MONROE - A project originally slated to be completed this summer promised to develop a 21-acre parcel in Monroe and add up to 200 jobs, but the company has yet to break ground or even set an official starting date.
Amlat LLC, formerly known as Wonder Milk or Union Milk, was to build a powdered infant formula manufacturing plant in Monroe, with the product exported to China. The company purchased land in Monroe's north industrial park in July 2013 for $420,000 in cash, provided by Dong Han, a businesswoman from China who first began with another company trying to establish a facility within the city. Han parted ways with the company due to uneasy investors seeing a lack of action by the parent company, former Monroe Chamber of Commerce director Pamela Christopher said at the time.
The original business promised land development in both Platteville and Dubuque but missed projected dates of export in 2012. Now it appears as though Amlat has followed the trend.
City Administrator Phil Rath said although the company has missed its expected date to break ground more than once, the extension the city granted at the end of October 2014 - with the goal of construction starting at the end of November - has given the company an added eight months to build on the site, meaning the structure would have to be finished by the beginning of April.
"Realistically, they wouldn't be able to finish the construction within the timeline," Rath said. "If they haven't started, it doesn't seem likely to be done by then."
Most recently, the construction company hired by Amlat to build the Monroe facility said this spring that the project would break ground in June. To date, that has not happened.
Provisions in the agreement allow the city to take back the land purchased, but Rath said the possibility of reclaiming land he referred to as "at a premium" is unlikely as long as the company shows it has put effort into moving forward. He said the agreement is unique because of the total put down to purchase the land in 2013 and the city's ability to maintain involvement through included provisions. There is also wording for penalties if the structure is not built by the promised completion date. However, Rath said there has only been mild discussion among city representatives and nothing has gone toward evaluating options to take the land back for Monroe.
The company itself declined to comment on the project. Two separate consultants hired by Amlat and currently working with the company were contacted by The Monroe Times this week. Both refused to provide any information about the development or possible steps being taken to ensure the structure is completed by next spring.
Rath said the last update the city received from Amlat indicated the state's approval process for plans has been slower than anticipated. In the past, Amlat had similar problems gaining recommendation from the state Department of Agriculture Trade and Consumer Protection when initial plans were put forth in June 2013.
The business development seems to hinge on Dong gaining investors. Those looking to invest have incentive due to the reward of an EB-5 Visa. The U.S. Citizenship and Immigration Services department grants visas though the Immigrant Investor Program, or EB-5, as a way to bring economic growth through capital investment by foreign parties. In rural development, the minimum qualifying investment is $500,000, according to the USCIS. This project, which is an estimated $5 million to $7 million for the building process alone, can gain investors through the promise of this type of visa.
Ward 3 Alderman Michael Boyce, who has been critical of the agreement since its inception, said his opinion is that securing those visas has been the main priority for Amlat.
"It always seems to be the imperative is immigration rather than economic development," Boyce said, citing knowledge of similar projects which had been promised and failed in the United States. "I've said all along - this is more about immigration than creating a functional dairy plant."
Boyce said he only has information provided to him by city officials but noted from his understanding that the delay in the project was due to Dong not receiving enough investment because the slow process to obtain visas had made other possible investors distrustful.
Boyce also said he had spoken to a number of people in the dairy industry who have never been contacted by anyone from the company.
"You would think they would reach out to area farmers, line up sources," Boyce said. "But they haven't heard anything."
Boyce said the deal was faulty from the beginning. Criticizing his own action among colleagues on the common council, he said the deal was agreed on hastily. On the same evening the Community Improvement Committee received details of the agreement, council members approved it just more than an hour later.
"It wasn't properly vetted on our part," he said.
Still, Rath said the possibility of development at the location along 123 N. 29th Avenue is better than letting the land sit unowned.
"Having (Amlat) own it instead of having us own it still has its advantages," he said.
Rath added that if the company were to come forward with what the council deemed as adequate proof of attempts to meet the deadline, the city could extend the timeline by up to 12 months.
Amlat LLC, formerly known as Wonder Milk or Union Milk, was to build a powdered infant formula manufacturing plant in Monroe, with the product exported to China. The company purchased land in Monroe's north industrial park in July 2013 for $420,000 in cash, provided by Dong Han, a businesswoman from China who first began with another company trying to establish a facility within the city. Han parted ways with the company due to uneasy investors seeing a lack of action by the parent company, former Monroe Chamber of Commerce director Pamela Christopher said at the time.
The original business promised land development in both Platteville and Dubuque but missed projected dates of export in 2012. Now it appears as though Amlat has followed the trend.
City Administrator Phil Rath said although the company has missed its expected date to break ground more than once, the extension the city granted at the end of October 2014 - with the goal of construction starting at the end of November - has given the company an added eight months to build on the site, meaning the structure would have to be finished by the beginning of April.
"Realistically, they wouldn't be able to finish the construction within the timeline," Rath said. "If they haven't started, it doesn't seem likely to be done by then."
Most recently, the construction company hired by Amlat to build the Monroe facility said this spring that the project would break ground in June. To date, that has not happened.
Provisions in the agreement allow the city to take back the land purchased, but Rath said the possibility of reclaiming land he referred to as "at a premium" is unlikely as long as the company shows it has put effort into moving forward. He said the agreement is unique because of the total put down to purchase the land in 2013 and the city's ability to maintain involvement through included provisions. There is also wording for penalties if the structure is not built by the promised completion date. However, Rath said there has only been mild discussion among city representatives and nothing has gone toward evaluating options to take the land back for Monroe.
The company itself declined to comment on the project. Two separate consultants hired by Amlat and currently working with the company were contacted by The Monroe Times this week. Both refused to provide any information about the development or possible steps being taken to ensure the structure is completed by next spring.
Rath said the last update the city received from Amlat indicated the state's approval process for plans has been slower than anticipated. In the past, Amlat had similar problems gaining recommendation from the state Department of Agriculture Trade and Consumer Protection when initial plans were put forth in June 2013.
The business development seems to hinge on Dong gaining investors. Those looking to invest have incentive due to the reward of an EB-5 Visa. The U.S. Citizenship and Immigration Services department grants visas though the Immigrant Investor Program, or EB-5, as a way to bring economic growth through capital investment by foreign parties. In rural development, the minimum qualifying investment is $500,000, according to the USCIS. This project, which is an estimated $5 million to $7 million for the building process alone, can gain investors through the promise of this type of visa.
Ward 3 Alderman Michael Boyce, who has been critical of the agreement since its inception, said his opinion is that securing those visas has been the main priority for Amlat.
"It always seems to be the imperative is immigration rather than economic development," Boyce said, citing knowledge of similar projects which had been promised and failed in the United States. "I've said all along - this is more about immigration than creating a functional dairy plant."
Boyce said he only has information provided to him by city officials but noted from his understanding that the delay in the project was due to Dong not receiving enough investment because the slow process to obtain visas had made other possible investors distrustful.
Boyce also said he had spoken to a number of people in the dairy industry who have never been contacted by anyone from the company.
"You would think they would reach out to area farmers, line up sources," Boyce said. "But they haven't heard anything."
Boyce said the deal was faulty from the beginning. Criticizing his own action among colleagues on the common council, he said the deal was agreed on hastily. On the same evening the Community Improvement Committee received details of the agreement, council members approved it just more than an hour later.
"It wasn't properly vetted on our part," he said.
Still, Rath said the possibility of development at the location along 123 N. 29th Avenue is better than letting the land sit unowned.
"Having (Amlat) own it instead of having us own it still has its advantages," he said.
Rath added that if the company were to come forward with what the council deemed as adequate proof of attempts to meet the deadline, the city could extend the timeline by up to 12 months.