Oakdale metal fabricator seeks to expand in North Fayette
A family-owned metal fabricator in Oakdale is seeking financing through the Washington County Industrial Development Authority for an expansion of its business.
Hennemuth Metal Fabricators Inc. of 6120 Noblestown Road, in business since 1954, went to the WCIDA asking for $3 million to finance the purchase of new equipment and to construct a 60,000-square-foot manufacturing building it plans to lease from DWH Properties LLC at 101 North Branch Road in North Fayette Township. Washington Financial Bank plans to lend money for the new building to Hennemuth, a maker of metal duct work for residential and commercial contractors.
According to Mary J. Stollar, senior vice president for economic development of Washington County Chamber of Commerce, Hennemuth employs seven, and it projects that it will hire an additional five when it moves to its new facility. The Washington County Industrial Development Authority acts as the conduit for a borrower to obtain a tax-exempt loan from a financial institution.
“Through the Local Tax-Exempt Note Program, a manufacturer such as Hennemuth can borrow money at a tax-exempt rate, which is typically 70 percent of the taxable rate,” Stollar explained. “This is to encourage manufacturing jobs in our state.”
The firm had a public hearing on its project last week. There is no financial liability to Washington County related to the project, but county solicitor J. Lynn DeHaven said the federal Tax Equity Fiscal Responsibility Act of 1982 requires that a county and municipality examine the project and, if they choose, adopt resolutions in support. By the county approving the resolution, it does not pledge the credit or taxing power of Washington County. The county commissioners adopted a resolution on the loan May 4 by a unanimous vote.
In other business related to the WCIDA, the commissioners approved by a separate resolution a matter dealing with another out-of-county entity. Waynesburg University on May 3 sought to refinance an amount not to exceed $16 million worth of debt. The institution of higher learning wants to refund Allegheny County Higher Education Building Authority’s college revenue bonds from 2007 and the WCIDA’s tax-exempt revenue note from 2011, and the payment of all or a portion of the costs of the issuance of the note.