GARY, Ind. — An Illinois steel company looking to buy land to move its suburban Chicago plant to a northwest Indiana city has submitted a proposal to redevelopment officials.
The Gary Redevelopment Commission is expected to vote Aug. 2 on Alliance Steel Corp.’s $925,000 bid for 25 acres (10 hectares) of land, The (Northwest Indiana) Times (http://bit.ly/2uhD44g ) reported. The company hopes to build a new 250,000-square-foot production facility that could produce 250,000 tons of steel annually.
CEO Andrew Gross wrote in the proposal that the move would create about 100 new jobs in Gary. Another company’s trucking operation would also likely relocate to Gary with Alliance’s move, Gross wrote.
Joseph Van Dyk, the city’s planning and redevelopment director, said the move is a natural fit for the area because it’s already zoned for heavy manufacturing.
The proposal said the $35 million relocation would be financed through corporate cash on hand, bank financing and a combination of federal, state and local incentives. No local incentives have been awarded yet, said Bo Kemp, executive director of the Gary Economic Development Corp.
Chester Inc. will build the new production facility. The company’s CEO, Pete Peuquet, said development could begin in October 2017. If approved, construction is expected to be completed by the end of 2018.
The bid is a response to the redevelopment commission’s request for proposals for nearly 80 acres of land. The commission was looking for about $35,000 per acre. Alliance’s bid comes in slightly above that price at $37,000 per acre for 25 acres.
Information from: The Times, http://www.nwitimes.com