Money from the three-eighths cent sales tax adopted by Jefferson County voters in 2011 will be used to help a spin-off from an existing company to get off the ground.
At a meeting of the Economic Development Corp. of Jefferson County, commonly called the tax board Tuesday afternoon, members of the board voted to approve a $188,250 incentive package for Stacked Logistics, which plans to buy a 10-acre site in the Jefferson Industrial Park and build a 14,000 square foot building at a cost of roughly $2 million.
Caleb McMahon, the director of Economic Development for the Economic Development Alliance for Jefferson County said the alliance has been working with the company for more than a year. It is associated with Pinnacle Resources, which is already located in the Industrial Park. In addition to manufacturing oil and lubricating products, Pinnacle also provides delivery service for not only their own products but others products as well.
“They've gotten so big they've got to separate,” said Steven Brown, the chairman of the alliance board. “They've diversified and are not just oil and gas any more.”
According to information furnished by Stacked Logistics, they plan to add 25 trucks at a cost of $150,000 each and 20 trailers at a cost of $40,000 each to the existing fleet of Pinnacle Resources. They also plan to hire 25 additional drivers, three additionally mechanics and three additional office personnel, with the drivers being paid an average of $60,000 annually at an average of $25 to $28 an hour.
The incentive package breaks down to 31 jobs created for which the company will receive $5,000 each or $155,000 plus $5,000 for each $1 million capital investment for another $33,250 for a total of $188,250.
“Our expansion would also have a positive impact on local businesses that provide services such as but not limited to hardware stores, fabrication shops, auto parts stores and industrial supply companies,” the company said in information provided to the tax board.
McMahon said that it would take three to six weeks for the contracts awarding Stacked Logistics the incentives to be prepared.
In another matter related to incentives, McMahon said Western Foods, which is also located in the Industrial Park is still in the construction phase and has raised the roof of the building they will be using to accommodate storage bins. The company will manufacture gluten-free products and will employ 50 people. The tax board gave then a $287,000 incentive last year and the company also received a $200,000 from the state in credits.
Collections of the tax, which will sunset at the end of June are close to $1.5 million and projected to reach $3 million plus as they have for the first six years of the tax.