Job Creation

Empire State Development, Orange County IDA Land $95M Amy’s Kitchen Project For Goshen, NY

New York State’s chief economic development agency Empire State Development (ESD) announced that natural and organic convenience foods and frozen specialty foods producer Amy’s Kitchen will establish a new food manufacturing facility in the Town of Goshen, NY.

Amy's Kitchen

Amy’s Kitchen (photo – ocnyida.com)

Amy’s Kitchen plans to invest $95 million on developing a 500,000 square-foot food manufacturing plant on a 200-acre site, and will be creating at least 681 jobs in Goshen and Orange County.

Andy Berliner, owner of Amy’s Kitchen, said they are excited about the opportunity to build a plant in Goshen, and mentioned that it is in the perfect spot for supplying their biggest customers. Berliner said the potential to source many of their ingredients close to the plant was another deciding factor.

He added that the site on the Walkill River they have chosen is beautiful, and it’s a great area to attract excellent employees.

Berliner also mentioned that the support the company has received from the City, County and State has been outstanding.

At the state level, ESD has offered Amy’s Kitchen $6.8 million in performance-based incentives, including a capital grant and Excelsior Jobs Program tax credits that are tied to the company’s investment and job creation commitments.

Empire State Development President, CEO and Commissioner Kenneth Adams said this historic commitment from Amy’s Kitchen proves that companies across the country are recognizing that New York State is the place to be if you’re looking to invest and grow.

The Orange County Industrial Development Agency (IDA) has worked out a 15-year PILOT agreement under which Amy’s Kitchen gets $6.5 million in sales and use tax exemptions, another $4.5 million as property tax abatement, and $420,000 in mortgage tax exemptions.

The project is additionally getting $500,000 from the IDA for infrastructure improvements.

Robert Armistead, chairman of the Orange County IDA, said they worked closely with the State, County Executive’s Office and the Orange County Partnership to ensure that Amy’s Kitchen found a home in Orange County, and they are excited for the opportunities Amy’s will offer the county.

Armistead added that they are more excited about what it means for the community and local workforce, because this project comes with hundreds of jobs created by a company that promises stability and growth.

Petaluma, CA-based Amy’s Kitchen is a privately-held family owned company founded by Andy and Rachel Berliner in 1988, and has racked up double-digit growth every year for the last 25 years since its inception.

Amy’s Kitchen already has 1,900 workers, produces more than 250 organic products, manufactures 700,000 meals daily, 40,000 pounds of tofu weekly, and uses up 32 million pounds of organic tomatoes annually.

Michigan Economic Development Corp Funds Projects Creating 406 Jobs

The Michigan Economic Development Corporation (MEDC) has approved community revitalization and business development incentives for projects that will generate a total of 406 new jobs and $133.6 million in capital investments.

Jobs in the Comeback State

Jobs in the Comeback State (photo – michiganbusiness.org)

Gov. Rick Snyder said Michigan is America’s Comeback State and these projects add to the growing momentum.

Gov. Snyder said these new investments will strengthen communities, spur new commercial investment in cities, and fuel new opportunities for Michigan’s talented workforce.

One of the main projects in this lot receiving Michigan Strategic Fund (MSF) assistance is BorgWarner Inc.’s expansion project at its Powertrain Technical Center in Auburn Hills, MI. The company will invest $11 million and create up to 200 jobs.

Michigan was competing with other sites in several states, and the project was secured by offering BorgWarner a $3.2 million Michigan Business Development Program grant. Auburn Hills is offering additional local incentives in the form of property tax abatement.

The M1 Rail project in Detroit is getting a $10 million loan. The three-mile streetcar project has 11 proposed stops that will strategically connect to other transit options. The project is expected to create 41 permanent jobs and capital investment worth around $130 to $140 million.

A $4.5 million Michigan Community Revitalization Program loan has been awarded to the Grand Rapids Arena Place Development in downtown Grand Rapids, MI. This proposed mixed-use high-rise development will generate $44 million in capital investment and 65 jobs.

The demolition project of Detroit’s Joe Louis Arena has been awarded $6 million in economic assistance under the community revitalization program.

The demolition is part of a larger public-private project involving the State of Michigan, Detroit economic development agencies and private developers together building a new $450 million events center and ancillary private development worth $200 million on the Detroit waterfront.

Another project the MEDC greenlighted is a brownfield redevelopment in the City of Ferndale, MI. The Brownfield Redevelopment Authority in Ferndale needs $717,829 to redevelop a vacant downtown building into an industrial space to be used by Brass Aluminum Forging.

The company expects to create 50 jobs at the new facility and will be investing $8.6 million. Other tenants in the building may add up to 50 more jobs.

MEDC President and CEO Michael A. Finney said these projects will help in strengthening and revitalizing Michigan communities and grow companies that are generating new job opportunities.

Jacksonville, Florida Offer $2M Economic Development Incentives for Adecco HQ Relocation

Adecco, S.A. is relocating its North American headquarters to Jacksonville, Florida, aided by $2 million in state and local economic development incentives for job creation.

Downtown Jacksonville

Downtown Jacksonville (photo – coj.net)

Adecco Group North America is currently headquartered in Melville, NY. The company proposes to invest $3.4 million for the relocation, and will be adding 185 new jobs in Jacksonville by the end of 2016.

The new jobs will have average annual wages of $63,669, plus additional benefits. Even without the benefits, the wages work out to more than 150 percent of the state’s average annual wage.

Not to mention the fact that the relocation project helps retain the 354 existing Adecco employees in Jacksonville. These existing jobs are part of the MPS (Modis) Group which Adecco acquired in Jan 2010 and helped grow from 236 jobs to 354 full-time employees.

Zurich, Switzerland-based Adecco, S.A., the world’s leading provider of H.R. solutions, has more than 31,000 full-time equivalent employees across 5,100 branches in over 60 countries and territories around the world.

In order to secure the project, Florida and Jacksonville are offering Adecco an incentives package of around $2 million. This includes $1.1 million under the QTI (qualified target industry) tax refund program, with Jacksonville putting up $222,000 as a local match for the state contribution of $888,000.

In addition to this, Jacksonville is offering Adecco another $185,000 in local incentives under the Countywide Economic Development Fund (CEDF) Grant program.

Bob Crouch, CEO of Adecco Group North America, said they appreciate the efforts of Jacksonville and State economic development officials, who he said made this project possible.

Jacksonville Mayor Alvin Brown said that global corporations are increasingly considering Jacksonville as a great place for investing and doing business. Mayor Brown said that employees love to live, work and play in Northeast Florida, and the result is a growing and vibrant local and regional economy with good-paying jobs that benefit families and neighborhoods.

Fredrik Eliasson, board chair for the Jacksonville economic development partnership JAXUSA, said the move is yet another example of a large company relocating to Jacksonville after its initial exposure to the city.

Eliasson said headquarters relocation projects are at the very top of JAXUSA’s target list because they bring high-paying jobs and corporate decision makers who contribute to the community and improve the overall quality of life.

New Mexico Economic Development Dept Awards $2M as Job Training Incentives

The Job Training Incentive Program Board of the New Mexico Economic Development Department approved a total of nearly $2 million for projects that are creating a combined total of 251 high-wage jobs and three internships.

NM Job Training Incentive Program

NM Job Training Incentive Program (photo – New Mexico Economic Development Dept)

The JTIP program partially reimburses companies for class-room or on-the-job training costs associated with newly created jobs.

A qualifying company that is expanding or relocating may be eligible for as much as 75 percent of a trainee’s wages for up to six months.

Economic Development Secretary Jon Barela said that JTIP continues to serve as a key resource for assisting New Mexico businesses in expanding their workforce, and added that he was thrilled that they can now continue to fund this program year to year since JTIP has been made a permanent part of the state budget.

The projects selected for JTIP awards include the Vitality Works expansion in Albuquerque which is expected to create up to 50 new jobs. At the moment, the JTIP board has approved $53,252 for Vitality Works for 25 new jobs.

Another large project approved for state incentives is Honeywell’s Bendex King, which relocated its headquarters to Albuquerque in 2012. Bendex King was awarded $788,712 for creating 28 jobs.

Plano, TX-based Alliance Data Systems (ADS), which performs processing services and service and maintenance for credit card programs, was awarded $738,788 for creating 181 jobs.

Los Angeles, CA-based DHF Technical Products, which is relocating to Rio Rancho and creating up to 50 jobs, is getting $173,412 at the moment for creating 25 new jobs.

Albuquerque-based veteran owned software development company Ultramain Systems is getting $45,199.04 for creating four new jobs and three internships.

xF Technologies, another home-grown startup founded in Albuquerque in January 2007, is getting $113,521 for creating seven jobs. The company is bringing to market a patented technology for producing a low-cost biofuels additive for gasoline that reduces emissions and extends fuel supplies.

HT MicroAnalytocal, Inc., an Albuquerque-based manufacturer of ultra-miniature switches and sensors and precision components, has been awarded $22,313.

Santa Fe-based National Water Services, Inc., which makes, installs and services purified water vending systems, got two separate JTIP awards of $6,544 and $9,694 in February and March.

The amount awarded under JTIP to a qualified company depends not only on the number of jobs created, but also on the wages paid, complexity of the jobs and the location. The 251 jobs created by the aforementioned companies will pay an average wage of $18.31, and the three internships likewise have an average wage of $18.

South Dakota REDI Fund Provides Concrete Returns

Carl V. Carlson Company, a concrete contractor based in Lincoln County, SD, will build a new plant in Hartford, SD where they plan to manufacture pre-cast concrete pipes that will be used in roadway and construction projects.

South Dakota loan programs

South Dakota business assistance loan programs (photo – livinghartford.com)

The company chose the site and procured the land two miles outside Hartford at the intersection of I-90 and Highway 38 after a two year site selection process.

They plan to break ground this spring and construct an 18,000-square-foot building on the site. Once the facility is complete and operational by late summer, the company will hire up to 20 new employees at the new plant.

The project was secured through a joint effort made by the South Dakota Governor’s Office of Economic Development (GOED), Minnehaha County Economic Development Association, and the Hartford Area Development Corp.

The South Dakota Economic Development Board which manages the Revolving Economic Development and Initiative (REDI) Fund has approved Carl V. Carlson Company for a $1,420,000 loan, to be used for construction of the aforementioned building.

Carl Carlson, owner of Carl V. Carlson Company, said South Dakota is a wonderful place to do business, where government regulation is not obtrusive, and there’s no personal or corporate income tax.

Nick Fosheim, executive director of the Lincoln and Minnehaha County economic development associations, said that Carl V. Carlson is one the region’s established companies, and the new site will afford them an opportunity to grow a new product line and the company.

REDI loans are attractive for businesses because these are fixed low-interest rate loans (currently at two percent). The loans are available not only to startups and businesses that are expanding or relocating, but also to local economic development agencies in South Dakota.

The REDI loan can cover up to 45 percent of the project cost, subject to the applicant fulfilling all the required terms and conditions such as securing interim financing and permanent matching funds, and putting up a 10 percent equity contribution.

The loan may be used for land acquisition, site improvements, construction and renovation of buildings, and for purchase and installation of equipment and machinery for the project.

GOED Commissioner Pat Costello said that Carl V. Carlson is just the latest company to take advantage of one of South Dakota’s low-interest financing programs.

Commissioner Costello added that he encourages any company, those already established in the state as well as those looking to expand or relocate, to check out the financing programs, because there’s a good chance that his office may be of assistance.

Vitality Works For New Mexico

Apart from the health and well-being of their customers, the natural health and dietary supplements that Vitality Works makes also seem to strengthening the economy in Albuquerque and New Mexico.

Vitality Works

Vitality Works (photo – vitalityworks.com)

Governor Susana Martinez and New Mexico Economic Development Secretary Jon Barela took a tour of the Albuquerque-based Vitality Works’ manufacturing facilities, and announced that the company is creating 50 new jobs.

Vitality Works already has 120 employees, and positions at the company pay annual wages ranging from $30,000 to $100,000.

Vitality Works was founded by Mitch Coven in 1982 as a compounding supplement pharmacy, and is now a leading dietary supplement manufacturer that has developed and manufactured thousands of formulas.

The company provides private label and contract manufacturing services for top natural product chains and national brands from their 110,000-square-foot manufacturing facility on a 22-acre site in Albuquerque. They are undertaking this expansion because of a spurt in demand for their products and services.

Gov. Martinez said that so many successful growing businesses, Vitality Works could have chosen to expand anywhere in the country or even the world, but she was pleased they are growing in Albuquerque.

The New Mexico Economic Development Department awarded Vitality Works $53,252 as a training grant under the state’s Job Training Incentive Program. Some of the jobs the company is creating will also make it eligible for other state incentives such as the high-wage tax credit.

Coven said New Mexico has a talented workforce and they are looking forward to bringing on 50 new employees to meet the growing demand for their products. Coven added that they are happy to be expanding with support from Governor Martinez and Secretary Barela, and their leadership in creating a business-friendly environment.

Business tax reforms enacted last year in New Mexico give businesses such as Vitality Works, which sells 99.5 percent of its products out of state, the option to sell and export goods outside the state without being hit with additional taxes. The reforms also lowered the business tax by 22 percent, making New Mexico more competitive with its neighboring states.

Gov. Martinez said that as they move forward in creating a diverse economy and ending the state’s heavy reliance on federal spending, they are trying to do all they can to encourage companies in the private sector such as Vitality Works to be successful in New Mexico.

Virginia AFID Grant Helps Attract Wood Building Jobs

Trout River Dry Kiln, LLC will establish a major hardwood kiln operation in Nottoway County, Virginia, where the company will dry lumber that will then be used for making hardwood flooring.

Trout River Lumber facility in Town of Crewe, VA

Trout River Lumber facility in Town of Crewe, VA (photo – troutriverlumber.com)

Trout River Dry Kiln will be investing $5.5 million to establish the facility in the Town of Crewe, and the company expects to create 40 new jobs in Nottoway County.

In addition to the jobs created and the capital investment, the project will provide a boost to Virginia’s wood building supply chain and forestry industries such as sawmills and logging operations.

Trout River Dry Kiln plans to spend more than $30 million over the next three years for purchasing 34 million board feet of lumber from Virginia sawmills.

The company will dry, trim and grade the lumber before sending it to a sister company called Trout River Lumber which makes hardwood flooring.

The Virginia Agriculture and Forestry Industries Development Fund (AFID) provided state support for facilitating the project, in partnership with the Nottoway County Economic Development Committee and the Town of Crewe.

The Nottoway EDC serves as the main point of contact with both the Virginia Economic Development Partnership and businesses looking at sites for their facilities in Nottoway.

Nottoway County has been awarded a $100,000 AFID grant that will help the county pitch in for making site improvements on a 5.26 acre parcel of land in the Crewe Industrial Park, which is adjacent to where Trout River Lumber is already located.

The land, valued at $115,000, is being donated free of cost by the Town to Trout River Dry Kiln for the project. It helped ease the company’s site location issues, and served as the required local incentive match for the AFID grant.

The best part is that the entire facility with nine hardwood dry kilns will be designed and built to be an environment-friendly operation. The kilns will be heated by two large biomass boilers that will be fed wood residuals and sawdust from the company’s kilns and flooring operations.

Trout River Lumber even has a line of engineered wood flooring called GreenLeaf which the company says is entirely made in the USA using earth-friendly and sustainable processes.

One of Trout River Lumber’s biggest customers is Lumber Liquidators, which is the largest specialty retailer of hardwood flooring in the U.S.

Virginia Governor Terry McAuliffe said that Trout River’s expansion and relationship with Lumber Liquidators means that Virginia wood will be found in homes and businesses throughout the country.

John Barber, owner of Trout River Dry Kiln and Trout River Lumber, said this new facility enhances vertical integration of hardwood flooring production, and provides Lumber Liquidators with hardwood flooring that is harvested and converted in Virginia.

Oregon NMTC Program Facilitates Chaucer Foods Facility

U.K.-based Chaucer Foods is opening a new freeze-dried food processing facility in Forest Grove, Oregon.

New Markets Tax Credit

New Markets Tax Credit (photo – nmtccoalition.org)

This is the company’s first U.S. manufacturing facility, and will help fulfill domestic demand for the company’s freeze-dried vegetables, fruits, yogurt and cheese that were previously being made in plants in France and China.

The company is taking up 84,600 square feet of space in a previously vacant industrial building, and will be creating up to 73 new jobs in the first year of operations at the new Forest Grove facility once the renovations are complete by Sept 2014.

The workforce at the facility may increase to more than 150 within two years. The project was funded by Wells Fargo Community Lending and Investment, in partnership with Stonehenge Community Development, LLC.

The Chaucer Foods project was awarded affordable financing in the form of a $6 million federal New Market Tax Credit (NMTC) allocation, coupled with $4 million in matching Oregon NMTC funds.

State Senator Bruce Starr, whose district includes Forest Grove, said that the Chaucer Foods expansion is an example of what happens when the Legislature makes laws that help the economy grow.

Starr said he was glad that his support for the Low Income Communities Jobs Initiative Tax Credit (Oregon’s state NMTC match program) had a part in 73 people being able to provide economic security for their families.

The Oregon Legislature approved the Low Income Community Jobs Initiative in 2011 as a state match for projects receiving federal NMTC funding. Oregon is now one of 13 states that have this kind of matching state NMTC program. However, the federal NMTC program expired at the end of 2013, and Congress is currently considering a bill to renew NMTC another three years.

Chaucer Foods Inc. President Andy Ducker said they look forward to growing the company’s business in Oregon, and added that they would not have been able to do so without access to the affordable financing provided under the state and federal NMTC programs.

Wells Fargo Community Lending & Investment’s William Turner said Wells Fargo is pleased to be a part of this transformational project, and added that they are committed to providing capital that stimulates economic development in distressed communities.

Peter Skei, project manager at Specht Development who worked closely with all the parties involved to put together the financing, said the NMTC funding was integral to this Forest Grove economic development project which is bringing jobs from abroad back to the Willamette Valley.

L’Quentus Thomas, director of Stonehenge Community Development, said that Oregon policymakers have been leaders in encouraging private capital investments into job-creating businesses. Thomas added that this investment is proof positive that the Oregon NMTC incentive is delivering real results.

Sempra Energy Awards Contract for $6B Louisiana LNG Project

CB&I (NYSE: CBI) and Chiyoda International Corporation, announced that they have been awarded a contract for the construction of Sempra Energy’s $6 billion Cameron LNG liquefaction and export facility in Hackberry, Louisiana.

Sempra Energy's Cameron LNG project in Louisiana

Sempra Energy’s Cameron LNG project in Louisiana (photo – sempra.com)

Chiyoda International Corp. is a U.S.-based wholly-owned subsidiary of Yokohama, Japan-based Chiyoda Corporation (TSE: 6366 ; ISIN: JP3528600004).

The project is expected to create 3,000 on-site construction jobs, in addition to several hundred more jobs at CB&I fabrication facilities in Louisiana and hundreds more engineering and project management jobs at the company’s Baton Rouge office.

Once operational, the LNG liquefaction and export facility itself will add 130 direct and permanent jobs with average annual wages of $80,000, plus benefits. The project will support the creation of 610 more permanent indirect jobs in the region, and is also helping retain the existing 60 jobs at Sempra’s Cameron Parish terminal.

Cameron LNG, a subsidiary of Sempra, opened the $900 million LNG terminal in Hackberry in Oct 2009.

Louisiana Economic Development and Sempra began discussions in 2011 on the $6 billion expansion to add an LNG export facility to the company’s terminal at Hackberry. This was when the company had just begun to pursue federal permits to export LNG to countries that have free trade agreements with the U.S., as well as those that do not.

The location is ideal for LNG operations because it is situated along the Calcasieu Channel near the Gulf of Mexico, and is close to a pipeline hub that serves two-thirds of all the natural gas markets in the U.S.

LED announced in March 2012 that Sempra had secured the final commercial agreement it needed for the development. At that time, LED indicated that the Cameron LNG export facility would be eligible for state incentives under the Quality Jobs and Industrial Tax Exemption programs.

The latest announcement of the contract to build the facility comes after the U.S. Dept. of Energy approved Sempra’s application in Feb 2014, allowing the company to export LNG to countries that do not have a free-trade agreement with the U.S.

Debra L. Reed, chairman and CEO of Sempra Energy, said that exporting natural gas will lead to the creation of thousands of jobs and economic growth in the U.S.

San Diego-based Sempra Energy (NYSE:SRE) is a Fortune 500 energy services holding company. Their 17,000 employees serve 31 million consumers worldwide, and the company’s 2013 revenues exceeded $10.5 billion.

The Hague, Netherlands-based CB&I has its global administrative headquarters in The Woodlands, Texas, and is an energy infrastructure focused company with around 55,000 employees.

Fresenius Medical Care Facility in Knoxville to Create 665 Jobs

Dialysis care and supplies provider Fresenius Medical Care will be locating a new manufacturing facility in the Forks of the River Industrial Park in Knoxville, Tennessee.

Knox County Mayor Tim Burchett discussing PILOT agreement for Fresenius Medical Care

Knox County Mayor Tim Burchett discussing PILOT agreement for Fresenius Medical Care (photo – Knox County Mayor)

The company will invest $140 million into the project, and will be creating 665 new jobs in Knox County.

The announcement was made by Tennessee Governor Bill Haslam and TNECD Commissioner Bill Hagerty, along with Fresenius Medical Care executives.

Gov. Haslam said he appreciates the new jobs being created in Knox County, and thanked Fresenius Medical Care for their investment in Tennessee.

TNECD is the department which handles Tennessee economic development projects, programs and initiatives.

Commissioner Hagerty said the company’s decision to locate their new manufacturing facility in Knox County demonstrates how the state’s strengths are aligned with the needs of the global business community.

The new Knoxville plant will produce dialysis related products that will be shipped to the company’s distribution centers and clinics on the east coast.

Fresenius Medical Care has more than 2,150 of their own dialysis facilities in North America, and also provides services in the U.S., Canada and Mexico through affiliated hospitals, pharmacies and labs.

Fresenius Medical Care North America Vice President of Manufacturing Troy McGhee said the location will enable them to serve customers in the eastern half of the U.S. more efficiently. McGhee said that in Knoxville, they had found a home with an excellent workforce pool, and added that they were drawn by the area’s outstanding business climate.

The Knox County Industrial Development Board has approved an eight year payment-in-lieu-of-taxes (PILOT) program for Fresenius that will save the company $3.86 million in taxes.

Knox IDB Chair Trey Coleman said they were thrilled at being part of the recruitment of an outstanding company like Fresenius Medical Care to Knox County. Coleman said the Fresenius manufacturing facility will have a long-term economic impact on the community, and this made it easy to support local tax incentives for the project.

Knox County Mayor Tim Burchett said Fresenius Medical Care’s expansion into the Forks of the River Industrial Park utilizes an industrial property which had been lying vacant, and the hundreds of high-tech manufacturing jobs coming to Knox County will have a significant economic impact on the entire region.

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