MOUNT VERNON — AMG Industries will be the new owner of 1375 Newark Road. The board of the Knox County Land Reutilization Corp., aka Land Bank, voted Wednesday to accept AMG's offer of $1,050,000 for the six-acre parcel.
“Buying this property actually represents a $2.4 million investment in [AMG's] current facility at 200 Commerce Drive and 1375 Newark Road,” said Land Bank President Jeff Gottke. “It will, in turn, help to add 24 new jobs by 2022, resulting in $1.3 million additional annual payroll to the county.”
Gottke said the expansion will enable AMG to find new customers, add new products, and grow manufacturing processes.
It also enables AMG to stay in Knox County.
AMG also considered Pennsylvania and South Carolina as expansion sites. Jeffry Harris, president of the Area Development Foundation, said the ADF has worked with AMG since February to find space in Knox County in which to expand vs. moving its operations elsewhere in Ohio or out-of-state.
“There was a real risk for AMG to leave the county,” he said. “That's 118 jobs, union scale. The economic impact from that loss would have been huge.”
Harris said that AMG has held off accepting a $150,000 grant from JobsOhio to buy new machinery and equipment until it finalized its expansion plans. Now that the Land Bank accepted AMG's offer for the Newark Road property, AMG can accept the grant money and use it to buy the equipment.
The ADF is working with regional banking partners, including Ohio's Rural Business Growth Fund and the Knox County Revolving Loan Fund, to help AMG finance the $2.4 million expansion cost.
Gottke said that two applicants bid on the property. He declined to name the second one, but Angie Wise, assistant CEO of New Hope Industries, previously confirmed that New Hope submitted a bid.
“AMG is a client of New Hope Industries, so they were very concerned about New Hope because they want to continue that relationship,” said Gottke. “AMG has committed financial resources to help New Hope relocate.”
AMG's financial help is in addition to $250,000 the Knox County Board of Developmental Disabilities pledged to reimburse NHI for renovations it has made to the building over the years.
Gottke said he is working with New Hope Industries to help them relocate.
“But I have also been working with other local entities to help line up financing to help them as well,” he said.
AMG will close on the property in December. For its role in marketing the property, the Land Bank will receive 10 percent of the sale price, or $105,000.
“We are going to have substantial resources to go into the community and clean up property or assist with demolitions,” said Gottke. “This will give us some more means to carry out our mission.”
Gottke said that AMG's moving into the building will be in line with New Hope Industries' vacating the building. NHI has until April 2020 to relocate.
AMG Industries makes metallic shims, gaskets and precision stamped and welded products for the automotive and energy industries. It is headquartered in Mount Vernon and has been in the community since 1966.