City offers land to build in industrial park
By Scott Bellile
New London city officials offered free land to a pair of Shiocton businesses looking to move to the North East New London Business Park.
The first half of the written offer states New London would deed half a 10-acre parcel to Go Fast Manufacturing to construct a 20,000-square foot facility.
These approximately 5 acres are located north of Northland Electric.
The second half of the offer states the city, for three years, will own the remaining 5 acres as well as two parcels to the north totaling 8 acres.
Shiocton Cut Stock, which shares Go Fast Manufacturing’s ownership, wants to eventually build a sawmill and store logs on the 2 1/2 parcels.
After three years and further negotiation, the city would then sell those 2 1/2 parcels to Shiocton Cut Stock if the two entities agree on the terms of the sale.
The city awaits a decision from business owner Dan Berken and has not entered a formal agreement.
Both components of the city’s offer require Berken to provide “satisfactory written confirmation” from his lender that he has the financing to build their facilities.
“This is all contingent upon them proving their ability to finance,” City Administrator Kent Hager said at a New London Economic Development Committee meeting on April 30 where the draft of the city’s offer was approved. “That’s kind of where we stumbled the last time. Let’s just leave it at that.”
Around four years ago, Shiocton Cut Stock approached the city looking to move to the industrial park, but it did not work out after a year and a half of negotiations, Hager said.
“I think you want them here if they can come here. … It’s just a matter of being cautious to make sure that we don’t put the city in some position that’s not good for the city,” said Kitty Johnson, a business lender for CAP Services. “I think their business is a good business if they’re managing it financially properly.”
Company representatives were not in attendance at the meeting.
Go Fast Manufacturing and Shiocton Cut Stock share facilities off State Highway 76 in Shiocton.
Shiocton Cut Stock is a pallet company and sawmill. Go Fast Manufacturing produces machinery and equipment to run such operations.
City officials admitted they would be more welcoming of Go Fast Manufacturing in the industrial park than Shiocton Cut Stock.
Referring to the latter, Hager said there are better places than a multi-million dollar developed industrial park to store logs.
“I don’t envision it to benefit (the city) short or long term to have half of that area covered in logs,” Hager said.
“You know, the taxable value of the land that they store the logs on probably is not going to be that high,” Mayor Gary Henke said. “But the sawmill itself may provide pretty decent tax income for us. But it’s jobs.”
The initial workforce could largely be Shiocton area residents commuting to their newly relocated workplace in New London, Henke predicted, but that could change with time.
“As people change jobs and so forth, they’ll probably be able to hire people from town, so it is an advantage to us that way,” Henke said.
Committee Chairman and Fifth District Alderman David Morack said New London puts itself at a competitive advantage in terms of attracting businesses by accepting a sawmill and log storage in its city limits. Cities like Grand Chute and Appleton might not, he said.
“It sounds like a package deal. If you want (Go Fast Manufacturing), you have to take (Shiocton Cut Stock). We’re comfortable (with it). Ideally, we would store those logs someplace … beyond the industrial park. That would be super, and that’s what we want to negotiate.”
Hager provided an update in a City Hall memo dated May 21. Berken is securing financing and planning with a builder and intends to discuss a formal agreement with the city soon, Hager stated.