Grafton agrees to bond for Kapco expansion
Agreement will not cost village anything

By Melanie Boyung - News Graphic Staff

August 28, 2014

GRAFTON — The village board this week passed the initial resolution that will allow Kapco Inc. to obtain an industrial development revenue bond through the village to finance a major expansion project.

The initial resolution provides for bonding up to $8.5 million, the current estimated cost of the project. According to the resolution and information from Kapco, the planned project includes an addition of about 80,000 square feet to the Kapco building at 1000 Badger Circle in Grafton, and work done to setting up some new office space. The addition will also be outfitted with equipment as part of the project.

Estimates for the number of jobs that will be created by the expansion project is about 100 over the next three years.

“Part of the reason for doing the expansion is that we have some pieces of business that are right there, but until we know exactly if we do get those pieces of business … the numbers are an estimate,” said Amy Bastar of Kapco.

The bonds approved by the board are Kapco’s responsibility. The money is borrowed by Kapco and creates no financial burden or responsibility for the village; the village is simply a sponsor to the bond.

“The village board sponsors these bonds to be used by the private sector to finance a project,” said village Director of Administrative Services Paul Styduhar. “The business is responsible for all payments and there is no impact on our (the village’s) debt capacity. They (Kapco) are allowed to use our bond rating to obtain a lower bond rating in the market.”

The addition is being done in anticipation of business increases within Kapco. As more business is coming in for the company, and more business is expected to come in over the next few years, there will be new jobs in manufacturing, administrative and office positions.

“We have a lot of activity going on; that business will be coming in the next year or two years,” said Kapco CFO Paul Krejcarek.

The initial resolution does not issue the bonds. Now that Kapco has initial approval from the village, Kapco will have to find purchasers for the bonds, and residents of the village have the right to petition for a hearing and referendum on the issue, the resolution said.

Melanie Boyung can be reached at