Council hopes $30K investment spurs job growth

Walt Wood, director of the city and county Chamber of Commerce, explained to the Shelbyville City Council Thursday evening about the importance of funding a railroad spur that could possibly mean new jobs for the region.
(T-G Photo by Brian Mosely)

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The council heard from Walt Wood of the Shelbyville & Bedford County Chamber of Commerce on Thursday evening, who said that the city is a finalist for an industrial prospect that is considering the former DESA Industries building on Eagle Boulevard.

Wood said for the company to locate here, a rail extension at the site would be required.

He stated he did not like coming to the council at the last minute with the request, but the company told Wood that they needed an answer by next Tuesday whether or not the rail service would be in place by Aug. 1.

Wood said it has been "a major undertaking" working with the railroad and its consulting engineer, because they had planned a six- to eight-month construction time for the spur.

The city has already applied for a grant from the state to help fund the rail project, for which the total cost would be $562,742, but Wood added that figure would exclude any right of way acquisition for about an acre of land.

"It's fairly expensive, but I want to work with the rail authority and others to see if we can get some of the costs down and perhaps the city can do some of the grading work," Wood suggested.

Wood stated that the company intends to hire 34 people "and I intend to do everything I can to make sure they're local folks."

Councilman Al Stephenson agreed with that statement, saying that the council needed "absolute assurance" from the company that they would hire local people.

"This is Shelbyville's taxpayers' money," Stephenson said. "I think they should get the jobs if they're spending the money."

Wood said if the company applies for assistance through the Industrial Board, that requirement can be put in the agreement, which he termed "employment guarantees."

The 34 would not be hired immediately, but the company would employ that many within three years, Wood said, "and there are some additional jobs that may come."

Wood said the business would be a $7.2 million investment if it located here, which would be spent on the land, the building and equipment to be used at the proposed facility.

At least $30,000 would be required from the city for the local match for the grant and "there may be a need for additional money," Wood said.

He said earlier in the week to the county commission that the Bedford Railroad Authority would provide $15,000, and that he has "another commitment" for $15,000, leaving the city and county to fund $30,000 each.

Stephenson asked Wood if it was possible to put the $30,000 into next year's budget, which goes into effect July 1. Wood said he would think that would work, but added that the company needed to be assured that they have the city's support for the spur.

Stephenson replied that their vote for the funding would be the assurance.

But while Stephenson suggested taking the funds from next year's budget, that wasn't formerly made part of the motion that passed. City recorder Betty Lamb, who is also acting city manager, said Friday that there is money in next year's budget for the spur request.