MWI Components intends to purchase the speculative building at the Green Industrial Center so it can expand operations.
The Spencer City Council on Monday made the announcement and approved 6-0 a memorandum of intent that states company intends to purchase the speculative building on 350th Street.
MWI will purchase the building from Spencer Industries Foundation, the entity that owns the building, and operate it as a manufacturing facility.
“It’s been a decade-plus journey to get an occupant of that,” Mayor Kevin Robinson said. “And the community has heard a lot about different economic development strategies and I think everyone is excited to see a current business in town expand into that facility and allow them to grow jobs and put some new lines, things like that in. This agreement formalizes that.”
MWI Components is a manufacturer of post frame building products. It’s current facility is at 1015 32nd Ave. West.
According to an agenda memo, MWI expects its investment into property improvements to exceed $600,000, increasing its assessed and taxable value. The document states the base valuation of the property will be $300,000.
Robinson read a statement from Kiley Miller, President and CEO of the Iowa Lakes Corridor Development Corporation, on the building’s sale.
The Iowa Lakes Corridor served as the primary partner in working to find an occupant for the building.
Miller’s statement said city manager Amanda Mack and city staff should be commended for their efforts in bringing the project to completion.
“Amanda has led tirelessly from the front,” Robinson read from Miller’s statement. “She and Brian Weuve and Kirby Schmidt and Mark White have maintained a consistent get-to-a-yes attitude. This extends to city attorney Don Hemphill, Jim Thiesse at Kruse, Cate and Nelson. Spencer Municipal Utilities has played an equally vital role with general manager Steve Pick helping to conceive of and implement solutions to a variety of utility and finance-related challenges.”
The memorandum of intent stipulates MWI must purchase the property, make improvements worth no less than $600,000 and operate the property as a manufacturing facility. MWI also must pay all taxes levied against the property.
The memorandum also assures MWI that the city will enter into a TIF Rebate Development Agreement once the building purchase is completed.
When the building purchase is finished, the city will work toward entering a property tax rebate development agreement with MWI. On the city’s end, it must pay a property tax rebate by December 1, 2021, so long as all property improvements are made by December 31, 2019.
The council also approved 6-0 on Monday an agreement to facilitate the construction of city water and sanitary sewer to the speculative building.
The Spencer Industries Foundation will pay for the installation. The city and Spencer Municipal Utilities will reimburse SIF for $177,693 and $24,609, respectively, while MWI will pay $11,497.
The agreement calls for the city to reimburse SIF in that amount, plus “any changes in project costs approved by the city and its pro-rata share of engineering fees and any other expenses incurred by SIF in accomplishing construction of the project.
Council member Ron Hanson was not in attendance at Monday’s meeting.