Eastern Wire Products Inc. is seeking a grant and a loan from the city totaling $ 250,000 to purchase a structure in Northwest Jacksonville for expansion.
The Jacksonville-based company manufactures steel wire and related products. She is leasing part of a multi-tenant building and wants to purchase a 78,000 square foot structure that needs to be upgraded.
The city’s economic development office intends to ask the mayor’s budget review committee on June 21 to authorize a resolution to be presented to city council on July 27 to provide the incentives.
The resolution would authorize the mayor to sign an economic development agreement with Eastern Wire Products.
According to a project summary from the Economic Development Office, Eastern Wire is proposing to invest $ 4.46 million in the project.
This amount includes nearly $ 3.06 million for the acquisition and demolition of the site, $ 522,239 for infrastructure improvements; $ 645,242 in building renovations; and $ 239,424 in purchases of machinery and equipment.
Northwest Jacksonville’s Economic Development Advisory Committee approved a request for assistance on June 15.
Eastern Wire is requesting a $ 100,000 Northwest Economic Development Fund Commercial Infrastructure Grant and a $ 150,000 Small Business Development Initiative loan amortized over 20 years with a lump sum payment of 86,153 $ due at the end of the 10th year.
This loan would be subordinated to the first mortgage of $ 3.79 million from Wells Fargo Bank and secured by the US Small Business Administration’s Program 7 (a).
Eastern Wire proposes to finance the $ 4.46 million project with the first mortgage, grant and second mortgage and by $ 421,190 from the company’s executives.
The company employs 42 full-time employees for an average salary of $ 38,000 plus fringe benefits for a total payroll of $ 1.6 million. That’s an average of $ 18.26 per hour.
The summary indicates that Eastern Wire estimates that the expansion will create another 10 jobs within three years at an average amount of $ 32,500 per year (approximately $ 15.63 per hour) after purchase and sale. renovation of the building.
The summary indicates that Robert Yates Sr. and his son, Robert Yates Jr., founded the company in 1991, according to state records. Robert Yates Jr.’s two sons, Mark and Scott Yates, now own and manage it.
Mark Scott is President and Scott Yates is Chief Financial Officer.
Eastern Wire has been renting part of a building at 5301 W. Fifth St. for 30 years, the summary says.
To expand and better control costs, the company wishes to purchase a building at 5415 Longleaf Street which was built in 1964. The property is located in a level 2 distress zone.
This is defined as an area where the median household income is below 60 percent and the percentage of the unemployed labor force is above 25 percent of the county average.
The Economic Development Office’s summary says the building needs significant upgrades to meet building code requirements and be modernized for manufacturing.
Wrist Ship Supply Co. has about five years left on a lease for 21,200 square feet of space.
Eastern Wire would occupy the remaining 56,800 square feet and expand into the Wrist space when its lease expires or if it chooses to terminate the lease.
Eastern Wire products are designed to support the recycling and construction industries. His clients are mainly east of the Mississippi River.
Eastern Wire says the cost of upgrading the building and installing the infrastructure is a big factor in its site decision.
“EWP prefers to stay in northwest Jacksonville and upgrade the building to meet health and safety codes and their manufacturing infrastructure needs,” the summary said.