The Quad Cities Regional Economic Development Authority Thursday paved the way for construction of an $11 million steel manufacturing and warehouse operation in Rock Island that would create at least 50 jobs.

Steel Warehouse Inc. of South Bend, Indiana plans to build its first Quad-Cities plant and warehouse on a 20 acre tract in Rock Island. The exact location will be disclosed during a media event Monday afternoon at Rock Island City Hall.

City and Quad City Development Group officials declined to give the projects location until Monday. The location also was omitted from QCREDA's resolution authorizing the sale of $6 million in adjustable-rate industrial revenue bonds.

Steel Warehouse provides steel tubing on a just-in-time basis to the John Deere Harvester Works and Case Corp. plants in East Moline, company chief executive Dave Lerman told QCREDA members in September.

The family operation began in 1947 by Rock Island native Nathan Lerman, who moved to South Bend and started the steel company to supply Midwest customers. Two of his sons, David and Ted Lerman, have joined their father in the company, as well as two of their sons.

The new operation is expected to better serve the company's existing farm-equipment customers in Iowa and Illinois and provide an opportunity to develop new customers in South Dakota, Nebraska, and farther west, David Lermer said previously.

The Lermans have been negotiating on sites with city officials in Rock Island and East Moline. They wanted to obtain financing this year and start operating locally by spring.

On Thursday, members of the authority congratulated executive director Andy Hamilton for working quickly and effectively to finance the deal. QCREDA and the Illinois Development Finance Authority raced to provide financing on the project.

The deal means QCREDA may close on two bond-financing deals totaling $12.5 million by the end of this year. The authority has given final approval on financing Plastics Products Co.'s $6.5 million acquisition and expansion project in Moline. Closing on that deal is scheduled on or near Dec. 18.

Mr. Hamilton obtained tentative approval for $4 million in volume-cap financing from Moline and Rock Island and another $4 million in additional cap financing from the Will-Kankakee and Upper River Valley Development Authorities to give the project up to $8 million in bonding authority.

The Moline City Council and the Will-Kankakee authority have approved the bonding-financing plan. The Rock Island council will address the question Monday night and the Joliet council will act on the request next week, Mr. Hamilton said.

The authority could not have financed the project without the cooperation of the other communities.

"We've opened up two important alliances for the future," the authority's chairman, Ken Schloemer, said.

A public hearing, as required before the bonds may be issued, will be at 9 a.m. Wednesday in the development group office, 1830 2nd Ave., Rock Island.

Closing on the transaction is scheduled Dec. 30.