The New London Economic Development Committee welcomed Dan and Dennis Berkin from Shiocton Cut Stock Lumber at its most recent meeting.
The Berkins expressed their interest in locating their business in the North East New London Business Center. They informed the committee that their current site in Shiocton does not allow enough space for growth.
Initially they said they would need a smaller three-acre site to store logs and some truck trailers, with the future intention of building a 20,000 to 30,000 square foot manufacturing space.
Shiocton Cut Stock Lumber currently employs 18 to 20 people, along with four family members.
The Berkins reported that not all of their equipment will be located inside the building, and they explained there would be some noise and dust generated, typically associated with sawmills. The machine used to remove bark from the logs is located outside.
The committee held some general discussion on the future development of the North East New London Business Center and took into account any concerns.
They passed a motion 6-0, to authorize City Administrator Kent Hager to negotiate a development agreement with Shiocton Cut Stock Lumber.
The agreement would contain the following provisions. The city would reserve 15.268 acres for Shiocton Cut Stock Lumber and initially rent the approximately three northerly acres of Lot 1 to Shiocton Cut Stock Lumber for $600 per year. This property would be used primarily for raw log storage and storage of truck trailers.
Within three years of the initial rental agreement Shiocton Cut Stock would build a building with a minimum size of 20,000 square feet and a taxable value of at least $750,000 on the balance of Lot 1.
According to the preliminary agreement, the lot would be deeded to Shiocton Cut Stock Lumber as soon as possible after site plan approval for the new building. If the building were not built within the three-year period, the lot would be deeded back to the city.
The firm will also provide the city with their financial statements and income tax statements for review prior to making a formal agreement.
Economic Development Committee Chairman Dave Morack reported the committee’s minutes to the full city council on Tuesday, Nov. 11.
Hager reported last week that he sent a draft of the development agreement to the city attorney for review.
Attorney Luaders did not see a need for any changes. Shiocton Cut Stock Lumber is currently reviewing the draft agreement.