Category: Job Creation Project: Severn Peanut Company Project Location: 1204 Peanut Street, Severn, NC 27877 Status: Plant in operation Cost: $25,879,976 Description: Severn Peanut Company, dba Hampton Farms is a leading producer of peanut consumer products. These products include peanut butter, granulated peanuts, and roasted in-shell peanuts. The products are sold in grocery chains, ballparks, produce markets, etc, throughout the United States and Canada. The company proposed making a large financial investment in a new inshell processing facility along with peanut roasting, drying, inspection, and packaging equipment. This expansion would allow an increase in our production capabilities of salted-in-shell peanuts. It would also allow us to continue production in the new facility while the current plant facility underwent renovation. This would aid in retaining the current 85 employees while the new facility would create an additional 46 jobs. The expansion facility would also allow Hampton Farms to continue on its upward growth curve, thereby providing stable twelve month employment for the inhabitants of Northampton County, N. C. and the surrounding areas. Community Needs Addressed: The addition of 46 jobs is healthy for the local economy which has limited employment opportunities. From Gary Brown, Northampton County Economic Development Officer: "The Town of Severn (2010 population 275) is one of nine municipalities in Northampton County (2010 population 22,095), a low-wealth minority majority county located in northeastern North Carolina. Historically, the economy of Northampton County was dominated by labor intensive agriculture where educational attainment and worker training was low. However, Severn Peanut Company, founded by natives of the region, invested in manufacturing operations in Northampton County. The company's desire was to close the employment gap and create gainful employment opportunities for workers with limited training and work experience while sustaining a fiscally sound enterprise. Common to businesses located in non-metropolitan areas, growth of the company was hampered by substantially limited local government financial resources to support business development." Employees and their families, who had no industry provided benefits, will now have paid vacation, paid sick days, access to health insurance, dental insurance (if selected), short and long term disability insurance, 401 (k) company paid additions to the employee contribution, and life insurance. Employees, who have no food industry experience, will be exposed to training in FDA requirements, HACCP, sanitation procedures, good manufacturing practices, and food safety standards. Benefits and Outcome: Construction was a state-of-the art peanut salting and roasting facility. Incorporated into the plant were electronic sorting and inspection (the first that we know in the peanut in-shell-salting industry) and state-of-art packaging machines. Benefits for Hampton Farms included increased production, allowing for the continued growth of sales in the salted-in-shell business, which benefits peanut farms as an outlet for their peanut crops. The new stainless steel processing area provides for better compliance with FDA standards for wet processing areas. As the construction progressed, employment was provided for 12-18 months for approximately 80 general construction workers, 45 electricians, and 25 employees of other trades, who were locally from northeastern North Carolina and southside Virginia. Multiple pieces of large equipment, such NDC Academy 2015 Job Creation Severn Peanut Company as roasters, packaging equipment, and metal structure fabrication were purchased from all areas of the United States. Hampton Farms continues to diversify their peanut product lines resulting in an increased numbers of twelve month stable jobs. The financial impact to Northampton Qounty in increased property taxes for the Year Ending December 31, 2014 was $86,729. Thi? projected taxes on equipment listed as of January 1, 2015 will be $90,840 to Northampton County and $19,254.43 to the City of Severn. Project Collaborators: The following firms participated in the financial planning and execution of the project: Meherrin Agricultural and Chemical Company Severn Peanut Company, Inc. Severn Peanut Real Estate, LLC Meherrin Fertilizer, Inc Jimbos Jumbos, Inc Hampton Farms of NC, LLC HEDC New Markets Housing and Economic Development Corp. National Development Council NDC New Markets Investments Sun Trust Community Development Enterprises, LLC Sun Trust Bank Sun Trust Community Capital, LLC Hunton & Williams, LLP Revelle & Lee, LLP Kaufman & Canoles Consulting Holland & Knight, LLP Miles & Stockbridge, LLP Cohn Reznick Advisory Group Piedmont Natural Gas of North Carolina North Carolina Department of Commerce Northampton County Board of Commissioners Northampton County Economic Development Officer What Makes Your Project Unique? : The project was handled by two coordinating CDE's to construct a manufacturing project in a non-metro area that created sustainable stable jobs. Organization’s Name: Severn Peanut Company Website: http://www.hamptonfarms.com/ Main Contact: Jeffrey T. Vinson Email: [email protected] Phone Number: 252-585-1744 NDC Academy 2015 Job Creation Severn Peanut Company NDC Academy 2015 Job Creation Severn Peanut Company $ $ $ $ $ Mechanical Electrical and Plumbing Process Equipment Site Work Legal/Accounting Costs NMTC Advisor Fee Version: October 2014 Project Name: Severn Peanut Company Project Contact: Jeffrey T. Vinson Submission Category: Track II Job Creation 25,879,976 Total Uses of Funds $ 288,728 255,364 25,000 28,000 $ $ $ 4,250 60,000 370,505 666,459 10,200,000 6,811,776 7,149,894 20,000 Amount $ Reimbursement of CDE Fees 2013 NDC Interest and Expense Reserve Construction Interest NMTC Allocation Fee $ $ Buildings & Buildings Systems Surveyor $ Land Use Uses of Funds $ $ $ $ $ $ $ $ 25,879,976 513,364 8,052,395 20,000 30,217 2,655,120 1,953,000 6,111,000 6,544,880 Amount Total Uses = Total Sources Total Sources of Funds $ Severn Peanut Company (Other) Severn Peanut Company, Inc., Equity Severn Peanut Company Inc., Contributed Land Release from reserve ST CDE Equity (SunTrust) CDE Loan B (NDC) CDE Loan A-2 (NDC) CDE Loan A-1 (SunTrust) Source Sources of Funds PROJECT SOURCES & USES OF FUNDS NDC Academy 2015 Job Creation Severn Peanut Company
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