Job Creation

Winston-Salem, NC Economic Development Partnership Secure Herbalife Expansion

Global nutrition company Herbalife Ltd. announced plans for an expansion of its innovation and manufacturing facility in Winston-Salem, NC.

Herbalife

Herbalife (photo – herbalife.com)

Supported by the NC Commerce Dept, Economic Development Partnership of North Carolina, Forsyth County, City of Winston-Salem and economic development group Winston Salem Business, Inc., the company will invest $3.5 million by the end of this year and create 301 new jobs by the end of 2018.

The new jobs will have an average annual wage will be $54,506, notably higher than the $47,624 average annual wage in Forsyth County. Herbalife already has 404 employees in Forsyth County, and the new jobs will expand its manufacturing workforce as well as add to the company’s global IT presence.

These new jobs are in addition to the 500 jobs the company is in the process of creating at this facility as part of a previously expansion three years ago.

Governor Pat McCrory, who made the announcement of the new expansion at the Herbalife plant, said in a release that Herbalife is nearly doubling its workforce and its commitment to North Carolina. The Governor added that these new jobs will be a boost to the Piedmont Triad region.

Globally, Los Angeles, CA-based Herbalife Ltd. (NYSE:HLF) has over 7,800 employees, and generated net sales of $5 billion last year.

David Pezzullo, Herbalife executive vice president, worldwide operations, said in the release that their newest and largest facility in Winston-Salem is integral to the company’s global growth, and added that they are excited to be embarking on this next phase of investment.

Winston-Salem Business Inc. (WSBI), the economic development organization serving Winston-Salem and Forsyth County, has been working with the company since last summer to convince them that the area would be an ideal location for this expansion too.

In order to secure the project, North Carolina has offered Herbalife incentives through the Job Development Investment Grant (JDIG) program that could save the company up to $3 million. The award is in the form of twelve annual reimbursements equaling 41 percent of the company’s state personal income tax with-holdings for the eligible new jobs created.

North Carolina Commerce Secretary John E. Skvarla, III said in the release that this is yet another example of the state’s performance-based incentives helping a local manufacturer expand.

As a result of this award for Herbalife, another nearly $1 million from the JDIG program will be made available to fund infrastructure improvements in economically distressed counties. Whenever a JDIG is awarded by the state to support a project in relatively well-off locations such as Forsyth County, the program requires that a percentage of the award be allocated for investments into economic development in distressed communities.

Apart from the North Carolina and Winston-Salem economic development teams, the Herbalife expansion project was also supported by the Winston-Salem Chamber of Commerce, Forsyth Technical Community College, and the North Carolina Community College System.

Life Floor Shifts Manufacturing to Madison, SD Facility

Life Floor, a company that is leading the way with a new type of resilient flooring, has opened its first U.S. manufacturing facility in Madison, SD.

Life Floor

Life Floor (photo – lifefloor.com)

Supported by the South Dakota Governor’s Office of Economic Development, Lake Area Improvement Corporation, REED Fund and the Heartland Rural Electric Fund, the company has opened its manufacturing unit within the Falcon Plastics manufacturing facility in Madison.

Life Floor has been shipping its products from a manufacturing location in Vietnam. Their decision to open a new U.S. manufacturing facility for domestic customers will not only have an impact on South Dakota economic development, but will also enable job creation at the company’s headquarters in Minneapolis, MN.

In a release announcing the opening of their South Dakota facility, Life Floor CEO Jonathan Keller said it became clear that this was the best move for them, citing the skill of South Dakota’s workers and the decreased environmental impact of no longer having to ship their product across the ocean.

Keller also mentioned the speed with which consumers can now get Life Floor. The factory in Madison is using lean manufacturing and JIT (just in time) processes to deliver their product straight from the factory floor to customers, thus reducing lead times and eliminating the need for warehouse space to store inventory.

The story behind Life Floor’s resilient flooring product is also actually quite interesting. A flip-flop maker in Vietnam came up with a new type of revolutionary foam that made their flip-flops tough and wear-resistant for years. It wasn’t a good idea to use it for footwear, but the technology made its way to theme park and pool flooring in the U.S.

Life Floor was founded in 2011, and the company’s aquatic flooring products are now being used by everyone from Disney Resorts to Six Flags and the YMCA. The tiles improve comfort and safety in pools, bathrooms, spas, patios and just about any place where people are around water.

The company picked South Dakota for its U.S. manufacturing operations because they needed a partner who could help them get started quickly and provide expertise on how to streamline the manufacturing process. That’s where Falcon Plastics comes into the picture. Falcon has three molding divisions in South Dakota, and they were interested in helping Life Floor establish manufacturing operations for their innovative resilient flooring products.

Keller added in the release that there are a lot of opportunities ahead of them right now, and expressed confidence that they’re in great shape to take advantage of these opportunities.

Greenwood, Indiana Economic Development Incentives Secure Tilson HQ Expansion

Professional employer organization Tilson is expanding its headquarters operations in Greenwood, IN.

Tilson

Tilson (photo – tilsonhr.com)

Supported by the City of Greenwood and state incentives approved by the Indiana Economic Development Corporation, Tilson plans to invest $1.55 million to renovate and expand its current headquarters.

The company expects to create 245 new jobs in Greenwood over the next five years, and will be looking at sites that will support its long-term growth plans. Tilson already has 70 existing headquarters employees in Greenwood.

The fact that the company decided to invest in their current headquarters while continuing with their process to select a long-term site ensures that Greenwood will continue to stay at the top of their list when it comes to the permanent headquarters.

Tilson’s integrated human resource management solutions are customized for their clients, with specialization in areas such as benefits, compensation, HR information systems, employee relations, health and wellness, risk management, etc.

Tilson Founder, President and CEO Brent Tilson said in a release that their investment is not only in Tilson, but in small to midsized businesses across the state and nation, and added that they appreciate the state and community’s support as they grow.

Apart from their headquarters in Greenwood, IN, Tilson also has another location in Scottsdale, AZ. The company recently acquired Phoenix-based Amerisource HR.

In order to secure the expansion for Greenwood, the IEDC has offered the company up to $1,525,000 in performance-based tax credits. Tilson will also get up to $100,000 in training grants tied to its job creation plans in the state. The city’s Common Council is additionally considering approving Greenwood economic development incentives for the project.

Tilson itself has been growing fast, experiencing a 51 percent increase in employees under management over the last year. But in addition to the impact of the company’s own expansion and job creation plans, Tilson’s economic development value also lies in its ability to shore up other businesses.

Brent Tilson said it is proven that companies that use PEOs like Tilson thrive, noting that these companies grow faster, have lower employee turnover and are less likely to go out of business.

Greenwood Mayor Mark Myers said in the release that thriving businesses are good for Greenwood and for Indiana. Mayor Myers added that Tilson’s contribution to the city of Greenwood and business nationwide over the last 20 years is exactly what they hope for from their local businesses.

Kentucky Economic Development Incentives Support Tyson Foods Expansion in Robards

Tyson Chicken Inc., a subsidiary of Tyson Foods Inc., announced plans for an expansion of its poultry operations in Robards, KY.

Tyson Foods

Tyson Foods (photo – Capital Area Food Bank of Texas/flickr)

Supported by Henderson County and state tax incentives approved by the Kentucky Economic Development Finance Authority, Tyson Chicken will invest $8.2 million to install a new freezer and more work stations.

The expansion project will enable Tyson Chicken to add another 91 new jobs at the facility, which already employs about 1,200 people with a combined annual payroll of more than $38 million.

Noel White, president of poultry for Tyson Foods, said in a release announcing the expansion that they’re very proud of their team members in Robards and are pleased to bring additional jobs to the community.

White added that they are also grateful to KEDFA and everything it has done to make this project possible. To support the company’s investment and job creation plans, KEDFA has preliminarily approved up to $750,000 in tax incentives for the company through the Kentucky Business Investment program.

Tyson Chicken has additionally been approved for up to $100,000 in tax incentives through the Kentucky Enterprise Initiative Act. The company will also be able to access workforce recruitment and training support through the Kentucky Skills Network.

Governor Steve Beshear said in the release that Tyson Chicken has been a vital company in Henderson County for the last 20 years. The Governor added that they appreciate Tyson’s ongoing commitment to this community, and applaud its growth.

Apart from the jobs supported by the Tyson Chicken facility, the Robards plant’s operations also contribute to the region’s agricultural economy. In the last fiscal year, the company spent $15 million to purchase Kentucky grain, and paid more than $29 million to family farmers who supply the chickens for the plant.

State Rep. Suzanne Miles said in the release that this announcement will not only benefit Tyson and its employees but also other companies and farmers who support the Henderson County plant’s production.

Henderson County Magistrate Butch Puttman said it is great news to see existing companies continue to invest more, and added that Henderson County is pleased it could help with the incentives to make this happen.

Springdale, AR-based Tyson Foods, Inc. (NYSE: TSN) is one of the world’s largest producers of beef, chicken, pork and prepared foods, supplying customers across the U.S. and 130 countries. The company has approximately 124,000 team members spread across more than 400 facilities.

Ellsworth AFB Enhanced Use Lease Program Attracts Advance Health Jobs to Rapid City, SD

Healthcare technology company Advance Health will open a new site at Ellsworth Air Force Base in Rapid City, SD.

Ellsworth AFB

Ellsworth AFB (photo – USAF)

Supported by the federal Enhanced Use Lease Program and the Rapid City Economic Development Partnership, the company expects to create more than 300 new jobs in South Dakota during the next three to five years.

This makes Advance Health the first private sector company in South Dakota to partner with Ellsworth AFB under the Enhanced Use Lease Program.

The EUL program, authorized by Congress, allows federal agencies and departments such as VA and the Department of Defense to lease underutilized property on federal facilities to developers, who can then make improvements and lease it to private businesses. The property remains under U.S. government control, and the federal facility in question receives rent or in-kind services.

It has become a useful economic development tool that assists communities trying to diversify local economies after being impacted by base closures or defense spending cutbacks.

Governor Dennis Daugaard said in a release announcing the project that through the EUL Program, Advance Health gains turnkey office space and the Air Force is able to lower the base’s operating cost by adding a tenant.

The Governor noted that this is a win-win for South Dakota business and the base, and added that they are optimistic that other companies will soon be forming partnerships with the Air Force Base, as well.

This will be Chantilly, VA-based Advance Health’s third location. The company chose Ellsworth AFB after an extensive site selection process that considered sites across the nation to determine the best location for this project.

Advance Health CEO Brian Wise said in the release that they think Rapid City, SD offers a talented workforce, a great cost of living and beautiful site to expand to. Advance Health COO Kevin Davis added that they’re looking forward to growing and becoming part of the community within South Dakota.

Rapid City Economic Development Partnership President Ben Snow said in the release that they are delighted to welcome Advance Health as the newest member of the region’s business community.

Advance Health’s presence may also help improve the region’s health care services and industry. The company provides health assessments and care coordination for seniors and others in need of acute care, and they provide care directly into a patient’s home.

Snow noted that Advance Health represents advances in both healthcare and technology, two of the region’s key growth industries. He added that the Advance Health jobs will offer great wages and benefits, which he said will provide upward mobility for many individuals in their workforce.

Tenable Network Security Expansion Positions Howard County, MD as Cyber Hub

Continuous network monitoring software firm Tenable Network Security is expanding its headquarters operations in Columbia, MD.

Howard County, MD Cyber Central

Howard County, MD Cyber Central (photo – hceda.org)

Supported by the Maryland Department of Business and Economic Development (DBED) and the Howard County Economic Development Authority (HCEDA), Tenable plans to add hundreds of new full-time jobs over the next five years.

The company, which was founded in 2002, already has 230 employees in Howard County. Its continuous network monitoring solutions are now used by thousands of organizations ranging from Fortune 500 companies to the U.S. Department of Defense. In addition to its global headquarters in Columbia, MD, Tenable also has offices in London, Munich and Singapore.

In order to secure this expansion and support the company’s job creation plans, Howard County and Maryland have offered the company a total of $1.1 million in state and local incentives.

DBED is providing a $1 million conditional loan to Tenable through the Maryland Economic Development Assistance Authority and Fund. HCEDA is additionally offering the company a reimbursable workforce training grant of up to $100,000.

Governor Larry Hogan said in a release announcing the project that Tenable’s expansion is great news for Maryland’s economy and the cybersecurity community.

DBED Secretary Mike Gill added that Tenable is another example of the rapidly-growing technology companies with innovative products, visionary leaders, and an entrepreneurial culture that are born and bred in Maryland.

Tenable Network Security CEO Ron Gula likewise responded that Tenable is proud to call Maryland home, and added that the Baltimore-DC area is an ideal location to hire the talented people they need to grow and remain competitive.

Howard County, which bills itself as Cyber Central, offers a unique location in between Washington, D.C. and Baltimore, allowing companies located here to connect with a dense concentration of tech industries and to leading government agencies and military institutions.

This includes, among others, the NSA, DHS, the National Institutes of Health, Social Security Administration, Johns Hopkins University Applied Physics Laboratory, Ft. Meade, and Aberdeen Proving Grounds.

Howard County has been ranked as one of the most technologically advanced communities in the United States. The Baltimore-Washington region is likewise one of the most highly educated metropolitan areas and the highway network allows employers to tap into a highly qualified workforce of more than two million people within a 30-mile radius of Howard County.

Howard County Executive Allan H. Kittleman said in the release that the growth of Tenable’s Columbia headquarters not only strengthens the company, but also continues to position Howard County as a critical cyber hub in the nation.

Ohio Approves Incentives for Columbus Region Economic Development Projects

For the second time this month, the Ohio Tax Credit Authority announced approval of tax incentives for a large number of economic development projects across the state, including several major projects located in the Columbus region.

BrewDog

BrewDog (photo – Matthew Black/flickr)

All told, the TCA approved tax incentives for 17 projects that are expected to generate nearly $173.5 million in investment statewide and result in the creation of 1,758 jobs with $67.1 million in new payroll, and the retention of another 2,551 jobs.

One of the key Columbus region projects for which tax incentives were approved is the recently announced BrewDog USA brewery project. Scottish craft brewery BrewDog announced earlier this month that they have selected the Columbus region as the site for their first American brewery and North American headquarters.

The company is investing $30.4 million, and will construct a 100,000-square-foot facility on a 42-acre site in the City of Canal Winchester, OH. The project is initially expected to create 115 new living wage jobs. In addition to the brewery and U.S. headquarters operations, the facility will also house a restaurant, taproom and visitor center.

BrewDog Cofounder James Watt said in a release that the people of Ohio have absolutely bowled them over with their enthusiasm, passion for beer and warm welcome. Canal Winchester Mayor Michael Ebert likewise said they are very happy that BrewDog chose Canal Winchester as their U.S. Headquarters and their first production facility in the U.S.

Mayor Ebert added that this project is not only a great manufacturing project for the community, but also will prove to be a major draw for tourism that will benefit the entire region.

The BrewDog project received economic development support from City of Canal Winchester, Columbus 2020, and JobsOhio. BrewDog is getting a package of state and local incentives that includes a 60 percent, eight-year Job Creation Tax Credit (JCTC) approved by the Ohio TCA.

City of Canal Winchester economic development incentives for the project include a 15-year, 100 percent property tax exemption on the building improvements. This incentive is valued at more than $2,700,000 over the 15-year term. The City has additionally waived over $325,000 in utility capacity and building permit fees.

Other Columbus region projects approved to receive Ohio tax incentives include nddPrint, Inc., PCCW Teleservices, Inc., Schoola Inc., LLC and Valeo North America, Inc.

Brazilian IT solutions company nddPrint announced plans to establish its North American headquarters in the Columbus region at a site whose location is yet to be determined. The company will invest $135,000 and create 20 new jobs. The Ohio TCA has approved a 50 percent, six-year JCTC for this project.

PCCW Teleservices is expanding in Dublin, OH by leasing additional space and adding 175 new jobs to its Columbus Region workforce. The company will also create 300 new seasonal jobs in Dublin for a six-month project that could be extended further afterwards.

PCCW Teleservices President Dave Shapiro said in a release that they are excited to expand their presence in Dublin by taking advantage of the youthful and energetic talent pool.

City of Dublin Economic Development Director Colleen Gilger noted that PCCW Teleservices’ decision to expand its presence validates the benefits Dublin brings to the business support services industry cluster. The Ohio TCA has approved a 50 percent, six-year JCTC for this project.

Schoola, an e-commerce company that collects and sells gently used children’s clothing and then returns 40 percent of sales back to the schools, is establishing new operations in the City of Columbus that will create 225 new full-time jobs. The company has been approved to receive a 50 percent, eight-year JCTC for this project.

Automotive supplier Valeo is creating 85 new jobs as a result of a new project in Perry Township, OH. The TCA has approved a 45 percent, seven-year JCTC for this project.

ProCom Heating Expansion Plan Brings More Jobs to Bowling Green, Kentucky

Vent-free gas heating appliance manufacturer ProCom Heating, Inc. is expanding its operations in Bowling Green, KY.

Kentucky

Kentucky (photo – CJ Sorg/flickr)

Supported by tax incentives approved by the Kentucky Economic Development Finance Authority, the company will make a capital investment of $19,171,338 in Bowling Green and bring 37 new full-time jobs to the region.

As part of the expansion, ProCom intends to increase its existing 148,000-square-foot space into a total of 450,000 square feet by 2020 in three phases to add manufacturing space and equipment, office space and then a new building for warehouse space.

ProCom Heating manufactures and distributes vent-free gas space heaters, fireplace systems, gas stoves, garage heaters, outdoor construction heaters and other such products.

The company started as a Chinese company, and then became a U.S. firm known as Universal Heating based in Yorba Linda, CA. After a joint venture with Desa International in the interim, the company became ProCom Heating in 2012.

The sweeping new expansion is especially significant for Bowling Green economic development given that Brea, CA-based ProCom Heating only took up this facility in Bowling Green three years ago for manufacturing its outdoor heating equipment. They now plan to move all their manufacturing and assembly operations from China to Bowling Green.

ProCom Heating President Kirk Kirchner said in a release that Bowling Green was at the center of their industry for many years and provided them a great opportunity to tap into an experienced and talented workforce. Kirchner added that they look forward to once again reasserting South Central Kentucky as the leader in the gas appliance industry.

Governor Steve Beshear said in the release that he is incredibly pleased that ProCom Heating has decided to build on its strong foundation in Bowling Green and further its relationship with the Commonwealth.

In order to secure the project, the Kentucky Economic Development Finance Authority has preliminary approved performance-based tax incentives of up to $850,000 for the project. This includes $100,000 in tax incentives through the Kentucky Enterprise Initiative Act, and another $750,000 through the Kentucky Business Investment program.

The company will also be able to take advantage of workforce recruitment and job training services provided by the Kentucky Skills Network.

Bowling Green Mayor Bruce Wilkerson said in the release that Bowling Green is proud to have a company like ProCom Heating show a vested interest in the community by choosing to expand its operations in the city.

Warren County Judge-Executive Mike Buchanon added that in the three years ProCom Heating has called South Central Kentucky home, the company has shown a great commitment to the region.

Anaheim to Consider Tax Policy for Potential $1B Disney Investment in Disneyland Resort

Walt Disney Parks and Resorts is considering a potential $1 billion investment plan at the Disneyland Resort in Anaheim, CA.

Disneyland

Disneyland (photo – dzhingarov/flickr)

If Disney decides to go ahead with this plan, they will not need Anaheim economic development funding or bond financing for the project. But they are looking for an extension of the entertainment tax agreement the City has with Disney.

The current 20-year agreement is due to expire in 2016. At a meeting next month, the Anaheim City Council will consider a resolution to extend the agreement.

If approved, the agreement would be in place for another 30 years, with the possibility of a further 15-year extension subject to Disney increasing its investment substantially beyond the $1 billion it is planning to make now.

The policy would ensure that Disney would be reimbursed in the event that Anaheim enacts an entertainment tax. The City Council has no plans to enact such a tax at the moment, and any such proposed tax would still require voter approval.

Interim City Manager Emery said in a release issued by the City of Anaheim that this proposed entertainment tax policy is a pragmatic way to facilitate investment and future revenue for City services.

The previous such partnership between Anaheim and Disney in the late 1990s resulted in revenue from hotel stays nearly tripling. The Anaheim Resort provides the City with $148 million annually from hotel, sales, property and business license taxes.

That’s more than half of the City’s gross General Fund revenue for this fiscal year, even though the Anaheim Resort covers only about four percent of the city’s total acreage. After factoring in the cost of City services, the Disneyland Resort still generates a surplus of $67 million in annual revenue for Anaheim.

This new potential expansion plan for the Disneyland Resort would play just as big a role in Anaheim economic development over the long term. According to a KPMG study conducted for Disney, the potential $1 billion investment could generate nearly $600 million in new hotel, sales and property tax revenue for Anaheim over the next 40 years.

The $1 billion expansion plan, which would need to be completed by Dec 31, 2024 as per the proposed agreement with the City, would create 1,400 jobs at the Disneyland Resort, and support the creation of 2,600 jobs in the Anaheim area. It would also create approximately 3,700 construction jobs during the development phase.

Of the 28,000 existing Disneyland Resort workers, more than 5,000 are Anaheim residents. The expansion would significantly increase this benefit to the local economy too.

The Anaheim City Council meeting to consider the tax policy resolution for the Disneyland Resort is scheduled for July 7.

Qore Systems to Relocate Headquarters to Virginia

Qore Systems, LLC, maker of the antimicrobial hand purifier Qore-24, announced plans to relocate its headquarters to the Highlands Business Park in Glade Spring, VA.

Supported by the Virginia Economic Development Partnership, Washington County, Virginia’s aCorridor, and the Smyth-Was

Qore-24

Qore-24 (photo – qore24.com)

hington Regional Industrial Facilities Authority (SWIFA), the company will invest $12.8 million to relocate and consolidate its operations and create 140 new jobs in Virginia.

Qore Systems is an R&D company that researches and develops products created using the patented antimicrobial barrier Amosil-Q that effectively shreds germs on contact.

The company is currently headquartered in Tempe, AZ while their manufacturing, bottling and distribution facilities are at different locations in Greater Phoenix, including a facility in Chandler, AZ. The relocation to Virginia therefore also enables the company to consolidate all its operations in a single facility in the Highlands Business Park.

Apart from Virginia, the company was also considering another site in North Carolina for this relocation and consolidation of their headquarters, manufacturing and distribution operations.

In order to secure the project, the Virginia Economic Development Partnership worked with Washington County, Virginia’s aCorridor, and SWIFA, which owns and operates the Highlands Business Park. The park’s ideal location along I-81 is just 30 miles from the 500,000 population of the Tri-Cities VA-TN urban area.

Governor Terry McAuliffe approved a $500,000 grant from the Governor’s Opportunity Fund to assist the SWIFA with the project. In a release issued after the announcement at the Highlands Business Park, Gov. McAuliffe said that “We are honored and gratified that Qore Systems chose the Commonwealth for its East Coast relocation and expansion.”

The Virginia Tobacco Commission additionally approved $420,000 for the project, and the company will be eligible to receive additional state incentives through the Virginia Enterprise Zone Program. The Port of Virginia is assisting the project by providing Virginia Port Tax Credits and funding through its Economic and Infrastructure Development Grant Program.

The company will also get sales and use tax exemptions on manufacturing equipment, and receive workforce training funding and support through the Virginia Jobs Investment Program.

William Peterson III, founder and CEO of Qore Systems, LLC, said in the release that they’re thrilled about their partnership with Virginia, and proud to be part of the economic development in Smyth and Washington County.

SWIFA Chairman Harry Dean said they welcome Qore Systems to Highlands Business Park and look forward to the future opportunities this investment will create for the community.

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