MONROE - Amlat, a proposed baby formula production plant to be built in the Monroe north industrial district, has been given another extension to build after owner Dong Han and company lawyer Daniel Brink informed the Monroe Common Council Monday that financing is nearly secured.
"I'm confident we're going to get this deal closed," Brink said. "I can confirm (Han's) done a ton of work over (in China) to actually sell the formula."
Brink added that he and colleague Peter Garson of Madison-based Dewitt Ross & Stevens Law Firm were excited for the project and apologetic for the delay in construction. Brink works in the law firm's Milwaukee office.
Amlat LLC was created by Han in order to export infant formula to China to fill a need after a number of babies died as the result of contaminated formula. Han purchased a 21-acre parcel of land in the industrial park in June 2013 for roughly $447,000. At the time of contract signing, construction was required to begin within two years and project completion was to be met within 33 months.
Despite the company receiving an extension in October 2014, with promises to begin building in November of that year, Amlat was once again granted an extension by city officials in December 2015. At that time, Amlat consultant Jim Cisler had said the company planned to break ground by April 2016. The 2015 extension expires Saturday. The ground remains unbroken.
Performance penalties, fees accrued by a company for not meeting its expected tax value, have been applied to Amlat over the time it has not developed a proposed $20 million value facility. Penalties have totaled more than $16,000.
After hearing a presentation from Han and her lawyers, council members Brooke Bauman, Jeff Newcomer, Charles Koch, Chris Beer, Ron Marsh, Reid Stangel, Richard Thoman and Tom Miller on an 8-0 vote granted the company a nine-month extension with the option to extend the deadline for an additional six months. Alderman Michael Boyce was absent.
Council members spoke negatively of the initial "indefinite" extension request by Amlat. Aldermen also specified they wished to receive monthly updates on the project. Bauman noted that communication was important to the city.
"I think we all feel there hasn't been much regarding the development," Bauman said.
In total, $34 million is needed for the project. There is $15 million in equity financing, but Brink said the rest is funding through bank loans. A hitch in prior planning had been securing a bank to use internationally because business investors are based in China. The facility has been driven by foreign investors taking part in the Immigrant Investor Program, which grants EB-5 visas to those who invest a minimum of $500,000 to a project in the United States.
Brink said with the addition of Chase Bank to the currently utilized Woodford State Bank has created progress in the plans. He said realistically, the funding could be secured before the end of the year.
"As soon as we can close the bank financing, we'll break ground," Brink said. "I'm thinking we'll be able to break ground in September."
He added that a major delay in the planning process had been professionals involved in the project who were not familiar with federal regulations.
Garson was less optimistic about a September start date because, he noted, a number of issues were not within the control of counsel. He proposed the nine-month extension. The council agreed, with the plan to have monthly, or more frequent, updates sent to City Administrator Phil Rath.
"I'm confident we're going to get this deal closed," Brink said. "I can confirm (Han's) done a ton of work over (in China) to actually sell the formula."
Brink added that he and colleague Peter Garson of Madison-based Dewitt Ross & Stevens Law Firm were excited for the project and apologetic for the delay in construction. Brink works in the law firm's Milwaukee office.
Amlat LLC was created by Han in order to export infant formula to China to fill a need after a number of babies died as the result of contaminated formula. Han purchased a 21-acre parcel of land in the industrial park in June 2013 for roughly $447,000. At the time of contract signing, construction was required to begin within two years and project completion was to be met within 33 months.
Despite the company receiving an extension in October 2014, with promises to begin building in November of that year, Amlat was once again granted an extension by city officials in December 2015. At that time, Amlat consultant Jim Cisler had said the company planned to break ground by April 2016. The 2015 extension expires Saturday. The ground remains unbroken.
Performance penalties, fees accrued by a company for not meeting its expected tax value, have been applied to Amlat over the time it has not developed a proposed $20 million value facility. Penalties have totaled more than $16,000.
After hearing a presentation from Han and her lawyers, council members Brooke Bauman, Jeff Newcomer, Charles Koch, Chris Beer, Ron Marsh, Reid Stangel, Richard Thoman and Tom Miller on an 8-0 vote granted the company a nine-month extension with the option to extend the deadline for an additional six months. Alderman Michael Boyce was absent.
Council members spoke negatively of the initial "indefinite" extension request by Amlat. Aldermen also specified they wished to receive monthly updates on the project. Bauman noted that communication was important to the city.
"I think we all feel there hasn't been much regarding the development," Bauman said.
In total, $34 million is needed for the project. There is $15 million in equity financing, but Brink said the rest is funding through bank loans. A hitch in prior planning had been securing a bank to use internationally because business investors are based in China. The facility has been driven by foreign investors taking part in the Immigrant Investor Program, which grants EB-5 visas to those who invest a minimum of $500,000 to a project in the United States.
Brink said with the addition of Chase Bank to the currently utilized Woodford State Bank has created progress in the plans. He said realistically, the funding could be secured before the end of the year.
"As soon as we can close the bank financing, we'll break ground," Brink said. "I'm thinking we'll be able to break ground in September."
He added that a major delay in the planning process had been professionals involved in the project who were not familiar with federal regulations.
Garson was less optimistic about a September start date because, he noted, a number of issues were not within the control of counsel. He proposed the nine-month extension. The council agreed, with the plan to have monthly, or more frequent, updates sent to City Administrator Phil Rath.