Number
041305
Version
SUBSTITUTE 1
Reference
Sponsor
ALD. ZIELINSKI
Title
Substitute resolution approving a Cooperation Agreement with the Milwaukee Economic Development Corp. relative to the Bucyrus International, Inc. project at 3073 S. Chase Ave.
Analysis
This resolution authorizes a loan of $150,000 to assist Bucyrus International, Inc. to train 50 specialty welders to be employed in an expansion of Bucyrus' business to take place at the now vacant Metso Minerals facility at 3073 S. Chase Ave. Annual loan payments shall be forgiven provided the company maintains a minimum workforce at this facility of 80 full-time positions. The Wisconsin Department of Commerce is providing a $300,000 loan, on similar terms, for this project.
Body
Whereas, Bucyrus International, Inc. is one of the world's leading manufacturers of large-scale excavation equipment used in surface mining; Bucyrus machines are used by customers mining copper, coal, oil sands, iron ore and other minerals. Bucyrus is headquartered in South Milwaukee and currently has a workforce of approximately 700 at that location which is presently at capacity and cannot accommodate anticipated future business; and
Whereas, Bucyrus plans to lease approximately 70,000 s.f. at the former Metso Minerals facility at 3073 S. Chase Ave. and add fifty welding positions, plus an additional 30 to 50 support positions (inspectors, maintenance personnel, engineers, etc.), conditioned upon receiving financial assistance for the training of the welding positions, which training expense is currently estimated at $600,000; and
Whereas, The estimated average wage of the additional welding positions is $22 per hour, plus benefits, including health insurance and pension; and
Whereas, The Wisconsin Department of Commerce has offered a $300,000 forgiveable loan for the purposes of assisting the company to train the welding positions; and
Whereas, It is in the best interest of the City of Milwaukee ("City") to assist Bucyrus with its proposed expansion in the city and with its job training program; now, therefore, be it
Resolved, By the Common Council of the City of Milwaukee that the proper City officials are authorized and directed to enter into a Cooperation Agreement with the company and the Milwaukee Economic Development Corp. providing for a loan to Bucyrus on the terms and conditions set forth in the Term Sheet, a copy of which is attached to this Common Council File, and, be it
Further Resolved, That the funds for this loan shall be provided from the Development Fund, Account No. UR03390000; and, be it
Further Resolved, That any payments received by Milwaukee Economic Development Corp. from the loan to Bucyrus, shall be repaid to the City promptly upon their receipt by MEDC.
Drafter
DCD:JS:tda
01/19/05