Monday evening, members of the Plymouth City Council passed a resolution approving the Manufacturing Center lease for the shell building that will be constructed at the corner of Jim Neu and Pioneer Drive.
City Attorney Sean Surrisi said, “This is the last step in the city’s support of this project.” He went on to say, Marshall County Economic Development Corporation hopes to start moving dirt next week on the project. He also noted that they have closed on their construction financing.
This manufacturing center can be expanded, similar to project redevelopment did with the Pretzels Inc. building.
The terms of the lease are for up to three years with the Redevelopment Commission paying for the interest on the note that MCEDC has taken out with Centier Bank to finance the construction. Surrisi said the lease payment is tied to the interest payments that they will be making plus the applicable utilities. He said there will be a few closing costs that will be wrapped into the first quarterly payment. Redevelopment Commission payments are capped at $80,000 annually.
Surrisi said, “Based on the interest rate and the $1.7 million loan amount, those annual payments should be right around the neighborhood of $53,000.”
The group has been working with a prospective purchaser of the building for some time. Surrisi said, “Ideally we’ll be sold in the first quarter of next year.” He reminded them that the term of the lease is no more than three years.
The Plymouth Redevelopment Commission approved the lease at their meeting last week and the City Council’s approval is the final step.
The appraisal value of the lease for a building like this was about $225,000 a year.
Members of the Plymouth Common Council approved the lease with five votes. Councilman Jeff Houin abstained from the vote and councilwoman Shiloh Milner was absent from the meeting.