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1/13/11
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The City of Redding and Southern Aluminum Finishing Company (SAF) have completed a $1.86 mil purchase and sale agreement that paves the way for the Atlanta-based company to become the first firm to locate at the City’s newly opened Stillwater Business Park.
The agreement provides for SAF to purchase a 16.75-acre parcel at the park and begin manufacturing there by June 30, 2012, in a move that is expected to create at least 25 higher-wage jobs within the first year. Under the agreement, SAF would maintain a minimum of 50 jobs over a four-year period, in return for incentives that would reduce or fully waive the purchase price of the parcel.
The company intends to build an initial 50k sf building with plans to construct two additional buildings for a total of 188k sf. Southern Aluminum Finishing is a privately held, full-service manufacturer that provides high-quality aluminum products to the commercial construction industry.
The completion of the sale agreement is the first under a “first lot free” incentive program approved by the Redding City Council in May 2010. Under the plan, the first parcel at Stillwater
Business Park was offered free to a company meeting specific job and wage criteria.
The City of Redding will carry a “silent second” deed of trust on the parcel purchased by SAF, forgiving the total purchase price in 20 percent increments based on various milestones, such as building completion and job creation. The company also will be required to hire primarily local contractors and suppliers and draw locally for its workforce as much as possible. The jobs will average more than $17 per hour and include health benefits under the agreement.
Stillwater, a 678-acre fully entitled business park, is unique in that it is city-developed and owned, and is designed specifically for large-parcel manufacturing needs. The park’s first phase was completed in mid-2010 and is drawing interest from companies such as SAF looking for “shovel ready” sites that have already met environmental and other clearance. Infrastructure, such as water, sewer and electric lines for the park, are in place, requiring prospective companies to obtain only a building permit to begin construction.
The master-planned park was the first to be designated under former Governor Arnold Schwarzenegger’s California Certified Site program begun in 2009. As such, it is certified to meet a stringent list of criteria ensuring it is truly “shovel ready” for prospective companies.
The City of Redding offers a number of incentives to prospective industrial manufacturers, including job credits, impact fee waivers and favorable power rates through its publicly owned
Redding Electric Utility (REU). In addition, Stillwater lies within a state of California Enterprise Zone, making employers eligible for various tax credits.
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