STEVENS POINT – A drone engine manufacturing company is seeking initial support for lending assistance from the city.
Delaware-based Firecrest Aerospace Inc. is seeking $10,00,000 in industrial development revenue bonds (IRBs) to renovate a 38,000-square-foot building located at 4848 Industrial Park Road to manufacture “micro turbo jet and turbo fan engines for unmanned aerial and aerospace applications,” according to materials included the July 13 Finance Committee meeting packet.
An IRB is a special development financing tool that allows an industrial developer to take advantage of the city’s tax-exempt status to acquire loans at more favorable interest rates, Corey Ladick, comptroller/treasurer, explained in the July 13 meeting. The city has no liability to pay for IRBs and they do not count against the city’s borrowing limit.
The committee gave unanimous approval to an initial resolution in support of providing the financing. The resolution will appear in front of the full Common Council on July 20, according to a schedule included in the meeting materials.
A public hearing will be held on a final resolution in support of providing the bonds about four weeks after a notice is filed likely on July 21, according to the included schedule. The Common Council will consider approval of the final resolution after the public hearing is held.
Manufacturing company expects to create 125 jobs
Expected economic impacts of the project include the creation of 125 jobs, future purchases from local parts suppliers, and a training partnership with Mid-State Technical College, John Oppold, chief financial officer of Firecrest Aerospace, said in the meeting. The technical college’s Wayne H. Bushman Advanced Manufacturing, Engineering, Technology, and Apprenticeship Center is located about two blocks southeast of the proposed development site.
Besides proximity to and partnerships with the technical college, Oppold said Stevens Point also offers an excellent labor force with a good work ethic, strong family values that translate to work-family values, and exceptional schools that attract talented employees.
Over 25 of the newly created jobs are expected to pay over $100,000 with many of those paying over $150,000, Oppold said. According to the company’s plan, the lowest paid employee would be paid $19 per hour, Oppold said.
What happens next?
If the full Common Council gives its approval to the initial resolution on July 20, the company expects to begin hiring for some positions beginning in August with remaining hiring expected to be completed in November or December, Oppold said.
Future site plans and any other necessary permits for the project will need to be approved through their regular processes, Ladick said.
The Common Council will consider approval of the initial resolution at 6 p.m. July 20 in the Community Room at 933 Michigan Avenue in Stevens Point.
Erik Pfantz covers local government and education in central Wisconsin for USA TODAY NETWORK-Wisconsin and values his background as a rural Wisconsinite. Contact him at epfantz@usatodayco.com.
This article originally appeared on Stevens Point Journal: Drone engine manufacturer seeks city’s help for Stevens Point plant
Reporting by Erik Pfantz, Stevens Point Journal / Stevens Point Journal
USA TODAY Network via Reuters Connect
By Erik Pfantz, Stevens Point Journal | USA TODAY Network
