(Spencer)– Plans for a new 30,000 square foot spec building in Spencer’s south technical park are moving forward. The city council voted 4-1 Monday evening in favor of a resolution of support for the project.
Brittany Dickey, Vice President of Development for Cornbelt Power Cooperative, says a bid has been awarded for the $1.4 million project, provided the funding comes together…
“The proposal if for the Iowa Lakes Corridor Future Fund to be the owner of that spec building, and then we are all partners in it. And I say we as in we do a one third partnership. So Cornbelt, Iowa Lakes Electric Coop and the city of Spencer would be our one third partnership. The county does have a revolving loan fund that they have said that they would pledge $350,000 towards that at the beginning of the project. We’re looking to do two REDLG grant applications: one through Iowa Lakes Electric, one through SMU. So we aren’t going to move forward with the project until we know that we’ve gotten that financing which will probably be the spring of next year. But we have to have that financing really to move forward. It’s a zero percent interest loan to the project and then we’re going to use revolvingloan funds through Cornbelt and Iowa Lakes Electric to make up that difference.”
Dickey says having a spec building is an important tool when it comes to attracting new businesses and industries to the region…
“In the Cornbelt system, at one time we were sitting on about four or five. We have none right now. There is only three spec buildings in the whole state: one’s in Perry, two are in the Cedar Rapids area, so none really up in this north central Iowa. A spec building is really a long term investment. The average time for it to sell is seven years, so don’t turn around and thing that we’re going to sell it the next day. But we’re providing an opportunity. The same with the industrial parks. If you don’t have it, you’re not going to get the looks, and a lot of people are looking for buildings.”
Councilman Brian Balk cast the lone dissenting vote. He expressed skepticism over what the city’s final share of the cost might wind up being.
