Nordenia to be first tenant in new Jackson industrial park

Nordenia USA is poised to expand in a proposed $22 million-plus project that would add 50 jobs and a new production facility -- the first tenant at a long-standing and long-empty Jackson industrial development park.

The first piece of a multifaceted public-private deal goes before the Cape Girardeau County Commission this morning. Commissioners are expected to vote on backing Chapter 100 revenue bonds that would allow the county to serve as a "conduit" for a 10-year tax abatement in property and equipment taxes for the planned development, according to Mitch Robinson, executive director of Cape Girardeau Area Magnet. The economic development agency has been working the deal on the inside for more than half a year, Robinson said.

"This doesn't put the county on the hook if the company would go under," he said. "There's no responsibility for the county or the taxpayers to pay for it; it's strictly a tax abatement tool."

Commissioner Jay Purcell said he's not crazy about the incentives chase involved but that he must concede to the realities of economic development.

"These are the types of agreements I don't have an issue entering into -- it's just the way things are done nowadays," he said. "Besides, it's hard to argue with 50 full-time jobs."

Nordenia, a multinational corporation that manufactures flexible packaging at its Nordenia USA Inc. headquarters in Jackson, would be obligated to create the jobs over three years, with an average annual salary "north of" $36,000, Robinson said.

"That's counting management and the hourly folks," he said.

Private investors would build the manufacturing site, while Nordenia would pay for the equipment, with each investment making up about half of the total $22 million-plus cost of the development project, Robinson said.

Bill Burke, president and chief operating officer for Nordenia USA, a subsidiary of Greven, Germany-based Nordenia International Ag, said he did not want to go into details of the development plan until after today's commission meeting. He did say the proposed expansion is driven by growth in the company's consumer packaging product line.

"Basically, we are seeing really good growth in our pet food and lawn and garden ag side of the business, and so we're adding additional capacity to make bags in that segment primarily," Burke said. "We're tight down here in space on 177."

The current plant on Highway 177, which celebrated its 20th year in production in 2010, manufactures consumer packaging printed special films, the raw material that makes up products from Procter & Gamble diapers to frozen chicken bags to pet food packages.

A second facility would take on the increased bag-making production, a product line Burke said the company expects to grow in the coming years. The existing plant employs about 400 people in Cape Girardeau County.

Under the terms of the agreement, the city of Jackson would put up the 15.5 acres in the approximately 45-acre development park on U.S. 61, leveraging a $500,000 Missouri Community Development Block Grant to improve infrastructure to industrial land that has been empty since it was developed some 15 years ago.

Jackson Mayor Barbara Lohr summed up her excitement over the development plan with one interjection.

"Hoorah!" she said. "Obviously I'm very excited about this."

"We feel like this is an economic opportunity that will just be a tremendous boost, not just for Jackson but for this whole area."

Cape Girardeau County Presiding Commissioner Clint Tracy agreed, noting what he said will be a "substantial" amount of investment, good for the company, the contractors and the county at large.

Tracy said the tax abatement will affect local school districts, which for 10 years will not see the increased tax value but would have to account for the possible increased student enrollment.

"On the other side, we live in a worldwide competitive market," he said. "If we're not willing to increase incentives, this is a German company; they could just as easily go to Mexico."

Penzel Construction Co. of Jackson would serve as general contractor and designer of the proposed 183,000 square-foot plant. Phil Penzel, the firm's president, said if all goes to plan, the project would break ground by the middle of the month, with completion slated by the first of the year.

Penzel declined to disclose the members of the investment group behind the project but said the interest is made up of 10 to 12 local and out-of-state investors.

"It's taken a couple of years to do this, and I know sometimes people get discouraged and say all we're doing is sowing seeds, hoping one will go," said Penzel, a former longtime Jackson alderman. "It's finally bearing fruit, and I think everybody's very excited about it."

mkittle@semissourian.com

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Pertinent address:

14591 Missouri 177, Jackson, MO

U.S. 61, Jackson, MO