Coweta to issue $20M in industrial bonds for new wheel company

Coweta to issue $20M in industrial bonds for new wheel company

Blickle U.S.A., a manufacturer and distributor of wheels and casters, announced plans in October to locate its U.S. headquarters in Newnan. The Coweta County Commission on Dec. 20 joined other county entities in agreeing to an incentives agreement with the company.

Located on 18.33 acres in Patillo’s Coweta Industrial Park, Phase 1 of the development, covering an area of 55,000 sq. ft., is estimated to be completed in November of 2017. The site has room for further expansion of the facility to an area of more than 200,000 sq. ft., in order to accommodate expected growth, Coweta County Development Authority (CCDA) President Greg Wright said in October.

CCDA will issue $20 million in industrial revenue bonds (IRB) to finance the construction of the facility. It was noted that the bonds will not be an obligation to any county entity.

Commissioners on Dec. 20 signed off on an Incentives and Reimbursement Agreement with CCDA, the Coweta County Board of Assessors and Blickle. The Coweta entities will value the leasehold interest in the real estate project at 50 percent of the fair market value for a period of 10 years and the newly purchased machinery and equipment at 50 percent of the fair market value of that property for five years after the purchase. The real and personal property will be valued at 100 percent of its fair market value after the expiration or termination of the agreement term.

If Blickle ceases operations at this facility for more than six months during the term of the bond lease, it will be obligated to repay a pro-rata portion of the tax savings on the entire project that will be reduced by 10 percent per year for each year the expansion project was in operation, the agreement said.

“Blickle is recognized as the preeminent global caster and wheel manufacturer. We are delighted to have chosen Newnan and Coweta County as the headquarters of Blickle U.S.A. and highly appreciate the substantial support we received from Coweta County and the State of Georgia,” said Blickle U.S.A. President Scott Chahalis.

The Blickle Group currently employs over 800 staff worldwide. More than 550 employees are based at its headquarters in Germany, a single, highly automated and very modern manufacturing facility, extending over 800,000+ sq. ft. Blickle maintains 16 international sales subsidiaries in Europe, Asia, and North America, and numerous factory-trained distributors around the globe, exporting its wheels and casters reputed for their excellent quality to more than 120 countries. 

Terry Daviston, chairman of the Coweta County Development Authority, recently said, “We are pleased to welcome Blickle to our community. The Blickle name is recognized around the world as an industry leader in wheels and casters, and we look forward to continuing to work with the company as they grow and prosper here in Coweta County.”