Hoping to land parts maker
POST FALLS - The Post Falls City Council has done its part to lure an aerospace parts manufacturer to a landing strip on this side of the border.
The council on Wednesday voted 5-0 during a special meeting to create an industrial development corporation (IDC) which would set up tax-free financing for Advanced Thermoplastics Composites (ATC) Manufacturing of Spokane Valley to build a facility west of Kimball Office off Seltice Way.
ATC currently employs 71 and expects to expand that number by as many as 45 in 2015, city officials said. ATC, which has submitted a site plan to the city, has indicated that it would like to start moving dirt this fall, city administrator Shelly Enderud said. The building's size will be about 60,000 square feet.
IDCs are state-approved economic development tools in which as much as $10 million in tax-exempt bonds can be issued to for-profit entities. City officials said ATC will seek about $4.2 million worth of bonds for the project.
IDCs function separately from the city councils and county governments that form them.
"The nice thing is that no liability flows back to the city," said Mayor Ron Jacobson.
City officials said the deal will have no affect on taxpayers and no city funds will be spent.
However, the city must show "meaningful" other ways to help the state attract business. Ways the city can assist include waiving a $2,000 site plan review fee, $30,000 building permit fee and staff time on the legwork. City officials said specifically how much in fee waivers equates to "meaningful" isn't defined.
Councilman Alan Wolfe said the intent is that the new jobs and improved tax base will more than offset the fee waivers.
"When citizens ask us to create jobs, there is not much that we can do," Wolfe said. "This is one thing we can do to attract more business to Post Falls."
Enderud said she believes a good partnership with ATC will have a ripple effect on other firms looking to relocate here.
Wolfe encouraged city staff to put a limit on the fee waivers. He said waiving the site plan review fee seems realistic, but a complete building permit fee waiver may be stretching it.
Sewer capitalization fees, impact fees and legal fees can't be waived. Officials estimate the amount of staff time to be dedicated toward the proposal would be less than $10,000.
Similar in-kind match contributions from cities have been made toward community development block grant proposals.
Councilman Skip Hissong directed staff to include infrastructure in place at the site as part of the city's match to be documented to the state as those improvements were installed as part of an urban renewal district. He said those improvements could be a way of limiting fee waivers.
The Idaho Economic Advisory Council will meet Tuesday to review economic development applications seeking a tax credit.
The IDC in Post Falls will include Mayor Ron Jacobson, Jerry Lyon of Community 1st Bank and Randy Oaks of 3 Acorn Insurance. The corporation may be expanded later.
IDCs have been formed to oversee financing of economic development projects in other Idaho cities, including Boise, Eagle, Fruitland, Idaho Falls, Twin Falls and Mountain Home. The local corporation could also assist with future development proposals.
When Councilman Joe Malloy asked whether creating an IDC for the manufacturer would be unfair to other companies in the future which might look at relocating, Enderud said the city plans to develop a policy so all firms are treated equally.
The council also passed an indemnification agreement with Lakeside Capital Group which ensures the city will not have any liability in establishing the IDC.
ATC Manufacturing was established in 2004 and started production in 2006. It specializes in the press forming of thermoplastic composites - materials which are processed with heat - primarily for the aerospace industry.