CITY APPROVES LAND PURCHASE, INCENTIVES FOR OEM
Thursday, July 13th, 2006 -- 12:21 PM
OEM Fabricators Incorporated wants to begin constructing their new Neillsville facility later this summer, and the City of Neillsville is taking steps to ensure that can happen.On our Viewpoint program Thursday morning, Neillsville Mayor Diane Murphy explained the City has moved to purchase 7 acres of Town of Pine Valley land located adjacent to the eastern edge of the Industrial Park.
?(The City Council) has decided to move forward with the purchase of seven acres of land from Lloyd and Jean Meyer,? Murphy explained.
The city will purchase the land for $150,000 through a 10-year land contract at 7% interest, Murphy explained.
Next, the City will move to annex the land and designate it as a TIF district, where tax revenue from the land will be used to cover the cost of infrastructure.
OEM was interested in that particular acreage because there is room to grow ? signaling the possibility they hope to expand beyond the initial 50,000 square-foot facility.
?They?re talking already about future expansion. They?re keeping room to double the size of their building,? Murphy says. ?There?s another six-acre parcel that the city already owns that adjoins this property ? they?re going to look at that too.?
As an incentive, the City ? with help from the Listeman Foundation ? has agreed to pay OEM $2,500 per job created.
?The city is going to borrow $150,000, Listeman Foundation is going to pay the principal on this loan - $50,000 a year for three years,? Murphy says.
OEM offers wages and benefits ?the same or better? than Cummins Incorporated paid muffler plant employees, Murphy says.
Feel free to contact us with questions and/or comments.