Ontonagon sells building to JCR Fabricating

A building that was constructed by the Village of Ontonagon in the early 2000's as an incentive to bring business to the area has finally achieved that goal.

In a special meeting Monday, the speculation building, located in the former Renaissance Zone was sold to a relatively young new business.

Following the closing of the Ontonagon paper mill, several men headed to the oil fields in North Dakota. Several of them were fabricators and found they could make and improve on equipment used in fracking for oil. They returned to Ontonagon and began making that equipment in the empty Courtesy Chevrolet building. They received more contracts and soon the building was too small and they rented space in Baraga and sub-contracted out some other work.

The Village Council in a special meeting Monday, agreed to sell the speculation building and lot of 300 feet by 500 feet to JCR Fabricating.

Village Manager Joe Erickson explained that Jason Pestka and Roy Holmstrom, two of the three owners of the business, met with the Village Community Development Committee and discussed the company business plans, marketing and future plans.

- The company accepted the village offer to sell the property for $75,000 with $53,000 up front  and $22,000 due in five years. As an incentive, the village offers a credit of up to $2,500 for every full time employee working on site when the $22,000 is due.

The village will also assist JCR Fabricating in seeking tax credits and funding to complete the unfinished interior of the building. The company has 10 present employees.

- The Ontonagon Downtown Development Authority  borrowed money from the Ontonagon Economic Development Authority Revolving Loan Fund to construct the building.

The total loan was $150,000 and the village general fund loaned the DDA $56,443 to pay the loan off. The DDA still owes the general fund $53,000.

- Coucilman Mike Mogan said the three year history of of the company shows big growth and projected sales and is well positioned for specialty engineering projects. They do welding, fabricating and cutting with customers in the oil industry. They have diversified, Mogan said, with customers in Wyoming, North Dakota and oversees. "They are also well suited for the mining industry as well," he said. "We are talking about jobs coming back," Councilman John Hamm added.

- Erickson  said the company is home grown and started out in the area, sticks around and could result in spin off business.

- The Village council unanimously approved the sale and Erickson will  work on the final sales contract.