The Washington City Council Monday night approved issuing Chapter 100 industrial revenue bonds for the expansion of a Washington manufacturing company.
The public hearing was required by the internal revenue code for the issuance for private activity bonds for Melton Machine & Control Company (MMCC).
The ordinance authorizes the city to issue $5 million in tax-exempt bonds to finance the acquisition and equipping of the facility. The bonds are payable solely from company revenues.
The company recently purchased the former Harman building at 851 Vossbrink Drive in the Heidmann Industrial Park.
Randy Folkmann, president and CEO of MMCC; Mark Grimm with Gilmore and Bell, P.C., who was approved as the bond counsel to prepare the bond issue plan; Bill Miller Sr., representing the Civic Industrial Corporation and the 353 Redevelopment Corporation, and Darren Lamb, economic development director, all attended the meeting and spoke in favor of issuing the bonds.
“The Civic Industrial Corporation and 353 Redevelopment Corporation are really proud to recommend a company like this for these bonds,” Miller said. “This is a high-tech company that puts out quality products.”
Miller said the company’s pay per capita may be the highest in Washington. He complimented the company’s work ethic and said it is a great asset to the city of Washington.
“They have made a great contribution over the years to economic development and to the economy of Washington,” he said, adding that there are no reservations on the recommendation. “The future looks great for them.”
Folkmann expressed gratitude and appreciation for the support from the council and economic development department and said the acquisition provides a tremendous opportunity to grow MMCC and to relocate its Computech business, which currently is located in Kansas City.
The acquisition will provide an additional 10 jobs in the Washington community through those who don’t wish to relocate from Computech in Kansas City. Overall, there will be an additional 30 to 35 new jobs created, he said.
Folkmann complimented the applicant pool for the open positions and said he has had great success in filling positions of people who have decided not to relocate.
“We’re anxious to take advantage of the great workforce we’ve experienced at Melton Machine for the past 35 years,” Folkmann said.
Mayor Sandy Lucy said she looks forward to the expansion and what it will do for the community.
“This is a wonderful opportunity for us in the community to have a locally owned company take (this) on,” Lucy said.
Folkmann said the company has invested an additional $2 million in the facility to modify it to suit the company’s needs.
MMCC is a 100 percent employee-owned company.
Melton Machine was founded in 1970 and relocated from St. Louis to Washington in 1975.
The company built its present facility in 1999 and expanded in 2007 with an addition of 44,000 square feet of manufacturing space. It currently has a 154,000-square-foot facility at 6350 Bluff Road. The firm is a recognized leader in the field of automated arc welding, serving primarily the automotive industry.
In May 2010, Melton acquired Computech Manufacturing Company, Inc. (CMC).
CMC also designs and manufactures automated systems for pharmaceutical, military, aerospace and general manufacturing. Additional products of CMC include components for aircraft ignition systems and personal cooling devices for NASCAR drivers and NASA astronauts. CMC currently employs 32 full-time employees.
The ordinance was approved 8-0.