Borgers Ohio Inc. will receive financial help to construct its planned manufacturing facility in Norwalk.
The Erie County Port Authority issued the $5,814,000 of taxexempt development revenue bonds to construct the 160,800 square foot manufacturing plant.
The Borgers plant, at 400 Industrial Parkway in Norwalk, will manufacture trim and sound deadening insulation for the automotive industry. At full production, the company expects to employ 230 persons.
“The Port Authority is happy to help Borgers in this project,” Miller said. “Although located in Huron County, we expect some of the Borgers employees will live in Erie County. It also shows the cooperation which exists between Huron and Erie Counties.”
Huron County Commissioners approved a Cooperative Agreement to permit the Port Authority to participate in the Borgers project.
The Port Authority was formed in 2012 by the Erie County Commissioners. As an independent unit of local government, under Ohio law the Port Authority is authorized to be involved in “activities that enhance, foster, aid, provide or promote transportation, economic development, housing, recreation, education, governmental operations, culture or research.”
Miller said this is the first project completed by the Port Authority.
“Although the Port Authority was formed three years ago, the board was appointed in September, 2013. We can assist in projects like Borgers where the Port Authority adds value,” he said. “For Borgers, the Port Authority served as the required governmental unit to issue the taxexempt bonds.”
Borgers expressed its thanks to the Port Authority for its assistance.
“Borgers is a subsidiary of Borgers AG of Germany. Our Norwalk facility represents a major step forward for Borgers, and we appreciate the Port Authority’s efforts in working with us,” said Jochen Harmeling, president of Borgers Ohio, Inc.
The bonds are tax-exempt since interest earned by the bondholder is not subject to federal or Ohio income tax. The bonds were purchased by GE Government Finance, Inc., of Eden Prairie, Minn., which also provided lease financing for manufacturing equipment to be used at the plant.