VALPARAISO | It took 18 months, but Valparaiso's Redevelopment Commission finally found a buyer for the former North Coast Distributing facilities at 705 Silhavy Road.
The commission Wednesday approved sale of the property to AM Stabilizers for $2.77 million. The commission originally paid about $4 million for it as an incentive for North Coast to relocate within the city limits. The company built its new headquarters on Ind. 49 just south of U.S. 30.
AM Stabilizers is a company formed by two Japanese companies, Adeka and Mitsubishi, to buy out the Halstab Division of the Hammond Group Inc., a Hammond company. As part of the sale in July 2012, the company had to find a new location for the process.
The commission's Executive Director Stuart Summers said AM Stabilizers approached Valparaiso, and the city was not looking to steal a business from Hammond. The Hammond company will continue to make the products for AM Stabilizers until the new site is ready.
AM Stabilizers makes a plastics additive that makes PVC stable for use in a wide variety of products.
Company President Mark Labovitz named several items in the meeting room at the Valparaiso YMCA, where the commission met, from table tops and baseboard moldings to window blinds, that use the product.
The company plans to spend in excess of $1 million to renovate the office space and retool the production area. The goal is to occupy the space in early 2014, with about 25 employees, but the company expects to expand to 40. Valparaiso residents will be given priority in hiring.
The sale is expected to be final by the end of August, but Mayor Jon Costas was on hand to welcome the new arrivals.
"We are more than delighted to have you in Valparaiso. We will do everything we can to help you grow your business," Costas said.
"The cooperation we've had from the redevelopment commission and the feeling we got from Valparaiso shows the pride in the community, and we are looking forward to coming here," Labovitz said. "We want to be valued citizens of Valparaiso. We will be here for a long time."