The company plans to build a new R & D building
ST. JOSEPH – The St. Joseph City Commission approved a property tax abatement for LECO to build a $6.8 million research and development center.
The 28,400-square-foot building, to be called the Elizabeth S. Warren Separation Center, will be located at 2024 Veronica Drive. The building will be constructed in a lot bordered by Hilltop Road on the south, Cleveland Avenue on the west and Veronica Drive on the east. The property is zoned for industrial use.
The commission unanimously approved the 12-year, 50 percent abatement, which represents about $950,000 during the abatement period. Other local taxing agencies will receive $950,000 during that time, City Manager Frank Walsh said.
“I give a lot of kudos to LECO for their expansion and for keeping (the new building) in the city limits,” Commissioner Michael Garey said.
Joel DeBruyne, LECO’s vice president and secretary, said the new building is needed because of space limitations at its current research and development site. LECO creates and builds molecular spectrometry equipment.
“We anticipate much more rapid growth in the separation science,” DeBruyne said.
About 20 to 25 employees, mostly engineers, will be transferred from LECO’s current research and development building and will work in the new building, according to a project fact sheet LECO officials gave commissioners. About 105 people work at the company’s 49,600-square-foot building at 3050 Lakeview Ave.
Company officials said they expect to create five to eight new jobs within three years.
Construction is expected to cost $5.3 million, and equipment will be valued at $1.5 million.
Construction is expected to begin in April and be completed by Oct. 31, Walsh said.