The city is reviewing a permit application for Dana B. Kenyon Co. to expand a warehouse in NorthPoint Industrial Park for Hillman Group Inc.
Hillman wants to add 95,523 square feet to the warehouse, Building No. 4, that it leases at 3650 Port Jacksonville Parkway.
Plans show the existing building is 96,635 square feet, which means the expansion takes it to more than 190,000 square feet.
Permit documents show a foundation at a cost of $710,375 and a renovation and expansion of almost $3.3 million.
Pattillo Industrial Real Estate is the property owner and developer. RS&H is the architect.
City Council is reviewing a request for a five-year Recapture Enhanced Value Grant of up to $200,000 for Hillman to expand.
The grant represents 50% of the value of new county property taxes generated by the project and is payable over five years.
The bill, 2020-0667, was introduced Oct. 27 and is on a two-reading cycle. It is on the full Council’s Nov. 10 agenda.
The Hillman Group proposes to expand its distribution center and expand its Jacksonville workforce.
Hillman distributes hardware products to more than 25,000 customers, including Lowe’s, The Home Depot, Tractor Supply, Ace Hardware, True Value and Walmart.
The bill summary said Hillman services its Southeast distribution network through its 90,000-square-foot warehouse at 3650 Port Jacksonville Parkway and wants to double it to 180,000 square feet to increase its capabilities in the Southeast U.S. Those numbers are more precise on the permit documents.
Hillman told the city it anticipates an $8.45 million private capital investment. That comprises $7.25 million in real estate improvements and $1.2 million in machinery, equipment, furniture and fixtures over the next two years.
It proposes to create an additional 50 full-time jobs by Dec. 31, 2023, at an average annual wage of $30,000 plus benefits.
The legislation waives one of the four requirements of the city’s Public Investment Policy. The waiver is needed because REV grant eligibility requires that wages must be greater than or equal to the state average wage of $49,472.
The bill summary says the project meets the other requirements for REV grant eligibility.
The Mayor’s Budget Review Committee voted 7-0 on Oct. 12 to file a resolution with Council to waive the policy and offer the REV grant.
The Cincinnati-based hardware products supplier intends to hire logisticians, warehouse receiving and shipping personnel, truck drivers and support staff, according to an Oct. 7 memo from the city Office of Economic Development.
The city said Hillman is considering several states for the expansion and noted that financial incentives are a material factor in its decision.
The deal requires that the private capital investment exceed $7 million and that the company create at least 50 jobs by the end of 2023.
Kirk Wendland, city economic development director, told the committee Oct. 12 that Duval County’s 6.5% unemployment rate, rebounding from the COVID-19 pandemic, is a driver for the incentives.
“We expect there will be a long line applying for them,” Wendland said of the jobs.
The project meets the other criteria, which are that the company must be in a targeted industry, it must create at least 10 jobs and the company needs to commit to $3 million in private capital investment.