- Last Updated on Wednesday, 17 December 2008 22:59
- Published on Wednesday, 17 December 2008 22:59
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The King George Economic Development Authority (EDA) approved providing a cash incentive to King George Warehouse Associates, LLC upon the purchase of the American Glass Property in the amount of $26,435.98.
The action was taken at a meeting last week on December 11, on a vote of 5-2. EDA members voting in favor of the cash incentive were Chairman Glen Moore, Rick Ballenger, Anita Churchill, Ike Hughes and Tony Zilic. Monika Philbrick and Terry Moore voted against the motion.
The incentive payment is conditioned upon King George Warehouse Associates obtaining an occupancy permit and the building being 50 percent leased within two years.
Theresa O’Quinn, county Director of Economic Development, told The Journal that closing is expected by Christmas through a credit bid with Wachovia Bank.
Wachovia foreclosed on the property earlier this year after American Glass declared bankruptcy.
The cash incentive from the EDA will be available and payable commencing December 30, 2008 and will be available until December 30, 2010.
The amount of the incentive is to mitigate the impact of back taxes owed on the property in order to encourage the use and redevelopment of the property in the King George Industrial Park, which is owned by the EDA.
The building contains 75,000 square feet on 10 acres. The former glass manufacturing plant had begun operations in March of 2005, fashioning auto glass and various other types of glass, and operated for about a year until it ceased due to cash flow problems.
The contract purchaser of the property, King George Warehouse Associates, LLC, is comprised of John Janney, Philip Atkins and Michael Colangelo.
Atkins is a well known contractor, Janney is a builder and Colangelo is a commercial/industrial realtor with Johnson Realty Advisors.
Combined, the group’s holdings total over $20M in real estate. Within the Fredericksburg region the partners have 35 tenants with only one current vacancy.
A few of their holdings in Fredericksburg include a 36K square foot industrial building on 5 acres leased on Synan Road to a steel fabricator, a 5K square foot office fully-leased building in downtown Fredericksburg, and a 10K square foot industrial building on Houser Drive.