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Industrial bonds sought for project

Gusmer Enterprises plans expansion

By Angie Landsverk


Gusmer Enterprises Inc. wants to finance its expansion project with Industrial Development Revenue Bonds.

The company is asking the city of Waupaca to serve as the conduit issuer for the bonds.

In Wisconsin, these bonds may be issued by cities, villages and towns, as well as by redevelopment authorities and community development authorities.

“The city is not liable for any payment on these bonds,” said Kathy Kasza, the city’s finance director and treasurer.

It allows Gusmer Enterprises to use the city’s tax exemption to get a better tax rate, she said.

While Industrial Development Revenue Bonds are municipal bonds, they are not general obligations of the city.

Kasza said the bonds do not impact the city’s borrowing capacity.

The issuance costs are also being covered by Gusmer Enterprises, she said.

She noted the company used this type of financing in the past.

Its latest request went before the common council on Oct. 1.

Eight members voted in favor of the initial resolution.

Ald. Alan Kjelland abstained from the vote.

His daughter and son-in-law are part of the company.

Paul Hagen was absent.

A public hearing date is planned.

The cost of the company’s project is estimated at $7 million.

The initial resolution provides for financing not to exceed that amount.

The project includes renovating Gusmer Enterprises’ 126,070-square-foot facility at 1401 Ware St., constructing a 38,120-square-foot addition and rerouting Shambeau Road.

About 170 people are employed there.

The expansion project is expected to support another 20 to 30 positions in Waupaca, Chris Gusmer previously told the city.

He is the company’s executive vice president.

The company wants the new space up and running by the second quarter of 2020, according to Gusmer.

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