By Kevin Boneske
HOWARD – A site on Brookfield Avenue in a tax incremental financing district will be where a new 80,000-square-foot paper converting facility will be built in the village of Howard.
The terms of a development agreement for the project were approved Monday, Sept. 24, by the village board.
Village Administrator Paul Evert noted the board reviewed possible terms for the agreement in closed session two weeks earlier.
Board members directed staff to reach an acceptable agreement with the principals of KSR Holdings LLC, Roger and Starlene Kimps.
“The location and proximity to Highway 41 is great, but the problem is there’s so much cost generated because of the need for fill,” Evert said. “Just 3-4 years ago the land was very wet…”
To help offset the fill cost, which is estimated on the site to cost from $450,000 to $700,000, Evert said the agreement calls for refunding up to 95 percent of the new taxes the project would generate during the remaining life of TIF No. 6, which is slated to close in 2028.
Based on an estimated assessed value of $3.5 million for the building, Evert noted the property tax rebate would be $55,295 a year over nine years for a total of $497,655.
“It’s tricky, because you don’t really know what that (assessed value) number is going to be, because the state sets manufacturing assessments, and typically they’re substantially lower than their costs,” he said. “We’ve questioned the Department of Revenue why they do that, and they claim it’s based on comparative sales.”
Evert said two parcels with about eight acres apiece are being looked at for the site of the facility because 12 acres would be needed.
“We’ll change the exhibit on the development agreement when we get the newly assigned parcel number and legal description,” he said.
Trustee Chris Nielsen said the additional jobs the facility would generate is a “huge positive” for the village.
Evert said he’s been informed by KSR Holdings that the facility, for which construction is scheduled to start next spring, would provide 20 to 45 jobs with the first phase of construction.
The potential exists there to add on an additional 40,000 square feet with more jobs in 3-4 years.
“This is a paper converting place,” Evert said. “They don’t know exactly what they’re going to make yet. It could be paper straws. It could be a number of things.”