City Council grant approval generates 25 jobs
City Council approved a grant that will help bring more than two dozen jobs to town.
Council on Monday night unanimously approved a Community Development Block Grant for SV Plastics LLC, formerly known as Project Z13. The $500,000 grant will be used for the renovation of a facility at 25 High Tech Boulevard to meet the needs of the Ohio-based injections molding company.
SV Plastics, as part of the grant agreement, pledges to add 25 jobs by October 2015.
"They don't have to pay it back as long as they retain the jobs and make the investment," City Manager Kelly Craver said. "If they default on the loan there is a lien on the property. They plan on making [the site] a manufacturing facility."
City Hall staff worked frantically to get all the paperwork in order for Council's monthly meeting. Craver said he anticipated the fund's approval, but once it came in Friday afternoon, his staff wanted to ensure council could vote on it as soon as possible.
"We had a very last minute approval by the Department of Commerce," said Craver. "We knew it was going to come in October, we just didn't know when. We got all the paperwork [Monday] morning. We knew this was very important and it didn't happen overnight. We're glad its come to fruition."
Mayor Joe Bennett acknowledged the effort.
"I know staff has worked very hard to get this put together to be on the agenda," Bennett said. "I want to thank [Craver] and your people so this can move forward, the grant can be pursued through the state and we'll have 25 jobs."
CDBG grants, according to Craver, are federal funds issued to the N.C. Department of Commerce, who then awards it to the municipality. Thomasville is responsible for allocating the funds, which are based on the company's ability to meet job creation and investment requirements. SV Plastics LLC, in addition to creating 25 new jobs, plans to invest $2.2 million in its Thomasville facility.
"The city will be granted $500,000, and will turn around and loan this as matching funds for investments made to the property to rehabilitate the building," said Craver. "As the company makes improvements to the building and spends money, they would be reimbursed by the city in matching funds."
The Davidson County Board of Commissioners in May also awarded an incentives package to the company. Craver said the city had two other projects — Bartemaeus by Design and Production Systems — involving CDBG grants, which helped expedite the process.
"We already had the templates for the agreements and the budget amendments," Craver said. "Those were two very successful projects that have brought jobs to Thomasville and reused two of our historic buildings for manufacturing in town."
Craver said Mill-Chem Manufacturing, a High Point-based company, also has applied for CDBG funding for a reuse of a building at 416 Albertson Road. Mill-Chem plans to invest approximately $2.3 million and create 30 jobs.
Staff Writer Eliot Duke can be reached at 888-3578, or email@example.com.