On the heels of Escambia County adopting an ordinance to establish an Economic Development Ad Valorem Tax Exemption (EDATE) for West Fraser, the sawmill company announced a $70.25 million expansion, creating 30 new jobs.
The board voted to approve the ordinance, which will give the Canada-based lumber company a 70% ad valorem tax exemption for a period of five years.
Shortly after the vote, FloridaWest Economic Development Alliance announced that West Fraser has invested $70,250,000 in capital expenditures to expand its existing sawmill operation in McDavid in Escambia County.
The expansion will create 30 new family-supporting jobs.
In the press release FloridaWest said the expansion demonstrates West Fraser’s continued investment in Escambia County, reinforces its long-term commitment to the region, and reflects confidence in the local workforce and business climate.
“Escambia County offers strong, attractive business fundamentals for long-term investment such as our McDavid lumber mill expansion,” said Chuck Watkins, West Fraser’s vice-president of capital and technology. “The area’s robust business climate, ample and sustainable fibre basket and skilled local workforce make it an excellent expansion opportunity for our McDavid lumber mill. Combined with quality community amenities and a long history in forestry, the region provides both the resources we need and a great place for our employees to live and work.”
FloridaWest said the expansion at West Fraser’s McDavid sawmill includes significant capital investment in new construction and equipment upgrades designed to enhance the facility’s production capacity and operational efficiency.
The project is expected to generate substantial economic activity across Escambia County, supporting local suppliers, contractors and service providers.
“West Fraser has been a valued employer in northern Escambia County and this expansion builds on their commitment,” said Steven Barry, Escambia County District 5 Commissioner. “Creating 30 new jobs with competitive wages in a more rural area of our community demonstrates our economic development efforts are serving the entire county, and I am proud to support it.”
Over the next five years, the estimate of the taxable value lost to the county is $70,252,000 improvements to real property, and $3,400,000 to tangible personal property.
Economic leaders says the county receives a greater long-term benefit from supporting the business, its expansion and the jobs it provides.
“West Fraser’s continued investment in Escambia County sends a clear message — our community is competitive on the global stage,” said Chris Platé, CEO of FloridaWest Economic Development Alliance. “Retaining and growing established employers is a cornerstone of our economic development strategy, and West Fraser’s decision to expand here is a powerful testament to the strength of our region’s value proposition for the forest products industry.”
This article originally appeared on Pensacola News Journal: West Fraser sawmill announces $70M expansion after Escambia grants EDATE
Reporting by Mollye Barrows, Pensacola News Journal / Pensacola News Journal
USA TODAY Network via Reuters Connect
