City Approves $1.2M Bond Issue For Winona PVD Expansion
Posted
Jennifer Peryam-jperyam@timesuniononline.com
Warsaw City Council Monday night approved Warsaw Redevelopment Commission issuing a $1.2 million redevelopment bond for the second phase of the Winona PVD Coatings project. Warsaw Redevelopment Commission today will approve the final bond resolution, and there will be a public hearing Nov. 25 for disposition of equipment to be purchased. The city will then proceed with the bond issue, according to Jeremy Skinner, city planner. Skinner said this is a revenue bond and payments will come from personal property taxes and real property taxes created by the development. Plans are for the bond to be paid off in 2028, Skinner said. Phase II consists of a new 100,00-square-foot manufacturing facility and new manufacturing equipment. Winona PVD Coating LLC operates a wheel-coating facility at 1180 Polk Drive, Warsaw, consisting of a 60,000-square-foot building and plans to expand. The new building is currently under construction and will be located across the street from the current location. Winona PVD and West Hill Development will invest approximately $15 million in equipment and real estate improvements in the project. Winona PVD will invest $9.3 million in equipment, which the proposed bond issue will help finance. The council also approved a resolution for a taxpayer agreement and memorandum of understanding for the new economic development project by Winona PVD Coatings. In order to accommodate an expansion of the company’s business, the real estate developer agreed to undertake the construction of a 62,000-square-foot expansion of the existing building. In addition the company leased from the real estate developer an additional 50,000 square feet of space for warehousing to accommodate the additional expansion. The city started the expansion process in April when the city sold less than $3 million in bonds to facilitate Winona PVD’s expansion. Jamie Visker, Winona PVD Coatings chief executive officer, thanked the city for its support. “The expansion that began in 2013 is not big enough to handle the orders that have developed,” Visker said. That is why a 100,00-square-foot facility is needed. Visker said the original TIF bond stated the business would add 68,000 square feet to its existing building and put $9.3 million of equipment in that building and take over the lease of the custom wheels building next door. The business has completed those things and plans to build the 100,000-square foot facility across the street from the existing building and add another $9.3 million in equipment that will take the capacity to 1,750,000 wheels. “The total commitment of construction and equipment the business is making is a $27 million investment in Warsaw,” Visker said. Visker said the business currently has 45 employees and plans to add 80 employees. Visker said the city started in 2007 with its original tax abatement for the original building and equipment installation for a 68,000-square-foot facility Robinson Construction built behind Medtronic. There was $5 million in equipment put into the expansion. Production at the wheel-coating facility began in 2008. The first project launched was in January 2009 with coating chrome wheels for Explorer Van at Winona PVD. The second project was chrome coating for Town and Country vehicles. The business also launched chrome wheels for BMWs and worked on chrome wheels for Ford Escape. The business was awarded a Ford F-150 chrome wheel project for the 2015 model year. Visker said the original capacity in 2007 was 250,000 wheels. The initial TIF bond was to help the business in expanding that by 750,000, taking them to 1 million wheels. Warsaw Mayor Joe Thallemer said he appreciates Winona PVD Coatings’ investment in the community. “We are happy to help you move ahead and continue your success, and I’m proud to see you in our tech park and adding to it and growing and diversifying it,” Thallemer said. In other business, the council approved transferring $4,000 from the cemetery salaries to professional services. The council also approved transferring $129,196 from the Warsaw-Wayne Township operating fund to the equipment replacement fund.
