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Council authorizes Chapter 100 bonds for WG Transformers expansion; company anticipates May site work
Summary
Washington's council unanimously approved an ordinance authorizing taxable industrial revenue bonds to support a WG Transformers USA LLC expansion, enabling a Chapter 100 abatement package; the company representative said site grading could begin in May, though equipment lead times may delay operations.
The Washington City Council on April 20 unanimously approved an ordinance authorizing the issuance of taxable industrial revenue bonds for WG Transformers USA LLC, a Chapter 100-style transaction that will facilitate a package of property-tax abatements tied to an expansion project.
Associate attorney Nick Weaver of Gilmore & Bell told the council the Chapter 100 structure is a paper transaction used to enable real and personal property abatement for developers. "This ordinance before you is approval of a chapter 100 project," Weaver said, clarifying the bond documentary mechanics and the proposed abatement: ten years, 50% personal-property abatement and 50% real-property abatement on assessed value above the current base.
A company representative, Stacy, said the project team hoped to begin grading by the start of May but cautioned that some equipment lead times could delay full operations. "We hope by the start of May we should be starting some grading and moving forward," Stacy said, noting construction progress may be faster than equipment delivery timelines.
Councilors expressed support for the project as an economic-development priority; the ordinance authorizing up to $77 million in taxable industrial revenue bonds passed by roll call on second reading.
Next steps: the city will enter required agreements related to the bond issuance and the developer will move forward with site work and permit processes; staff and legal counsel will finalize documentation tied to the Chapter 100 approvals.
