Serving Gogebic, Iron and Ontonagon Counties
Serving Gogebic, Iron and Ontonagon Counties
SCANDINAVIAN LOG Homes on U.S. 2 in Kimball, Wis., plans to expand into the speculation building in the Ironwood Industrial Park.
IRONWOOD - The city of Ironwood has finally found a suitor to occupy the industrial park speculation building that was constructed in 2003.
On Monday, the city commission will consider selling the building and lots to Scandinavian Log Homes, now located off U.S. 2 in Kimball, Wis.
According to a letter from Ironwood Community Development Director Michael Brown to the commission, the company would purchase the building and lot, plus an adjacent lot, for $100,000.
The company would bring up to 10 jobs into the city's industrial park, with plans of adding 10 more in the future.
In 2003, the city issued a $300,000 revolving loan fund loan to the Ironwood Industrial Development Corporation to develop and build the spec building, with the intent of selling the structure and creating jobs.
Scandinavian Homes' owner Steve Estola has proposed to buy the building and an adjacent city-owned lot under a three-year payback schedule, interest-free.
The IIDC accepted the offer.
The state has also agreed to the deal, and will forgive the current interest that has accumulated since the loan was issued, Brown wrote to the commission.
"The city has an incredible opportunity to pay back and close out the spec building loan without penalties from the state or federal government, save the city and its taxpayers having to pay back the entire loan out of its own funds, ...bring a company from Wisconsin into Michigan and spur economic development," Brown wrote.
The adjacent lot would be used for outdoor storage of material for the log cabin-manufacturing business.
Brown said Scandinavian Homes has already submitted a site plan and conditional use application for outdoor storage to the city planning commission.
Brown said the IIDC has accepted the fact the adjacent lot will be thrown in for free with the deal.
He said the sale will be completed through a land contract that city attorney Michael Pope has drafted and all parties have approved.
The items to be acted on Monday by the city commission include forgiving the interest on the $300,000 loan and agreeing to sell the building and lots to Estola.
The Scandinavian Log Homes Kimball site will continue to be used throughout the winter and likely beyond, and the industrial park site won't be occupied for several months, a worker at the Kimball site said Friday.
The spec building is currently being used for rental storage.
