The Colusa BioInnovation Center, the name Colusa officials gave to the old Pirelli Cable Plant, has its first tenant.
The Colusa City Council, which leased the property and 40 acres from Prysmian Cable, effective Sept. 1 through June 10, 2022 (with an option to buy), has sublet 5,000 square feet of the plant to SF Metalworks.
The City is still working to acquire and rehabilitate the 200,000 square foot manufacturing facility, which has been vacant for nearly two decades, as a way to create new manufacturing jobs and generate tax revenue for the city through tenant agreement, officials said.
SF Metalworks, which has outgrown its Meridian location, is looking to manufacture building materials at the former cable plant. The company has sublet 5,000 square feet, with an option to lease up to 10,000 square feet in just a few years, Colusa City Manager Jesse Cain said.
Cain said that before SF Metalworks can move in, the site will need improvements, specifically a relocation and reallocation of panel and power distribution, which is expected to cost about $20,000. Because the city is not in the financial position to dedicate funding for the improvements, the city has negotiated an alternative to the cash rent.
SF Metalworks has agreed to make the needed improvements in lieu of the first two year’s rent at 20 cents per square foot, Cain said.
By year three, Cain said the city plans to collect 35 cents per square foot from SF Metalworks ($42,000 annually). Rent is expected to increase to 45 cents per square foot ($45,000 annually).
The City Council unanimously approved the tenant agreement on Oct. 5.
Colusa Mayor Josh Hill said the initial rent is below market rate for the property, but was set low as enticement to get companies to invest in Colusa.
Although the city initially estimated they would receive at least $1 per square foot by year five, officials said they felt that rate may be too high for a building in Pirelli’s condition.
Councilman Tom Reishe said once SF Metalworks has figured out how to make the electricity work, it would be an advantage for the city and other tenants moving forward.
“Eventually, we won’t have to lowball ourselves on the next contracts,” Reishe said. “It’s a good start.” ■