MRPC News Release

Aug. 30, 2011
For immediate release

For more information, contact:

Bonnie Prigge or Kelly Sink-Blair, MRPC, (573) 265-2993

City of Owensville awarded $566,389 CDBG for industrial park infrastructure upgrades

RR Donnelley expansion secures street grant to accommodate heavier truck traffic

OWENSVILLE— On Aug. 22 Gov. Jay Nixon announced a $566,389 Community Development Block Grant (CDBG) awarded to the city of Owensville for necessary upgrades to its industrial park roadways, allowing for the expansion of RR Donnelley.

“This is really good news for Owensville and the entire region,” Nixon said while addressing employees of RR Donnelley and community leaders.

Nixon commended the leadership of the company, its workers and the local leaders who organized the project. He stressed the importance of Missouri government focusing on fiscal accountability, creating jobs and providing tools to move the economy forward.

Gov. Jay Nixon toured RR Donnelley’s manufacturing facility in Owensville on Aug. 22 before announcing the CDBG project and facility expansion.

 

RR Donnelley is a commercial printing company that manufactures books, manuals and publications for a variety of industries. Last month, RR Donnelley added two new printing presses and is currently in the process of adding three new binding lines.

The company plans to hire 105 new employees by the end of the year and invest $6 million into the local economy. RR Donnelley currently employs 340 workers at its Owensville facility in the industrial park.

The company committed to creating at least 63 new jobs and $1,757,900 in private investment for the city to complete the CDBG application. The city of Owensville committed $140,866 in local cash funds for the project. This partnership allowed the city to secure the grant, which will benefit the existing and future businesses of the industrial park.

The grant was provided through the Missouri Department of Economic Development (DED). The Meramec Regional Planning Commission (MRPC) prepared the CDBG application and will be administrating the project.

Owensville Mayor Dixon Somerville said the project would address the necessary road upgrades to handle the increased truck traffic of the park, as well as RR Donnelley’s expansion.

Somerville noted the community would greatly benefit from the increase in employment.

“Realtors in town have seen an increase in interest already,” Somerville said.

The local businesses would also benefit from the increase in population.

Somerville said the city currently has an unemployment rate of approximately 11 percent and with the 105 new employees anticipated from RR Donnelley, the community could see that rate decrease to less than 8 percent.

“It’s going to be a tremendous benefit all round for the city,” Somerville said. “It’s not just dollars for a street; the whole city is going to benefit.”

The roadways in the industrial park were originally constructed in the mid-1980s when Custom Printing, now owned by RR Donnelley, located to Owensville and became the first tenant in the park. Since that time, several other companies have located in the park, and significant commercial truck traffic has been added.

The streets were not originally designed to withstand the weight of today’s commercial trucks and have severely deteriorated. With the expansion of park businesses, the freight load is expected to increase, and the roadways are not equipped to handle the increased traffic.

The roadway improvements in the park will benefit the park’s current residents as well as future developments. The improvements will also be a key tool in the city’s marketing and promotion of the park.

John Tracy, Owensville city administrator, explained the project will upgrade Commercial Drive, which runs from Highway 19 to Springfield Road, and Industrial Drive, which is adjacent to Commercial Drive and wraps around to the south of the industrial park.

Both drives will be milled with a three-inch overlay. The concrete section on Commercial Drive will have its worn spots replaced with bio-grade support then patched, Tracy noted.

C.M. Archer of St. James is designing the project, will secure bids and inspect the work.

Construction is expected to begin by October in conjunction with other asphalt projects in the city. The project is expected to be complete by late fall or early spring, Tracy said.

“We are glad to see RR Donnelley adding employees and its investment in the community. We are glad to tie in the CDBG that MRPC wrote into that expansion,” Tracy said.

CDBG funds are available on a competitive basis annually through DED for projects such as this one, explained MRPC Project Development Manager Kelly Sink-Blair. The state receives a funding allocation annually from the U.S. Department of Housing and Urban Development as approved by Congress.

The state’s CDBG program provides grants and loan funds to cities with a population of less than 50,000 and counties with less than 200,000 to assist in a variety of public works and economic development projects. Larger cities receive funding directly from HUD.

For more information on CDBG grant opportunities in the Meramec Region, persons may contact Sink-Blair at 573-265-2993.

Return to MRPC Welcome Page

Return to MRPC Press Release Archive