SCOTT CITY -- A state grant will facilitate infrastructure improvements in Scott County that are needed for the location of a new business. Cape Milling L.L.C., a corn mill, is moving to the area, creating 31 jobs and $1.5 million in investment.

The Missouri Department of Economic Development (DED) has awarded a $299,364 Industrial Infrastructure Grant through the Community Development Block Grant (CDBG) program to Scott County. CDBG funds will be used to improve streets and the sewer system, plus extend a rail spur to the new business site. These improvements are necessary for the location of the business.

Cape Milling, a start-up company, will locate at the Southeast Missouri Regional Port Authority's Harbor Industrial Area. For this location to occur, a rail spur that currently serves the proposed site needs to be extended with a second connection track to the Port Railroad main line. A section of Harbor Road, which runs adjacent to the site, needs to be paved. The rail spur and roadwork will necessitate the installation of water, sewer and stormwater drainage.

Cape Milling will produce corn soy blend, soy fortified cornmeal and cornmeal for the U.S. foreign aid assistance program. The company plans to begin production this year, with projected sales of $25 million in the first year of operation.

In addition to the CDBG funds, the Regional Port Authority is providing funds toward the completion of the project. The Bootheel Regional Planning and Economic Development Commission prepared the application of behalf of Scott County.

CDBG funds are provided through federal sources and administered by the state of Missouri. Funds will be released to Scott County as certain requirements set forth by the program are met. The Community Development Block Grant program provides economic development grants and loan funds to cities with a population under 50,000 and counties under 200,000.