OEDC Eyes Industrial Park to Attract Manufacturers

The Olney Economic Development Corporation is considering a $250,000 investment to begin assembling and developing a small industrial park that officials hope could provide a landing place for a modular-home factory and other manufacturers.

The proposed site covers roughly 10 acres behind Dairy Queen and Sonic. During the Olney City Council’s Sept. 14 meeting, officials said the OEDC has been looking at purchasing the lot between the two restaurants to create access from State Highway 114. The existing warehouse could be removed to open a drive into the larger tract behind it.

OEDC executive director Tom Parker said Olney currently has few development- ready industrial sites that the City can offer to companies considering a move. The project also could be the first for the city’s recently established Tax Increment Reinvestment Zone 2, and, if approved, would draw on tax revenue pledged to TIRZ 2 by the city, Young County, and the hospital taxing district.

The proposed industrial park would give the City a site it could actively market, Mr. Parker said. Early concepts call for two or three industrial buildings, with portions of the floodplain used for parking, storage yards or other purposes that do not require permanent structures.

One potential user is Fab-ulous Homes, a modular- housing company that has been discussing an Olney manufacturing operation with local officials. Mr. Parker told the Council that the company contacted him on the day of the meeting after receiving a letter of intent involving 180 housing units and asked whether Olney was closer to providing a location.

The project also could provide space for companies that make or assemble components for data centers, including the proposed Project Saltworks slated for Young County, Mr. Parker said.

Developing the property would require improving the land for potential developers. City officials discussed water and sewer service, a possible eight-inch sewer line, lift-station connections and internal access. The OEDC has also spoken with a possible tenant for the metal building at 1409 W. Main Street that would eventually be torn down to make way for the industrial park. Renovating and leasing that structure could produce revenue while the larger tract is developed.

A TIRZ captures a portion of future property-tax growth within its boundaries and uses that revenue for eligible improvements inside the zone. The TIRZ 2 board has been appointed but has not yet met or adopted a final project and financing plan. Mayor Rue Rogers urged the OEDC to move that process forward so the board can evaluate the industrial park, recommend a plan and return it to the Council in ordinance form.

The $250,000 appears in the OEDC’s proposed 202627 budget as spending from reserves. The Council reviewed that budget Sept. 14 but delayed approval so officials could revise several figures and address the handling of other funds. The budget is expected to return at the Council’s next meeting on Sept. 28.