The Weekly Newspaper serving the citizens of Morenci, Mich., Fayette, Ohio, and surrounding areas.

  • Front.sculpt
    SKEWERS, gumdrops, and marshmallows are all that’s needed to create interesting shapes and designs for Layla McDowell Saturday at Stair District Library’s “Sculptamania!” Open House. The program featuring design games and materials is one part of a larger project funded by a $7,500 Curiosity Creates grant from Disney and the American Library Association. Additional photos are on page 7.
    Morenci marching band members took to the field Friday night dressed for Halloween during the Bulldog’s first playoff game. Morenci fans had a bit of a scare until the fourth quarter when the Bulldogs scored 30 points to leave Lenawee Christian School behind. Whiteford visits Morenci this Friday for the district championship game. From the left is Clayton Borton, Morgan Merillat and James O’Brien.
    DNA PUZZLE—Mitchell Storrs and Wyatt Mohr tackle a puzzle representing the structure of DNA. There’s only one correct way for all the pieces to fit. It’s one of the new materials that can be used in both biology and chemistry classes, said teacher Loretta Cox.
  • Front.tar.wide
    A TRAFFIC control worker stands in the middle of Morenci’s Main Street Tuesday morning, waiting for the next flow of vehicles to be let through from the west. The dusty gravel surface was sealed with a layer of tar, leaving only the application of paint for new striping. The project was completed in conjunction with county road commission work west of Morenci.
  • Front.pull
    JUNIORS Jazmin Smith and Trevor Corkle struggle against a team from the sophomore class Friday during the annual tug of war at the Homecoming Games pep rally. Even the seniors struggled against the sophomores who won the competition. At the main course of the day, the Bulldog football team struggled against Whiteford in a homecoming loss.
    YOUNG soccer players surived a chilly morning Saturday in Morenci’s PTO league. From the left is Emma Cordts, Wayne Corser, Carter and Levi Seitz, Briella York and Drew Joughin. Two more weeks of soccer remain for this season.
  • Front.ropes
    BOWEN BAUMGARTNER of Morenci makes his way across a rope bridge constructed by the Tecumseh Boy Scout troop Sunday at Lake Hudson Recreation Area. The bridge was one of many challenges, displays and games set up for the annual Youth Jamboree by the Michigan DNR. Additional photos on are the back page of this week’s Observer.
  • Front.homecoming Court
    One of four senior candidates will be crowned the fall homecoming queen during half-time of this week’s Morenci-Whiteford football game. In the back row (left to right) is exchange student Kinga Vidor (her escort will be Caylob Alcock), seniors Alli VanBrandt (escorted by Sam Cool), Larissa Elliott (escorted by Clayton Borton), Samantha Wright (escorted by JJ Elarton) and Justis McCowan (escorted by Austin Gilson), and exchange student Rebecca Rosenberger (escorted by Garrett Smith). Front row freshman court member Allie Kaiser (escorted by Anthony Thomas), sophomore Marlee Blaker (escorted by Nate Elarton) and junior Cheyenne Stone (escorted by Dominick Sell).
  • Front.park.lights
    GETTING READY—Jerad Gleckler pounds nails to secure a string of holiday lights on the side of the Wakefield Park concession stand while other members of the Volunteer Club and others hold them in place. The volunteers showed up Sunday afternoon to string lights at the park. The decorating project will continue this Sunday. Denise Walsh is in charge of the effort this year.

Palm Plastics to expand in Bowling Green 3.25.09

Written by David Green.


From Wall Street to Main Street in 24 hours. David Munson didn’t think the effect of the Lehman Brothers collapse would reach Michigan that fast.

Munson, the director of corporate affairs for Palm Plastics, remembers how an important step in the company’s expansion project was nearly complete when the banking giant failed.

“We were right on the edge of getting the job done when Lehman Brothers folded, and that was it,” he said.

Since then, financing for development projects has been nearly impossible to find. In Palm’s case, no builder can come up with the cash to construct the new facility costing at least $7 million. In the meantime, Palm continues to face strong demands from customers to make more product.

The existing plant in Morenci is filled to capacity and there’s no more usable space at the temporary operation in Fayette. To meet demand, Palm was forced to locate additional manufacturing space.

The only really suitable facility found in the area, Munson said, is a former plastics factory in Bowling Green, Ohio. The building includes chillers, a heavy duty electrical distribution system, resin storage silos—most everything needed for Palm’s operation.

All equipment in the Fayette location will be moved to Bowling Green and some equipment now in storage will also be installed there.

The existing 250-some jobs in Morenci will remain here, but the expansion project called for an additional 132 jobs.

No one is happy about the change in plans, Munson said, and hope remains to use the more than $7 million worth of state grants and incentives to build in Morenci.

The state funds come with a two-year  window for development, Munson said, and that money is key to the Morenci expansion.

The delay also puts Morenci’s industrial park road project on hold, since the $900,000 CDBG funds are tied to job creation.

“Until the jobs are created,” Munson said, “Morenci will not get that money.”

Developers and builders are ready to move forward on Palm’s expansion, but the search for funding leads to a dead end.

“We don’t know when that may change,” Munson said, “but we can’t ride it out for a year.”

He has pages and pages of business cards from potential builders and their lenders, but he’s never seen the capital market shut down to this extent.

When the expansion project was announced last October, initial plans called for Palm to begin leasing a new building in Morenci this spring.

“Everybody has done everything to expedite this,” Munson said. “We didn’t foresee how difficult the economy was going to become.”

Until that changes, much of Palm’s production will move from one temporary facility to another.

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