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Firms planning to utilize industrial revenue bonds

By The Reporter Staff

Two firms planning to build in Fond du Lac's Southwest Industrial Park intend to utilize industrial revenue bonds to help finance the projects.

The Fond du Lac City Council approved the bonds at its meeting Wednesday night.


EnviroPlastics Corp., a Nevada corporation, requests the approval of an initial industrial revenue bond resolution in the amount of $20 million.

The corporation plans to construct and equip an 80,000-square-foot industrial building, employing 77 people. The City Council, in November, authorized a land sale in the industrial park to the company.


McNeilus Steel of Dodge Center, Minn., is asking Council to approve the issuance of $7 million in industrial revenue bonds to help build a new plant in Fond du Lac.

The company intends to construct an 84,000-square-foot structure that would initially employ 25 people. Another 25 people are expected to be employed within three years, according to the company's plans. Council approved the land sale to the company in August 2008.

Community Development Director Wayne Rollin said industrial revenue bonds are authorized by federal law and are a way for communities to help fund projects.

"The bonds that they sell …will be federally tax free," Rollin said. "This makes the bonds more attractive to investors. They are able to buy them at a lower interest rate because they don't pay federal tax on the interest earned in this investment."

Rollin said municipalities are required to approve the sale of the bonds because they are done in the name of the municipality where the projects are located. He added that the bonds would not represent a liability to the city and would not count against the city's debt. The city would not be responsible for the bonds and would not be required to pay them back.

"These are both good-news projects," Rollin said of the business developments.


http://www.fdlreporter.com/apps/pbcs.dll/article?AID=/20090115/FON0101/901150347&template=printart