Attraction Program Funds Awarded to Nova-Kem, LLC
June 19, 2012 – Washington County, Wisconsin, USAThe Washington County Board met in closed session today to consider its first Attraction Program Fund project to Washington County for an Illinois based business, Nova-Kem, LLC. The board approved in open session low-interest, gap financing of $500,000 in support of Nova-Kem’s $6.8 million expansion project in Germantown, which is anticipated to create 48 new full-time, quality positions over the next three years.
As a result of this approval, Economic Development Washington County (EDWC) will extend an offer letter to Nova-Kem, LLC detailing proposed terms of the incentive. Upon completion of negotiations and Nova-Kem’s acceptance of the County’s offer, EDWC, on the County’s behalf, will prepare loan documents to consummate the deal.
Herb Tennies, County Board Chairperson, feels Nova-Kem is a great first use of the Attraction Program Fund incentive. “As a growth company expanding from outside Wisconsin and generating revenues from around the globe, attracting Nova-Kem to Washington County represents a win not just for the County, but for the region as a whole,” he said.
Nova-Kem, LLC was established in March 2012 as a spin-off subsidiary of ProChem Inc., a 26-year Rockford, Illinois based chemical production company specializing in the creation and production of chemical compounds used in industrial and high-tech applications. The company acquired earlier this month the former Cambridge Major Labs facility on Edison Drive in Germantown initially to grow its research and development (R&D) capacity and accelerate speed to market for new products it develops.
The company’s expansion plans now extend, however, beyond R&D. Following discussions with Economic Development Washington County (EDWC), Nova-Kem is proposing redirecting its growth and expansion activities to Washington County, Wisconsin over other options it was previously considering outside the state. The Germantown facility will be put back online initially for commercialization of a precursor chemical used in semiconductor and high-tech applications, followed by a focus on bridging R&D and commercial scale production of many other precursors through a patented process of “Rapid Precursor Development.”
“EDWC’s efforts have afforded us confidence that our long-term growth plans can be successful in Washington County,” stated Randy Nash, Nova-Kem CFO, “Wisconsin and Washington County have demonstrated through their genuine interest in and partnership with our company that this is the right place to be for a global, growth company such as ours. We look forward to bringing this opportunity to successful closure.”
While specific terms have yet to be finalized, EDWC Executive Director Christian Tscheschlok confirmed that the project far exceeds Attraction Program Fund objectives, creating nearly 2 jobs for every $20,000 in incentive funds and nearly $14 of private investment for every dollar of incentive funds offered. The high quality jobs to be created by Nova-Kem at the Germantown facility include chemists, technicians, managers, and marketing positions.
“Nova-Kem represents precisely what EDWC’s growth strategy for Washington County is all about,” explained Tscheschlok, “Having met with Nova-Kem leadership at their Illinois facilities and worked with them for a couple of months now, it is clear that this is a profitable company with a highly talented team generating steady growth by focusing on innovation and global opportunity. Securing their presence here demonstrates to other such companies that Washington County communities know how to get important and impactful deals done.”
Funded through the Washington County’s share of sales tax revenue, the Attraction Program Fund provides EDWC with a flexible incentive tool designed to attract new businesses into the County. Without this program, Washington County has limited capacity and flexibility to compete in a bid for businesses evaluating locations inside and outside Wisconsin for locating a new facility.
Targeted attraction projects involve export-oriented businesses creating substantive new quality jobs and making significant new investment in the County economy. Such companies generate new wealth within Washington County and create demand for other Washington County businesses as they are a central force in the associated industry’s supply chain. While EDWC vets and qualifies potentially eligible projects, the County Board makes the final decision on use of these funds.
About Economic Development Washington County (EDWC)Economic Development Washington County (EDWC) is an independent economic development organization fueling growth businesses and industries for the creation of quality jobs and wealth in Washington County. EDWC accomplishes this through a focus on existing business development consulting; engaging in driver-industry business attraction; supporting qualified start-up enterprises and serving as a central voice on economic development issues.
Rapid Precursor Development™