A New York City-based metal fabricator and distributor is seeking a $100,000 city grant to open a facility on Blanche Street in Northwest Jacksonville.
A project summary issued July 25 by the city Office of Economic Development says Ferrosource LLC is considering a $2.5 million investment in leased space at 1011 Blanche St. to create steel products.
The company told city officials its plan would create 50 jobs in Jacksonville within five years.
The Mayor’s Budget Review Committee voted 7-0 on Aug. 8 to file legislation with City Council that would provide Ferrosource $100,000 through the Northwest Jacksonville Economic Development Fund.
Ferrosource is planning to lease 20,000 square feet of the vacant 44,00-square-foot steel building in the Rail Yard District near Standard Feed & Seed and Kings Road.
The city considers the site within a Level 2 Economically Distressed Area which makes it eligible for the grant funding, according to the summary.
Ferrosource procures, distributes and customizes steel products for domestic users of hot and cold rolled steel, pipe, tube, wire, rebar and wire rods.
The city says Ferrosource began operations in 2016 and has offices in Chicago; Fort Wayne, Indiana; Birmingham, Alabama; Dallas-Fort Worth; and Los Angeles.
According to the summary, the first phase of the company’s Jacksonville expansion will include 15 jobs. Its five-year plan includes a $10 million total investment and creation of an additional 35 jobs at an average annual salary of $58,000 per year.
Kirk Wendland, the city’s economic development executive director, said Aug. 8 that the grant award would be based on the 15 jobs and initial $2.5 million investment.
To get the city incentives, the company must create its first 15 jobs by Dec. 31, 2024, the summary says.
Machinery and equipment make up about $1.5 million of Ferrosource’s initial $2.5 million investment with the remaining costs coming from architectural and engineering fees; IT equipment; and leasehold and infrastructure improvements.
City economic development officials estimated the city would get $2 for every $1 of taxpayer money invested in the project.
The bill could be introduced as soon as Aug. 17 and approved before the end of September.