A failed real estate deal has led a manufacturing company that planned to relocate from New Jersey to Kentucky to back out of the move.
Vogelsang Corp., which produces roll pins and coil pins, had planned to move from Lakewood, N.J., to Georgetown to be closer to the automotive industry in the state.
But Dale Stuban, managing director of the company, said plans to sell its Lakewood plant fell through. He said the move had received the blessing of Vogelsang's European ownership, but only if it could be completed by Jan. 1, with all costs incurred during 2010.
Stuban said a deal had been reached to sell the 50,000-square-foot Lakewood property to an organization that planned to convert it into a Jewish private school. But the group was unable to come up with the money and backed out. A different buyer needed time to arrange financing, and "I could no longer make the guarantee that there wouldn't be expenses in 2011."
Stuban said there is a possibility the company might look to expand to Georgetown in the next 12 to 18 months, but it wouldn't be a move of the same magnitude.
Vogelsang's rapidly growing automotive business segment would need about 40,000 square feet for a satellite plant that would employ fewer than 15 people. By contrast, had the move happened, Vogelsang would have taken the former Johnson Controls property on Main Street Extended that is nearly 100,000 square feet. It also would have meant 54 jobs by Jan. 1.
Georgetown Mayor Karen Tingle-Sames wished the company luck.
"If they can get things together to come back to Kentucky to open a factory again, Georgetown would love to work with them again," she said.
Mandy Lambert, spokeswoman for the state Cabinet for Economic Development, said the company's decision was disappointing.
"But we will continue to maintain contact with the company and remain optimistic that future opportunities will arise," she said.
The state had approved Vogelsang for tax incentives of as much as $900,000 through the Kentucky Business Investment program.