Blackford County Receives Unexpected 26x Return on Investment for NRP Facility
A $25,000 "forgivable" loan provided to Naturally Recycled Proteins (NRP) of Montpelier from the county commissioners in 2011 has generated a significant amount of revenue in the past year for Blackford County.
NRP has directly invested into the county nearly $650,000, according to Rob Cleveland, executive director of the Blackford County Economic Development Corporation (BCEDC). He shared the news during the county commissioners meeting on Monday morning.
"I've got some good stuff for you," Cleveland told the county commissioners.
Cleveland said that last year the county commissioners entered into a Revolving Fund Loan Agreement with NRP in which Blackford County officials awarded the company $25,000 from Economic Development Income Tax (EDIT) funds. He added that the purpose was to attract NRP to the area.
"The ''forgivable'' loan was designed to spur investment in Blackford County," noted Cleveland.
Cleveland was recently given documentation, including a box which contained copies of all of the invoices for payments to Blackford County firms, contractors and other businesses, related to the building of NRP''s buildings on the southwest edge of Montpelier.
"That is part of the deal," said Cleveland. "NRP had to submit its receipts for any of the money it spent within Blackford County."
According to Cleveland, if NRP had not used all of the $25,000 locally then the company would have had to pay the difference back to Blackford County.
"NRP had to show us they spent at least $25,000," noted Cleveland.
"I cannot see a better example of how this works than what we have right here," remarked Cleveland. "We gave $25,000 from EDIT money to NRP to invest in the county. And, they have far exceeded that investment amount.
"If NRP would want to invest more in the county, we would certainly welcome it," noted Cleveland. "This is a huge investment for Blackford County. It is a great example of how well this program can work."
Cleveland pointed out that NRP constructed a $15 million facility and spent $649,658.62 locally on firms, contractors and other businesses within Blackford County for construction, equipment, supplies, etc. for the manufacturing function and also those expenses related to the transportation division.
The breakdown includes construction services ($526,305.43), manufacturing division ($64,526.12) and transportation division ($58,827.07).
A sample of the top recipients from June 12, 2011, to July 6, 2012, include Ramseyer Excavating ($404,074.21), Payne Electrical ($93,602.69), auto parts from Wilson Auto Parts, O''Reilly Auto Parts, CarQuest and NAPA ($7,748.47), AgBest ($6,997.54), Montpelier Glove and Safety ($6,120.14), Hi-Way 3 Hardware ($5,873.04), JLM Machine Works ($4,412.43) and Montpelier Ag ($1,843.85).
For informational purposes NRP also presented Cleveland with information that the company has paid a total of $382,091 in salaries to employees thus far during 2012.
Article courtesy of Blackford County News Times.