Marion officials consider incentives for two expanding local manufacturers

MARION - The city of Marion is considering economic development incentives to help two local manufacturing companies - Legacy Manufacturing Co. and Acterra Group Inc. - with expansion plans.

In the first, Legacy Manufacturing Co. is looking to expand and move into 140,000 square feet of new manufacturing, warehouse and office space in Marion's Enterprise Center on Highway 151 east of Highway 13.

Legacy, which was conceived by Jim Weems in 1986 and has been located in Marion for almost 20 years, makes lubrication equipment, hoses, hose reels, pneumatic couplers and accessories.

An affiliated entity, Je Pense LLC, is the entity requesting the city incentive of $880,000 to support the firm's planned $7-million investment in the new building on 21.34 acres, according to a letter to city officials from R. Mark Weems, president of Legacy Manufacturing Co.

Weems asked that the incentive be paid as 'instant equity” to help with the purchase of property for the project, with the city recouping the incentive through the additional property taxes generated by the new investment. This is called tax increment financing.

Je Pense will lease the building to Legacy Manufacturing, which currently operates at 6281 N. Gateway Dr. and employs 40 full-time and 10 part-time employees, Weems said.

Weems said the company plans to start construction on the building in the spring of 2015, with completion slated for the spring of 2016.

In a second request for city economic-development support, the Acterra Group Inc., which builds fueling systems for aviation and convenience stores, is seeking $202,500 in property-tax incentives.

In a letter to Marion city officials, Tad Cooper, Acterra executive vice president, said the company plans to invest $3 million to expand its current building at 3305 Third Ave. by 20,000 square feet and to add more equipment.

The company employs 39 people, and the new investment will allow the company to add five to 10 more employees. The new building addition should be ready in the fall of 2015, Cooper said.

The Marion City Council will be voting on the measures in the weeks ahead.