Concrete Manufacturer New Plant Site
Scenario
An autoclaved aerated concrete manufacturer needed to identify a sit its plant. Two locations in Indiana, one in West Virginia, and a closed autoclaved aerated concrete plant in Central Florida were evaluated. Infrastructure requirements included rail service, access to interstate highways, and a local supply of coal ash. Incentive offers from all three states were assessed. The total company investment was projected to be $20 million. A total employment of 64 with a payroll of $2.7 million was expected by completion of the project.
Outcome
All three States provided incentive packages. The largest incentive offer provided by West Virginia exceeded $12 million, followed by Florida at $4.5 million and Indiana at $2.5 million.
Due diligence on the Central Florida site identified a lack of rail and other deficiencies. The Florida site however, had the advantage of an existing facility and an available skilled workforce. The benefits associated with the acquisition coupled with the local and state incentive offers, made the Florida opportunity the best choice. The State and City as part of the agreement covered a 2.5-mile rail spur (costing nearly $5.0 million by completion). Unique to this project was an agreement to delay annexation of the facility into the City limits as a means of offsetting project costs.
