The village might help a local aircraft-parts manufacturer secure a loan of $8 million to expand its operation in the village in the next year, officials said Monday night.
Arrow Gear, which manufactures gears for aircraft gearboxes, has asked the village to issue $2.3 million in industrial revenue bonds in 1997 to help the company expand its operations over the next three years. The 32-year-old company is seeking the loan so it can build a 23,000-square-foot addition to its 120,000-square-foot plant on 18 acres at 2301 Curtiss St. and begin manufacturing and testing the complete gearboxes instead of separate components. In addition, the money would be used for staff training, moving costs and equipment.
Industrial revenue bonds can be issued by a home-rule community or the state. If approved, the bonds for Arrow would be issued under the village’s authority, but Downers Grove would not be responsible for the payments–bond-holders must seek repayment directly from the company.
The bond issue, which offers lower interest payments for the borrower, would be contingent upon whether Arrow can secure additional industrial revenue bonds from other home-rule communities or the state to get the rest of the needed money, officials said. The company is working with the state to do so, village attorney Daniel Blondin said.