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Wind-tower builder asking DCOA for more money

Higher than expected construction costs has a wind-tower manufacturing company asking for more money -- $700,000, to be exact -- from the city of Abilene's economic development arm. According to Development Corporation of Abilene records, Tower Tech Systems, Inc., now estimate construction and equipment costs will reach $27 million, or about $7 million more as was estimated in DCOA's original assistance package.

Tower Tech Systems Inc. seeking additional $700,000

Higher than expected construction costs has a wind-tower manufacturing company asking for more money -- $700,000, to be exact -- from the city of Abilene's economic development arm.

According to Development Corporation of Abilene records, Tower Tech Systems, Inc., now estimate construction and equipment costs will reach $27 million, or about $7 million more as was estimated in DCOA's original assistance package.

As the result, the company is asking DCOA -- when it meets at 1:30 p.m. Tuesday -- to put up an extra $700,000, upping DCOA's financial commitment for capital investment from $2 million to $2.7 million.

In a memo from DCOA CEO Richard Burdine to DCOA board members, Burdine said the increase is needed to help the company offset higher than anticipated construction costs "due in large part to the topography of the land and their need for a large, compacted surface to store wind turbine towers."

Attempts to reach Tower Tech Systems spokeswoman Alison Wroblewski for comment were unsuccessful.

Tower Tech Systems, a subsidiary of multi tiered wind energy company Broadwind Energy Inc., is building the... more [truncated due to possible copyright]  

Tower Tech Systems Inc. seeking additional $700,000

Higher than expected construction costs has a wind-tower manufacturing company asking for more money -- $700,000, to be exact -- from the city of Abilene's economic development arm.

According to Development Corporation of Abilene records, Tower Tech Systems, Inc., now estimate construction and equipment costs will reach $27 million, or about $7 million more as was estimated in DCOA's original assistance package.

As the result, the company is asking DCOA -- when it meets at 1:30 p.m. Tuesday -- to put up an extra $700,000, upping DCOA's financial commitment for capital investment from $2 million to $2.7 million.

In a memo from DCOA CEO Richard Burdine to DCOA board members, Burdine said the increase is needed to help the company offset higher than anticipated construction costs "due in large part to the topography of the land and their need for a large, compacted surface to store wind turbine towers."

Attempts to reach Tower Tech Systems spokeswoman Alison Wroblewski for comment were unsuccessful.

Tower Tech Systems, a subsidiary of multi tiered wind energy company Broadwind Energy Inc., is building the wind-tower manufacturing facility on 40 acres in Abilene's Five Points Business Park in northwest Abilene and expects to create more than 150 jobs.

Officials said the facility is expected to open in early Spring 2009.

Illinois-based Broadwind Energy also owns Energy Maintenance Service, a wind turbine training and maintenance company that moved into Abilene recently and will occupy the former Lockheed Martin facility on Wall Street.

According to the Development Corporation of Abilene, 70 percent of the jobs will pay from $40,000 to $50,000 a year.

The Five Points Business Park provided the transportation infrastructure that the company needed, according to city officials and Tower Tech. Located just south of Interstate 20, the park also offers a railroad spur that allows rail access to the four-lot property where the manufacturing plant will be built.

Of the 150 jobs, 39 will pay $30,000 to $40,000 a year, according to the DCOA, while 105 of the positions would pay $40,000 to $50,000. Six of the jobs would pay more than $60,000.

Indirect incentives to the company total $911,250 for job training through the Fast Track Welding Program, according to DCOA documents. The company will need several entry-level welders.

To extend rail service into the south boundary of the company's location in the business park, the DCOA previously agreed to pay $236,250. Also the DCOA is conveying an estimated 40 acres of land in the business park to the company, an estimated value of $600,000.


Source: http://www.reporternews.com...

OCT 27 2008
http://www.windaction.org/posts/17652-wind-tower-builder-asking-dcoa-for-more-money
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