Tim Ryan, tryan@wolfrivermedia.com
The city of Shawano could make use of a rare financing arrangement to issue bonds on behalf of a local manufacturer that would benefit from the city’s access to tax-exempt, low-interest borrowing.
The Shawano Common Council on Wednesday unanimously approved an initial resolution calling for the city to issue up to $7 million worth of bonds on behalf of Woodport Doors, LLC.
A public hearing still needs to be held on the matter before final approval.
Though the borrowing would be done in the city’s name, Woodport would be completely liable for the debt, with the city acting as a conduit for the financing.
City Administrator Brian Knapp said the borrowing, which is allowed under state statutes, will not have any effect on the city’s debt limits or bond rating. Any fees or other out-of-pocket costs the city would incur in issuing the bonds would also be covered by Woodport.
The financing would allow Woodport to purchase the 226,200-square-foot facility that it’s using at 1275 Industrial Drive and expand its operations.
“Basically, what we’re trying to do is buy the building and buy equipment to expand,” said Chuck Baxter, managing member of Woodport Doors.
The company has about 130 employees in Shawano.
“We’ve done pretty well over the last five years and growing,” Baxter said.
Baxter also said the expansion could increase jobs, but said it was difficult to commit to a number.
“We’re trying to get more market share and more growth,” he said.