INFORMATION#1 EDSR 11-10-2008INFOIZM~TIO~~~
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MEMORANDUM
TO: Economic Development Authority
FROM: Catherine Mehelich, Director of Economic Development
DATE: November 10, 2008
SUBJECT: Project Update - E & O Tool & Plastics Expansion
Staff recently received notice from company officials indicating that construction of the
proposed 55,000 square foot relocation/expansion project has been postponed to Spring
2009.
Tim Osterman, President of E & O Tool & Plastics, issued this statement regarding the
decision, "Economic uncertainty has caused E & O Tool & Plastics, Inc. to hold off on
starting construction of our new facility unti12009. Though 2008 is proving to be a record
year fox E&O, we do expect to see customer orders start to slow a bit in the short term.
Long term, we expect that they will return to historic levels. Additionally, construction costs
are at an unprecedented high today and are expected to fall over the next six months.
Copper, steel, oil, asphalt are already trending downward and we want the benefit from those
savings. Instability in the credit markets was the final straw that helped us determine that it
made more sense to wait until the economy and the capital markets settled before moving
forward with the construction project."