MONROE - The Monroe Plan Commission approved a request from Amlat LLC to extend its construction deadline until April 2017 due to circumstances the company says are beyond its control.
Amlat LLC was created by businesswoman Dong Han, who lives in China. Amlat wants to construct a facility in Monroe to make infant formula for export to China and purchased a 21-acre parcel in the city's north industrial park in June 2013 for $447,000. The contract stipulated construction begin within two years and completed within 33 months. The plant promised up to 200 jobs once it was operating.
Amlat was granted a previous extension in October 2014, which also gave the company additional time. At that time, plans specified the company would begin construction in November 2014 but the expanse of land still lies unused. To date Amlat has not broken ground.
In a letter to the Plan Commission, Han specified three main issues for the delay: higher costs than estimated, revised FDA regulations and delays in availability of the construction company.
Within the contract signed by Han and the city, there is a requirement for a year extension if certain conditions are met. The commission found the FDA regulations to be "beyond reasonable control" of Amlat and moved for the extension, which was approved.
Jim Cisler, a consultant who spoke as a representative for Han during the meeting, said the circumstances included a tough year of uncertainty regarding changes in regulation for producers of infant formula. Han wrote in her letter that building and equipment plans had to be stalled until regulations were shifted and finalized. The timespan of these modifications began in February 2014 and continued into September. Cisler said what followed was a change by a number of countries looking to remain current with the United States. This stall broke down the timeline even further because it meant companies hired for construction and engineering had to treat Amlat as a secondary priority. Total cost for the project was also underestimated; in the beginning, it was quoted at $25 million, but because the building needs to be larger than originally planned, the project is now expected to cost $40 million.
Cisler said plans are to break ground in March or April of 2016 with the hope of finishing within a year. He added that roughly 95 percent of the necessary engineering had already been completed.
Amlat LLC was created by businesswoman Dong Han, who lives in China. Amlat wants to construct a facility in Monroe to make infant formula for export to China and purchased a 21-acre parcel in the city's north industrial park in June 2013 for $447,000. The contract stipulated construction begin within two years and completed within 33 months. The plant promised up to 200 jobs once it was operating.
Amlat was granted a previous extension in October 2014, which also gave the company additional time. At that time, plans specified the company would begin construction in November 2014 but the expanse of land still lies unused. To date Amlat has not broken ground.
In a letter to the Plan Commission, Han specified three main issues for the delay: higher costs than estimated, revised FDA regulations and delays in availability of the construction company.
Within the contract signed by Han and the city, there is a requirement for a year extension if certain conditions are met. The commission found the FDA regulations to be "beyond reasonable control" of Amlat and moved for the extension, which was approved.
Jim Cisler, a consultant who spoke as a representative for Han during the meeting, said the circumstances included a tough year of uncertainty regarding changes in regulation for producers of infant formula. Han wrote in her letter that building and equipment plans had to be stalled until regulations were shifted and finalized. The timespan of these modifications began in February 2014 and continued into September. Cisler said what followed was a change by a number of countries looking to remain current with the United States. This stall broke down the timeline even further because it meant companies hired for construction and engineering had to treat Amlat as a secondary priority. Total cost for the project was also underestimated; in the beginning, it was quoted at $25 million, but because the building needs to be larger than originally planned, the project is now expected to cost $40 million.
Cisler said plans are to break ground in March or April of 2016 with the hope of finishing within a year. He added that roughly 95 percent of the necessary engineering had already been completed.