Warsaw Council Approves Ordinance, Resolution, Agreement For MOU With Nextremity Solutions
July 20, 2021 at 1:49 a.m.
By David [email protected]
Warsaw Mayor Joe Thallemer began the discussion by explaining, “Essentially, this is the establishment and funding of the revolving loan fund that is going to support the incentive that we made (when) you all agreed with the MOU last year to Nextremity. We all know they’re now in the building, but now we’ve got to take care of the details.”
The ordinance was for an additional appropriation to fund the revolving loan fund.
Jeremy Skinner, Warsaw community economic and development director, reminded the Council that the first step was the approval of the MOU in 2020. The MOU was “two different things we were going to do. One was an equipment purchase through the Redevelopment Commission, which was done late fall last year. And the second one was this forgiveable loan agreement through EDIT, which was to be approved when they entered the building. They’ve been doing manufacturing there, but their offices were being finished up and they’ve moved into the building at this point, thus triggering this portion of the MOU.”
He said the revolving loan fund has been created, but doesn’t have any money in it. The additional appropriation puts the $250,000 the Council agreed to in the MOU into the fund. This year, $50,000 will be paid out and next year another $50,000 will be paid out within 30 days of Jan. 1, Skinner said.
“So this first step is just creating that additional appropriation for the $250,000 into the EDIT revolving loan fund, and then we will approve the loan agreement and so forth that will then exercise those funds to be paid out,” he said, noting that a public hearing for the additional appropriation ordinance was part of Monday’s meeting.
Thallemer said the first payment of $50,000 to Nextremity is due so the money for the fund needed to be put in it and appropriated.
“Going forward, that $50,000 will be budgeted in that EDIT revolving loan fund. Every year, you’ll approve that $50,000 for Nextremity for a five-year period,” Skinner said.
When the hearing was opened up to the public, Nextremity Chief Operating Officer Chris Cook gave thanks to the city of Warsaw and Redevelopment Commission “for the opportunity. We have officially entered the building as of the second week of June, and really enjoying the space right now. Everything is finished, I believe, I hope, for our grand opening on Friday. We look forward to filling out the space as we continue to grow. We’ve invested $1 million in capital equipment and over $1 million in outfitting the building. So, looking forward with significant plans for continued growth.”
He said they have 85 employees and are looking forward to continue to add to that.
There was no one else from the public who spoke. The Council approved the ordinance on first and second reading, with Skinner’s recommendation that the Council do so.
The Council next unanimously approved the resolution authorizing the loan from the fund.
Finally, Skinner presented the actual loan agreement, which was approved 6-0. Councilman Josh Finch was absent from Monday’s meeting.
The loan agreement is for $250,000 for five years at $50,000 per year. The money is still be dispersed annually within 30 days of Jan. 1 following the first payment.
“This is a forgiveable loan, assuming they meet the requirements within Appendix 1. There is no rate on it, assuming that they continue to comply with those. However, if they were fail to comply, it’ll all be paid back whatever’s been paid out,” Skinner said, noting that the city expects Nextremity to meet the goals.
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Warsaw Mayor Joe Thallemer began the discussion by explaining, “Essentially, this is the establishment and funding of the revolving loan fund that is going to support the incentive that we made (when) you all agreed with the MOU last year to Nextremity. We all know they’re now in the building, but now we’ve got to take care of the details.”
The ordinance was for an additional appropriation to fund the revolving loan fund.
Jeremy Skinner, Warsaw community economic and development director, reminded the Council that the first step was the approval of the MOU in 2020. The MOU was “two different things we were going to do. One was an equipment purchase through the Redevelopment Commission, which was done late fall last year. And the second one was this forgiveable loan agreement through EDIT, which was to be approved when they entered the building. They’ve been doing manufacturing there, but their offices were being finished up and they’ve moved into the building at this point, thus triggering this portion of the MOU.”
He said the revolving loan fund has been created, but doesn’t have any money in it. The additional appropriation puts the $250,000 the Council agreed to in the MOU into the fund. This year, $50,000 will be paid out and next year another $50,000 will be paid out within 30 days of Jan. 1, Skinner said.
“So this first step is just creating that additional appropriation for the $250,000 into the EDIT revolving loan fund, and then we will approve the loan agreement and so forth that will then exercise those funds to be paid out,” he said, noting that a public hearing for the additional appropriation ordinance was part of Monday’s meeting.
Thallemer said the first payment of $50,000 to Nextremity is due so the money for the fund needed to be put in it and appropriated.
“Going forward, that $50,000 will be budgeted in that EDIT revolving loan fund. Every year, you’ll approve that $50,000 for Nextremity for a five-year period,” Skinner said.
When the hearing was opened up to the public, Nextremity Chief Operating Officer Chris Cook gave thanks to the city of Warsaw and Redevelopment Commission “for the opportunity. We have officially entered the building as of the second week of June, and really enjoying the space right now. Everything is finished, I believe, I hope, for our grand opening on Friday. We look forward to filling out the space as we continue to grow. We’ve invested $1 million in capital equipment and over $1 million in outfitting the building. So, looking forward with significant plans for continued growth.”
He said they have 85 employees and are looking forward to continue to add to that.
There was no one else from the public who spoke. The Council approved the ordinance on first and second reading, with Skinner’s recommendation that the Council do so.
The Council next unanimously approved the resolution authorizing the loan from the fund.
Finally, Skinner presented the actual loan agreement, which was approved 6-0. Councilman Josh Finch was absent from Monday’s meeting.
The loan agreement is for $250,000 for five years at $50,000 per year. The money is still be dispersed annually within 30 days of Jan. 1 following the first payment.
“This is a forgiveable loan, assuming they meet the requirements within Appendix 1. There is no rate on it, assuming that they continue to comply with those. However, if they were fail to comply, it’ll all be paid back whatever’s been paid out,” Skinner said, noting that the city expects Nextremity to meet the goals.
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