Published in the Courier-Tribune on January 20, 2011
by Hugh Martin
STAR — Frontier Logistics, a material handling company based in La Porte, Texas, plans to locate a warehouse and transfer facility in Star.
Judy Stevens, director of the Montgomery County Economic Development Committee, made the announcement to the Star Board of Commissioners at the regular meeting Tuesday.
On Thursday, Gov. Bev Perdue made it official with a formal announcement welcoming the company to Montgomery County.
Stevens said Frontier plans to modify a building formerly used by Renfro Hosiery Mill off North Main Street. The property was most recently utilized as a shipping facility by Citation, Inc.
Frontier would benefit from $128,475 in economic incentives from the One North Carolina Fund. That amount would be matched by Montgomery County in the form of tax relief, not a cash payout.
A condition for qualifying for the economic incentives would be the creation of 55 jobs within five years. After this condition is met, the tax incentive would then go into effect over a five-year period.
“The state incentives are usually three years,” Stevens said, “but we will be allowed to extend it to five.”
The incentives resolution will also require the company to invest $5.15 million during the next five years in Star.
“Aberdeen, Carolina & Western (ACW) Railroad has been instrumental in bringing this company to the county,” Stevens said.
She added that Harold VanDerveer, owner of the building, quickly worked out a favorable lease agreement with Frontier.
ACW Railroad is applying for a Rail Industrial Access Grant to construct a new spur to the plant. The commissioners approved a resolution of support for the rail grant.
Bulk material would be shipped to the company by rail and offloaded into a silo that will be built at the facility. The bulk material will be processed into plastic pellets to be shipped out by truck.
Stevens said that the company contacted her in late November.
“They were looking for a building that has railroad access,” she said. “I knew that this building was available and that it might meet their needs.”
Stevens visited the company in Texas in early December, along with a representative of the railroad and County Commissioner Jim Matheny.
“They’re a good company,” she said. “They provide products to the pharmaceutical industry, so they’ll be using clean materials.”
The latest figures for Montgomery County shows an unemployment rate of 11.7 percent compared to 9.9 percent statewide.
Pamela Alsobrook, with N.C. Employment Security in Troy, said that so far there has been no official word on hiring from the company. Stevens said on Tuesday the company “is raring to go,” but was waiting on the official word which Gov. Perdue gave on Thursday during her announcement.
“In the 21st century global economy, moving goods quickly and efficiently is critical,” Perdue said. “I’ve focused North Carolina on the need for investing in logistics and transportation infrastructure. North Carolina’s strategic location, excellent transportation network and strong business climate continue to help us attract new jobs.”
Perdue said the One NC Fund provides financial assistance, through local governments, to attract business projects that will stimulate economic activity and create new jobs in the state. Companies receive no money upfront and must meet job creation and investment performance standards to qualify for grant funds. The grants also require and are contingent upon local matches.
According to Stevens, the company already has a manager on-site.
On Dec. 31, Frontier Transport, a division of Frontier Logistics, posted a job announcement for multiple positions for truck drivers in Star and Charlotte. The drivers would possibly cover 48 states and Canada. Other positions will be in management, sales and operations. Wages are expected to be in the neighborhood of $45,000 annually.
“Frontier will pay above-average wages for this area,” Stevens said. “That’s good news for this county.”
State Sen. Jerry Tillman, who represents Montgomery and Randolph counties, praised the news.
“This announcement by Frontier Logistics is welcome news for the people of Montgomery County, and I am optimistic that this is the beginning of an economic rebound,” he said.
(Some wire copy from The Associated Press was used in this article.)
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