Cody Laboratories Expansion Plans Set Cody Laboratories is ready to take preliminary steps toward expanding its pharmaceutical manufacturing operations in Cody’s North Industrial Park.
In the long-awaited announcement issued by email Tuesday, Cody Labs spokesperson Robert Jaff said the pharmaceuticals manufacturing company expects to soon begin the engineering and planning work needed to expand the facility on Road 2AB. The $45 million expansion project is expected to reach completion by 2019.
Jaffe said when the project is finished, Cody Labs expects to add approximately 35 new positions to its current staff of 126.
“It’s the first big ‘yes’ from Lannett Company to expand Cody Labs,” said James Klessens, Forward Cody chief executive officer.
He said this is the beginning step to the company’s multiple-building campus that promises to give Cody and the Big Horn Basin a huge economic boost.
If built, the production facility would go to the east of Forward Cody’s warehouse completed in April 2015 for lease to Cody Labs. A corridor will connect the warehouse to the proposed build-out, which Klessens said is about half the size of the full campus.
“By doing this, it makes it easier for them to incrementally add on over the coming years,” he said. “They’re making a significant investment in Cody and we expect they will continue to do so.”
Given the expansion is likely 2-3 times the size of many large Wyoming school building projects should mean work for local contractors.
“There’s going to be quite a bit of opportunity for contractors and subcontractors,” Klessens said.
He believes the 35 new positions will require a range of skill levels and education and carry a projected average annual salary of $55,000, a little more than $26 per hour. Entry-level jobs would pay around $14 per hour.
Completion by 2019
Although the announcement means Lannett Co. is giving a “green light” to planning and engineering work, it doesn’t mean a commitment to build the facility, cautioned Klessens. That’s a decision for the board of directors of Lannett, the Philadelphia-based parent company that owns Cody Labs.
“Once approved, construction is scheduled to begin in the second half of 2017,” Jaffe said. “Cody Labs expects the plant to be operational by early 2019.”
The company will use its building on West Yellowstone for laboratories, small volume manufacturing and manufacturing of pharmaceutical solutions, he added.
Klessens expects the procurement process used to line up contractors will follow 6-8 months of design work. Construction should take about 18 months.
“We’ll lease the property the campus is built on, but it’s all tied together into one package,” he said.
Once the Lannett board decides to build, Klessens predicts it will lead to a project costing hundreds of millions of dollars.
“Fortunately, we’ve been able to set the stage in the community to make that work,” he said.
Long awaited start
The announcement is one community leaders have been working toward as far back as 1999 when the Cody
Land Development Corporation began pushing to acquire the entire North Industrial Park property from the Bureau of Reclamation. Once bought, the land was prepared for heavy industrial development.
“Our intent was to make available the necessary land for this project,” Klessens said.
A major funding hurdle was cleared when the Wyoming Economic Development Large Project loan program was created two years ago.
Jaffe said Cody Labs intends to apply for the State loan. Authorized by Senate File 97 to finance the purchase, construction and installation of buildings or equipment, the loan is for a minimum $5 million at a minimum 1 percent interest rate. Applicants must contribute at least three times the requested loan or loan guarantee.
The large economic development loan was created and made available statewide after Park County Sen. Hank Coe, along with Park County representatives David Northrup and Sam Krone, took a funding request to the Legislature in 2014. Initially called the Cody Labs Bill, the act created an attractive funding venue for anyone seeking large project funding.
‘Exciting stuff’
Coe’s reaction to the Cody Labs’ expansion was nothing but positive.
“I think it’s a wonderful deal and I’m really excited,” he said.
“It’s exciting stuff when you look at the downturn in the economy,” he added, pointing to the advantage of economic growth and diversity outside the mineral industry, especially given the negative affect declining prices have recently had on state and local government budgets.
Coe said while there’s no guarantee the State will award Cody Labs the low-interest loan when the company applies, the accessibility is there for them to pursue.
Community effort
Adding a “hats off to James Klessens at Forward Cody,” the senator praised the economic development CEO for his work, especially on a recent voluntary reclamation project.
Describing the entire process as “a marathon, not a sprint,” Klessens credited a community group effort for reaching the point today where the land is “shovel ready.”
“All decisions have led to what we have in front of us,” he said. “It’s important for people to understand — this is a big deal for Cody.”
Cody Labs’ announcement to expand comes as a reward for preparation over years by not just the CLDC, Forward Cody and the State legislators, but also actions by the City and Park County. To prepare the site, the City built infrastructure and the county commissioners helped Forward Cody considerably on the environmental side as Klessens dealt with the lengthy process of environmental remediation after a small amount of hazardous material was found at the site.
“It’s not been wasted time,” Klessens said. “All of that is not an effort in futility; it’s all been done for a purpose. I think that purpose has manifested itself.”
