City eyes 150 jobs with dealPublished 5:18pm Tuesday, August 13, 2013
The sale of the former Hamilton Beach-Proctor Silex building on Springs Road is in the works, possibly bringing 150 jobs to the city.
That sales agreement is pending final approval by the Washington City Council.
The city received an offer by idX Corp. to buy the city-owned building, which houses Impressions Marketing Group. During its meeting Monday, the council voted unanimously to accept idX’s bid of $800,000 for the building and adjacent land.
After City Attorney Franz Holscher modifies the sale agreement, it will come before the council for review before final approval is given.
The city sought bids on that tract, but only idX submitted a bid, along with a $40,000 deposit.
According to a memorandum written by Matt Rauschenbach, the city’s chief financial officer and assistant city manager, idX is considering investing $2 million in tooling and equipment upgrades at the existing facility and adding 150 jobs during a three-year period.
According to the memorandum, idX is weighing expanding the existing facility in Washington or a facility in Virginia or one in Indiana.
As part of its plans, idX is applying for $3,020,000 in grants for the expansion and jobs creation.
Recently, the building and land were appraised at $3.65 million. An appraisal conducted for idX put the value of the property at $2.7 million. The idX inspector estimated the building needs about $2.1 million in basic repairs. That inspector determined roof replacement would be needed within a few years, along with removing asbestos and mold from offices, city officials said.
“There was a little bit of difference in our appraisal and what idX’s appraisal was,” said City Manager Brian Alligood during the meeting.
The difference between proposed sales price and the $3.65 million appraisal could be used as the $300,000 the city would be required to allocate under terms of the grant, if it is awarded, Alligood noted.