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Published: 8/3/2012 | Updated: 6/17/2013
By DEBORAH GERTZ HUSAR
Herald-Whig Staff Writer
BARRY, Ill. -- A federal grant to an area utility will mean new jobs in Barry -- and the potential for future development. Winchester-based Illinois Rural Electric Cooperative will use the $120,000 grant to provide financing to Barry for construction of a sewer lift station as part of a business expansion plan that will add about 60 jobs to the area. "It's going to provide some additional gap financing for the Barry sewer project," said Shawn Rennecker, IREC director of economic development. The city used state grant funding to replace the lift station and expand sewer service across Interstate 72 to sites targeted for potential business development. Innoventor, a St. Louis-based business founded by a Barry native, broke ground in October on a $2.4 million manufacturing plant expansion. Its Innoventures LLC will be located north of the interstate next to the former Apple Basket property. The first phase of the project, a 30,000-square-foot facility, promises 60 jobs. Future plans include an additional 90,000 square feet and support structures for work on aircraft assembly and maintenance platforms, as well as the company's new technology called Thermagenisus, which converts hog manure into bio-oil. In seeking the grant, IREC referenced job creation and job retention "for a number of businesses that are served by that lift station," Rennecker said. The grant, announced Thursday, was part of a nearly $13 million investment by the U.S. Department of Agriculture to spur economic growth. Funding is being provided through USDA's Rural Economic Development Loan and Grant program (REDLG) to local utilities which, in turn, provide funds to local businesses for projects to create and retain employment in rural areas. Rennecker said IREC will loan the grant funds to the city for 10 years at zero percent interest. "Once they repay the money back to the co-op, the co-op is able to establish a low-interest revolving loan fund for economic development projects," Rennecker said. "That's what was really attractive to us, to have another source of funding for projects on co-op lines in Pike, Morgan, Scott, Greene and Calhoun counties." Twenty projects in 12 states received loans and grants designed to support job creation efforts, business development and strengthen economic growth in rural communities. -- dhusar@whig.com/221-3379
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