Winona PVD Expanding, Seeks Bond
WARSAW — Resolutions to proceed with Winona PVD Phase 3 Tax Increment Financing Incentive was passed unanimously by members of the Warsaw Redevelopment Commission Tuesday afternoon, Sept. 8.
Fred Fribley, Winona PVD President; and Kirk Sobecki, chief financial officer, presented information about the growing business. Fribley stated their competitor, a company in China, has been eliminated from future business by Ford and GM, providing more business to the local business.
Currently the company has two lines working three shifts, six days a week, and with several new contracts, more lines are needed. He stated contracts have been received from Ford, Nissan, BMW and GM for aluminum coating on aluminum wheels for certain vehicles. The company presently has 136 employees with 116 hourly employees making on average close to $35,000 a year. At least 70 of those employees have been with the company less than one year.
The addition of a new line will add 40 additional jobs and the company is anticipating adding another line next year creating 40 more jobs. “We will be over 200 employees by 2017,” stated Fribley.
The plan is to build a 60,000 square foot building next to the building along Polk Drive, at a cost of $3 million. In addition, the business plans to install equipment costing approximately $9.5 million. The building will be leased from Westhill Development, LLC, a total investment of up to $12.5 million. This is the third tax increment financing incentive requested by the company. The first two were requested in 2013.
Sobecki stated the company, for the last three to four months, has been operating in the black. Each month the amount in the black continues to grow. He stated in 2014 the company did $8 million in sales, with $25 million expected in 2015. Should the company get the anticipated GM contract, sales could reach $70 million.
Sobecki told board members the company’s debt to equity ratio is at 3 percent and the company is “not taking on more than we can handle.”
During the discussion it was noted the company produces 100,000 wheels a month, close to 1.2 million a year, Current contracts with Ford, extending through 2021, will see production numbers increase. A fifth and sixth line are projected to be needed in the near future, which the company plans to fund totally on its own.
The tax increment special taxing district bond will be for $865,000 with an expected interest no higher than 5 percent. The plan is to sell the bonds in November.
During other business, Jeremy Skinner, city planner, reported a glitch in the Mariner’s Drive project, where less than “spectacular soil” was found. Three options were reviewed, with the best solution calling for removal of all concrete, do a sub-grade treatment and place more asphalt in that area than anticipated. This will cause an approximately $60,000 increase to the project.
Skinner noted the area affected is that from North Point Drive to Silveus Insurance. The project cost, it was noted, did come in under the original engineer’s estimate.
Commission members also approved claims for H. J. Umbaugh & Associates, $2,600 for fees related to a bond issue; Troyer Group for $630 for Mariner’s Drive engineering fees to cover the inclusion of a roundabout, and Phend & Brown for $94,228.33 for the work to date on Mariner’s Drive. Also, permission was granted to move $58,000 from land acquisition to professional services within the Eastern TIF’s budget.