While Firefly Energy’s six-million-dollar loan guarantee from the city and county is getting all the press lately, there’s actually bigger news that has gone unreported.
On May 15, the City quietly approved as part of its consent agenda a business development fund loan of $150,000 to Globe Energy “for renovations, equipment, and operating expenses for their project located at 1610 W. Altorfer” in Pioneer Park.
Why is that big news? Because they’re going to be bringing 105 jobs paying an average salary of $50,000 to Peoria in the next 12-18 months, and plans to increase the number of employees to 600 within five years. For comparison, Firefly is planning to employ 65 people.
Here’s some details on Globe Energy from the council communication:
The owners/founders of Globe Energy, a female owned business, have spent 32 years developing a unique, world-patented technology that not only reduces the costs of heating large industrial buildings by 75%-91%, but also can reduce the environmentally harmful emissions caused by burning fossil fuels. The related company in England has a 25-year successful track record of installing high efficiency energy-saving systems across Europe for many large industrial customers including BMW, Dublin Airport, Renault, British Airways and Caterpillar. The U.S. Company has been granted full global rights to the technology by the founders and their U.K. entity and has recently successfully installed new heating systems in two Caterpillar facilities in the U.S.
Globe Energy has invested $3 million in the Peoria location thus far and owns intellectual property valued at $3.5 million. During Phase I of their project, which will be over the next 12-18 months, Globe Energy will renovate its building, purchase additional equipment, set up the manufacturing plant and add approximately 105 new positions with an average salary of $50,000. Phase I will require investment of $7.85 million.
Globe Energy plans to base its global business center and world manufacturing plant in Peoria to service the North American Market and then the rest of the world markets.
Within five years the Peoria operation plans to increase to 600 employees, adding positions in manufacturing, training, sales and marketing with a projected annual payroll of $32.75 million. This phase (Phase II) will involve additional investment of approximately $17 million which will be used to purchase property adjacent to their current location and to construct and build-out additional manufacturing space.
Pretty impressive track record, don’t you think? Here’s a world-class company locating here in Peoria, and yet there’s almost no coverage. Here we have a manufacturer bringing 100-600 jobs to the area, and still people talk as if manufacturing is dead and we should just put all our focus on med-tech jobs. (I’m not saying we shouldn’t go after med-tech jobs, mind you; I just think we need to have a diversity of jobs in Peoria, and manufacturing is an important part of that mix.)
Interestingly, Globe Energy may be needing rail service in the future, and since they’re located in Pioneer Park, that brings them into the whole Kellar Branch debate. For more on that, see David Jordan’s blog. Also, a big hat tip to Mr. Jordan for bringing public attention to this development through his blog.
That is fantastic news!
I wonder how the EINO’s (environmentalists in name only) in the RTA are going to deal with this news. It’s their worst nightmare … an environmentally friendly company that might desire rail access to Pioneer Park in the future.
Isn’t this exactly the kind of business that is perfect for Pioneer Park? Industrial, with the [possible] need for rail and has close access to the Interstate system. Beautiful.
David P Jordan says they will ship 5 containers a week. That’s nothing to sniff at. I’d be surprised if they weren’t aware of the whole controversy, unless someone brainwashed them about the western connection.
Now that G&D is in the area also, I wonder what their take is on rail.
Should be interesting to see how this all evolves.
Looks like we know why they are coming here:
http://www.globeenergy.com/caterpillar_uk.htm
Globe Energy came to Peoria because of Caterpillar, although that’s only a sliver of the potential market for their efficiency products. Their interest in rail may be for delivery of raw materials, but the container business (for exports) could bring some interesting developments to Pioneer Park.
G&D wants to manufacture some components for Firefly Batteries, probably the graphite foam plates. A large quantity of these may require shipment of graphite in volume, which could make rail delivery economical. They’ll probably do this at the old Foster & Gallagher site where Firefly is planning to move its HQ and R&D.
Wow! Projected annual payroll of $32.75MM after five years plus millions in capital improvements. Six hundred well-paying blue and white collar jobs are a welcome addition to Peoria.
How on earth did the Journal-Star miss this? They pay people to cover City Hall, for crying out loud. Did any of the local TV stations cover it? C.J., Billy, and David Jordan to name just three have done an outstanding job plugging the gaping holes in local MSM reporting.
I’m looking over the minutes from the May 15 meeting, and notice that this item was included on the consent agenda. No council member asked that it be taken off the consent agenda, which means that there was separate vote or discussion on this item, and it was approved unanimously.
Normally, I look at each of these items and make note (if not a post) about the ones that contain interesting information. Because of the other items on the agenda that night — specifically form-based codes — I might have been a little distracted. Still, I’m surprised none of the council members brought it off the agenda to talk it up.
As I recall, Mayor Ardis was absent due to family emergency, and it was supposed to be a long meeting. But the council whipped through the agenda kinda fast (for which I praise Mayor pro-tem Eric Turner).
I’m certainly not covered in glory personally, because I should have written about it. I was kinda surprised when I saw it mentioned on Mr. Jordan’s blog (I asked him to cross post it to PP). I had no idea they were going to expand that much. That’s a lotta manufacturing jobs.
But in general, yeah, I think bloggers like me, CJ and DPJ have found a role to play in Peoria.
It is GREAT to see any company start or expand manufacturing jobs in Peoria. Right now, the Peoria job market for manufacturing jobs consists of really low wages. The more companies that come in and the more jobs that are created, the higher wages will go due to the increased competition for those jobs.