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Council approves EDC performance agreement to expand Cardinal Paint facility in Decatur
Summary
The Decatur Economic Development Corporation and Cardinal Paint reached a five-year performance agreement authorizing up to $280,000 in performance-based reimbursement tied to a minimum $3 million capital investment and job and payroll commitments; council approved the EDC-authorized agreement.
The City Council approved a performance agreement authorized by the Decatur Economic Development Corporation (EDC) to support an expansion of Cardinal Paint & Powder at Eagles Landing Business Park.
The agreement, approved after a presentation from Kevin Holzbaugh of the EDC and comments from company chairman Steve Silverstein, ties reimbursement to performance: Cardinal must make a minimum $3,000,000 capital expenditure at the site, obtain certificate(s) of occupancy, and within six months of commencing operations employ and maintain at least 100 full‑time employees and $3,300,000 in annual payroll at the facility.
The EDC’s financial assistance is performance‑based and limited to 7% of qualified expenditures, capped at $280,000. Payments are phased: 40% (not to exceed $112,000) within 30 days of certificate of occupancy, 30% (≤ $84,000) on the one‑year anniversary of that payment, 20% (≤ $56,000) on the two‑year anniversary, and the final 10% (≤ $28,000) on the three‑year anniversary. If the company defaults on the agreement, any assistance already paid must be returned to the EDC.
At the council meeting Kevin Holzbaugh summarized the deal points and the EDC’s rationale: “If the company only spends the minimum $3,000,000 that is required in the performance agreement, then they’ll receive the 7 percent or $210,000. If they spend $4,000,000 then they’ll receive the maximum $280,000.”
Steve Silverstein, speaking for Cardinal, said the expansion will increase manufacturing capacity and bring the company’s corporate headquarters to Decatur. “The warehouse really allows us to increase our manufacturing capacity at this plant by about over a 33% increase in our capacity at the plant,” he said. He added that the office portion will enable a future move of corporate functions to Decatur.
Councilmember Mayer moved to approve the agreement as presented and to authorize the EDC president to execute the necessary documents; the motion passed on a voice vote.
The agreement requires the company to begin construction within nine months after building permits are issued, spend the required capital within 12 months of construction start, achieve certificate(s) of occupancy within that 12‑month window and begin operations within one month of occupancy. The EDC will verify job and payroll commitments annually through documentation described in the agreement.
The EDC and the city emphasized the expansion’s local economic benefits, including job creation and corporate philanthropy already practiced by Cardinal. The council did not specify vote counts; the record shows a voice vote in favor and the mayor declared the motion passed.
