Superior's Redevelopment Authority has adopted two proposals to encourage local economic development.
RACs members on Tuesday voted to expand the Winter Street Industrial Park project area for tax increment financing and endorsed giving AMSOIL Inc. a $200,000 grant to support its planned $15 million expansion project.
Industrial park expansion allows the city to use tax increment bonds or loans to cover costs of the AMSOIL grant, which is payable upon completion of the company's expansion. Money to repay the debt comes from taxes collected in the TIF district.
AMSOIL Inc. is planning a 40,000 square foot expansion of its facility on Susquehanna Avenue. The building formerly was occupied by Fleming Foods.
Within five years, the proposed expansion will increase AMSOIL's blending capacity by 250 percent to meet growing demand worldwide for its synthetic petroleum products. Plans include building a new bulk unloading area with covered containment for loading and unloading rail cars and trucks, an enclosed tank farm and an indoor tank farm.
ADVERTISEMENT
More than 200 construction workers would be hired during the project.
Under the development agreement, the company will create two new full-time equivalent jobs worth a minimum of $12.50 per hour for salary and benefits each year for the next five years, starting in 2008. The company's ultimate goal is to create 40 new jobs.
The expanded project area approved by the Redevelopment Authority Tuesday goes beyond property owned by AMSOIL Inc. The district will include land owned by Kimmes Construction and Jan and Kay Biga, who have owned of Manning Inc. since 1972. The family owns the 21-unit Manning Motel and the site of the former Manning Mobile Home Park.
Kay Biga testified before the authority in favor of the proposed TIF district expansion.
"It's important for development, or sale and development," she said. "We're very strongly in favor of this."
Port and Planning Director Jason Serck said he received no correspondence in opposition to the proposed expansion.
Tax increment financing is a tool created by the state Legislature to encourage development and redevelopment in communities.
The agreement and expanded project area still require approval by the city council, with consideration scheduled June 19.
ADVERTISEMENT
AMSOIL's project is a wonderful example of what the city is trying to accomplish in attracting new business and strengthening those already here, said Council Vice President Kevin Norbie, a member of the Redevelopment Authority board.
Plans to consider a development agreement for a Barker's Island townhouse development proposal were put on hold because negotiations are still underway with Mission Development LLC.
