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MILLWORK FIRM GETS INCENTIVES CITY INCENTIVES DEALS SO FAR
City grants incentives to Spotsylvania woodworking business that hopes to expand
BY EMILY BATTLE
Date published: 7/16/2008
BY EMILY BATTLE
A local company that specializes in millwork, exhibit displays and other craftsmanship hopes to expand and retain a hard-to-find work force by moving from Spotsylvania County to Fredericksburg's Battlefield Industrial Park.
Last night, four members of Fredericksburg's City Council voted to offer the Creative Dimension Group a 10-year, $200,000 incentive grant to help make that move happen. That qualified as a unanimous vote, since Mayor Tom Tomzak and councilmen Marvin Dixon and Matt Kelly were absent from the meeting.
CDG President Deborah Sullivan said the company has outgrown its current quarters in Spotsylvania County, and has had to turn away $2 million worth of work this year because of capacity limitations.
The former Insteel Industries plant on Belman Road in Fredericksburg is the only area facility the business was able to find that it could move into immediately, and CDG is working to buy this building. Sullivan said the business doesn't have time to build from scratch.
City Economic Development Director Kevin Gullette emphasized to council members that Fredericksburg was the only place in the region CDG was able to find viable property, trying to make clear that the city wasn't poaching this business from Spotsylvania.
CDG wants to expand immediately after moving to its new quarters, adding $1 million to its $7.5 million in annual sales after one year and eventually taking that total to $16 million after five years.
Sullivan said she'd found viable properties outside this region. Gullette argued that the city incentives--which will effectively bridge a gap in the financing CDG needs to buy the Insteel plant--will help keep a business that employs 58 local residents from taking those jobs out of the area.
And since the performance agreement governing these incentives will require CDG to grow its work force to 80 people over the 10-year incentive period, Gullette said it will bring more skilled jobs to the city.
"These are professional, technical jobs with good benefits," he said. A memo to council members said average salaries are in the mid- to upper-$40,000 range.
But in the jobs arena, there is a non-government-related incentive that is helping drive CDG's decision to stay in Fredericksburg rather than move to another area that might be more aggressive in its efforts to recruit a solid manufacturing business.
| All figures are for a 10-year period except for Kalahari's, which is a 20-year period.
WEGMANS GROCERY STORE
Incentive value : $1.7 million
New tax revenue: $3 million
Net revenue to city: $1.3 million
CAPITAL ALE HOUSE
Incentive value: $75,000 from the city, plus a $25,000 grant from the EDA
New tax revenue: $1.5 million
Net revenue to city: $1.4 million
KYBECCA WINE AND TAPAS BAR
Incentive value: $80,000 (plus a $25,000 grant from the EDA)
New tax revenue: $574,000
Net revenue to city: $469,000
KALAHARI RESORTS
Incentive value over 20 years: $61 million
New tax revenue: $125 million
Net revenue to city: $64 million
CREATIVE DIMENSION GROUP
Incentive value: $200,000
New tax revenue: $605,100
Net revenue to city: $405,100
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Date published: 7/16/2008
Most recent reader comments:
whats it going to cost
(posted by
jaeshuan
, July 16, 2008 4:23 pm)
to refurbish the old insteel plant? how many millions for that heap of garbage?
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