Electric commercial fleet vehicle manufacturer Cenntro Automotive Corp. is poised for a $450,000 property tax break to open its first U.S.-based plant in Jacksonville.
Two Jacksonville City Council committees voted unanimously Dec. 7 to advance a Recapture Enhanced Value grant for New Jersey-based Cenntro’s project.
The company is considering a $25 million manufacturing facility in Northwest Jacksonville.
The grant is a property tax refund of 50% of the additional property tax revenue that the completed project generates over five years.
The Council Rules Committee voted 7-0 in favor of Resolution 2021-0854 that would award the city incentive. The Finance Committee supported the bill 5-0.
The full City Council is expected to take a final vote Dec. 14.
City Office of Economic Development Director Kirk Wendland detailed the project to both committees. He said the facility would create at least 34 jobs at a $52,000 average annual wage.
A memo and project summary released Nov. 15 by Wendland’s office says the REV grant is tied to Cenntro’s planned $20 million in manufacturing equipment.
Wendland told the committee the deal is time-sensitive because Cenntro executives told city officials they want to decide where to build out the electric vehicle maker’s U.S. plant by year-end.
“You never want to spike the ball on the two-yard line but we feel like if we get this approved, we’re in good shape to be that selection,” he told the Rules Committee.
Cenntro’s vehicles primarily are used for last-mile movement of goods for logistics companies and do not directly compete with electric car companies like Tesla, Wendland said.
Finance Committee Chair Ron Salem said Dec. 7 he hopes Cenntro’s operation will lead to Jacksonville attracting more companies in the electric vehicle industry.
According to Wendland, Cenntro’s will lease about 100,000 square feet of space. An agreement says Cenntro is considering Lane Industrial Park at 2282 Lane Ave. N.
Wendland told the committee Cenntro will import production materials and export finished vehicles through JaxPort.
The agreement would give Cenntro until Dec. 31, 2023, to fill the jobs. A schedule shows 15 jobs would be filled by Dec. 31, 2022.
A Council Auditor’s Office analysis shows the city will see a $3.27 return for every $1 it invests in incentive.
Peter Wang, who co-founded Asia telecom company UTStarcom, founded Cenntro in 2013, according to the cenntroauto.com website and the company’s LinkedIn page.
The company reports more than 3,300 vehicles have been delivered to 26 counties. Cenntro estimated it will generate $2.1 billion in annual revenue by 2023.
Its products includes logistic and delivery, maintenance, warehouse and airport utility vehicles.
Council members Matt Carlucci and Ju’Coby Pittman were absent for the Finance Committee vote.
