Generac Power Systems Expands in New 170 Acre Industrial Park.

8/23/01

Company officials say that the hiring for openings at the new facility will not begin until the fall of 2001.  At an open house on July 26, approximately 600 people applied for prospective openings.  Other job seekers can apply by accessing a resume builder at the Company's web site at www.generac.com.

Generac Power Systems, Inc of Waukesha, WI is constructing a new manufacturing facility in Maquoketa. This manufacturer of electric generators will bring up to 400 quality jobs to Jackson County over the next two years as Generac expands its operations into Iowa.

Generac's new facility is located in the City's new Highway 61 Industrial Park which is located about 1.25 miles south of Maquoketa, just south of the intersection of the new 4-lane Highway 61 and Old Highway 61 (a.k.a. South Main Street or 200th Ave.) 

On Nov 12, 2000 the local non-profit economic development group called MIDAS (Maquoketa Industrial Development Assistance Service) purchased the 100-acre site which was formerly the Ben and Thelma Lary farm. More recently, MIDAS added another 70 acres to the industrial park by purchasing the farm formerly owned by Marvin Heneke.  There's also another adjacent 195 acres that are under option.

Generac began construction of its new facility in the Fall of 2000.

Under MIDAS' (Maquoketa Industrial Development Assistance Service) ownership, the initial 100 acres within the park was graded, voluntarily annexed into the City, rezoned for industrial use, and had a tax-increment financing (TIF) district formed.

At a press conference that was held in Maquoketa on Oct 27, 1999, David Lyons, Director of the Iowa Department of Economic Development said, "We are pleased that Generac Power Systems is making this investment and bringing new manufacturing to the State of Iowa. This is a fantastic beginning for this new industrial park. Having a company as prestigious as this one, with tremendous growth plans, will soon make Generac the largest employer in Maquoketa."

The Generac Corporation manufactures various types of electric generators, switch-gears, and generator parts. Generac's new "Phase One" 144,500 sq. foot building on a 22-acre site in the City's new 170-acre industrial park will manufacture a new line of 2-megawatt generators. The 22-acre site was formally sold to Generac by MIDAS in March, 2000.

The extension of sewer and water utilities from the City to the new industrial park began in earnest in the Spring of 2000.

"Generac Power Systems, Inc is very excited about our partnership with the community and the State of Iowa. The location will meet Generac's business needs through the availability of qualified labor--both manufacturing and professional--as well as a superior educational system and the business-friendly environment," said Robert Kern, Chairman and CEO of Generac. "Generac Powers Systems Inc is looking forward to a long and rewarding relationship."

Generac plans to employ up to 200 employees by the end of its first year of operation and up to 400 employees by the end of its second year of operation. The Company's expansion in Maquoketa will employ approximately 50% engineers and other professionals and 50% manufacturing personnel. The average wage for manufacturing personnel is approximately $11.00 per hour. Subsequent expansions over the next three years could yield a final building size of up to 250,000 sq. feet. The Company's total capital investment is expected to fall into the range of $10-$13 million.

Company official say that the hiring for openings at the new facility will not begin until about the Fall of 2000, but anxious job seekers can apply early by accessing a resume builder at the Company's web site at www.generac.com.

Generac currently has facilities in Waukesha, WI; Eagle, WI; and Whitewater, WI. The Company currently manufactures power generation equipment from 3.6 kW up to 2 megawatts including gensets for industrial, residential, telecommunications, and recreational vehicle applications. Generac also manufactures industrial engines ranging from 5.5 to 15 horsepower.

The recruitment of Generac was the result of a joint effort between the State of Iowa's Dept of Economic Development and Department of Transportation, U.S. Economic Development Administration, Jackson County Board of Supervisors, The Maquoketa Municipal Electric Utility (MMEU,) MIDAS, and the City of Maquoketa to amass nearly $3 million in funds in order to acquire and develop the site, plus extend municipal water, sewer, and electric utilities to the new industrial park.

"Our new industrial site will be the showcase of this region," said Maquoketa Mayor Jack Rosenberg. "It is strategically located at the intersection of the new 4-lane Highway 61 and Old Highway 61, and it's about an equal distance between Davenport and Dubuque."

The project is being financed by general obligation bonds and will match the various State and Federal grants. The bonds will repaid by a tax-increment financing district over a period of about 14 years. Since Jackson County, IA is an "Enterprise Zone" county, a 10-year 100% tax abatement was available to the Company as an incentive to locate here. After the 10-year abatement period ends, the City can claim the company's annual tax payments to retire the bonds.