O’Fallon proposes issuing $8 million in industrial revenue bonds
O’Fallon has proposed issuing approximately $8 million in industrial revenue bonds to finance an industrial development project.
At its June 27 meeting, the City Council conducted a first reading of a bill, sponsored by Mayor Bill Hennessy, that would authorize the city to issue those bonds, acquire land and build a proposed structure.
In an interview immediately after the meeting, O’Fallon Economic Development Director Patrick McKeehan clarified that Duke Property Management, LLC and Ortho Solutions, LLC doing business as DynaFlex, had requested that the city issue industrial development revenue bonds in a principal amount of approximately $8 million to provide funds to pay the costs of acquiring and constructing an approximately 57,600-square-foot facility on an approximately 11-acre site located on Hawk Ridge Trail.
As part of its request, DynaFlex committed to relocate 130 employees and its existing machinery and equipment into this new headquarters/advanced manufacturing facility and create 15 new “quality jobs” within its first three years of operation in O’Fallon.
“DynaFlex had conducted an extensive site search for their expanding company, and had considered a number of locations across St. Louis and St. Charles counties,” McKeehan said. “As the site search narrowed, O’Fallon economic development staff collaborated with Missouri’s Department of Economic Development to offer DynaFlex the Missouri Works program, a tax credit to induce new job creation at a livable wage standard. The offer required a local match and the City proposed Chapter 100 bonds tied directly to capital investment and job creation, per the city’s incentives policy. City staff followed that incentive policy by requiring DynaFlex to pay for all legal fees and insurance costs.”
He further clarified that the City is not under any obligation or liability for debt created by the bonds, and all bond payments will be addressed in full through a payment-in-lieu-of-taxes [PILOT] agreement. The Hawk Ridge Trail site currently is vacant with no building improvements and is assessed agriculturally. Last year, the property generated $102.09 in 2018 property taxes for all taxing districts combined.”
DynaFlex is a world-class manufacturing company that competes in five dental related markets: Orthodontic Products, Orthodontic Laboratory, Dental Sleep Medicine, Clear Aligners and Digital Office Solutions. DynaFlex has been serving the industry for over 50 years, striving to lead in innovation of new products, industry advancements in technology, as well as continue to implement improvements with their existing offerings.
Source: Mid Rivers Newsmagazine, https://midriversnewsmagazine.com/2019/07/02/78529/ofallon-proposes-issuing-8-million-in-industrial-revenue-bonds