Exergonix Extends Talks For Lee's Summit Incentives

By Kansas City Business Journal

Leeâ¿¿s Summit and entrepreneur Don Nissanka have recharged their negotiations after Nissanka threatened to pull the plug on his energy storage systems plant.

The founder and CEO of Exergonix Inc. said in mid-May that he would find another city for his project if Leeâ¿¿s Summit didnâ¿¿t agree to a modified development deal.

Nissanka told the city in a letter that he needed to meet a May 31 deadline to buy an 83-acre property owned by Pfizer Corp.

Leeâ¿¿s Summit posted a news release Tuesday stating that Exergonix was seeking a two-week extension to close on the Pfizer property at Missouri Highway 291 and U.S. Highway 50.

⿿This has allowed more time for the city and Exergonix to create mutually agreeable conditions,⿝ City Manager Stephen Arbo said in the release. ⿿Public/private agreements must be well-constructed for everyone involved. The Exergonix partnership deserves the additional time and energy to make certain there is a successful outcome for all parties.⿝

Nissanka asked the city to maintain its commitment of paying $1.4 million to help buy the land in spite of dialing back the project⿿s overall size by roughly half. He now proposes building a $50 million ⿿Green Energy Park⿝ that will create 150 jobs, rather than the original plan to build a $90 million production facility and headquarters with 275 jobs.

Nissanka scaled back his projections after Exergonix failed to win $100 million in federal money to kick-start the project.

Copyright 2011 American City Business Journals

http://www.bizjournals.com/kansascity/news/2011/05/31/exergonix-extends-talks-for-lees.html?ana=thestreet

Copyright bizjournals.com 2010

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