomplished a lot in a very short period of time. Mayor, you came to me some time ago, expressing your enthusiasm about the Tech Park. You asked me about any interest that we might have,” Mayer said. “Over the course of the last 60 days, the efforts of Mayor Thallemer, the efforts of West Hill properties, working together with (Nextremity Chief Financial Officer) Dan (Stichter), myself, with Alan, we’ve accomplished a lot. So I want to express my gratitude again to the members of the” Redevelopment Commission, city council and the mayor.
He said he was “incredibly” humbled and started at DePuy right out of high school in 1977.
“Little would I know today as a 61-year-old man that I’d have the privilege to lead an organization to accomplish what we believe is going to be great things over the course of – not just three, five, seven years – we’ve garnered the support of our board of directors to build a legacy company in the Orthopaedic Capital of the World,” Mayer said.
What does that mean? he asked.
“For us that means that one day there will be another generation, two generations, Lord-willing, three generations that have been impacted by our decision to bring this company to the Orthopaedic Capital of the World,” Mayer said.
He said Nextremity is “incredibly” proud of its engineering team, the surgeon teams it’s developed relationships with across the United States and “the recent acquisition of Lakeland Technology allows us to vertically integrate the last two things we needed to complete our overall global business strategy.”
Mayer said Nextremity could not be more excited to do all this “in its own home.”
He concluded by stating that while Nextremity has 50 employees with Lakeland Technology, “I believe there will be a day where we are going to have 300 people employed by this company, if not greater. And we’ll look back and remember we created this together.”
Thallemer reminded the council that the MOU is the “direction we’re heading, we’ve all agreed to,” and the final agreements will be “buttoned down” to forms that will be brought before the council closer to the times they need to be executed.
Stichter said incentives put into place were the “tipping points” that allowed Nextremity to move forward “with confidence” to occupy the shell building at the Tech Park. He said Nextremity hopes that in the next five years to potentially double in size and sales and head count and create jobs in the manufacturing area, as well as product development.
He said he’s seen drawings and floor plans “that are in the works, being discussed as we speak, using local firm Robinson Construction as part of the West Hill Development Group” and he’s very excited about it.
Thallemer said when the Tech Park was developed in 2013, “This was the type of business that we had in mind. ... This was exactly the type of company we were looking for. We feel blessed as a community that Nextremity has chosen to stay in our community and utilize the workforce and resources of the Orthopaedic Capital of the World. I couldn’t be happier and prouder.”
He said the Tech Park has to be and will be recertified this summer. That certification will provide funding from state income tax and sales tax generated from within the Tech Park in form of increment that the city can use to improve the Tech Park infrastructure or develop an accelerator.
“That’s exactly what is next step for all of us, what we’re working toward: the development of an accelerator,” Thallemer said. “And by creating this type of industry, this type of opportunity in the Tech Park, Nextremity has just added a big boost for us to get that done.”
Councilman Jerry Frush said it will be a great opportunity for a lot of people in town and looked forward to it. Councilwoman Cindy Dobbins added, “We’re really glad to have them in our community,” while Klondaris told them, “We’re really glad you wanted to be here.”
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To correct that, the council and Nextremity representatives revisited that discussion on the council’s meeting Monday night.
After explaining what happened at the May 18 meeting, Warsaw Mayor Joe Thallemer Monday night read the minutes from that meeting. They said the resolution was presented for approval, and that the resolution “approves an Economic Development memorandum of understanding with Nextremity Solutions Inc., who will be expanding their current manufacturing and packaging in-house. The city will provide an economic development loan of $250,000 for their new facility they will be leasing at 1195 Polk Drive. The dispersement of the funds, as listed in the MOU, and the loan may be forgiven if certain evidence is provided per the MOU as well.” The minutes state the resolution for the MOU was approved unanimously.
Thallemer said the $250,000 is funding the city will use to purchase equipment and dispose it back to Nextremity as an incentive. “This helps with the covering of the costs that the city had agreed to with West Hill Development,” he said. “And then there will be a $250,000 loan that will be doled out – $50,000 a year – if certain incentives are met. There’s clawback provisions in the equipment disposition. The loan will only be distributed if those certain numbers are met that have been agreed upon.”
Councilman Mike Klondaris said he and Councilman Jeff Grose both sit on the Redevelopment Commission, which thoroughly reviewed the MOU and approved it at its May 18 meeting unanimously.
“The other thing that I think is important for the public to know is that these are not tax dollars that are being spent. This money is being generated by the Tech Park TIF fund and it’s being plowed back in. Think of it as an investment in the city’s future,” Klondaris said.
Kosciusko Economic Development Corp. CEO Alan Tio, who coordinated the incentives by the state and locally for Nextremity, applauded the city for its decade-long partnership with the certified Tech Park, one of two dozen in the state.
“It’s a great collaboration with West Hill Development, and, of course, that third spec building that you put up now creates the opportunity for Nextremity to grow in the community,” Tio said.
He then applauded Nextremity for being a locally-owned, locally-grown company that put down roots in Warsaw about a decade ago and “for their willingness to consider future expansion here.”
Tio said he worked with the state of Indiana on this project. According to a previously published news release, the Indiana Economic Development Corp. offered Nextremity up to $1.6 million in conditional tax credits and up to $100,000 in training grants based on the company’s job creation plans. The incentives are performance-based, meaning the company is eligible to claim incentives once Hoosiers are hired.
Nextremity CEO and President Rob Mayer began his comments with gratitude.
“We’ve accomplished a lot in a very short period of time. Mayor, you came to me some time ago, expressing your enthusiasm about the Tech Park. You asked me about any interest that we might have,” Mayer said. “Over the course of the last 60 days, the efforts of Mayor Thallemer, the efforts of West Hill properties, working together with (Nextremity Chief Financial Officer) Dan (Stichter), myself, with Alan, we’ve accomplished a lot. So I want to express my gratitude again to the members of the” Redevelopment Commission, city council and the mayor.
He said he was “incredibly” humbled and started at DePuy right out of high school in 1977.
“Little would I know today as a 61-year-old man that I’d have the privilege to lead an organization to accomplish what we believe is going to be great things over the course of – not just three, five, seven years – we’ve garnered the support of our board of directors to build a legacy company in the Orthopaedic Capital of the World,” Mayer said.
What does that mean? he asked.
“For us that means that one day there will be another generation, two generations, Lord-willing, three generations that have been impacted by our decision to bring this company to the Orthopaedic Capital of the World,” Mayer said.
He said Nextremity is “incredibly” proud of its engineering team, the surgeon teams it’s developed relationships with across the United States and “the recent acquisition of Lakeland Technology allows us to vertically integrate the last two things we needed to complete our overall global business strategy.”
Mayer said Nextremity could not be more excited to do all this “in its own home.”
He concluded by stating that while Nextremity has 50 employees with Lakeland Technology, “I believe there will be a day where we are going to have 300 people employed by this company, if not greater. And we’ll look back and remember we created this together.”
Thallemer reminded the council that the MOU is the “direction we’re heading, we’ve all agreed to,” and the final agreements will be “buttoned down” to forms that will be brought before the council closer to the times they need to be executed.
Stichter said incentives put into place were the “tipping points” that allowed Nextremity to move forward “with confidence” to occupy the shell building at the Tech Park. He said Nextremity hopes that in the next five years to potentially double in size and sales and head count and create jobs in the manufacturing area, as well as product development.
He said he’s seen drawings and floor plans “that are in the works, being discussed as we speak, using local firm Robinson Construction as part of the West Hill Development Group” and he’s very excited about it.
Thallemer said when the Tech Park was developed in 2013, “This was the type of business that we had in mind. ... This was exactly the type of company we were looking for. We feel blessed as a community that Nextremity has chosen to stay in our community and utilize the workforce and resources of the Orthopaedic Capital of the World. I couldn’t be happier and prouder.”
He said the Tech Park has to be and will be recertified this summer. That certification will provide funding from state income tax and sales tax generated from within the Tech Park in form of increment that the city can use to improve the Tech Park infrastructure or develop an accelerator.
“That’s exactly what is next step for all of us, what we’re working toward: the development of an accelerator,” Thallemer said. “And by creating this type of industry, this type of opportunity in the Tech Park, Nextremity has just added a big boost for us to get that done.”
Councilman Jerry Frush said it will be a great opportunity for a lot of people in town and looked forward to it. Councilwoman Cindy Dobbins added, “We’re really glad to have them in our community,” while Klondaris told them, “We’re really glad you wanted to be here.”
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