MRPC News Release
March 3, 2006
For immediate release
For more information, contact:
Sharon Tubbs, City of Salem, 573-729-4811
or Bonnie Prigge or Lesley Bennish, MRPC, (573) 265-2993
FEDERAL ECONOMIC DEVELOPMENT GRANT STILL
AVAILABLE
TO DENT COUNTY IDA, IF QUALIFYING COMPANY CAN BE FOUND
SALEM—With most economic development grants, you must have a company wanting to expand or relocate before you can be approved for a grant. The Dent County Industrial Development Authority (IDA) is in a different situation right now; the local development group has a grant for a new building, but no company to spec out the building and occupy it.
The advertisement might read something like . . "We will build it, if you will come."
But the local group must act fast. The clock is ticking on this project.
The effort began some two years ago when Daisy Outdoor Products approached the IDA about expanding. Working with the Meramec Regional Planning Commission, the IDA—and its economic developer, Sharon Tubbs—approached the U.S. Economic Development Administration (EDA) and the Missouri Department of Economic Development about grants to expand the IDA's building to accommodate Daisy's expansion.
EDA earmarked funds for the project, and design work had started on the building when Daisy Outdoor Products slowed efforts, and eventually closed its Salem operations in January 2006. Production costs were up markedly because of rising steel prices, yet the company had to hold BB prices to be competitive.
The grant funds set idle, still earmarked for the Dent County IDA.
Even while the Daisy expansion is history, the Dent County IDA has the opportunity to find another company—existing or new—to fulfill the grant requirements and reap the benefits of a new building constructed to meet its needs.
Economic Developer Sharon Tubbs is talking with potential companies and would like to talk to more.
"We have a window of opportunity here," said Tubbs. "We are looking for a viable business—existing or new—that wants to start up or expand in Salem and Dent County in a new building to meet its needs. The prospective business must be willing and able to enter a lease agreement at fair market value, as stipulated by EDA," Tubbs said.
Basically, the Dent County IDA was initially proposing to construct a 40,500 square feet building for a total project cost of $1,224,000. Of that, EDA was providing $800,000 in grant funds with local funds of $424,000 being contributed to the project. Some 45 to 60 jobs were to be created over nine years, however, job creation numbers have some flexibility. The project start date is September 2006 with a completion of March 2008. Those dates are not flexible.
"EDA is primarily concerned with funding a project that will help to stimulate economic activity in the area," said Lesley Bennish, MRPC project administrator, in a letter to Tubbs. "Although the project approved was the construction of a new building to serve Daisy Outdoor Products, the lessee of the building does not have to be Daisy." Bennish explained that EDA would not contribute more than $800,000 to the project, and if the project was less than originally projected, the grant amount would be pro-rated since EDA will fund no more than 65 percent of a Dent County project.
"Our best prospects may already have a connection to Salem and Dent County," Tubbs said. "We just need to find that connection."
If you know of an industry that would like to expand in Dent County, please contact Tubbs at 573-729-4811.