The Logan County Industrial Development Authority (IDA) met Friday morning to vote on a measure that helps Caldwell Gasket stay in Auburn.

The IDA board approved the purchase of the building that currently houses Caldwell Gasket for $220,000. The board also approved to lease the building to Lisa Howlett, the owner of Auburn Leather, so that she can keep the company at that location when she purchases it from the current owned.

“This is going to be great for us,” said Auburn mayor Dewey Roche, who is a member of the IDA board. “It is going to help our city a lot. It’s going to save between 30 and 35 jobs and maybe add a few more in the coming months.”

According to a report filed with the Kentucky Economic Development Finance Authority (KEDFA), the company will have 40 full-time employees with an estimated wage range of $12 to $22 per hour.

The money to purchase the build came from a special economic development fund, which is overseen by the Logan County Fiscal Court.

“I think this is a very good move,” said Lewisburg Mayor Ken Whitson, another member of the IDA board. “This company has been around a long time and I can’t think of a better way to use that money.”

Tom Harned, the executive director for the Logan Economic Alliance for Development, said Howlett will have a 20-year lease with the IDA. The monthly charge will be a little over $1,200. The principal paid will go back into the Fiscal Court’s development fund, while the interest will go to the IDA to cover the administrative fees associated with the project.

Those fees have been kept to a minimum, Harned said.

“(Local attorney) James Milam and his staff have done a lot of work for this,” Harned said. “He does a lot for the IDA and he does not charge anything.”

Caldwell Gasket had said it would be phasing out its Auburn operation about eight months ago, but never completely closed its doors.

Instead, Howlett will now own both Caldwell and Auburn Leather.

The two companies share a common history, which dates back to 1879.

G.W. Caldwell began working at a small tanning business along the banks of Blue Lick Creek. Caldwell later purchased the business and it was named Caldwell Lace Leather Company.

In October when the company announced it would be shutting down, it was reported to have around 35 employees.

The project description in the KEDFA report states that Caldwell Industries plans to operate a gasket manufacturing operation in Auburn. The process will include slitting, laminating and die-cutting and their primary markets will be automotive parts, lawn care equipment, plumbing fixtures and appliances.

Over the years, the business grew and in World War II Caldwell produced many leather products for the government. Their product line later evolved into making leather laces for shoes and sporting goods and finally into the die cutting of non-metallic materials. In 1985 the present owners bought the die-cutting operation and started the injection molding operation in 1987. The leather making portion of the business was closed or sold and Caldwell family members Joe Howlett and his daughter, Lisa Howlett, purchased the original Caldwell plant and created Auburn Leather Company.