MONROE - The city has agreed to waive more than $16,000 in penalties against an infant formula processing company for not having its planned Monroe factory up and running.
The company, Amlat LLC, has been in the works since 2013, but has yet to build. Amlat owner Dong Han recently met with the city's Plan Commission to discuss a construction extension. Under the agreement between Amlat and the city from June of 2013, Han purchased 21 acres of land in the north industrial park for just under $450,000. Stipulations of that agreement allowed for extra time if circumstances were "beyond reasonable control" for Han to build the facility.
In a letter to the commission, Han outlined three main reasons the plant had been able to move forward previously: increased FDA regulations, a higher expense than anticipated, and delays in the availability of the construction company. The extension request was for one year, which was included in the contract. Amlat currently is looking at a completion date in late April 2017.
According to calculations by city administrator Phil Rath, because the facility was already supposed to be valued at $1 million due to a partial completion, Amlat owes
the city just over $16,000 in penalty fees. This is assessed based on a calculation derived from the difference between the expected value and the current $404,000 value of the land. The penalties are built into agreements with the city to ensure that a new business in the area meets its expected value and the local government can bring in taxes on a specified number.
City Attorney Rex Ewald pointed out that these penalties were an important piece of the agreement between Han and the city.
"They were a core feature, an expectation of the negotiations," Ewald said.
The penalties are set to kick in this upcoming year and in 2017. Both will be delayed until April 22, 2017.
The company, Amlat LLC, has been in the works since 2013, but has yet to build. Amlat owner Dong Han recently met with the city's Plan Commission to discuss a construction extension. Under the agreement between Amlat and the city from June of 2013, Han purchased 21 acres of land in the north industrial park for just under $450,000. Stipulations of that agreement allowed for extra time if circumstances were "beyond reasonable control" for Han to build the facility.
In a letter to the commission, Han outlined three main reasons the plant had been able to move forward previously: increased FDA regulations, a higher expense than anticipated, and delays in the availability of the construction company. The extension request was for one year, which was included in the contract. Amlat currently is looking at a completion date in late April 2017.
According to calculations by city administrator Phil Rath, because the facility was already supposed to be valued at $1 million due to a partial completion, Amlat owes
the city just over $16,000 in penalty fees. This is assessed based on a calculation derived from the difference between the expected value and the current $404,000 value of the land. The penalties are built into agreements with the city to ensure that a new business in the area meets its expected value and the local government can bring in taxes on a specified number.
City Attorney Rex Ewald pointed out that these penalties were an important piece of the agreement between Han and the city.
"They were a core feature, an expectation of the negotiations," Ewald said.
The penalties are set to kick in this upcoming year and in 2017. Both will be delayed until April 22, 2017.