EDIT package approved for Fort Industries

The Jay County Council approved a grant/loan package of $87,500 in Economic Development Income Tax funds for manufacturer Fort Recovery Industries to expand to Portland.
The council approved the use of EDIT money to help Fort Recovery Industries expand to the spec building in the Portland Industrial Park on county road 100 North. The company plans to invest around $4.9 million in the expansion and create at least 20 jobs by the end of 2011.
The incentive package approved by the county council is the same as one approved by the Portland City Council on Nov. 8.
“We plan to open a satellite manufacturing facility in Portland, Ind.,” said Fort Recovery Industries chief operating officer Dean Jetter, who noted the new location will be used for casting operations as well as warehousing.
Jetter said the company plans to put the expansion on a “fast track” and will make around $625,000 in improvements to the building before installing equipment.
Council members asked Jetter if the expansion is expected to only create the 20 jobs promised in the funding request, or if he expects that there will be more positions created further in the future.
“I anticipate we’ll have higher employment than that at that site,” Jetter said, noting the 20 jobs is a “conservative” figure and that the building contains enough room to bring in additional casting equipment in the future.
Jay County Development Corporation Executive Director Bill Bradley said the $87,500 is a three-year commitment and, like other recent projects, contains “clawback” provisions.
If Fort Recovery Industries does not meet the agreed upon investment and employment numbers in the package a percentage of the funding will have be paid back at a rate of prime plus 1 percent. If the requirements are meant, the money is treated as a grant.
Bradley said he doesn’t anticipate the requirements will be an issue for Fort Recovery Industries, which has had long-term success.
“I’ve got a good feeling about this one,” he said.
The council approved the financial package 5-0. Councilman Dan Orr was absent, and president Gerald Kirby did not vote.
It was the third EDIT-funded project the council has approved for a business expansion or startup in the last three months.
“It’s nice to see all these businesses coming to town,” said councilman Gary Theurer.
“It’s wonderful,” agreed councilwoman Marilyn Coleman.
In other business Wednesday night, the county council:
•Approved an additional appropriation of $296.10 for pauper counsel for the public defender’s office.
•Tabled an appropriation request from the Jay Circuit Court for $1,285. A representative from the court was not at the meeting to explain what the money is for.
•Approved appropriations of $60, $340, $5,000, $472, $900, and $399 in the Jay County Health Department budget to purchase new equipment for the immunization clinic.
•Approved appropriations of $75,000 and $25,000 in EDIT funding for Fort Recovery Construction and Equipment and the first installment for MyFarms, respectively.
•Approved a transfer of $500 in the LEPC budget for office supply purchases.
•Approved a transfer of $30,000 in the highway department budget to cover mechanical repairs to vehicles in the fleet.
•Approved transfers of $300, $230, $105, $25,000, $225 and $15,000 in the Jay Emergency Medical Service to cover salary costs.
•Approved transfers of $15,000, $4,400 and $40,000 in the commissioners budget to pay for Public Employees’ Retirement Fund expenses, unemployment compensation and computer maintenance, respectively.
•Approved a three-year abatement on real property only for Hoosier Pride Farms following a recommendation from the Tax Abatement Advisory Committee.
•Reviewed a draft of the county’s EDIT Capital Improvement Plan. The plan needs to be reviewed and renewed every five years and outlines the county’s guidelines for how EDIT is to be used.
•Decided to follow precedent set by the council in the past that new employees at JEMS will begin at step two in the county pay scale.
The issue came up when JEMS director Teresa Foster-Geesaman brought it to the council’s attention that, due to raises approved by the council during budget preparations, newly-hired paramedics in 2011 would be making 27 cents less than JEMS reserves. The fix will resolve the discrepancy.
•Were asked a pay scale question by county recorder-elect Bev Myers about how current recorder Betty St. Myers would be paid if she were to be retained as first deputy for the office.
Since St. Myers is currently an elected official, the move would technically make her a new county employee and thus have to start at the bottom of the pay scale and receive the same sick and vacation time as a new employee.
Kirby noted that a similar situation arose in the past when former recorder Judy LeMaster was leaving elected office and a special exception for her was denied.
The council agreed to table a decision until December’s meeting.[[In-content Ad]]