City forming TIF district to help finance project
By Jane Myhra
Kolbe & Kolbe Millwork Co. plans to expand its Manawa facility at 1211 Depot St.
To help finance the expansion, Kolbe requested that a tax increment financing (TIF) district be formed by the city of Manawa.
At an Oct. 5 special meeting, the Manawa Common Council agreed to begin the TIF process.
In a TIF, property taxes generated by the incremental increase in value of the designated district are available for TIF projects. Tax rates do not change when a TIF is created, and TIF districts do not increase taxes.
Only the tax revenues derived from future growth due the TIF go to TIF projects, such as infrastructure improvements or business subsidies related to the development.
According to information presented at the council meeting, Kolbe plans to expand its Manawa facility to 150,000 square feet by constructing a 68,000-square-foot addition.
The groundbreaking is scheduled for mid-November, with completion by March or April.
The estimated $3.7 million expansion could add 25 to 50 more local jobs.
The Manawa facility has been space limited for a number of years, according to Mark Harger, general manager of Kolbe’s Manawa location.
“The plant was purchased with the original intentions of producing the Kolbe Latitude Series of product and is now also producing Windquest Impact (hurricane protection) rated products, Teutonic Commercial products and items for Kolbe’s Wausau facility,” Harger said.
He said the plant will be undergoing a building addition and an improved shipping bay.
“Kolbe has continued to invest in its people and automation within this facility to increase its efficiency and ability to achieve the level of production needed by our customers,” Harger said. “These additions have resulted in areas of congestion within the Manawa facility. Because of this congestion and its ever increasing demand, Kolbe has decided to expand the Manawa facility.”
The Joint Review Board will discuss the TIF District plan at 4:30 p.m. Thursday, Oct. 22, at the Manawa Municipal Building.
A public hearing regarding creation of the proposed TIF District 2 will be held at 5 p.m. Thursday, Oct. 22, at the Manawa Municipal Building.
In other business, the council discussed the city’s 2016 proposed budget.
The budget includes a tax rate of 10.90 per $1,000 of property value.
A public hearing on the 2016 budget is scheduled for 5:15 p.m. Monday, Nov. 16.