Laserfiche WebLink
INFOIZM~TIO~~~ <br />city <br />E <br />t~.ver <br />MEMORANDUM <br />TO: Economic Development Authority <br />FROM: Catherine Mehelich, Director of Economic Development <br />DATE: November 10, 2008 <br />SUBJECT: Project Update - E & O Tool & Plastics Expansion <br />Staff recently received notice from company officials indicating that construction of the <br />proposed 55,000 square foot relocation/expansion project has been postponed to Spring <br />2009. <br />Tim Osterman, President of E & O Tool & Plastics, issued this statement regarding the <br />decision, "Economic uncertainty has caused E & O Tool & Plastics, Inc. to hold off on <br />starting construction of our new facility unti12009. Though 2008 is proving to be a record <br />year fox E&O, we do expect to see customer orders start to slow a bit in the short term. <br />Long term, we expect that they will return to historic levels. Additionally, construction costs <br />are at an unprecedented high today and are expected to fall over the next six months. <br />Copper, steel, oil, asphalt are already trending downward and we want the benefit from those <br />savings. Instability in the credit markets was the final straw that helped us determine that it <br />made more sense to wait until the economy and the capital markets settled before moving <br />forward with the construction project." <br />