Specialized Products to expand in Clintonville
City offers $75,000 in incentives
By Bert Lehman
Pending the approval of the proposed TID 9 in the Clintonville Industrial Park, local business Specialized Products is set to begin an expansion project.
Clintonville City Administrator Sharon Eveland told the city’s finance committee at its Sept. 10 meeting that Specialized Products had previously told the city it was searching for locations for expansion, including outside of Clintonville.
“[That was] part of the driving force behind the TID,” Eveland said.
In response, the city included Specialized Products in the proposed TID 9 and put together a developer’s agreement similar to the one that the city agreed to with the company building the new apartment buildings in TID 8. That agreement was signed earlier this year.
Eveland told the committee that the proposed developer’s agreement with Specialized Products included a “pay as you go system.” Specialized Products would receive $75,000 in financial incentives. Payments would begin after the first tax increment is collected after the expansion project is completed.
She added that the project is expected to increase the assessed value of the property by $750,000.
“If the project comes in assessed less than that, then the total developer’s assistance will be decreased proportionately,” Eveland said. “Again, it’s structured the same way we did the apartment complex.”
The developer’s agreement obligates the city to repair the culvert at the intersection of Summer Street and Commercial Avenue, Eveland said. This repair would take place next summer.
“They, as well as others in the industrial area have expressed concerns about how bad that is,” Eveland said.
She added that the culvert has some structural issues and is beginning to collapse.
“The TID will be able to cover the cost of that [repair],” Eveland said.
Another stipulation in the agreement requires Specialized Products to start the expansion project by Oct. 31 and to complete the project by July 31, 2019.
The agreement calls for but does not require Specialized Products to demonstrate a good faith effort to have the project done locally. This means using local vendors and contractors when possible.
Eveland said Specialized Products wants to start the expansion project as soon as the Clintonville City Council approves the developer’s agreement and TID 9 receives final approval.
She added that Specialized Products indicated it would sign the agreement once the city council approves it. Clintonville City Attorney Keith Steckbauer has also reviewed the agreement.
The finance committee recommended to the Clintonville City Council that it approve the developer’s agreement.
The council unanimously approved the developer’s agreement at its Sept. 11 meeting. At that same meeting, the council also approved the proposed boundaries and project plan for the TID 9 proposal.
The creation of TID 9 still needs final approval from the Clintonville Joint Review Board in early October.