InSinkErator plans to build new HQ in Mount Pleasant

Racine facility to be reconfigured for additional production

An InSinkErator garbage disposal.
An InSinkErator garbage disposal.

Racine-based InSinkErator plans to move its headquarters to a new $24 million, 85,000-square-foot facility in the Village of Mount Pleasant.

An InSinkErator garbage disposal.
An InSinkErator garbage disposal.

InSinkErator, a business of St. Louis-based Emerson, will move 170 of its engineers and professional staff currently working at the company’s Racine facility to the Mount Pleasant building. The company will then reconfigure the Racine facility to add additional production capacity.

Racine County officials said InSinkErator considered several locations in southeastern Wisconsin and a possible relocation to St. Louis before deciding on Mount Pleasant.

An InSinkErator representative declined to comment further on the project and stressed the company had only submitted plans to the county and village.

The Racine County board of supervisors will consider a $4.65 million loan request to support the project. The six-year loan has a zero percent interest rate and requires a minimum investment of $18 million and the retention of 170 jobs during the loan period. It is completely forgivable if the company meets yearly reporting requirements, according to Laura Million, Racine County Economic Development Corp. business development director.

The Mount Pleasant village board and Community Development Authority also will review a $600,000 tax increment financing grant for the project. The project falls within tax incremental district number one, which was created in 2006. The village funding is contingent on the company making a $24 million investment and obtaining an occupancy permit, Million said.

The new headquarters will be located at the southwest corner of Highway 20 and International Drive, just north of Seda Packaging.

“We are pleased to invest in the community and support InSinkErator’s proposal to locate its headquarters in Racine County,” said Racine County executive Jonathan Delagrave. “Retaining and growing our existing Racine County companies, like InSinkErator, is imperative to fostering a healthy and growing local economy for today, as well as for future generations.”

Construction on the new facility could begin as soon as the spring, depending on land acquisition and the approval of local incentives.

InSinkErator announced in August it would begin moving some production out of the Racine facility to free up production space. The company planned to shift machining and die casting to its suppliers while continuing assembly and some stamping in Racine.

Work also was set to move to other Emerson production facilities over the course of three years, although a company spokesman declined to say where. Emerson has roughly 65 manufacturing facilities in the U.S. and another 140 around the world.

In 2014, InSinkErator leased a 160,000-square-foot building in Kenosha to add production and also planned to invest $43.7 million in new equipment and renovations to the Racine facility at 4700 21st St. The $65 million project was to be supported by $15.5 million in Enterprise Zone tax credits from the Wisconsin Economic Development Corp.

The latest report from WEDC shows the company had invested $53.17 million, creating 165 jobs and retaining 897. WEDC spokesman Mark Maley said the agency was pleased the company opted to stay in Racine County after looking elsewhere.

“We have had discussions with InSinkErator regarding how the new facility could affect the company’s existing enterprise zone contract with WEDC. Since this matter is pending, however, we’re unable to comment further on this award,” Maley said in an email.

 

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Arthur covers banking and finance and the economy at BizTimes while also leading special projects as an associate editor. He also spent five years covering manufacturing at BizTimes. He previously was managing editor at The Waukesha Freeman. He is a graduate of Carroll University and did graduate coursework at Marquette. A native of southeastern Wisconsin, he is also a nationally certified gymnastics judge and enjoys golf on the weekends.

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