The Industrial Development Authority (IDA) on Wednesday finalized a real estate transaction and approved a settlement agreement to buy back the shell building previously sold to Schock GmbH after the German company suspended plans to expand its operations into the U.S.
The IDA announced it would buy the building back for the original selling price, plus $750,000 in improvements made by Schock Manufacturing. last month.
Also last month, the Henry County Board of Supervisors appropriated the funds needed for the transaction, and directed the IDA to facilitate the purchase of land, building and improvements.
Henry County Administrator Dale Wagoner on Wednesday introduced a related settlement agreement and real estate purchase.
He explained that “Schock Manufacturing Inc. announced that it was suspending its plans to manufacture sinks in the United States and would not be locating to the Shell Building on Lot 8 at the Patriot Center in the Industrial Park.”
Deducted from the IDA’s $1 million price tag is $500,000 that will be returned to the Harvest Foundation. Schock also agreed to deductions of $45,553 for unpaid real estate taxes, and $9,500 in attorney’s fees for costs incurred by the county in connection with the agreement.
Schock will receive less than $500,000 for the purchase, Brandon Martin, Public Information Officer said.
Mark Heath, president and CEO of the Martinsville-Henry County Economic Development Corp., explained the reasoning behind Schock Manufacturing’s decision to halt expansion into the U.S.
Like many industries around the world, Europe’s real estate market is suffering in the post-Covid economy, he said, and added another reason is due to an agreement Schock had with another company, Elkay, which is known globally for its production of water fountains after its sale to another company that does not manufacture products in line with those produced by Schock.
Heath assured the board that Schock wants to stay in contact with the IDA, and noted that he is “convinced if and when they get around to US operation, (Henry County) will be the first on the list to be considered.”
He iterated that while there is no guarantee, he believes that based on good relations with the company, there is a high potential that Schock will bring industry to the county in the future.
In other matters at the IDA meeting:
Tim Pace, director of engineering and mapping, presented an update on a project at Commonwealth Crossing. He said bids are being sought on the grading project for Lot 2. A mandatory pre-bid conference scheduled at 10 a.m. on Feb. 28. Bids will be opened at 3 p.m. on April 11 in the Summerlin Room of the county administration building.
Pace noted that most of the required permits have been obtained, with one awaiting a signature of approval.
The IDA also welcomed to the board Barry Jarrett from American National Bank & Trust.
