posted on February 11, 2015
(Janesville, WI) Neil Johnson, Gazette
The Janesville City Council approved a public-private development deal with two Janesville-based plastics industries for an expansion that city development officials said could create at least 30 jobs over the next decade.
With little discussion Monday night, the council approved $118,000 in tax-increment financing to help Janesville-based Coextruded Plastic Technologies to rehab 22,000 square feet of space it will use to expand operations in the former Lear Corp. building at 3708 Enterprise Drive.
The company, known locally as CPT, has shared the 180,000-square-foot facility with sister company Green-Tek since 2009, when the companies moved from a facility in Edgerton with plans to expand.
The plastics companies plan to invest $2.8 million in the renovation, which includes adding production equipment at CPT, city Economic Development Director Gale Price said.
Price said the companies, which have added about 15 employees in Janesville since 2009, would continue to expand into the next decade.
CPT estimates the expansion could help it add 20 employees over the next four years. Green-Tek said it could add eight employees. Both told the city the expansion likely would bring even more jobs over the next decade.
CPT, which produces food packaging, is a spin off of Green-Tek, which was founded in Janesville in 1986.
Green-Tek fabricates and distributes greenhouse coverings, packing materials and thermal glazing and materials handling products.
Both companies purport to use environmentally friendly processes in their production.
Lear, a vehicle seating manufacturer, closed in the wake of General Motors shuttering the assembly plant in Janesville in 2009. When Green-Tek and CPT moved in, the building was vacant and needed rehabilitation.
The companies' owners told The Gazette in late January that CPT and Green-Tek had a record year for sales last year. The owners anticipated reaching capacity soon in portions of the former Lear building the companies now occupy.
Price said the city has been in talks with the CPT and Green-Tek over a TIF deal for an expansion at the former Lear building since 2013. He said the talks had quieted because of turnover of the city's economic development staff in the last two years.
According to the city's TIF agreement draft, the city would offer up to $118,250 in incentives through a TIF loan. The loan would go directly toward building renovations for the expansion, according to the agreement.
The agreement includes a performance clause requiring the two companies to meet minimum employee counts to continue to have the city loan forgiven for each year of the TIF agreement.