Henny Penny, a manufacturer in Preble County, is planning a $7.5 million expansion adding 44,000 square feet of manufacturing and office space to facilities in Eaton.
The expansion will be assisted by the Warren County Port Authority.
“If all goes well, we will close on this tomorrow,” Martin Russell, executive director of the port authority, said after the authority board voted Tuesday to authorize Russell to sign the deal with Henny Penny.
The agreement with Henny Penny is much like those the port authority has developed in assisting with projects by the Miami Valley Gaming racino, as well as ADVICS and Fex Ex in Lebanon, and Pratt Industries in Lewisburg, Preble County.
The port authority takes a ground lease on the land upon which the new facilities will be constructed. Once the building is completed by Henny Penny, the company conveys ownership to the port authority, which leases it back to the company for operation.
After 10 years, Henny Penny is expected take ownership.
As a result, Henny Penny is expected to save more than $200,000 on sales tax for construction materials.
The port authority and Preble County are expected to split $67,000 in fees. This helps Preble County make up for sales tax it would otherwise have received on the project.
Henny Penny is a manufacturer of cooking and food service equipment used by restaurants including McDonald’s.