The Athens County Port Authority has received preliminary state approval for $5.73 million in loans and bonds, which could be used to help the largest company at Ohio University's business incubator expand its operations and potentially relocate.
After an assessment of the company's current production and goals, officials from Diagnostic Hybrids Inc. have determined that the company should add about 100,000 square feet of work space to meet its hopes for the future, said Geoff Morgan, vice president and chief financial officer.
Officials at DHI, which is currently situated in OU's Innovation Center off West State Street, have considered either expanding or relocating to several locations in Athens. However, company officials said at a meeting last week they were focusing on the McBee plant on East State Street, said Maria Smith, a spokeswoman for the state Department of Development.
Jack Bortle, board chairman for the Athens County Port Authority, said that if the property was larger than the space for which DHI is looking, any extra space could be leased to other businesses, but he declined to identify the potential purchase.
Smith said DHI officials have estimated a need for $3 million for the purchase of the building and land, and an additional $3 million for renovations.
In 2004, DHI had been considering an expansion on the property adjacent to its current building at The Innovation Center. Morgan said the company also has considered other properties, and will not rule out any possibilities until a final decision is made.
We are looking at all of our long-term options
he said.
If DHI settles on a property selection, the $5.73 million would need to be approved by the State of Ohio Controlling Board before the port authority would receive the money. The port authority then would purchase the selected property, and DHI would lease all or some of the space in the building, Morgan said.
Though the building itself likely would not cost $5.73 million, renovations and other projects could add to the cost, Bortle said, adding that project coordinators would eat that money up pretty quickly.
According to a news release from the office of Gov. Bob Taft, the $5.73 million total includes a $2 million, 15-year direct loan; a $1 million, 10-year Research and Development Fund loan; and a $2.73 million Ohio Enterprise Fund bond, to bear interest at the rate established when the bond is sold.
DHI, which produces medical kits to diagnose infectious diseases, employs about 150 people, Morgan said. 17
Archives
Kantele Franko
