Moran Iron Works changes funding for port collaborative project

by Angie Asam-Staff Writer

The new $4 million Manitowaoc 16000 crane with a 440-U.S.-ton  capacity and 315-foot boom purchased through a $2 million grant from the Michigan Strategic Fund is in place at the Port of Calcite. Moran Iron Works (MIW) employees are currently undergoing training to operate the new equipment.

WITH THE new crane put together and ready to operate, Moran Iron Works (MIW) employees are going through crane training. The huge crane, shown here in a March 17 photo, is expected to be operational as early as next week. (Photo by Paul and Ann Przybyla)

 

Originally the remaining portion of the crane was going to be paid for through the Presque Isle County Economic Development Corporation (EDC) using industrial revenue bonds with MIW making leasing the crane from the EDC and lease payments paying off the bonds.

However, there has been a lot of hoops to jump through to pursue the funding that way and the project was being delayed; thus, MIW has opted to go with another funding source to get the project done. “We have a lot of customers counting on us to get this done. We had to move on with our business plan. We still have the long-term agreement with Carmeuse, we will still have the port collaborative. The only change is that the EDC will not be doing the financing for us,” said Marilyn Kapp, public relations director for MIW.

MIW will be using their own source of funding but that doesn’t change the good things happening as they still plan to add 75 new jobs and develop the port collaborative allowing other businesses to use the crane if necessary.

“The EDC received word from Tom Moran that MIW had elected to pursue purchase of the crane without the assistance of the EDC.  It is our understanding that the proposed use of the crane and the Port of Calcite by MIW will proceed as planned.  The contributions to economic development in Northeast Michigan by MIW and Carmeuse Lime and Stone will continue to provide positive benefits to our region and both organizations are to be commended for their efforts,” said EDC chairman Tom Sobeck.

The EDC operates under the auspices of Presque Isle County but is not funded by the county. The EDC will not be collecting lease payments from MIW on the crane due to some timing issues they found going through the industrial revenue bond process, mainly dealing with finalizing the paperwork.

“They (MIW) had to take this turn due to timing. In order to not disrupt the business they had coming in; they (MIW) had to look at a different financing plan,” said EDC director Joe Libby.

In trying to fund the project through the EDC, MIW was dealing with a governmental process, which take time. Both the EDC and MIW knew going in that the process was going to take time. No agency held up the financial process. MIW simply had to seek other funding in order to continue with it’s business plan, they couldn’t afford to wait for the process to be completed.

“The process is time consuming and the project and MIW’s needs were simply more immediate,” said Sobeck.

The crane is installed and ready for business, Kapp expects that after the employees complete their training the crane could be operational as early as next week. “This is super exciting and we should be using the crane sometime next week,” said Kapp.

MIW will need to use the crane upon the completion of the Shepler’s Ferry boat as they will need to put it back in the water to get it back to Mackinaw. That is planned to happen on May 1.

“We are full steam ahead. We are currently working on a marketing plan for the port collaborative. I will be going to a Michigan Port Collaborative spring summit in May to get the word out about the project,” said Kapp.

THE CHANGE in funding also means that the EDC will not capture any revenue from the project, as they would have from the lease payments. Those revenues would have been used as they continue to help other businesses in the area. “The EDC is fully supportive of what is best for the company. Because of th

e timing issues, it was best for the company to move forward with another funding source,” said Libby.

MIW plans to invest $16.2 million into improvements at its Onaway facility, into dock improvements at Calcite and a new facility planned near the loading docks at Calcite.

The expansion is promised to bring at least 75 new jobs to the area. “It has been stated that this project will have a $100 million economic benefit over the next 10 years for Presque Isle County and northeast Michigan. I think that is low, because I am always an optimist,” said Libby at a community meeting held last month.

Tom Moran, founder and president of MIW, told the public at that meeting that the crane project would not be possible without the first step being in place, a long-term contract between MIW and Carmeuse Lime & Stone which allows him to expand operations within the confines of the Port of Calcite.