Halifax County Economic Development Director Cathy Scott told council before the hearing the project will mean a $48 million investment in building and equipment in the city and create 16 jobs at wages above its average weekly wage.
Under the economic development incentive grant council approved, the city proposes to pay $125,257.39 a year for five years, provided the company meet its job creation and investment commitments.
“It's a very needed project for our area,” Dan Brown, president of Halifax Horizons said during the public hearing.
“I think it's a good project,” Councilman Carl Ferebee said following the hearing.
Ferebee said the $250,000 per year the city will realize in tax revenue is worth the $125,000-plus the city will provide as incentive money.
Mayor Emery Doughtie was the only member of council to mention the project's ties to KapStone. “What I think makes this important is we have a very good (company) in KapStone. They've been a vital part of the community a long time.”
County commissioners earlier this month approved a similar incentive package.
The project will consist of taking down the existing KapStone log crane and installing two new cranes, a log conveyor and a new 36-by-80 building with a shop.
The project would additionally consist of a tunnel system — protected by a sprinkler system — under the chip conveyor.
The new operation is intended to improve efficiency by debarking more logs at a time and provide 80,000 tons of wood chip storage at a pile height of 90 feet. Those chips would have a rotator which keeps them moving to prevent the build-up of gasses.
Under the proposal, The Price Companies have a 20-year contract with KapStone and Price would operate the wood yard with its own hired employees.
