One Mexico organization is one step closer to re-opening the doors of a defunct brick refractory plant that could bring more jobs to the community.
The Mid America Brick and Structural Clay Products, LLC has been approved for up to $1,379,477 million in remediation tax credits for the redevelopment of the property formerly known as A.P. Green Refractories.
The remediation tax credits – approved through the Department of Economic Development Brownfield Redevelop-ment Program – will facilitate the re-commissioning and repurposing of face brick for the residential and commercial construction markets. Once fully operational, Mid America, along with supporting contractors, is projecting to create employment for more than 100 people in the community.
Mexico is a Downtown Revitalization and Economic Assistance for Missouri (DREAM) community.
Given Mexico's current economy, John Fougere with the Department of Economic Development said this is a big step for both Mexico and the state of Missouri.
"When we can use tax credit programs to clean up a site and make it so it's available to use for job creation and business location, that's very positive for an economy that's struggling right now," Fougere told The Ledger Monday, further noting the state's current number of unemployed, 268,000.
"The Brownfield Redevelopment Program is just another very effective tool that can be taken into areas in Missouri that can be developed, and boost a way for economic development – which is very important."
The Brownfield Redevelopment Program, Fougere said, is a "very targeted tax-credited program" that provides financial incentives for the renovation of commercial or industrial sites that are contaminated with hazardous substances, and have been abandoned or underutilized for at least three years.
A.P. Green and its successors operated the site as a refractory plant from 1908 to 2002. The property has been abandoned since 2002 when the company closed the facility.
The main contaminant at the site, Fougere said, is asbestos, also lead base paint and soil contamination as well. State tax credits, he said, can be used for eligible remediation costs, for jobs and investment, and demolition costs.
CEO and President of the Mid America company Frank Cordie said once funding is in order and he takes ownership of the facility, he expects to be in production within 12-15 months.
"The Department of Economic Development has been very supportive of our efforts to revitalize the former A.P. Green plant. We look forward to working with DED to bring this plant back on line," Cordie told The Ledger Monday night. "Without their assistance we would not be able to obtain all the necessary funding."
Meanwhile, Mid America LLC also qualified in July for a $1 million Action Fund Loan from the Community Development Block Grant program to help pay for machinery and equipment, and provide working capitol for the new plant. The Mexico City Council applied for the CDBG Action Fund Loan following a public hearing in April.
The $20.5 million project will include $12 million in capital improvements to the factory that include acquisition of rights-of-way and other real property interests; installation of site improvements including fencing and parking lot improvements; and maintenance services; together with the costs associated with the design and other Neighborhood Improvement District obligations issued with respect to the improvements.
Additionally, the city has granted Mid-America exempt from taxes on certain improvements to the real property located within the Mid America Brick Neighborhoods Improvement District. The proposed exemption would be for 100 percent of ad valorem taxes on improvements to real property for a term of 20 years, and would be specifically involving the manufacturing facility producing conventional and specialty brick located at 600 Green Boulevard.
A resolution approving and granting EEZ Tax Abatement was presented to the council in September.
"We've been working with Frank daily to bring this project to fruition," Mexico Economic Development Director Russell Runge told The Ledger. As soon as Mid America Brick's finances are in order, Runge said the city is prepared to take the next step.
|
|
|
One Mexico organization is one step closer to re-opening the doors of a defunct brick refractory plant that could bring more jobs to the community.
The Mid America Brick and Structural Clay Products, LLC has been approved for up to $1,379,477 million in remediation tax credits for the redevelopment of the property formerly known as A.P. Green Refractories.
The remediation tax credits – approved through the Department of Economic Development Brownfield Redevelop-ment Program – will facilitate the re-commissioning and repurposing of face brick for the residential and commercial construction markets. Once fully operational, Mid America, along with supporting contractors, is projecting to create employment for more than 100 people in the community.
Mexico is a Downtown Revitalization and Economic Assistance for Missouri (DREAM) community.
Given Mexico's current economy, John Fougere with the Department of Economic Development said this is a big step for both Mexico and the state of Missouri.
"When we can use tax credit programs to clean up a site and make it so it's available to use for job creation and business location, that's very positive for an economy that's struggling right now," Fougere told The Ledger Monday, further noting the state's current number of unemployed, 268,000.
"The Brownfield Redevelopment Program is just another very effective tool that can be taken into areas in Missouri that can be developed, and boost a way for economic development – which is very important."
The Brownfield Redevelopment Program, Fougere said, is a "very targeted tax-credited program" that provides financial incentives for the renovation of commercial or industrial sites that are contaminated with hazardous substances, and have been abandoned or underutilized for at least three years.
A.P. Green and its successors operated the site as a refractory plant from 1908 to 2002. The property has been abandoned since 2002 when the company closed the facility.
The main contaminant at the site, Fougere said, is asbestos, also lead base paint and soil contamination as well. State tax credits, he said, can be used for eligible remediation costs, for jobs and investment, and demolition costs.
CEO and President of the Mid America company Frank Cordie said once funding is in order and he takes ownership of the facility, he expects to be in production within 12-15 months.
"The Department of Economic Development has been very supportive of our efforts to revitalize the former A.P. Green plant. We look forward to working with DED to bring this plant back on line," Cordie told The Ledger Monday night. "Without their assistance we would not be able to obtain all the necessary funding."
Meanwhile, Mid America LLC also qualified in July for a $1 million Action Fund Loan from the Community Development Block Grant program to help pay for machinery and equipment, and provide working capitol for the new plant. The Mexico City Council applied for the CDBG Action Fund Loan following a public hearing in April.
The $20.5 million project will include $12 million in capital improvements to the factory that include acquisition of rights-of-way and other real property interests; installation of site improvements including fencing and parking lot improvements; and maintenance services; together with the costs associated with the design and other Neighborhood Improvement District obligations issued with respect to the improvements.
Additionally, the city has granted Mid-America exempt from taxes on certain improvements to the real property located within the Mid America Brick Neighborhoods Improvement District. The proposed exemption would be for 100 percent of ad valorem taxes on improvements to real property for a term of 20 years, and would be specifically involving the manufacturing facility producing conventional and specialty brick located at 600 Green Boulevard.
A resolution approving and granting EEZ Tax Abatement was presented to the council in September.
"We've been working with Frank daily to bring this project to fruition," Mexico Economic Development Director Russell Runge told The Ledger. As soon as Mid America Brick's finances are in order, Runge said the city is prepared to take the next step.
