Montrose Group Economic Development Incentive Update 2/4/22

Montrose Group Economic Development Incentive Update 2/4/22

Indiana

Nucor Corporation will invest $290 million to expand the product capabilities of its sheet mill in Crawfordsville. The Indiana Economic Development Corporation (IEDC) is working with Nucor to finalize a committed investment in the form of incentive-based tax credits based on the company’s job creation and investment plans. Montgomery County is considering additional investments. The project is expected to create 80 jobs.[1]

Iowa

The Iowa Economic Development Authority Board is granting financial incentives to two manufacturers for planned facility expansions that could bring more than 50 new jobs to the community. Hormel Foods is planning a $43 million expansion to add new equipment to expand the spam product line. Klauer Manufacturing The company is expanding its facility by 73,000 square feet and adding new machinery and equipment.[2]

Kentucky

  1. 80 Acres Farms, a vertical farming facility, was awarded state tax incentives this week as part of a $74 million investment expected to create 125 jobs in Boone County. Once fully operational, the controlled-environment farm will produce millions of servings of local, fresh produce for the surrounding area. The Kentucky Economic Development Finance Authority (KEDFA) preliminarily approved a 10-year incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide up to $2 million in tax incentives based on the company’s investment of $74 million and meeting certain annual targets. Additionally, KEDFA approved the company for up to $250,000 in tax incentives through the Kentucky Enterprise Initiative Act (KEIA). KEIA allows approved companies to recoup Kentucky sales and use tax on construction costs, building fixtures, equipment used in research and development and electronic processing.[3]
  2. Levi Strauss & Co. will establish a new e-commerce distribution center in Erlanger. To encourage investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) today approved Levi Strauss & Co. for up to $900,000 in tax incentives through the Kentucky Enterprise Initiative Act (KEIA). In addition, Levi Strauss & Co. can receive resources from Kentucky’s workforce service providers. Those include no-cost recruitment and job placement services, reduced-cost customized training and job-training incentives. The $48 million project is expected to create 300 jobs.[4]
  3. Eurofins Genomics, an international provider of DNA sequencing services, will invest $35.7 million in a new manufacturing facility in Louisville. The Kentucky Economic Development Finance Authority (KEDFA) approved Eurofins for up to $300,000 in tax incentives through the Kentucky Enterprise Initiative Act (KEIA). By meeting its annual targets over the agreement term, the company can be eligible to keep a portion of the new tax revenue it generates. The company may claim eligible incentives against its income tax liability and/or wage assessments.[5]
  4. Quadrant will invest $95 million and build its first U.S. mass production facility in Louisville. The KEDFA preliminarily approved a 10-year incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide up to $3.4 million in tax incentives based on the company’s investment and annual targets of creation and maintenance of 200 Kentucky-resident, full-time jobs across 10 years. By meeting its annual targets over the agreement term, the company can be eligible to keep a portion of the new tax revenue it generates. The company may claim eligible incentives against its income tax liability and/or wage assessments. Additionally, Quadrant can receive resources from Kentucky’s workforce service providers. Those include no-cost recruitment and job placement services, reduced-cost customized training and job-training incentives.[6]
  5. Piston Automotive, a provider of automotive assemblies, including advanced electric and hybrid vehicle battery systems, will further expand its operations in Jefferson County. The company will lease a facility and install new equipment to accommodate a new production line and increased capabilities to support growing market demand. KEDFA approved a 10-year incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide up to $1.65 million in tax incentives based on the company’s investment and annual targets of creation and maintenance of 117 Kentucky-resident, full-time jobs across 10 years. By meeting its annual targets over the agreement term, the company can be eligible to keep a portion of the new tax revenue it generates. The company may claim eligible incentives against its income tax liability and/or wage assessments and receive resources from Kentucky’s workforce service providers—including no-cost recruitment and job placement services, reduced-cost customized training and job-training incentives.[7]
  6. Confluent Health, a group of companies specializing in physical and occupational therapy, will relocate and expand its headquarters in Louisville. KEDFA preliminarily approved a 10-year incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide up to $3.5 million in tax incentives. If the company meets its annual targets over the agreement term, the company can be eligible to keep a portion of the new tax revenue it generates and claim eligible incentives against its income tax liability and/or wage assessments. In addition, Confluent Health can receive no-cost recruitment and job placement services, reduced-cost customized training and job-training incentives.[8]
  7. Kroger Fulfillment Network, a wholly owned subsidiary of the Kroger Co., plans to locate a new e-commerce spoke facility in Louisville. The new location will expand Kroger’s fresh grocery delivery capabilities and support its high-tech customer fulfillment center in Monroe, Ohio. KEDFA preliminarily approved a 10-year incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide up to $2 million in tax incentives. The company can be eligible to keep a portion of the new tax revenue it generates by meeting annual targets and may claim eligible incentives against its income tax liability and/or wage assessments. Kroger can also receive no-cost recruitment and job placement services, reduced-cost customized training and job-training incentives.[9]
  8. Canada-based Vector Corrosion Technologies Inc., a provider of corrosion mitigation products and services, will establish operations in Lexington. The company will locate its first U.S. manufacturing facility in an existing 15,200-square-foot building. The investment will support new manufacturing equipment and other startup-related costs. KEDFA preliminarily approved a 10-year incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide up to $132,000 in tax incentives. The company can be eligible to keep a portion of the new tax revenue it generates and may claim eligible incentives against its income tax liability and/or wage assessments.[10]
  9. Ellie Diagnostics, a full-service veterinary wellness and diagnostic services provider, plans to open its national hub in Louisville. The new location will make use of the world’s largest UPS air hub, local couriers and other national logistics providers to deliver next-day lab results to veterinarian clinics around the country. KEDFA preliminarily approved an incentive agreement with the company under the Kentucky Business Investment program., The company can be eligible to keep a portion of the new tax revenue it generates if it meets its annual targets. The company may claim eligible incentives against its income tax liability and/or wage assessments and receive no-cost recruitment and job placement services, reduced-cost customized training and job-training incentives. The project is expected to create 100 jobs.[11]

Michigan

  1. The Michigan Strategic Fund (MSF) board unanimously approved $824.1 million in state incentives for General Motors Co. to invest $7 billion into four projects, including two electric-vehicle investments in Orion Township and near Lansing totaling $6.5 billion.  The MSF board approved a $600 million Critical Industry Program performance-based grant and a $66.1 million Strategic Site Readiness Program grant for GM’s investments. The board also approved a Renewable Energy Renaissance Zone, exempting the company from taxes levied by the city for an 18-year period on the site where GM and battery partner LG Energy Solution plan to build $2.5 billion battery cell manufacturing plant in Delta Township near Lansing. The exemption is estimated to be worth $158 million. The projects are expected to create 4,000 new jobs.[12]
  2. Art Mulder and Sons Trucking is planning a $31M expansion. The company is building a 147,000 square foot that would include freezer and cold storage space as well as refrigerated and cooler dock space, office space, and training and conference rooms. The city of Holland is providing the company with a 12-year property tax cut. The project is expected to create up to 55 jobs.[13]

Mississippi

  1. Walmart will invest $90 million to locate a 1-million square foot fulfillment center in Olive Branch. The new facility is part of a broader initiative by Walmart to add more capacity into its supply chain as the retailer prepares for future growth. The Mississippi Development Authority (MDA) certified Walmart for the Advantage Jobs Rebate Program, which is designated for eligible businesses that create new jobs exceeding the average annual wage of the state or county in which the company locates or expands. DeSoto County and the city of Olive Branch also are assisting with the project.[14]
  2. Kevin Charles Fine Upholstery will invest $6.571 million to expand operations in New Albany. The Mississippi Development Authority (MDA) is providing assistance for infrastructure improvements. In addition, the city of New Albany and Union County also are assisting with the project. The project is expected to create 75 jobs within four years.[15]

Missouri

  1. Cooperative Response, a nationwide contact and alarm monitoring center, will open a new facility in Kirksville. The company used the Missouri Works program, a tool that helps companies expand and retain workers by providing access to capital through withholdings or tax credits for job creation. The company is also receiving assistance from Missouri One Start, which assists eligible businesses with their recruitment and training needs. The $1 million project is expected to create more than 87 jobs.[16]
  2. Aviation company Boom Supersonic will build its manufacturing and final assembly facility at the Piedmont Triad International Airport in Greensboro. The project will be facilitated, in part, by a High-Yield Job Development Investment Grant (JDIG) approved by the state’s Economic Investment Committee—the first JDIG of this classification ever awarded. Using a formula that considers the new tax revenues generated by the 1,761 projected new jobs, and accounting for a company investment of $500 million, the JDIG agreement authorizes the potential reimbursement to the company of up to $87.2 million, paid over 20 years.[17]

New York

  1. The Chautauqua County Industrial Development Agency approved economic incentives for ConnectGen Chautauqua County LLC’s a 270-megawatt, large-scale solar project located in the town of Ripley. The project is not expected to impact local farmlands currently producing dairy or cultivating vineyards.[18]
  2. General Motors plans to invest nearly $154 million at its components plant in Lockport. The company will renovate the facility and purchase and install new machinery and equipment used in the production of the stator module, a key component in an electric motor. Empire State Development will provide up to $5.65 million in Excelsior Jobs Program “green” investment tax credits as an incentive in return for investment commitments to move the project forward.  The project is expected to create 230 jobs by 2026.[19]

North Carolina

  1. Eli Lilly and Company plans to invest $1 billion to build a new pharmaceutical manufacturing facility in Concord. The investment will be facilitated, in part, by a Job Development Investment Grant (JDIG) approved by the state’s Economic Investment Committee. Using a formula that considers the new tax revenues generated by the 589 new jobs, the JDIG agreement authorizes the potential reimbursement to the company of up to $12,126,750, spread over 12 years. The company’s JDIG agreement lists its investment target as $939 million.[20]
  2. BrassCraft Manufacturing Company, a provider of rough plumbing products, will invest more than $13 million to expand its manufacturing operations in Thomasville. The One North Carolina Fund is issuing a performance-based grant of $200,000 that will help with BrassCraft’s expansion in the state. The One NC Fund provides financial assistance to local governments to help attract economic investment and to create jobs. Companies receive no money upfront and must meet job creation and capital investment targets to qualify for payment. All One NC grants require a matching grant from local governments and any award is contingent upon that condition being met. The project is expected to create 100 jobs in Davidson County.[21]
  3. West Pharmaceutical Services, Inc., a global leader in innovative solutions for injectable drug administration, will invest more than $70 million to expand its manufacturing operation in Kinston. The expansion will include increased production capacity, warehouse, and distribution space. A performance-based grant of $300,000 from the One North Carolina Fund will help with West’s expansion in the state. The project is expected to create approximately 70 jobs over the coming years.[22]

Ohio

Intel will invest $20 billion in two new computer chip factories on a 1,000-acre site east of Columbus in Licking County. The initial phase of the project is expected to create 3,000 jobs and 7,000 construction jobs over the course of the build.[23] Intel plans to spend $20 billion building a massive semiconductor chip manufacturing campus in central Ohio. Governor DeWine says for every six cents of capital investment the state of Ohio makes; Intel will make $1—which is estimated to be about $1.2 billion but any dollar amounts beyond those have been speculation.[24]

Oklahoma

  1. The Cherokee Nation Film Office has announced a $1 million incentive geared at enticing more film and television productions to shoot within the boundaries of Cherokee Nation. With a yearly cap of $1 million, this incentive will offer a base 20% cash rebate on production costs rather than a tax rebate. Applications for the new film incentive will open on March 1, 2022.[25]
  2. ClearSign Technologies Corporation has relocated its headquarters to Tulsa. The company has been awarded an incentive through the Oklahoma 21th Century Quality Jobs Act program from the Oklahoma Department of Commerce.[26]

Pennsylvania

  1. AES Clean Technology, a designer, manufacturer, and builder of cleanroom facilities, will open a new manufacturing facility in Lancaster County. The company has purchased a building in Manheim Borough that will serve as a new cleanroom manufacturing facility. AES received a funding proposal from the Pennsylvania Department of Community and Economic Development (DCED) for a $485,000 Pennsylvania First grant and a $97,000 workforce development grant to help the company train workers.[27]
  2. The Organic Snack Company, a premium food-manufacturing company and exclusive producer of Kate’s Real Food, purchased 82 acres of land at Business Park II in Bedford. TOSC worked closely with the Bedford County Development Association (BCDA) for local development assistance, the Governor’s Action Team and Pennsylvania Industrial Development Authority (PIDA) for state assistance, and Dollar Bank for project financing to ultimately bring the acquisition to fruition.  The $75 millions project is expected to create roughly 500 jobs.[28]
  3. Pet health and wellness company Spot & Tango will locate its first manufacturing facility in Allentown. The approximately $20 million project is expected to create 96 new jobs over the next three years in Lehigh County. The company received a funding proposal from the Pennsylvania Department of Community and Economic Development (DCED) for a $288,000 Pennsylvania First grant, a $150,000 workforce development grant to help the company train workers.[29]

Virginia

Mercana Furniture and Décor, a Canadian manufacturer and wholesaler of home goods across North America, will invest $8.5 million to establish its first U.S. warehouse and distribution operation in Newport News. The Virginia Economic Development Partnership (VEDP) worked with the City of Newport News, the Hampton Roads Alliance, and The Port of Virginia to secure the project for Virginia and will support Mercana’s job creation through the Virginia Jobs Investment Program (VJIP), which provides consultative services and funding to companies creating new jobs in order to support employee recruitment and training activities. The company is also eligible to receive state benefits from the Virginia Enterprise Zone Program, administered by the Virginia Department of Housing and Community Development.[30]

[1] https://www.areadevelopment.com/newsitems/2-3-2022/nucor-corporation-crawfordsville-indiana.shtml

[2] https://www.kwwl.com/news/dubuque/state-announces-expansion-incentives-for-two-dubuque-manufacturers/article_abba5bde-7bc8-11ec-8ee3-ab4cc0ebaf5c.html

[3] https://www.rcnky.com/articles/2022/01/27/vertical-farming-operation-wins-incentives-74-million-investment-125-jobs-boone

[4] https://www.areadevelopment.com/newsitems/1-27-2022/levi-strauss-erlanger-kentucky.shtml

[5] https://www.areadevelopment.com/newsitems/2-1-2022/eurofins-genomics-louisville-kentucky.shtml

[6] https://www.areadevelopment.com/newsitems/1-31-2022/quadrant-louisville-kentucky.shtml

[7] https://www.areadevelopment.com/newsitems/1-28-2022/piston-automotive-jefferson-county-kentucky.shtml

[8] https://www.areadevelopment.com/newsitems/1-28-2022/confluent-health-louisville-kentucky.shtml

[9] https://www.areadevelopment.com/newsitems/1-28-2022/kroger-fulfillment-network-louisville-kentucky.shtml

[10] https://www.areadevelopment.com/newsitems/2-3-2022/vector-corrosion-technologies-lexington-kentucky.shtml

[11] https://www.areadevelopment.com/newsitems/2-3-2022/ellie-diagnostics-louisville-kentucky.shtml

[12] https://www.detroitnews.com/story/business/autos/general-motors/2022/01/25/michigan-economic-development-corp-strategic-fund-board-approves-incentives-general-motors-ultium-ba/9202054002/

[13] https://www.mlive.com/news/grand-rapids/2022/01/holland-trucking-company-announces-31m-expansion-up-to-55-new-jobs.html

[14] https://www.areadevelopment.com/newsitems/1-21-2022/walmart-fulfillment-center-olive-branch-mississipp.shtml

[15] https://www.areadevelopment.com/newsitems/1-21-2022/kevin-charles-fine-upholstery-new-albany-mississippi.shtml

[16] https://www.areadevelopment.com/newsitems/2-3-2022/cooperative-response-kirksville-missouri.shtml

[17] https://www.areadevelopment.com/newsitems/1-27-2022/boom-supersonic-greensboro-north-carolina.shtml

[18] https://www.observertoday.com/news/latest-news/2022/01/incentives-approved-by-county-ida-for-south-ripley-solar-project/

[19] https://www.areadevelopment.com/newsitems/1-24-2022/general-motors-lockport-new-york.shtml

[20] https://www.areadevelopment.com/newsitems/2-1-2022/eli-lilly-and-company-concord-north-carolina.shtml

[21] https://www.areadevelopment.com/newsitems/2-3-2022/brasscraft-manufacturing-company-thomasville-north-carolina.shtml

[22] https://www.areadevelopment.com/newsitems/2-3-2022/west-pharmaceutical-services-kinston-north-carolina.shtml

[23] https://www.areadevelopment.com/newsitems/1-24-2022/intel-licking-county-ohio.shtml

[24] https://www.dispatch.com/story/news/2022/01/26/intel-ohio-semiconductor-factory-mike-dewine-quiet-tax-breaks-incentives/9215614002/

[25] https://deadline.com/2022/01/cherokee-nation-million-dollar-film-incentive-1234919159/

[26] https://www.areadevelopment.com/newsitems/1-25-2022/clearsign-technologies-corporation-tulsa-oklahoma.shtml

[27] https://www.areadevelopment.com/newsitems/1-28-2022/aes-clean-technology-lancaster-county-pennsylvania.shtml

[28] https://www.areadevelopment.com/newsitems/2-2-2022/organic-snack-company-bedford-pennsylvania.shtml

[29] https://www.areadevelopment.com/newsitems/1-24-2022/spot-tango-allentown-pennsylvania.shtml

[30] https://www.areadevelopment.com/newsitems/1-20-2022/mercana-furniture-and-decor-newport-news-virginia.shtml

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