Water bottling company opening plant in Tecumseh

By DEB WUETHRICH

On Monday night, Tecumseh City Council members authorized city officials to sign a purchase agreement with CanAm Bottling, Inc., for a city owned lot located at 908 Industrial Drive, at a purchase price of $40,000.

The company had originally had its eye on a property in Raisin Township, but officials there were concerned about the amount of water that would be drawn for the water-bottling business. Council member Gary Naugle asked about the impact on the city’s water supplies.

“At one point in time, we sold Tecumseh Products one million gallons in one day, so this doesn’t even replace that,” said Tecumseh City Manager Kevin Welch. “It sounds like a lot but it’s not a huge amount. It’s actually going to help us because anytime we increase the volume we sell it decreases the overhead we have to apply to customers.”

The operation is expected to create 10-20 jobs, and invest into the city’s tax base with approximately $1 million in real property and $2 million in personal property. In a report Welch said two meters would be installed in the building, one for the water resale operation and one for normal operations which will be charged sewer rates as well. He said the company also intends to incorporate the use of corn by-products in the manufacturing of its bottles.

The agreement included several conditions such as successful site plan approval, no sewer charge on water supplied for resale purposes only (estimated to be between 60,000 and 180,000 gallons per day), the city’s right to conduct a flow test, a one year water rate guarantee of $1.25/1,000 gallons of water for water used in the resale operation, and a few others.

“This appears to be a unique opportunity for us,” Welch noted in the report. “It not only creates some jobs and tax base, but it also helps to add to our water sales.”

Also at Monday night’s meeting, Tecumseh Economic Development Director Paula Holtz presented an annual report for that department, including updates on activities such as marketing efforts for the Tecumseh Business and Technology Park, which is listed on the CPIX website accessed by commercial retailers. Phase one of an infrastructure project is expected to begin this summer.

Holtz said that the Economic Development Department has been bombarded with calls regarding how to apply for jobs that might become available at Consolidated Biscuit Company. She said a data base has been established with over 300 names, which will most likely be turned over to CBC or South Central Michigan Works! at a later date. Holtz also said that city representatives remain active in the area of business recruitment and retention, following up on all leads, such as one that came in from the Lenawee Economic Development Corporation regarding the CanAm Bottling Company. She also mentioned the city’s role in attempting to assist management and labor during the recent Lenawee Stamping Corporation negotiations to keep things moving along.

“We’re pretty proactive and try to do whatever it takes,” said Holtz.

In other business, the council members:
• Adopted traffic control orders for new stop signs to be installed on several city streets.
• Approved the closing of the Tecumseh Center for the Arts Ticket Office on Wednesdays and at other times as determined by the city manager. Welch explained that ticket sales also would take place at City Hall as soon as some software is operational, adding opportunities for people to get tickets. The Parks and Rec Department also will be added at a later date for purchasing tickets.
• Authorized the Tecumseh Farmer’s Market to use the sidewalk on the southwest block of Chicago Boulevard from Evans Street to Pearl Street on Saturdays from 7 a.m. to 2 p.m., May 23 through October 17, to display and sell products. The market previously was located at the Tecumseh Area Historical Museum parking lot and is being moved for better exposure.
• Approved the purchase of five sets of Structural Firefighter Protective Clothing from Allied Fire Sales and Service of Newaygo for $7,333.
• Approved the application for Michigan Department of Transportation Office of Economic Development and Enhancement Category F Grants for fiscal year 2011 in the amount of $294,800 with the city’s portion being $58,960. The monies would be used toward repairs on N. Evans Street and E. Russell Road.
• Adopted a resolution authorizing the annexation of 10.9516 acres of land owned by the city. This is for an area commonly known as Russell Road, between Mill and Rogers Highway. Welch said the action was necessary because the state has no record of paperwork regarding the annexation. Raisin Township will adopt a similar resolution at its next meeting, Welch said.
• Approved an Earth Day Event Festival too be held at the “Pit” on April 18, from 10 – 5 p.m.