The Clay County Redevelopment Commission met Monday evening to discuss the status of a new brick manufacturing facility which will be located along SR 59 north of SR 46.
The plant will probably cost around $13 million dollars total. This includes approximately $10 million for the building and about $3 million for site preparation and other extra charges such as infrastructure, utilities and state and local permits.
According to Eric Somheil, the attorney representing Brickcraft, as the company will be called, they are working with about the same numbers as they have been. This project has been a couple of years in the works, but Alan Meyer, one of Brickcraft's proprietors, says they are no longer saying "if, but when" where this project is concerned.
For the past few months, the association has been doing some "number crunching" concerning tax increments and tax abatements. Somheil says the bond revenue should be around $700,000. The company hopes to use at least a part of that money for a "scrubber" which will monitor air pollution. Meyer says they do not need the system, but it would be good for the environment and put them ahead of most other factories in that area.
In order for the commission to help, Brickcraft must show proof of financing. After putting up the money, the Redevelopment Commission will reimburse them. So they can formulate economic development and ensure that the money will be there when they need it, the Commission plans to create a fact report on how to initiate funds.
The first step will be to devise a plan to capture the increases in taxes and use the money to pay bonds and tax additions. Although some preliminary work was done a year ago, it will need to be redone as interest costs figured upfront are usually a few years behind. This is due to the fact that the plant still has to be built and preparations must be made before they will begin collecting revenue.
The Commission passed a motion to go ahead with initial plans.