The city of Shawano is working to give Marion Body Works a little more breathing room with its local operation.
The Shawano Industrial and Commercial Development Committee on Sept. 17 signed off on a deal that would lease 5 acres of a 32-acre parcel of city land to Marion as a place to put vehicle chassis, as the existing building is not big enough to keep up with demand.
City Administrator Eddie Sheppard said the company is “bursting at the seams” after renovating and moving into the former Owens Flooring building at the Bay Lakes Industrial Park a couple of years ago and needs a temporary space to put extra chassis. The deal would be for a single five-year term at a cost to Marion of $10,000 annually, although Sheppard noted a few final details still need to be worked out.
“The exterior is literally full of product, because they’re having a really good run as a company,” Sheppard said. “They reached out, and they’re looking for some additional space for their equipment.”
The deal also provides for a first right of refusal for the first three years of the lease in the event that Marion wants to expand its operation. Sheppard noted that the company is looking at potentially building a larger facility on the city land, but nothing has been finalized.
“They’ve offered to buy the current facility, but the owner is not willing to sell,” Sheppard said. “The building is suiting their needs right now, but they’re thinking about expanding long term.”
Sheppard noted the deal benefits the city in the here and now with money for the land and could result in a bigger influx of money in the future. He said that if Marion decides to buy the land, the lease fees would be deducted from the property price.
“There’s some skin in the game,” Sheppard said.
He added that the deal provides an opening for furthering good relations with a local business.
“If you’re approving this lease, you’re essentially looking at this and saying, ‘Yeah, long term if everything works out with Marion Body, building a new facility on those 32 acres is a good use of that space,” Sheppard said.
Currently, the remaining 27 acres is being utilized for farmland, according to Sheppard, so there is some revenue coming in.
Mayor Bruce Milavitz supported the deal, noting that if Marion decides not to purchase the land, the city can look for other options.
“If they haven’t committed after three years, we can start marketing it,” Milavitz said.
lpulaski@newmedia-wi.com
