Genova Products, a plastics manufacturing company, will find a new home at 5400 Commerce Drive in the I-24 Park.
On Monday, Paducah and McCracken County took the next step toward an agreement with the Michigan-based business to locate here, bringing 75 jobs by the end of 2014.
At a called meeting of the Paducah City Commission, the city introduced an ordinance for a 10-year lease agreement with Genova Products. The McCracken Fiscal Court also held a special meeting Monday, when it approved the lease agreement.
The 100,000-square-foot plant is co-owned by Paducah and McCracken County. The building was constructed in 2004 for approximately $5 million.
Genova, which makes PVC plumbing pipes, vinyl fencing and vinyl decking, will lease the facility at a base rent of $289,000 per year. As a part of the agreement, the Greater Paducah Economic Development Council will pay the first 14 months of the lease, said Chad Chancellor, Paducah Economic Development president.
The building was formerly occupied by California-based Infiniti Plastics Technology, whose lease was terminated after the company failed to produce the 100-plus jobs it had promised as part of the agreement that brought it to Paducah.
According to the lease agreement with the city and the county, Genova must hire and maintain 125 full-time employees. Chancellor told the Fiscal Court that the agreement stipulates lease violations, equipment terms and full-time employee definitions.
"One thing I pushed for, given what happened with Infiniti, was a much stronger agreement," he said. "I don't want that to happen again."
Genova plans to begin operations this month, Chancellor said.
"They'll start with 10 to 15 jobs by mid-July," he said.
Genova will be responsible for insuring and maintaining the facility, and paying utility charges.
According to City Manager Jeff Pederson, negotiations continue to provide Genova a $1.1 million revolving line of credit for purchasing equipment and other fixtures to enhance its operations on the property.
Genova also received approval for $1 million in state tax incentives on Thursday.
The lease would take effect July 1 following a vote by City Commission at its Tuesday meeting.
Check out these recently discussed stories and voice your opinion...