In a special session Friday, the city council approved a loan to the Mid America Brick Company, an action seen as one of the final steps in bringing the company to fruition.
Mid America Brick CEO Frank Cordie said he expects to sign paperwork early this afternoon at Audrain County Title Company finalizing a real estate transfer for the project.
By a 4-0 vote Friday, the council approved a $1 million Community Development Block Grant for construction at site of the A.P. Green Refractories, which closed in 2002. Councilman Michael Myers was absent from the meeting and did not vote.
Mayor Ron Loesch said the factory, which is expected to employ about 80 people, will have a significant impact on the city’s economy.
“This will be a big shot in the arm for our community,” he said. “Seventy decent-paying jobs is a big thing for our community.”
Last week, Mid America Brick vice president David Adams said once funding for the $21.9 million project is finalized, contractors will need nine to 12 months to renovate the A.P. Green site. He said the company expects to begin making bricks in late spring 2011.
Adams said even though the economic downturn affecting the state has slowed housing construction, he thinks Mid America Brick will be viable. He said the company’s nearest competition is a small factory in Jackson.
“It’s to our benefit because inventories are low and when construction picks up, contractors will be looking for a supplier nearby,” he said.
Mid America Brick Company will pay the loan off over nine years. It will cover expenses dating back to July 2009, when the state finalized an environmental review of the Mid America Brick construction project.
The city will not be responsible for the loan or face any risk if the company defaults; the Missouri Department of Economic Development will fund and collect interest on the loan, with the city acting as a conduit.
Mid America Brick will make face brick, which is used in the construction of homes, instead of the fire brick A.P. Green made. Fire brickis used in ovens or other industrial uses involving high heat levels.
Adams said the company will employ 35 people when its first kiln opens and 70 to 80 people once the second kiln is opened. A.P. Green had 2,500 workers on as many as nine kilns when it closed.
Mexico Economic Develop-ment Director Russell Runge said even though the factory won’t employ as many people as the A.P. Green facility, the project was a step forward for the city.
“It’ll have an impact,” Runge said. “We’re looking forward to seeing a facility that meant a lot to a lot of people come back, even in a smaller capacity.”
Mid America Brick will not use the entire A.P. Green site. Loesch said he anticipated other companies will be interested in occupying other areas of the site, creating even more jobs.
“There could be individual spin-off businesses,” he said. “There are possibilities for those properties.”
Two other companies have shown interest in the site, including Arch Enterprises, which purchased 20 acres of the site in October to develop a metals processing plant.
After the meeting, Cordie, a former executive at A.P. Green, went to St. Louis to sign papers finalizing funding for the project. Councilman Dan Botts said he was happy Friday’s affirmative vote was one of the final steps in the process.
“I’m glad this happened,” he said. “I think Frank’s on his last nerve, and it’s frayed.”
Cordie has been working to bring the factory to Mexico since 2007. Adams said the project has taken a long time to come to fruition because funding had to be coordinated between the city, the state and Advantage Capital, a private investment firm.
“It’s just the nature of the beast,” Adams said. “When you’re trying to get credit, it takes time to get through the process.”
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In a special session Friday, the city council approved a loan to the Mid America Brick Company, an action seen as one of the final steps in bringing the company to fruition.
Mid America Brick CEO Frank Cordie said he expects to sign paperwork early this afternoon at Audrain County Title Company finalizing a real estate transfer for the project.
By a 4-0 vote Friday, the council approved a $1 million Community Development Block Grant for construction at site of the A.P. Green Refractories, which closed in 2002. Councilman Michael Myers was absent from the meeting and did not vote.
Mayor Ron Loesch said the factory, which is expected to employ about 80 people, will have a significant impact on the city’s economy.
“This will be a big shot in the arm for our community,” he said. “Seventy decent-paying jobs is a big thing for our community.”
Last week, Mid America Brick vice president David Adams said once funding for the $21.9 million project is finalized, contractors will need nine to 12 months to renovate the A.P. Green site. He said the company expects to begin making bricks in late spring 2011.
Adams said even though the economic downturn affecting the state has slowed housing construction, he thinks Mid America Brick will be viable. He said the company’s nearest competition is a small factory in Jackson.
“It’s to our benefit because inventories are low and when construction picks up, contractors will be looking for a supplier nearby,” he said.
Mid America Brick Company will pay the loan off over nine years. It will cover expenses dating back to July 2009, when the state finalized an environmental review of the Mid America Brick construction project.
The city will not be responsible for the loan or face any risk if the company defaults; the Missouri Department of Economic Development will fund and collect interest on the loan, with the city acting as a conduit.
Mid America Brick will make face brick, which is used in the construction of homes, instead of the fire brick A.P. Green made. Fire brickis used in ovens or other industrial uses involving high heat levels.
Adams said the company will employ 35 people when its first kiln opens and 70 to 80 people once the second kiln is opened. A.P. Green had 2,500 workers on as many as nine kilns when it closed.
Mexico Economic Develop-ment Director Russell Runge said even though the factory won’t employ as many people as the A.P. Green facility, the project was a step forward for the city.
“It’ll have an impact,” Runge said. “We’re looking forward to seeing a facility that meant a lot to a lot of people come back, even in a smaller capacity.”
Mid America Brick will not use the entire A.P. Green site. Loesch said he anticipated other companies will be interested in occupying other areas of the site, creating even more jobs.
“There could be individual spin-off businesses,” he said. “There are possibilities for those properties.”
Two other companies have shown interest in the site, including Arch Enterprises, which purchased 20 acres of the site in October to develop a metals processing plant.
After the meeting, Cordie, a former executive at A.P. Green, went to St. Louis to sign papers finalizing funding for the project. Councilman Dan Botts said he was happy Friday’s affirmative vote was one of the final steps in the process.
“I’m glad this happened,” he said. “I think Frank’s on his last nerve, and it’s frayed.”
Cordie has been working to bring the factory to Mexico since 2007. Adams said the project has taken a long time to come to fruition because funding had to be coordinated between the city, the state and Advantage Capital, a private investment firm.
“It’s just the nature of the beast,” Adams said. “When you’re trying to get credit, it takes time to get through the process.”
